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									Anheuser-Busch

150 Years of Innovation and
  Responsible Decisions: A
 Successful Marketing Mix

          Team Members:
Voltaire Diaz, Jeff Patsy, Chris Hudec, Steve
              Shang, Pawan Seth
         Michael Guttovz, Anil Palaha
      A Brief History
2002 marks their       Anheuser-Busch
150th anniversary.     today
Eberhard Anheuser         Beer
Adulphus Busch            Family Entertainment
                          Packaging and
Obstacles                  Recycling
   World War,
    Prohibition, The
    Great Depression
           PRODUCT

RECENT TRENDS
 Shifting demands of consumers
    - rejection of mass-marketed goods
    - creation of specialty products
 Abandonment of loyalties to single brands

    - increased need for “occasion
      marketing”
    PREMIUM BEER
BUDWEISER
• responsible for outselling all other domestic
    premium beers combined
BUD LIGHT
• most successful introduction in company
    history
•   industry’s number one light beer
      SUPER-PREMIUM
MICHELOB FAMILY
   High end beer targeting those who value
    quality
SPECIALTY BEERS
• Growing demand of consumers willing to
    spend more for quality
•    Attempt by company to micro-segment
     market
   MALT BEVERAGES
High Growth Market
• Trend towards younger consumers
• Segment could reach 10% of beer market
• Has lead to an expansion in product offerings
  and creation of specialty malt products
   •   Includes Bacardi Silver, Tequiza and Doc’s Otis
       Hard Lemon Malt
     NON-ALCOHOLIC
Aging population
   Many over age 55 are choosing not to drink
    alcohol related products
   Lead to expansion of non-alcoholic beers
     •   Includes Busch NA, O’Doul’s and O’Doul’s Amber

Healthier Lifestyle
   Move by consumers towards healthier, less
    alcohol related lifestyle
   Migration toward low calorie light beer
      NON-ALCOHOLIC
NEW MARKETS TO CONQUER
• Growing alternative beverage segment
    including energy drinks
•   Launch of 180
         Positioning:
Maintains its leadership position in the global
beer industry.
  Continue being a brand that is:
   refreshingly different from local brands,
   with its clean, crisp taste and
   high drinkability;
A premium-quality beer, made for more than
100 years using an all-natural process and
ingredients
Well known as a world-class sponsor of
sports and entertainment events;
Proud of its American roots
The world's best selling beer.
Branding Strategy
Individual Branding: provide each
beer its distinctive name.
Advantages
  Individual brand reduces the
    company’s risk in that a failure is
    not readily associated with the
    firms other products.
  It enables the company to
    compete via multiple entries
    within the same product class
Managing Product Lines
 for Customer Appeal
      Profitability
Line Filling Strategy:    Line Extension
  Strengthened           Strategy:
   product lines by         Anheuser Busch has
   introducing products      introduced Non
   within the present        Alcohol Brews and
   range.                    Malternatives to its
  This has made             product list, hoping
   significant               to cash on this
   contributions to the      segment of the
   profitability of the      market.
   company.
                PRICE
Anheuser Busch’s Pricing Objective
 Maintain Quality
 Product Differentiation

Corporate Values Taken Into
Consideration
 “Quality in everything we do”
 “Exceeding customer expectations”
 “Trust, respect & Integrity in all of our
   relationships”
 Domestic Market Share




    Other
    21%


                    Anheuser-
                     Busch
                      49%
Miller
19%

         Coors
         11%
        Average Retail Prices of Anheuser Busch Products vs. Competitors
                                       Anheuser-Busch Products
                     Budweiser Michelob    Busch          O'Doul's                     Natural

Price per 12 pack    $       9.29 $     10.29 $          7.79 $               7.29 $        5.99
( In bottles )

                                       U.S. Based Competitors
                         Miller       Coors Rolling Rock Milwaukee's Best

Price per 12 pack    $       8.99 $       8.69 $         9.49 $               5.99
( In bottles )
                                       Foreign Competitors
                         Corona     Guiness     Labatt               Molson

Price per 12 pack $         13.49 $        7.99 $          9.79 $              9.79
( In bottles )
* Average prices taken from a survey of three major retail outlets in Michigan
               PRICE
Reasons Behind Premium Pricing

1. Generation of sufficient revenue

2. “Price-Quality Effect"
    - Price exclusivity
    - Prestige
             PRICE
 Advantage Over Imported Beer
- Lower price
- Better value per dollar
- Well established brand awareness
       PROMOTIONS
INDUSTRY REGULATIONS
 Beer Institute Advertising and Marketing
  Code
 College Marketing Code

PUBLIC RELATIONS
 AB Reputation
 Industry Reputation
    INDUSTRY REGULATION
Beer Institute A&M           College Marketing
Code                         Code

   Voluntary Membership        Self-imposed code for
   Three Basic Principles       Anheuser-Busch
   13 A&M Guidelines           Event Sponsorship and
                                 Promotions
      PUBLIC RELATIONS
 Early 1900’s print
campaign – “Budweiser
means Moderation”

1982 – “Know When to
Say When”

1989 – Consumer
Awareness &
Educational Department
           PUBLIC RELATIONS
CURRENT PROGRAMS
   Preventing Underage
    Drinking – 3 programs
        Family Talk About Drinking,
         Operation ID and Caring
         Connections
   Promoting Responsible
    Drinking – 4 programs
        Great Party Guide, TIPS,
         Good Sport and Bar Code
   Preventing Drunk Driving
    – 3 programs
        Safe Ride Home, Boating
         Safety and TIPS
     Program Results
 % of high school seniors drinking is
down 29% since 1982.
 % of college freshman that drink beer
frequently or occasionally is at an all
time low.
 The number of people killed in drunk
driving accidents is down 37% since
1982.
    Channel Distribution
3 TIERS OF THE BEER INDUSTRY
 BREWERS
 WHOLESALERS
 RETAILERS

Wholesale Is The Biggest
Distribution Channel
2,300 Licensed Independent Beer
Wholesalers
12 A-B U.S. Breweries
   Domestic Positioning

Premium Quality
Refreshingly Different From Others
All-natural Process And Ingredients
Maintain Signature Taste Globally
Promoting The Proud American Roots
Sponsorships Of World-class Sports
And Entertainment Events
          Global Market
Anheuser-Busch International Was
Established In 1981
 Contract and License-Brewing
  Partnerships
 Beer Export, Sales, Marketing

 Distribution of the company's beer
  brands in international markets
 Equity Partnerships With Brewers
  Around The World
      Global Positioning
High-potential-growth / High-margin Markets
Be the world's beer company
Enrich and entertain a global audience
Argentina, Canada, China, Ireland, Italy,
Japan, Philippines, South Korea, Spain, and
United Kingdom
International Operations Quadrupled 2001
Not Germany, Yes Latin America and China
A-B sells beers in more than 80 countries
      State of the Industry
Industry Growth Pauses
Shipments Are Expected To Hold Near 2000's
National Economic Slowdown And The
Aftereffects Of The September 11
Consumer Interest In A Wide Range Of Beers,
Ales, And Other Beverages
Microbreweries And Brewpubs
A Strong U.S. Economy And Demographic
Changes Should Propel Domestic Sales
   Recommendations

Keep doing what you’re doing
Anheuser-Busch!
Remain innovative and creative.
  The End!

WWW.ANHEUSER-BUSCH.COM

								
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