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Home » The Root Cause Of Bud Light’s Massive Second Quarter Sales Decline Wasn’t Dylan Mulvaney
Leadership

The Root Cause Of Bud Light’s Massive Second Quarter Sales Decline Wasn’t Dylan Mulvaney

adminBy adminAugust 3, 20230 ViewsNo Comments4 Mins Read
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For inclusive marketing to work for your brand, it needs to be rooted in your lived values. Bud Light is learning this the hard way.

Anheuser Busch InBev, the parent company of Bud Light reported a 10.5% plunge in sales in the U.S. for the second quarter. The brand has attributed much of this decline to the consumer boycott that came as a result of they Dylan Mulvaney scandal. In April, Mulvaney, a transgender influencer, posted a video of her Bud Light cans the brand gifted her with her face on them. Conservative consumers were outraged, and consumers in support of the transgender community were angered by Bud Light’s lack of response and failure to protect Mulvaney.

The consumer response has caused many marketers to be hesitant to engage in inclusive marketing. However, the problem here isn’t inclusive marketing, or even consumers responses to inclusive marketing. The problem for Bud Light, the consumers boycotting them, and even the consumers angered over other brands’ support of the transgender community comes down to values.

Data shows that 82% of consumers want the values of the brands they are shopping with to align with their own. When those values don’t align, three quarters of consumers report parting ways with a brand over a conflict in values.

Conservative consumers boycotted Bud Light because supporting the transgender community was in conflict with their values. People who are in support of the transgender community boycotted Bud Light because they didn’t stand by Mulvaney, and caused further harm to an already vulnerable community. Those actions (or non-action) was in conflict with their values.

But what about Bud Light’s values?

Bud Light Had a Long History Of Inclusive Marketing, And Showed Signs Of Returning To Those Roots

Weeks before Mulvaney’s social media post went live, Alissa Heinerscheid, Bud Light’s VP of Marketing that is now on a leave of absence, told a podcast host that the brand needed to evolve to be more inclusive and deliver truly inclusive and representative campaigns that attracted men, women, and younger consumers. She explained that the brand was already in decline and had been for a long time, and that there would be no future for it if their “out of touch” approach continued.

Although Heinerscheid’s vision of turning the brand around involved inclusion, the brand had already had a long history of supporting and including the LGBTQ+ community.

The brand has celebrated PRIDE month since 1995. Over the years they’ve produced commercials in support of gay marriage, drag queens, and the trans community. They’ve even financially supported LGBTQ+ non-profits over the year’s as well.

A look into the values and diversity policy of Anheuser Busch shows that diversity, inclusion, and belonging are part of their core beliefs. The company’s purpose is “to create a future with more cheers.” They further define that a future with more cheers is “an inclusive future” where “everyone belongs — where we can all be our true, authentic selves at home, at work, or in our communities.”

Anheuser Busch and Bud Light are no strangers to inclusion and belonging. But it seems somewhere down the line, that commitment to living their inclusive values, got lost. When it came time to stand up for those inclusive values, they didn’t.

Michael Doukeris, CEO of Anheuser Busch InBev says that Bud Light will recover as the brand focuses their efforts on activities and campaigns that have wide appeal such as football, music, and supporting military families. He added, “We continue to learn and we continue to move forward with the main activities we know that work everywhere.”

These aren’t the statements or actions of a brand that is focused on an inclusive future where everyone belongs. What works “everywhere” does nothing to reach out and support consumers who are underrepresented, underserved, and marginalized. It upholds the status quo, prioritizes dominant groups, and does nothing to extend empathy, support, and demonstrate belonging to the people who are most often left out and excluded.

If you want to be an inclusive brand that grows by attracting and retaining a diverse customer base, then you’ll have to engage in activities that go beyond what “works everywhere.” You’ll have to turn your attention to those specific communities that are often excluded and ignored, and create products, experiences, and campaigns that show them over time that you see them, understand them, and that they do indeed belong with you.

You’ll only be able to engage in those actions consistently, when inclusion and belonging are part of your lived values, rather than just the words you post on your website.

Read the full article here

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