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March 2007

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Dennis D. Balajadia

San Miguel Beer dominates the beer category with more than 90%+ market share in the Philippines.

They successfully launched San Mig Light and together with the short term profits led to decrease in San Miguel's 'macho-ness.'

With the lack of strong competition I would agree to their decision to launch the Light beer but several months have passed and I still don't know why they launched San Mig COFFEE.

Pure brand madness.

Laura Ries

I agree, Miller Lite is the strongest brand Miller has. But it suffers because of the Miller name. The Miller name has been line extentend to near death. And Miller Lite fell to Bud Light. The leader's line extension will always beat the number 2's line extension, even if it was first. What Miller needed to do was give Lite a decent name to begin with!

Santitas and Adam's are two excellent examples of big companies that have launched new brands brilliantly. Thanks!

Ethan

I would contend that Miller Lite was the single strongest brand they've had. It was at its peak when "Tastes Great - Less Filling" became a public chorus. Its name and position were both well known. That almost-long-lived campaign even infused the product with manliness (big dudes pounding on tables arguing only two words at a time ("Tastes Great" or "Less Filling"). This position was simple and memorable.

Their cancer of extension is more in MGD, Regular, Clear, Reserve, and the Lites thereof. The effort required to create and support each of those as Miller products is suffocating, expensive, and (most importantly) futile.

Regarding the typical Toyota/Lexus arrangement (create new brand name to get into new territory - Reliable vs Luxury), I've many similar examples in the grocery store. Here are two:

Ex 1 - Santitas - a "homemade," "authentic" tortilla chip straight from the Frito Lay factory (tiny print on back of bag).

Ex 2 - Adam's - a natural peanut butter (strictly peanuts and salt) from Smuckers (again, only known from tiny print on back label).

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