Case Study: The ever-expanding brand Miller Lite
QUESTION NO 1:
Write a Summary of the case. Secondly, describe what went wrong. What suggestion do you
give as a brand manager?
ANSWER:
Summary of the Case:
In the 1970s, the Miller Brewing Company faced a branding challenge with its core brand, Miller
High Life, which had been marketed as 'the champagne of beers.' To broaden its market share,
Miller had feminized its brand, but this move had unintended consequences. To address this,
Philip Morris, the owners of Marlboro, acquired Miller and decided to rebrand Miller High Life
with a more masculine image, leading to increased sales. However, Miller introduced Miller Lite
as a low-calorie beer, which became very successful but contributed to the decline of High Life.
Over the years, Miller continued to introduce new brands and variations under the Miller name,
which confused consumers and eroded brand coherence. In 1996, they launched "Miller Regular"
to simplify their brand portfolio, but it failed to make an impact due to brand saturation. The case
highlights the importance of brand coherence and focus, suggesting that too many variations can
dilute a brand's identity.
What Went Wrong:
Several factors contributed to the branding challenges faced by Miller:
Lack of Brand Focus:
Miller's attempt to appeal to different market segments with various brands and variations led to
a lack of brand focus. They struggled to define a clear identity for their core brand, confusing
consumers.
Brand Saturation:
The introduction of numerous Miller brands and sub-brands saturated the market, making it
challenging for consumers to distinguish between them and select a preferred product.
Ineffective Brand Launch:
The launch of "Miller Regular" failed to create a distinct identity because consumers perceived
it as just another variation of Miller beer. It didn't stand out in the crowded market.
Brand Erosion:
By expanding the brand extensively, Miller risked alienating its core customers and lost the
coherence of its brand identity. Their focus on short-term trends rather than long-term brand
building further exacerbated the problem.
Suggestions for a Brand Manager:
To address the branding issues faced by Miller, a brand manager should consider the following
suggestions:
Simplify the Brand Portfolio:
Reduce the number of brand variations and focus on strengthening the core brand. This
simplification can help consumers understand and connect with the brand more effectively.
Define a Clear Brand Identity:
Clearly define the brand's identity, values, and unique selling propositions. Ensure that all
marketing efforts align with this identity to create a consistent brand image.
Strategic Brand Launch:
When launching a new brand or variation, ensure it has a distinct identity that adds value to the
existing portfolio. Avoid launching products that appear as mere extensions of existing brands.
Long-term Brand Building:
Prioritize long-term brand building over short-term trends. Consistent messaging and
reinforcement of brand values will help create a strong, enduring brand.
Market Research:
Conduct thorough market research to understand consumer preferences and market dynamics.
Use this data to make informed decisions about product offerings and brand strategies.
Clear Brand Communication:
Communicate the brand's identity, values, and benefits clearly to consumers through marketing
campaigns, advertising, and packaging.
Focus on Differentiation:
Differentiate the brand from competitors by highlighting unique features, quality, or customer
experiences.
By implementing these suggestions, a brand manager can help Miller regain brand coherence,
strengthen its core brand, and navigate the complexities of a competitive beer market.
