MBA-547 Group Assignment M4

September 6, 2021
Group F102

Swaroop Mulenahalli Kantharaju,

Pavan Ananda Thirtha Kondi,
Amiee Ernster,
Raymond Carl,
Suresh Suryadevara,
Anna Rekhert

Group F102 will conduct a cultural audit of Molson—a Canadian beer maker founded in 1786 and
headquartered in Montreal. Molson offers several lager and ale beers which are made from Canadian
ingredients. The company is iconic Canadian, using the same colours on its products as those of the
Canadian flag—red and white—and the maple leaf to associate strongly with Canada. Our aspiration
is to position Molson on the Indian market. Thus, the cultural assessment will be conducted,
considering how the company can align itself to successfully to penetrate the market.

Developing Cultural Positioning

Assessment of fit: While the alcoholic beverages industry in India has been dominated by spirits, beer
is emerging as the preferred alcoholic beverage for young Indians. Though compared to the global
average per capita consumption of about 30 litres, the per capita consumption in India still hovers
around two litres. However, the scope for growth in India remain positive given the climate, young
demographics and increasing disposable income [5]. The culture alignment in Canada is vertical
individualistic, wherein the culture in India is vertical collectivistic. The deeply rooted values of Molson
are those of helping the community by building rail roads, hospitals, giving back towards the
betterment of causes, etc [1]. These values align with the interest of both Molson and Indian culture,
wherein in India those at authority are expected to care for and give back to the general public. From
this perspective, Molson seems to have a cultural fit that reflects what Indians would consider values
close to their own.

Need to add cultural elements: Molson can add elements of Indian culture such as respect for elders
by addressing freedom fighters, incorporating Indian traditions such as its vibrant colours on the
branding. From the most successful beer brands in India, such as Kingfisher, it is evident that Indian
consumers value those beers that are strongly associated with its most loved sport—cricket and those
drinks that embody excitement, youth and camaraderie [2]. In terms of brand identity, Molson can add
these new values to appeal to the Indian consumer, and yet maintain its Canadian identity. Thus, the
mix of culture is not entirely a superposition or fusion, but rather an intersection of Western and
Indian cultural mixing.
 Spectrum of Culture Mixing Manifestation [7].

Using the “Spectrum of Culture Mixing Manifestation” model from Hao, et. all, the cultural mixing
manifestation would be Intersection (II). This would not create potential controversy that might be
associated with Fusion (V) or Superimposition (IV), but allows the brand the appeal to the target
segment’s (described below) desire to embrace international cultural elements. Because the target
segments have a specific need to embrace international culture, Juxtaposition (I) may be safe from a
controversy point of view, but it may not be enough to create the image of an international brand
from a local, Indian cultural frame of reference.

Cultural Positioning: Molson being a Canadian beer has its values assimilated to what is respected and
practiced in Canada, hence vertical individualistic values. Molson finds pride in being an independent
leader, while supporting social causes such as giving back to the community. For example, it founded
the Red Leaf project, which is committed to planting trees, cleaning up litter and removing invasive
species [1].

To position itself on the Indian market, Molson needs to segment the market, i.e., finding its consumer
base. By looking at the values carried by Molson, they could target both young consumer who strive
to be independent leaders and are open to trying international brands and experience a taste of new
culture, and mature consumers who value the component of respect and society. Molson could
choose markets where they can have a higher success rate on their pilot run, as it can give good
feedback on the responsiveness of consumers and understand accessibility to its target consumers.
Examples of such markets are bigger cities of India, such as Bangalore, Mumbai, Delhi, etc which have
high percentage of young population with high disposable income. This group is also willing to
embrace western lifestyle, try western brands. Once these are established and understood well,
Molson should add more flavours and values that give it a sustainable competitive advantage to keep
it afloat in this new market.

Designing Communication Strategy

Brand visual identity: To represent the brand with both Canadian and Indian components, Molson
can continue to use the red and white colours of the Canadian flag along with the maple leaf on it, but
add a component of India on the brand such as its link to cricket or an image of the landscapes of
India. It would also be wise and will have more impact if Molson uses a famous cricketer to promote
the brand via advertisements. Another connection that can be made between Canada and India is the
love of both countries for hockey. Canada is known worldwide for its great hockey teams, and Indians,
surprisingly, love hockey. Advertisements using this sport or spokespeople that are related to hockey
is a great way to show that Molson is a Canadian company that’s close to India.

Communication strategy: It is very important to use the regional languages along with English to get
the consumers close to the brand. It important to understand that India is a nation of many languages,
and it is necessary to use relevant languages in different states to promote the brand for all of the
nation’s ethnical groups. There are regional identifiers and differences in the diverse country as well.
Across every different state, the brand should use a component of the culture that the ethnical group
is most proud of. An example is showcasing how the beer can be used when one is touring around the
Thar desert in Rajasthan, while it can used for a business dinner in Bangalore or after hectic day of
work in Mumbai. This can have a major positive impact on the consumers in the specific regions or
tourists travelling to the regions. Molson could use regional personality like the movie stars in
campaigns. Molson could also partner with a cricket tournament like the Indian Premier league,
accelerating and pinpointing it’s reach to the targeted consumer. Such an alignment will appeal to the
culture of the Indian consumer, making Molson seem more Indian, while at the same time giving it a
sporty Western edge.

Channel & pricing strategy: Considering India’s large population and its great economic variation,
Molson should offer its beer at various serving sizes and alcohol content. One thing that could become
the brand’s signature, is what it currently does in Canada, which is offering different size packages that
correlate to the different number of calories in those packages. Over 85% of beer sold in India is
strong—with an alcohol content of 6% to 8%. Young Indians are willing to try low or no alcohol beer
as concerns around health sway their decision to pick alternatives to strong beer [6]. The younger
Indian population is becoming ever more concerned with how many calories it consumes, and there
is currently no brand on the market that offers different serving sizes for different calories. The brand
should remain mindful that across India, the income varies significantly and thus should have assorted
options to serve relevant consumers. Molson could compare the pricing of existing successful beer
brands across various regions in India and set prices that match or beat them, so as to persuade
consumers into trying Molson beers.

REFERENCES:

[1] ‘The Story Behind the Label’ Molson. Retrieved on Aug 30, 2021, from
https://www.molson.ca/en-CA

[2] ‘About Us’ United Breweries. Retrieved on Aug 30, 2021, from
https://www.unitedbreweries.com/our-brands

[3] ‘Section 3: Canadian Values’. Retrieved on Aug 30, 2021, from

https://www.canada.ca/en/department-national-defence/corporate/reports-publications/duty-
with-honour-2009/chapter-2-statement-of-canadian-military-ethos/section-3-canadian-values.html

[4] Carlos Torrelli (n.d) ‘Global Impact: Cultural Psychology’, Coursera. University of Illinois at Urbana
Champaign.

[5] ‘Second COVID wave hits Indian beer industry, outlook is volatile: UBL’. Retrieved on Sep 03, 2021
from
https://economictimes.indiatimes.com/industry/cons-products/liquor/second-covid-wave-hits-
indian-beer-industry-outlook-is-volatile-
ubl/7articleshow/84825063.cms?utm_source=contentofinterest&utm_medium=text&utm_campaig
n=cppst
[6] ‘Over 40% of young beer drinkers willing to switch to low/no alcohol beer: study’. Retrieved on
Sep 03 from
https://www.livemint.com/news/india/over-40-of-young-beer-drinkers-are-willing-to-switch-to-lna-
beer-says-study-11600941590176.html

[7] Hao, J, Li, D., Peng, L., Peng, S., & Torelli, C. J. (2016). Advancing our Understanding of Culture
Mixing . Journal of Cross-Cultural Psychology, 47(10), 1257-1267.