Molson canadian case study

908A14 MOLSON CANADA: SOCIAL MEDIA MARKETING1 Israr Qureshi wrote this case under the supervision of Professor Deborah Compeau solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2008, Richard Ivey School of Business Foundation Version: (A) 2017-05-04 On November 23, 2007, the Molson brewing company pulled its promotion on Facebook, after numerous complaints that it promoted binge drinking. The promotion in question involved a photo contest targeting 19- to 24-year-old college and university students. The failure of this promotion on a social networking site forced Molson to think hard about its strategy vis-à-vis social media. What should be Molson’s next move? How should it handle one of the fast-emerging marketing channels? Should Molson use the social media for any commercial activities? MOLSON COMPANY The Molson Company was founded by John Molson in 1786, in Montreal. It was the second-oldest company in Canada, preceded only by the Hudson’s Bay Company. Molson Canada was part of the Molson Coors Brewing Company. At 41 per cent market share by volume in 2006, Molson was Canada’s most preferred brand, slightly ahead of Labatt beer. Worldwide, Molson had 3.8 per cent market share, placing it fourth behind InBev NV, Anheuser-Busch and SABMiller. Molson offered a range of brands in Canada, including Molson Canadian, Coors Light, Rickard’s Red and Pilsner. Molson Canada also partnered with other leading brewers to offer such brands as Heineken and Miller Genuine Draft. Molson employed 3,000 Canadians and operated six breweries, including the boutique brewery in Creemore, Ontario. Molson Canada invested in communities from coast to coast through its various charitable initiatives and through sports and entertainment sponsorships. It was proud to be a socially responsible company, which was reflected in its code of conduct: As a manufacturer of alcohol beverages, Molson Coors is committed to promoting legal and responsible decisions about drinking our products. In our sales and marketing practices, Molson Coors promotes the responsible use of our products by adults of legal drinking age. The Company makes every effort to avoid even the appearance of condoning 1 This case has been written on the basis of published sources only. Consequently, the interpretation and perspectives presented in this case are not necessarily those of Molson Canada or any of its employees. This document is authorized for use only by Jennifer Armatis (JARMATIS1973@GMAIL.COM).