Miller Redrafts Marketing
Miller Brewing Co. restructured its sales and marketing division in July and abruptly replaced its ad agencies two weeks later in an effort to regain momentum lost over the last two years.
The moves were part of a shift in marketing strategy to a more focused brand message and fewer, bigger promotions with retailer-specific overlays.
Miller moved its estimated $95 million Miller Lite ad account to Ogilvy & Mather Worldwide, New York City, from Fallon McElligott, Minneapolis, and its estimated $60 million Miller Genuine Draft account to J. Walter Thompson, New York City, from Weiden & Kennedy, Seattle (which keeps Miller High Life).
A scrupulous analysis of promotion work is likely underway, but it’s unclear whether Miller will review its promotion business at Zipatoni, St. Louis, or events account at GMR Marketing, New Berlin, WI.
Miller’s internal staff shuffle was the first major change under president John Bowlin, who took the helm in May with senior vp-marketing Bob Mikulay and senior vp-sales and distribution Jim Mortensen, a team credited with aligning branding with sales at parent Philip Morris.
Miller reassigned brands, realigned marketing functions, and formed a market research and analysis group under the direction of corporate veteran Stuart Fuller, who spent 15 years handling brand management and market research at Philip Morris.
Most significant to the promotions business is the appointment of Rob Olejniczak to group director oflocal marketing and promotion services. He had been director of consumer marketing. Olejniczak’s mandate is to bring consistency to Miller’s marketing efforts nationally. At the same time, Steve Buerger becomes group director of media and event marketing.
For now, Miller continues to work with Zipatoni and GMR, and won’t comment on plans for a formal review. Bowlin “is very busy working on distributors and reengaging wholesalers,” said spokeswoman Susan Henderson before the advertising reassignments were announced.
Bowlin moved from Miller to sister company Kraft Foods as president-ceo in 1993 to shape up sales and marketing as Kraft merged operations with General Foods. Ogilvy & Mather and JWT have long histories working on Kraft brands.
On Miller’s brand side, group brand director Rich Lalley takes charge of new products and Miller Lite, replacing Mike Johnson, who becomes group brand director for Miller High Life, Red Dog, Meister Brau, and a handful of other brands including some recently acquired from Pabst Brewing. Chad Vincent will oversee Miller Genuine Draft to replace Bruce Winterton, who resigned as brand director for MGD and Miller High Life.
In sales, Mortenson formed Miller’s first trade marketing department, tapping Jeff Hembrock as vp-trade marketing. Hembrock, who had been director of sales development, will oversee pricing, promotion, logistics, and sales training.
Miller has been under pressure from distributors and retailers to improve marketing. Its summer promo for Miller Lite, “Instant Summer – Just Add Beer,” held its own despite little ad support. Retailers who carry Lite got a Miller-only issue of Sports Illustrated swimsuit highlights. The 48-page book was additional revenue for retailers whether they normally sell SI or not.
Separately, Miller broke a six-month joint promotion in July with CDNow and Interscope Geffen A&M Records. Packs of Miller Genuine Draft, Genuine Draft Light, and Miller Lite, carry a code that consumers can use to access cdnow.com/miller and create a custom CD for $7. Consumers over 21 use their on-pack code to choose up to 10 songs from Interscope Geffen A&M artists. CDNow fulfills. Packaging carries the tagline, “Make your own custom CD . . . Get the code. Pick the cuts. Make the music.” MGD also planned to distribute 100,000 code cards at summer events as part of its MGD Blind Date concert series.
