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Despite no longer being a beer drinker, my focus for this report is on the marketing of Budweiser beer, which is brewed and distributed by the Anheuser-Busch Corporation, headquartered in St. Louis, Missouri. I am specifically interested in their television ads and will analyze the company's main criteria for product naming as well as potential marketing opportunities.
In 1860, Adolphus Busch gained controlling interest in a local brewery in St. Louis with the goal of creating a beer that would appeal to all Americans.
This led to the creation of Budweiser. Although the exact origins of its name are unclear, it was introduced to the market in 1876. Unfortunately, due to its early beginnings, there is limited information available regarding other screening criteria like ROI or nature of business limitations apart from the initial challenge of establishing nationwide distribution for this "national beer".
Throughout the years, Budweiser's market environment analysis has gone through different stages. Despite initial difficulties, Anheuser-Busch successfully utilized technology by introducing the first fleet of refrigerated rail cars and implementing pasteurization to ensure freshness.
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These advancements allowed Anheuser-Busch to become the top global brewery, with Budweiser surpassing all other beers in sales. The political and legal marketing challenges faced by Anheuser-Busch are often interconnected with the cultural and social climate present in the market.
During prohibition, Anheuser-Busch expanded its business into different sectors including corn products, baker's yeast, ice cream, soft drinks, and refrigeration units. Presently, these matters are still connected to political and legal obstacles related to underage drinking and driving under the influence which result in fatalities and financial burdens.
To tackle these issues, Anheuser-Busch has introduced initiatives like the "Know When to Say When" campaign. Moreover, the company has diversified its holdings by venturing into the "non-alcohol" market, aluminum can industry, and even the family theme park market through Busch Gardens.
Anheuser-Busch has achieved success in customer analysis through effective market segmentation and meeting customer demands. Despite arguments that Budweiser should be seen as a necessary product, it is actually classified as a convenience item. The strong branding and customer loyalty contribute to the success of Budweiser. While most beer brands fulfill consumer needs as regularly purchased alcoholic beverages with minimal effort required, Budweiser differentiates itself through strategic pricing, placement, promotion, and product branding. By understanding its customers' needs and establishing a global presence, Budweiser remains the leader in the worldwide beer industry.
Anheuser-Busch, a dominant force in the U.S. market, is now facing intense competition from the international market. To cater to the increasing global demand for American beers, Anheuser-Busch has collaborated with foreign rivals such as Mexico's Corona Brewery. Moreover, it has also expanded its footprint in the specialty beer sector by introducing seven other significant brands. Nevertheless, challenges persist when it comes to distribution as local breweries endeavor to impede the proliferation of Anheuser-Busch brands within their respective regions.
Anheuser-Busch, a company, has a vision statement that emphasizes the importance of bringing enjoyment to people's lives through their products, services, and relationships. Their mission is to become the leading global beer company by providing entertainment and enrichment to a worldwide audience while generating high returns for shareholders. Anheuser-Busch currently holds the title of being the largest beer manufacturer, distributor, and marketer in the world. A SWOT analysis reveals that they have a strong market position with few weaknesses and numerous opportunities for global expansion. The only potential threat they face is social and cultural in nature; however, it will take many years for this threat to significantly impact Anheuser-Busch. Furthermore, considering their diversification by that time period, any effects may be insignificant.
Anheuser-Busch's marketing information should primarily focus on the rapid changes in consumers' attention span and tastes. Their proficiency in delivering promotional "gimmicks" to consumers reduces the necessity for statistical data derived from models. However, gathering research data for new overseas and foreign markets remains crucial due to Anheuser-Busch's global position.
Budweiser is considered a consumer convenience product and has been in the maturity phase for over a century. Anheuser-Busch's continuous efforts to enhance Budweiser, introduce new variations, and ensure quality and consistency may keep this product in the mature stage of its life cycle for many years to come. Anheuser-Busch employs a promotional or warranty approach called "Born On Dating", where production dates are printed on bottles to indicate freshness. Occasionally, newly improved Budweiser is initially released in limited markets for consumer feedback before being distributed nationwide.
Anheuser-Busch faces its main competition in the branding field from sister products such as Bud Light or Bud Ice. In terms of packaging, Budweiser is available in various forms: single servings in bars, cans or bottles, and packs of six, twelve, or eighteen. It can also be purchased in cases of twenty-four or kegs. The most effective package for Budweiser is the promotional one because it appeals to their loyal consumer base who are attracted to gimmicks. Anheuser-Busch was a pioneer in aluminum can recycling, which showcased their commitment to both the environment and culture. Brewing remains Anheuser-Busch's primary focus and Budweiser was one of their original products.
During their early years, Anheuser-Busch used innovative distribution methods to establish Budweiser as a market leader. They focused on making the beer easily accessible to all consumers at a low distribution cost. To achieve this, they utilized refrigerated rail cars and relied on local, independent distribution centers. Nowadays, Budweiser is distributed worldwide using advanced transportation techniques and a combination of regional breweries and company/local dealers. Anheuser-Busch requires all distribution channels to electronically generate, place, track, and report transactions in order to eliminate paper trails. This approach ensures efficient inventory management along the product line with minimal storage needs.
Budweiser differentiates itself from its unimpressive competitors and excels in one area: advertising.
Adolphus Busch aimed to create a "national beer," and Anheuser-Busch utilized their logo as a promotional tool during the 1800s. The logo featured an intertwined large capital "A" with the American Eagle, which has remained unchanged for over 140 years. In today's fast-paced marketing world, this level of longevity is unprecedented, making its recognition remarkable.
In the early 1900s, Anheuser-Busch introduced what is now considered their trademark. At that time, horse-drawn wagons were commonly used for beer delivery in cities and were typically pulled by draft horses like Morgans. To promote their new red, white, and blue beer wagon in St. Louis, Anheuser-Busch acquired a matched set of Clydesdales. While the intention was to attract attention with the wagon, it was ultimately the Clydesdales that stole the spotlight.
The Clydesdales are now widely recognized in advertising and remain a prominent trademark. Budweiser frequently changes its television commercials, some of which have longer durations than others. Along with the Clydesdales, other memorable campaigns include the frogs saying "Bud" "Wise" "er," the frogs hitchhiking on the Budweiser truck, Louie the Lizard, the Ferret, the "Whazzup?" guys, and currently the "Whatchyadoing?" routines. Budweiser's current promotional strategy encompasses various media platforms such as radio, television, internet, and partnerships with MLB, NFL, NBA, Nascar, boxing, and many other sports events. It continues to be regarded as "The King Of Beers". Anheuser-Busch employs a mix of push/pull techniques in promotion, utilizing coupons, contests, and reward/rebate programs to stimulate sales. Distribution partners play a significant role in promotional efforts by ensuring products reach consumers efficiently.
The pricing of Budweiser can be considered highly competitive. Consumers have numerous options or alternatives to choose from, but they opt for Budweiser due to their loyalty towards the brand and the price similarities. In order to sustain its sales, Budweiser's price needs to stay close to that of its nearest competitor, with a slight variation. To elaborate, the costs involved in the supplies, production, and distribution of beer are nearly identical across similar products. As a result, marketing receives one of the largest budgets within Anheuser-Busch's business. Although there is minimal price fluctuation, Anheuser-Busch allows distributors to reasonably set the final price for consumers.
Since Budweiser is a well-established product, the only requirements for its implementation are focused on enhancing the product or creating related versions. The expenses that would carry the highest cost are research and development as well as marketing, since the distribution channels are already established.
Mr. D. Ramachandran, a representative from McKinsey & Co., a prominent marketing firm based in Toronto, Canada, believes that Anheuser-Busch has the potential to become a global leader in the beer industry. He draws parallels between their potential success and that of Nike and Coca Cola in their respective industries.
In the United States, Budweiser sales surpassed the overall industry growth rate with a 2.7% increase. Furthermore, Budweiser experienced an impressive 17% growth in foreign markets last year, indicating a promising future for both Budweiser and its parent company, Anheuser-Busch.
Anheuser-Busch dominates the U.S. market with a 48% share, surpassing its closest competitor's 19%. The company has experienced significant growth among young adults aged 21-27 and the Latino population. Anheuser-Busch has modernized all twelve of its U.S. breweries, resulting in increased capacity and cost reduction. Their effective advertising campaigns, extensive retail sales force, wide range of sponsorships, and responsible programs have contributed to establishing a positive brand image. By focusing on premium and above brands, Anheuser-Busch successfully appeals to consumers and has unlimited potential for growth. Additionally, they showcase their global perspective by expanding into overseas markets through acquisitions of foreign brands. In 1999, Anheuser-Busch introduced an incentive program exclusively for wholesalers handling their products; this program has been remarkably successful and outperforms all other brands in terms of sales.
This is a partial report from Bucknell University on the keys to success for a beer manufacturer. The report outlines the following factors, in order of importance:
The ability to adjust product lines and pricing structure in response to market changes, such as shifts in consumer preferences towards lighter or craft beers, price competition, and changes in disposable income, contributes to 25% of the overall marketing strategy.
The success of effective advertising is directly tied to the appeal of styling/packaging within the beer industry. The brand image plays a crucial role and accounts for 15% of the marketing strategy.
In summary, Anheuser-Busch's marketing strategy for Budweiser beer includes product, place, promotion, and price. This comprehensive package sets them apart from competitors in domestic and global markets. Anheuser-Busch excels across various sectors including breweries, non-alcoholic beverages, aluminum can manufacturing and recycling, malt and barley production, distribution and warehousing, as well as family theme parks.
Analyzing Budweiser's Marketing Success. (2016, Jul 13). Retrieved from https://studymoose.com/the-marketing-of-budweiser-beer-essay
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