Creating customers by making friends: Coors' Ivan Burwell brews a strategy for marketing success

Black Enterprise, Nov, 1995 by Shari Caudron

Today, every manufacturer is talking about the value of relationship-based marketing, of getting closer to customers by building market share one consumer at a time. Ivan Burwell, national program manager for Coors Brewing Co., doesn't understand what all the fuss is about. He's been doing this for more than 10 years.

Working in Coors' Community Relations Department, the 42-year-old Burwell directs all of the company's target marketing and corporate efforts aimed at African American consumers. The goal, as you might expect, is to build and maintain a market share--not an easy task in the no-growth beer industry.

Over the last decade, the number of beer drinkers has remained the same, while microbrews and new products have surged ahead in popularity. The Colorado-based Coors now brews 23 different malt beverages, including Coors Light, Killian's and Zima. In this environment, the only way to build market share is at the expense of the competition.

When Burwell joined Coors in 1983, the company was gearing up for national expansion. At the time, its products were distributed predominantly in the West. Burwell's challenge was to build an image for Coors among African American consumers, most of whom reside in the South and Northeast. "Our pristine, Rocky Mountain image meant nothing to the majority of black consumers," says the Philadelphia native. The problem was compounded by the fact that Anheuser Busch and Miller, the top beer producers in the country, had been nationally distributed for years.

But even in places where the Coors name was recognized by African Americans, Burwell had his work cut out. Racial slurs attributed to Chairman William Coors in 1984 had severely damaged the company's reputation. African Americans perceived the company as being racist and unconcerned with minority issues. In order to repair the company's image and establish a positive presence in the African American marketplace, Burwell concentrated on creating meaningful relationships with consumers. "We had to get to know each other and become friends before we could do business together," he explains.

Working with a multimillion-dollar annual budget, Burwell has gone about this task in three ways. First, he sponsors community events, such as concerts, sporting activities and arts festivals, that allow Coors representatives to work with local distributors, nonprofit organizations and the media. These activities not only give a "face" to the company, they show consumers that Coors cares about the quality of life in their communities.

Second, Burwell provides financial assistance to groups involved in social issues. For example, by working with Opportunities Industrialization Centers of America and other organizations, Coors has been able to provide literacy services to more than 550,000 people in the U.S. over the past five years. Third, he consults with Coors' brand managers to develop targeted advertising and promotions.

At first, black consumers were suspicious of Coors' entry into the African American community. After all, most of them had either no concept of the company or, if they did, it was negative. "It takes time to build credibility," Burwell says. "We had to show we were supportive of the community in the long run."

But if sales are a measure of Burwell's success, then his strategy has paid off. Ten years ago, sales of Coors products in the African American marketplace were negligible. In 1994, the market represented 6% of Coors' $1.6 billion in sales. Burwell is not resting on his laurels, however. "We will continue to invest in these relationships," he says.

Perhaps a guy who names his parents as role models is predisposed to developing caring, long-lasting relationships. Or maybe it's his education: a bachelor's degree in psychology and sociology, and a master's degree in public management, both from the University of Denver. More likely, Burwell understands that consumers want to do business with a company that cares about them. "I know it sounds warm and fuzzy, but if you have good relationships with consumers, your market will grow," he says. "If you don't, you are always fragile. You will always be vulnerable to the next highest bidder or the latest trendy product."