INTRODUCTION COMPANY
Anheuser-Busch which is a beverage company based in Saint Louis, Missouri that brews
Budweiser beer which traces its roots back to the Bavarian brewery, which was established in
1852. Eberhard Anheuser acquired the Bavarian brewery in 1860 and renamed it E. Anheuser &
Co. In 1864, his son-in-law, Adolphus Busch, joined the company that would later become
Anheuser-Busch. Adolphus Busch had keen vision, bold initiative, marketing savvy and
a commitment to quality were his legacy to those who followed, and the high standards
he established have been adhered to by each succeeding generation.
Today, Anheuser-Busch produces the two best-selling beers in the world, …show more content…
Budweiser and Bud
Light, also operates 12 breweries in the United States and has 15 breweries around the globe, 1
in the United Kingdom and 14 in China.
Budweiser does brew Budweiser beer across the globe,
using other breweries, but having “close-watch” over the inputs and process of their brew. One
example is how they brew their beer under the Budweiser label at the Guinness brewery in
Dublin, Ireland. This process saves millions of dollars on shipping and allows breaking into
many foreign markets by “being made by the hometown brewery” in-country, in numerous
Countries. In 2008, Anheuser-Busch and InBev merged to become Anheuser-Busch – InBev.
I was narrowing my scope down to essentially the Budweiser line, due to the fact the more
background material was posted for Budweiser, prior to the In Bev take-over of the Anheuser-
Busch in 2007. (Please let me know if this is acceptable to the project). InBev controls many
other product lines of beverages which has not been merged with the Budweiser data.
MISSION STATEMENT
Budweiser’s mission is to be the number one beer company in the world by enriching and entertaining an increasing global audience. To deliver a substantial amount of 15% return to our shareholders, we will add to life’s enjoyment through our products, services, and relationships. In addition our goal is to increase sales by 25% each year. …show more content…
(www.Anhueser-Busch.com) PRODUCTS, GOODS OR SERVICES
Produces more than 100 beers, many flavored alcoholic and nonalcoholic brews and imports
other beers for distribution in the United States. They brew Budweiser, Bud Light, Michelob
ULTRA, Busch, Natural Light and O’Doul’s, which are all the No.1 positions in their respective
U.S. market segments. Anheuser-Busch-InBev also bottles Icelandic Glacier Water, Bud light,
Bud Select, Michelob, Michelob Light, Busch, Natural Light, Stella Artois, Boddingtons, and now with the merge of InBev, have many other international lines of beverages. COMPETITORS
Budweiser’s major competition is from the Miller Brewing Company, Coors, Stroh's
S & P Industries, Genesee, Boston Beer and few other smaller breweries. Anheuser-Busch has a
dominant foothold in the United States and a strong position in the world market. Currently, the
number 1 ranked beer in America is Bud Light.
POSITION IN THE MARKET
Anheuser-Busch had a 48.5 percent share of the overall United States beer market in 2007. They
mainly holds to a target market of males from the local drinking age (normally 21 in the United
States, but generally 18 in Europe) to any ripe old age that would by a drink to quench their
thirst.
COMPETITIVE ADVANTAGES
Anheuser-Busch shipped 104.4 million barrels in 2007, more than two times its closest domestic
Competitor.
TARGET MARKET AND PROD STRATEGY
PRIMARY ATTRIBUTES
Availability of Budweiser and all of the Anhueser- Busch products is major attribute, because they are distributed worldwide, utilizing many other satellite breweries, such as the Guinness brewery in Dublin, Ireland and the Stella Artios brewery in Spain.
This “off-site” brewing is overseen by Master Brewers using closely watched methods and ingredients. This also dramatically reduces distribution costs. Another major attribute for Budweiser is related to the quality and taste of the beer. As stated above, the Master Brewers do attempt to maintain the same taste of Budweiser, no matter whether you are in Illinois or Bum F*** Egypt. Consumers get comfortable buying Budweiser because they always know how it will taste.
(Note: Positioning map/Perceptual Map on separate file sent as PDF. Webfeast would not open for me through the base computer system. Many of the links have been harder to access, than any other classes that I have had at Touro. Maybe putting some of the info on the disk, rather than making people suffer through the www. live access, please. Also A-B has been blocked here at work because it contains alcohol and risqué pictures, the Air Force does not allow to the entire page, when these items are found anywhere on the
page.)
PRODUCT CATEGORIES
Beverages
Alcoholic beverages Beer American beers Specialty beers
Import beers Alcoholic Ciders Ale Malt Liquors
Non-Alcoholic beverages Non-Alcoholic beers Spring water Flavored fruit juices
Glass Products Bottles for Beer and other products Lower Cost Cooking Glassware
PRODUCT-MARKET GRID
Alcoholic Beverages Non-Alcoholic Beverages Low-Cost
Glassware
Middle Class 1 1 1
Upper Class 2 1 4
DINKS (Dual Income/No Kids) 1 1 4
Yuppies
2 1 2
Families 2 1
1 Children/ Young Adults
Age 0-20 2
4
4
Adult Singles Age 21-35
3
3
1
Key for interpreting the numbers in the table: 1Core products target market
2Rarely sold or not legally allowed to sell a specific product to these individuals. Product is included to offer more variety
3Biggest purchaser of items in this category
STRATEGY
The new “55” line of beer has just expanded to be distributed with other Anhueser-Busch beers throughout the United States market. With a population that is watching our wastelines, each beer only contains 55 calories per bottle and this will appeal to many weight conscience consumers. Due to our continuing health kick society, sales for this product expects to have strong market growth within the first few months of this scheduled expansion. A-B is always looking to add new beverages to its arsenal of products.
COMPETITIVE ADVANTAGE/PRODUCT MIX
A-B has a competitive advantage relative to its product mix. Budweiser beer has been known for a series of endearing television commercials. It is one reason they are the number one beer in the United States. Miller has had some “great taste, less filling” ads, but they never can compare to the legacy of the Clydesdales and longterm memories that can be related to a wagon train hooked to a beer wagon. Coors has been using the cool Coors Train and the Rocky Mountains, but they will never be as cute as the horses. Rocks are not known for having a “Great Personality”. Some of A-B’s major competitors have just turned into another INBEV product.