How to Attract New Customers Without Alienating the Base :

A Case Study of Bud Light

Tobey Nesbit - April 11, 2023

The world is changing, and so are the preferences of consumers. Companies must evolve with the times if they want to remain relevant and attract new customers. However, this is easier said than done, as companies often risk alienating their base audience when trying to attract new customers.

This is precisely what happened to Bud Light, a popular beer brand when it launched a campaign featuring a transgender influencer. The campaign was aimed at the LGBTQ+ community, and it was seen as a way for Bud Light to attract new customers. However, the campaign backfired, and many of the brand’s core customers felt alienated and insulted.

According to Alissa Heinerscheid, vice president of marketing at Anheuser-Busch, Bud Light sales have suffered in bar sales, and grocery sales, and stocks went down 66.4 to 64.13 when the markets opened on 4/10/23. She acknowledged that the core audience was marginalized and called names by her, which made the situation even worse.

However, it is important to note that Bud Light’s campaign was also influenced by ESG (Environmental, Social, and Governance) factors. Consumers are now demanding high standards of sustainability and quality of employment from businesses, and regulators and policymakers are more interested in ESG because they need the corporate sector to help them solve social problems such as environmental pollution and workplace diversity. As a result, companies are under increasing pressure to address ESG factors that are material to their industries.

Alissa Heinerscheid had a clear job to do when she took over Bud Light: attract young drinkers to come and drink this brand. She believed that inclusivity was key to evolving and elevating the brand. However, the campaign featuring a transgender influencer caused backlash from some conservative social media personalities who attacked the company for turning to “woke” advertising. Supporters of Kari Lake, a Trump-backed GOP candidate for Arizona Governor in 2022, even refused to drink Bud Light at an open bar.

From a marketing standpoint, it is important for products that have a foundation or legacy to evolve with the times. However, this must be done in a way that does not alienate or insult the base audience. Bud Light’s campaign featuring a transgender influencer was a bold move, but it was not executed properly, and it ended up costing the brand dearly. Companies must be careful when trying to attract new customers, and they must take into account the values and beliefs of their core audience.

In conclusion, the case study of Bud Light’s campaign featuring a transgender influencer highlights the importance of evolving with the times while also respecting the values and beliefs of the core audience. Companies must address ESG factors that are material to their industries and attract new customers without alienating or insulting the base audience. It’s a delicate balancing act, but one that is necessary for companies that want to remain relevant and successful in today’s changing world.

Resources:

From Bud Light to Nike, Brands Are Facing Conservative Backlash for Featuring Trans People. Why They’re Sticking to Their Decisions

What the Bud Light backlash has in common with today’s Republican Party

How to Reach Your Target Audience

How to Identify and Attract New Target Audiences
Why a Bud Light Boycott in the U.S. Won’t Matter

Why ESG is here to stay

Bud Lightning Rod! Restaurant Owner Says Transgender Controversy Leading To Fights