MILLERCOORS? Who will target who?

On Tuesday it was announced that SABMiller and Molson-Coors Brewing Companies would form a joint merger at the end of 2007. Miller currently stands next to Anheuser Busch as the second largest brewer in the nation, while MolsonCoors trails at number three. Anheuser Busch will still retain the highest domestic market share at 49%, the new company to be called MillerCoors will now encompass 29% market share. Just two and a half years ago Coors and Molson Brewing companies merged to increase each's portfolio and distribution ability.

Now with a new board of directors comprised of executives from both companies (*SABMiller will hold 58% share of the company, while MolsonCoors will absorb 42%) there's the big issue of antitrust beerhouse backfire that some are speculating to occur, but the big issue that I see is going to be in their marketing ventures.
Granted Miller has a strong presence in the Midwest while Coors accrues a lot of revenue from the West, but are we still going to have the trio of brands at different levels competing amongst each other for the same demographic? No way.
Think about it, now under one beer company we have MAJOR brands competing against themselves in the same categories.

Miller Genuine Draft vs. Coors Original (I take MGD)
Miller Lite vs. Coors Light (Debatable)
Miller High Life vs. Keystone (High Life)
Miller High Life Light vs. Keystone Light (Kidneystone Light has the edge on this one)
and of course ZIMA vs. Miller Chill (Zima has better brand recall, but too bad nobody drinks it)
[All the dark beers as well as the imported ones we'll just put to the side for now.]

Anyways as far as sport marketing goes, what I feel that MillerCoors is going to need to do now is divide deeper into niche marketing with all of these brands. Granted they still must continue to pursue consumers in the geographic areas where they find their brand loyalty highest, but for example having Miller & Coors Lite facing off in the NFL head to head with Bud Light just won't work. In some sports there still needs to be an minimum level of marketing that must occur, but in order to take over Anheuser Busch's market share they need to focus on one brand in certain segments. For example: Let Coor's take over the majority of football marketing, as their contract as the National Football League's "Official Beer Sponsor" goes through the 2010 season. Coors Light also has NASCAR for the next five years, let them focus on that. Have Miller focus on baseball and college football instead. Give Molson and Coors hockey.

Not only will these provide more defined segments for the company, but it will help "cut through the clutter" with all the mass marketing messages going to consumers right now with advertising. With Anheuser Busch focused on its global expansion, especially in Asia, they might just catch up to the goliath while its looking the other way. It's about building the brand long term, not the short term sales. Hopefully, this is what we'll see going on in the next few years.