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

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Anheuser-Busch150 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

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A Brief History

• 2002 marks their 150th anniversary.
• Eberhard Anheuser
• Adulphus Busch
• Obstacles
• World War, Prohibition, The Great Depression

• Anheuser-Busch today
• Beer
• Family Entertainment
• Packaging and Recycling

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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

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PREMIUM BEER

• BUDWEISER
• responsible for outselling all other domestic
• premium beers combined
• BUD LIGHT
• most successful introduction in company
• history
• industrys number one light beer

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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

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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 Docs Otis
  Hard Lemon Malt

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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, ODouls and ODouls Amber
• Healthier Lifestyle
• Move by consumers towards healthier, less
• alcohol related lifestyle
• Migration toward low calorie light beer

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NON-ALCOHOLIC

• NEW MARKETS TO CONQUER
• Growing alternative beverage segment
• including energy drinks
• Launch of 180

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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.

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Branding Strategy

• Individual Branding provide each beer its
  distinctive name.
• Advantages
• Individual brand reduces the companys 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

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Managing Product Lines for Customer Appeal
Profitability

• Line Filling Strategy
• Strengthened product lines by introducing
  products within the present range.
• This has made significant contributions to the
  profitability of the company.

• Line Extension Strategy
• Anheuser Busch has introduced Non Alcohol Brews
  and Malternatives to its product list, hoping to
  cash on this segment of the market.

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PRICE

• Anheuser Buschs 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

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PRICE

• Reasons Behind Premium Pricing
• 1. Generation of sufficient revenue
• 2. Price-Quality Effect"
• - Price exclusivity
• - Prestige

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PRICE

• Advantage Over Imported Beer
• - Lower price
• - Better value per dollar
• - Well established brand awareness

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PROMOTIONS

• INDUSTRY REGULATIONS
• Beer Institute Advertising and Marketing Code
• College Marketing Code
• PUBLIC RELATIONS
• AB Reputation
• Industry Reputation

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INDUSTRY REGULATION

• Beer Institute AM Code
• Voluntary Membership
• Three Basic Principles
• 13 AM Guidelines

• College Marketing Code
• Self-imposed code for Anheuser-Busch
• Event Sponsorship and Promotions

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PUBLIC RELATIONS

• Early 1900s print campaign Budweiser means
  Moderation
• 1982 Know When to Say When
• 1989 Consumer Awareness Educational
  Department

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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

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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.

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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

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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

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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

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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

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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

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Recommendations

• Keep doing what youre doing Anheuser-Busch!
• Remain innovative and creative.

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The End!

• WWW.ANHEUSER-BUSCH.COM