E-Malt.com News article: New Zealand: Lion Nathan shifts to new ways to reach customers

Lion Nathan adopted a new advertising approach looking to avoid expensive advertising campaigns and to personalise the link between its products and the customers, New Zealand Herald posted October 30.

In a move that coincides with parliamentary reviews of liquor laws, including threats to further limit beer advertising on TV, Lion is looking at new ways to reach customers.

Lion Nathan group marketing director Arno Lenior said consumption went up in summer, which is a focus for marketing activity, but Lion was shifting focus away from big-budget beer commercials into developing consumers relationship with brands.

"Mediums like TV do get us through to a lot of people but it is expensive in production costs and in buying media," he said.

"Marketing beer is also about targeting consumers through packaging and developing consumers' relationship with a brand. It's about the brand talking to consumers."

Lion is on the point to relaunch the Mac's brand. It is an example of the trend for low key marketing, alongside the development of Mac's-branded pubs.

The third Mac's Brew Bar opened in Newmarket, Auckland, in August joining those in downtown Auckland and central Wellington and is a key part of increasing the profile for the beer. The relaunch is aiming to increase Mac's market share beyond 7 per cent.

Lenior says the Mac's pubs are a key part of marketing for the brand because "they bring the brand to life" allowing customers to develop a personal conversation with the brand.

Lion planned to roll out more Mac's pubs in the future.

Packaging is also a key part of the new marketing approach for Mac's as it has been for other Lion brands.

During the past few years, brewers in New Zealand, the United Kingdom and the United States - but not Australia - have extended the size of the take-home beer offerings.

Where once consumers had a choice of either a six or 24 pack, they can now buy many brands in packs of 12, 15 and 18 units.

Lion's main rival, DB Breweries, is tapping into the market for take-home draught beer. From December, selected outlets will offer a five-litre aluminium keg of Heineken - an upscale version of the traditional Kiwi keg of beer.

DB marketing general manager Mark Davidson said the kegs would be available from selected supermarkets.

He said the kegs had sold well in Europe and were trialled successfully in Australia last year.

At $39.95 for five litres, the disposable kegs were a premium beer product, more expensive than buying bottles or cans.

The keg has been aimed specifically at social gatherings such as summer barbecues or groups of people watching sport on television.

Lion has no plans to produce kegs for its premium brand, Stella Artois, although it has looked at the idea.

"Our view is that it is a nice novelty but if people want a cold draught beer at its best they could go to the pub," said Lenior.


01 November, 2006