Innovative Planning Ideas for Miller

1. Innovative Planning Ideas for Miller June 2001

2. Purpose The purpose of this presentation is to provide an overview of tools available through Starcom to aid in the development of brand media strategies. These tools are intended to explore the mindset of the consumer in order to create synergies between a strategy and the consumer’s relationship with a product and or media.

3. Qualitative Tools: Merchants of Cool and Media Pathways • Merchants of Cool • Explores successful creative marketing techniques involving high impact qualitative data • Cool Hunting • Media Pathways • A savvy qualitative tool developed by Starcom to help clients understand their target consumers and how they interact with media • Proctor and Gamble successfully implemented Media Pathways for 2001 planning

4. Why use Qualitative Tools? • Our goals are threefold: • Incorporate these philosophies into 2002 planning • Conceivable benefit: Deepen awareness of who our consumer is and the effective media mix needed to reach them • Capitalize on progressive marketing techniques as we head into local market meetings • Better define the passion groups of the LDAC-27

5. Media Pathways Working for Miller • Develop deeper insight into the diverse media landscape of the consumers life • How they interact with and attend to media over the course of the day • Develop understanding of consumers media behavior, including secondary media • Understand their lifestyle, needs and interests • Develop new means of effective contact

6. Understanding the Lifestyle • Cool Hunting • Searching for a certain type of “personality” in a given social network • Discovering trends and their source • Distinguishing between people who start trends, “innovators,” and people who spread trends, “trendsetters” • This phenomenon is “originality” • Trendsetters are those who have the respect, admiration, and trust of their friends to influence specific social networks • Cool Hunting uses “culture spies” as the market researchers • Culture spies develop relationships with these trendsetters to get an in depth understanding of the “cool” culture • MRMs could have been utilized as “culture spies”

7. Taking the Media Savvy by Storm • Emerging importance of Cool Hunting • Consumers are more knowledgeable and aware of traditional marketing techniques • Need to market to these players without them knowing • Sprite and Hip Hop

8. Taking the Media Savvy by Storm (cont.) • Important to keep up with trends • The faster marketers pickup on what is “cool”, the faster it dies and a new form of “cool” is reborn • The gold shaded area represents companies, products and people that are considered “cool” by trendsetters • The red shaded area represents companies, products and people that were cool about a year ago and now the mass market is starting to follow suit • The blue shaded area represents companies, products and people that are no longer “cool”

9. How does a Trend Spread? Cool { Key Takeaway: Miller can ask innovators and trendsetters for the trends. Ultimately, it diffuses down itself! Create idea 2% Picks up on idea and claims it as their own Innovators 17% Trendsetters Makes “Cool” idea more palatable for mass consumption % Varies Early Adopters 80% Picks up on idea and runs with it Mainstream *Source “Merchants of Cool” website Kills Cool

10. The Feedback Loop • No clear dichotomy of media and consumer--both influence each other in the loop • Does the media mirror the consumer or does the consumer mirror the media? • Miller Lite as the football beer • Miller could benefit from identifying the innovators and early adopters and take their lead • The media, chosen by Miller, will reflect the consumer’s lifestyles; closing the gap on the feedback loop Media Feedback Loop Consumer

11. Snapshot of Media Pathways • Based on qualitative survey (questionnaire and impromptu conversations) given to twenty A21-27 in the Chicago-land area • Goal of survey is to remove beer drinking biases in hopes to find new and innovative ways to reach viable niches within the consumers market

12. The Skinny on Beer Drinkers… the Hypothesis... • What are these people doing and who are they? We found these personalities emerging: • Miller Lite • “Calorie Counters” • Men and Women • Health conscious - Lite vs. full calorie • Fun/ spontaneous • Social drinker - supported by “events” • Image oriented • Gregarious/ life of the party • MGD • “Music Junkie” • Essentially MGD has identified this target, but could improve upon method of reach • Heavy music goers - heavy listeners and attendees of rock, hip-hop and purchasers of music • Progressive music tastes - setting precedent for “cool” music groups • Digitally inclined - on the cutting edge of high technology

13. The Skinny on Beer Drinkers… the Hypothesis…(cont.) • High Life • “Action sports buff” • Free-Styler • Interested in skateboarding, snowboarding, skiing, sports climbing, street ludging, wakeboarding, sky surfing, BMX, motorcross/ supercross, free style motorcross • Extremist/ Risk Taker • Mocker of “cool” -- it is “cool” because it is so un-cool • Maverick, thrive on adventure, thrill seekers • Listener of non-mainstream music, sometimes very hard to find in stores • Motto: “I don’t like a lot of rules.” • Companies loyal to: Shift, Vans, Fox Racing, Spy, LBZ and Alpinestar • Caveat: Underage composition -- how to get around it

14. The Skinny on Beer Drinkers… the Hypothesis…(cont.) • High Life (cont.) • Blue Collar Drinker • The consumers drink High Life because it is not the norm for their demographic • The “Action sports buff” is a second niche to the established High Life drinker • The first niche is needed for the second to exist

15. How do we Apply Media Pathways? • Use traditional media in non-traditional ways • Emerging technology (such as TiVo and Replay TV) is changing the media landscape • Presenting sponsorships • Product placement • Get savvy about promotions - the latest craze • Enhance existing Miller promotions • Test Market: Upgrade an existing MGD Chicago promotion by hosting event at a trendy venue like “Doubledoor”

16. How do we Apply Media Pathways? (cont.) • Themes • Beer as a badge • Create brand identity that the consumer will be proud to be associated with • Different “Miller Times” • After work hours • Leisure activities • Key “Miller Appointments” • Super Bowl • Oscar’s/ Grammy’s - Pre and Post • Daytona 500

17. How do we Apply Media Pathways? (cont.) • High-Voltage Marketing • Street marketing • Increase brand awareness and develop personal interface with the consumer via grassroots events--convergence of media and events • Give the consumer an unforgettable experience that will last a lifetime • MBCo. can create a more intimate relationship through experiences rather than building a relationship through traditional media (seeing a TV commercial) • Ex. “Genuine Opportunities” during The Taste of Chicago, Octoberfest, Jazzfest etc… that a consumer couldn’t get anywhere else

18. Media Pathways is the Tool to get this Savvy Data • While IMS, MRI give great qualitative data, it is not enough • Media Pathways offers a four stage qualitative process

19. Through Media Pathways--Ideas Start to Come to Life Defining what our consumers key moments are is colossal Planning should be based on these findings, eliminating “conjecture” in scheduling

20. The Four Stage Process • One day diary--documents activities, product usage and media usage over the course of a day • Focus groups • A unique emphasis • Understanding media involvement exploring lifestyle and category related media opportunities • Diary forms basis of discussion • In home interviews • Real behavior in a real world setting • A lot like Merchants of Cool “culture spies” who went into teens homes to conduct research • Exercise and discussion--summary of diary experience

21. Changing the Rules of Marketing • Paradigm shift--media giants control media marketplace • How can Miller become partners with a behemoth media giant as Clear Channel (market brands accordingly) • Radio • Internet • Eller Outdoor • SFX • Synergistic approach: cross-platform marketing package • MBCo. could improve their fluidity across mediums • Companies like Clear Channel are leading the cross-platform marketing trend, making it important to partner with them

22. Winning in the 21st Century • “Cool Hunting” is a revolutionary new way of richening strategies • More texture • More insight--adds compelling qualitative data to quantitative • Grounded in consumer insight • “Cool Hunting” is important because it intends to marry a corporation and a culture • As consumers become more educated and increasingly aware of marketing techniques, MBCo. needs to reach them by using non-traditional, savvy approaches • Move forward with action plan in test markets • Initiate a research program using “Media Pathways” in select Miller markets

23. Appendix • Questionnaire • Acting as "Culture Spies”