Anheuser Busch Mission Statement
Anheuser-Busch Inc. is a strong and dominating company that is a leader in the beer market. They are a company that is rooted in values, ethics and sheer determination. Now lead by August A. Busch IV, CEO and president, Anheuser-Busch is continuing their reputation as one of the best in the business. What started out as a small brewery acquired by a German immigrant is now the company known as Anheuser-Busch which produces the two best-selling beers in the world. Adolphus Busch left Germany and arrived in St. Louis, Missouri in 1857. Three years later, Eberhard Anheuser had a Bavarian Brewery and renamed it E. Anheuser & Co. One year after that, Adolphus Busch married Eberhard Anheuser's daughter, Lilly. Busch then started working at
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his father-in-law's brewery in 1864. Almost exactly 100 years later in 1967, the St. Louis brewery was declared a National Historic Landmark. Like most immigrants, Adolphus came to America in search of a better life. Little did he know that his friendship with Eberhard Anheuser and their tag team effort with the small brewery in St. Louis would turn into a Fortune 500 company.
Executive Summary
Anheuser-Busch targets consumers who are interested in alcoholic beverages that provide the best taste and quality. Their targets are anyone from the lower class of society, all the way up to the upper class. They have a wide range of brands and beverages to offer that are appealing to each social class. They have mastered the art of branding so that at least one type of beer is the ultimate and premier beer for that individual consumer. Anheuser-Busch is a distinguished company that offers sexy and innovative products that have a strong image. Anheuser-Busch has developed and designed their products for consumers who are concerned or aware of their presentation. Even in the commercials, it always seems like there's a guy holding a beer with a bunch of girls around him, or it's a girl holding cocktail with a bunch of guys around her. Regardless of the situation, Anheuser-Busch's alcoholic beverages offer a sense of being cool.'
As earlier mentioned, Anheuser-Busch Inc. is headed by August A. Busch IV. They are also lead by Patrick T. Stokes. Stokes is the Chairman and CEO of Anheuser-Busch Inc., as well as Chairman of Anheuser-Busch International. Vice President and CFO of Anheuser-Busch Inc., W. Randolph Baker assists both Busch IV and Stokes in leading America's strongest beer and brewery company. August A. Busch IV is obviously the fourth generation of Busch to be the leader of Anheuser-Busch which was started by Adolphus Busch in 1880 when Eberhard Anheuser past away. Anheuser Busch is a company that started out as a small brewery in St. Louis and now leads the United States with a market share of around 50 percent and it doesn't stop there. Anheuser-Busch also owns about 50 percent of Mexico's best brewer, Grupo Modelo, the company responsible for brewing the world famous Corona brand. Anheuser-Busch is looking towards expanding their market share and with over $15 billion in sales in the year of 2005, as well as a 17.9% growth in one year of net income.
Current Marketing Situation
From a company that was founded over a hundred and fifty years ago, Anheuser-Busch has grown into a major supplier of not only beer and malt liquors, but now non-alcoholic beers, organic beers and even energy drinks. Anheuser-Busch is the parent company of Budweiser, Michelob, Busch, Natural, Rolling Rock and Tequiza. They also have spider webbed themselves in the beverage market with specialty beers such as Bud Extra, Bare Knuckle Stout and Anheuser World Lager and import beers such as Grolsch, Harbin Lager and Tiger Beer. Anheuser-Busch didn't stop there. They were able to identify the untouched market opportunities in Non-Alcoholic beers, Specialty Malt Liquors, Organic beers all the way down to Energy Drinks. With the modern day competition, Anheuser-Busch was and is continuously looking for the chance to take advantage of opportunities to set themselves apart from the rest of the pack.
Recently, Anheuser-Busch seems to have found one of these opportunities to set itself apart from competition. They have started a new packaging system for their most prestige beers. For Budweiser, Bud Light and Michelob they are trying a new bottle which is totally different than the traditional glass bottles that almost every brand of beer comes in. They have chose to start using aluminum bottles that are boldly appealing, sleek, and plain out sexier than the previous bottles. These aluminum bottles stand taller with enormous logos that span across the whole bottle. They also hold 16 ounces instead of the original 12 ounces. Finally, with this change of packaging they made these newer bottles available in packs of four, which is a mild change from the traditional six-pack. The figures on the next page are the two different packaging types. When the two types of packaging are placed side by side for analyzing, there's no doubt which is more appealing to the consumer. The newer bottles made of aluminum support an image of sophistication, superiority and professionalism. "Householders under age 35 spend 26-39% more than the average household on beer, making them the best customers of this product" (Who's Buying Alcoholic, 42). These newer bottles are targeted towards consumers between the ages of 21 and 27, although they are appealing to all age groups. Anheuser-Busch has definitely started a new path in packaging their products and it's interesting to see what their competitors are doing in return. Within the next couple of months I am expecting to see an attempt by the different beer companies such as Heineken, Molson Coors and Miller to try something similar to add to their current market share.
Market Description
Anheuser-Busch's main market is the beverage market. From there you can break it down even further into alcoholic and non-alcoholic beverages. In regards to the alcoholic beverage market, Anheuser-Busch has developed a niche in brewing, marketing, selling and innovating. They are on a somewhat new quest in the non-alcoholic beverage market. As mentioned earlier, they are expanding with non-alcoholic beers and energy drinks. A couple of their secondary markets would be considered agriculture and food, but undoubtedly their focus is in the beverage market. They are interested in consumers who do and don't drink alcohol, but mainly in consumers who looking for a boost in their appearance or state of mind. It's often to find yourself thinking that you are cooler' holding a beer or cocktail in your hand. Anheuser-Busch consumers are offered a wide variety of drinks from low-price light beers to higher-end specialty beers. Anheuser-Busch has worked carefully to make sure that all bases are covered. For example, they offer low-carb drinks for those who are concerned about their diet. They have made their products relatively affordable, giving access to all levels of income and have branched off enough brands to be attractive to all sorts of consumers. With nearly 50% of the market share, Anheuser-Busch is proven to be a heavyweight in the beverage market. Below is a chart that points out their sales from the last five years.
Molson Coors, a main competitor of Anheuser-Busch posted a little over four billion dollars in net sales for the year 2004 and about five and a half billion dollars for 2005. Anheuser-Busch has tripled these numbers, showing their dominance of the market.
Product Review
Anheuser-Busch has many different products that all offer their own benefit to the consumer. They have broken their product line down into different categories; the Budweiser Family, the Michelob Family, the Busch Family, the Natural Family, Alliance Partner Products, Imports, Specialty Beers, Malt Liquors, Specialty Malt Liquors, Specialty Organic Beers, Non-alcohol Brews, and Energy Drinks.
Crisp, Clean Taste
Innovative Design
Creative Packaging
Easily Affordable
Readily Accessible
Image Booster
Various Sizes and Quantities
Multiple Types and Brands
Competitive Review
Heineken- Heineken has been able to continue to be one of the world's leading customer and corporate brands for more than 130 years. Heineken is a key competitor of Anheuser-Busch and has been for a while. Heineken has been operating since 1863, based on values from the beginning they are focused on the long-run and customer satisfaction. They have a good understanding of their targets, but just haven't expanded quite yet. They definitely have been around long enough to know the market in and out, but haven't taken advantage on the new opportunities of the other beverage outlets.
Molson Coors- Molson Coors is the world's fifth largest brewer. Molson Canada is the largest brewer in Canada with six brewing facilities throughout Canada. Coors is the third largest brewer in the U.S. Located in Golden, Colorado, Coors has the biggest brewing facility in the world. By teaming up, Molson and Coors have achieved recognition that is deserved. One of their main goals is to re-establish constant growth trends for Coors Light in the U.S. and Canada.
Miller- Miller is a brewing company that is the world's third-largest brewer, behind InBev Co. and Anheuser-Busch. Miller is known for beer, but they have also extended themselves into bottling for Coca-Cola. With over $15 billion in sales this last year, Miller flexes their muscle to show how strong of a company they are. Miller is a company that has expanded itself somewhat like Anheuser-Busch, but the company is the #2 U.S. brewer, behind Anheuser-Busch. Miller has branched different brands such as: Miller Lite, Miller Genuine Draft, and Miller High Life, as well as Meister Bräu, Milwaukee's Best, Red Dog, nonalcoholic Sharp's, and Olde English 800 malt liquor.
Distribution Review
Anheuser-Busch is a company that fully understands the importance of a well operating distribution system.
Stopping at any gas station, liquor mart, grocery store or any other retail store that has a license to sell alcohol, you will be able to find a Budweiser, Bud Light, or Michelob. In the early years, Anheuser-Busch would distribute their product by horseback or carriages. Then they then moved to a better form of transportation which was by train and truck. Now in the modern day, they rely on trucks, trains, airplanes, ships, and any other thing that has wheels or wings to get their product to the end user. In translation, Anheuser-Busch has a top-notch, state of the art distribution system that allows them to move their product throughout the world with the smallest cost possible. Below is a small list of the different strategies that Anheuser-Busch applies to be the best in the …show more content…
world.
Well-known gas stations- You would be able to find an Anheuser-Busch product in any Shell, Chevron, ARCO or any other gas station that is able to sell alcohol.
Liquor Marts- When walking into a local liquor mart, without a doubt, you are going to find countless amounts of Anheuser-Busch product. Ranging from hard alcohol to beers and wines, local liquor marts are known to always having plenty of alcohol in stock.
Grocery Stores- From Ralph's to Albertsons and from Costco to Sam's Club, you are guaranteed to find a large amount of Anheuser-Busch products. The best place to find the most Anheuser-Busch products in one place is probably Beverages and More.
Restaurants- Restaurants like Outback, Olive Garden, BJ's, Chili's, all carry Anheuser-Busch products. Because of Anheuser-Busch's prestige and popularity with the general public, middle to higher-end restaurants thrive on alcohol sales.
SWOT Analysis
Strength
Anheuser-Busch has a sense of character that displays an image of never-ending success.
They are able to display this strong image because of their determination to be the best. Through thick and thin, they are going to give their best effort. "Even when products were unavailable or rationed or sales were in a slump, the company continued to place its name and those of its products before the public" ("The Advertising Age," 73). This is a specific example of Anheuser-Busch's character and what they are all about. Along with a strong character, they have size. Because of Anheuser-Busch's sheer size, they have an enormous amount of capital to work with. They have access to several resources that keep them among the top companies in the world. With their size comes history. They are one of the oldest companies in the business that's still running and running strong. Along with size Anheuser-Busch is experienced. They know how things work and what it takes to be number one. Anheuser-Busch's continuous growth is credited to the organization and values system that is rooted in the company since the beginning. They are a company that has built a sort of mystique and Culture that has thrived in the various markets they pursue. With profits near five and a half billion dollars, Anheuser-Busch is a serious contender and what you would call the defending champ for the last decade in the beverage
business.
Weaknesses
This goes to show that size is not only a benefit, but also proving to be a weakness as well. Anheuser-Busch's size seems to be a double-edged sword, meaning that because they are such a big company and they are involved in so many different fields, they do not only focus on beer. This leaves somewhat of a small hole for competitors to try and gain some market share. Like a lot of big businesses are finding out today, it's hard to keep track of all the little things and sometimes things can get out of control. When your company is running a large operation, it's imperative that every thing runs sound and smooth.
Opportunity
One of the biggest opportunities for Anheuser-Busch is the growth of technology. Although most would consider the growth of technology a benefit for everyone, but because Anheuser-Busch is already past the rest of the companies, they will benefit most from the technological advances. The market stays at a constant level and so the ultimate way to gain market share is gain familiarity with the targeted customers and to be the most appealing for the given situation. Now that Anheuser-Busch is going down the newer paths of non-alcoholic beers, premium malt beverages and energy drinks, they have extended their net to catch all the stragglers and to increase their advantage to gain market share. Along with extending the product line, Anheuser-Busch has innovated packaging. They have developed a new bottle that is made of aluminum and that is extremely attractive to the consumer. The beverages that Anheuser-Busch produces are in increasing demand and they have been there to meet the demand with a promising supply.
Threats
The threat of competitors is probably number one on the Threat List.' As consumers look for the best beverage with an affordable price and an image that is attractive, they are bombarded with substitutes. Anheuser-Busch's competitors are the real deal and like Anheuser-Busch, they are all looking to gain more market share. Luckily for Anheuser-Busch "market leadership is especially important in the alcoholic beverage industry because advertising restrictions make it difficult to establish a new brand or to gain share from an existing leader. Once a firm attains market leadership, competitors usually will have a hard time trying to unseat it" (Standard & Poors, 27). Currently, Anheuser-Busch is the market leader and the market or the consumers have shown a preference towards Anheuser-Busch's products justifying the quote previously mentioned. Anheuser-Busch has eluded most of the threats by offering an assorted amount of beverages that seem to be enjoyed be all sorts of consumers with different preferences. Competitors are able to make similar products and sale them at cheaper prices, making it more difficult for Anheuser-Busch to stay on the top of the market.
Objectives and Goals
First Year Objectives
Anheuser-Busch would like to see increasing numbers in their sales, revenues, and profit. Anheuser-Busch is not only concerned with their numbers, but also about the awareness of their alcoholic beverages. They are currently working on ads to prevent the problem of under-aged drinking by consumers as well as the problem of over-drinking by consumers. Anheuser-Busch has been intensively working on this project to promote a healthier and more educated approach towards consumption.
Second Year Objectives
Although Anheuser-Busch currently has nearly 50% of the market share, they are looking for more. In their eyes, they see the global market as an opportunity to gain more market share. Global marketing has been in the mind of Anheuser-Busch since the late 90's. They understand that the global beer market is four times larger than the U.S. beer market. Their "two main strategies for global operations are to build Budweiser into an international premium brand' and to build partnerships with foreign brewers" (Company Profiles, 99)
Issues
Because of Anheuser-Busch's size and because they have so many companies within itself, they lack a niche. Like mentioned earlier, they don't just focus on making and supplying Budweiser and Bud Light. They are a huge company that is involved in the entire beverage market. They have to focus on aspects of the game in order to remain as the powerhouse for the beverage market. Not only do they produce alcoholic and non-alcoholic beverages, but they also bottle. Anheuser-Busch is a huge bottling company in addition to making the beverages themselves. Many of the competitors, especially their toughest competitors, have tried to develop a niche in the beverage market by just focusing on producing beverages. Some people would argue that Anheuser-Busch's niche is Budweiser and Bud Light, but those are just their best sellers. Every company has a best selling product, not every company has a niche in the market. If you were to say that Anheuser-Busch's niche was anything, it would have to be their ability to run such a large operation with precise organization and execution.
Marketing Strategy
"Anheuser-Busch summed up its corporate strategy with four key phrases: focusing on the ore business of beer, entertainment, and packaging; leveraging resources; thinking differently; and making friends'" (Company Profiles, 97).
Positioning
Anheuser-Busch is a company that uses product differentiation and innovation to distinguish a difference from its competitors. Using history and mystique, they make the consumer believe that their products are the best and that there are no real substitutes without compromises. Anheuser-Busch uses the saying "Crisp, Clean, Taste," to capture the idea they are portraying to the consumer. They say that Budweiser is "The king of beers" and that Bud Light is "Less filing and wont let you down." They have numerous mottos and sayings to try and persuade the potential customers to choosing their product. With the well-known history of Anheuser-Busch and some help from popularity and mystique, Anheuser-Busch has been able to successfully position them in the beverage market and definitely has some leverage. Anheuser-Busch has started with a good foundation and has continued to build towards the sky in search of rising sales, revenues and customer satisfaction, which in turn point to rising market share.
Product Strategy
Anheuser-Busch produces beverages that are crisply tasteful, stylish and attractive, cost efficient, dependable and affordable. They are almost customizing everything for the customer without actually customizing things for each individual customer. By this I mean that because they offer such a wide range of beverages, most likely every individual is going to find something in the Anheuser-Busch family that they like. On every single product and package you are guaranteed to find the Anheuser-Busch logo, with the individual product/brand logo as well. Anheuser-Busch like most other large companies in the world make an effort to have as much promotion as possible. This means that if they can squeeze a logo here and a logo there tastefully, they are going to do it. All Anheuser-Busch products are bottled and packaged in eye-catching packaging. Anheuser-Busch commitment to excellence spirals down through every aspect of the product. Every idea and decision is carefully thought out and weighed to gain the most leverage on their competitors.
Pricing Strategy
Anheuser-Busch's products are easily affordable and vary depending on the type of a beverage you are looking for. Staying close to most of their competitors prices, Anheuser-Busch almost eliminates the threat of substitutes based on price, making it much easier on the consumer. "Good pricing begins with a complete understanding of the value that a product or service creates for customers" (Armstrong and Kotler, 264). Overall, Anheuser-Busch's strategy on pricing would be value-based pricing. The reason is because they set the price based on the buyers' perceptions of value rather than on the costs.
Distribution Strategy
The strategy used by Anheuser-Busch to supply their targeted consumers is actually quite simple, place product anywhere and everywhere it can be legally sold. Because most of Anheuser-Busch's products are alcoholic, retail stores must have a license to sell alcohol. Of the stores that can, you are guaranteed to see an Anheuser-Busch product. Whether you're in a grocery store, liquor store, gas station, restaurant, club, hotel or any type of special event, your eyes will find an Anheuser-Busch product.
Marketing Communication Strategy
"While advertising is the company's primary tool, it adroitly applies all the tools of savvy marketing communications- sales promotion, public relations, packaging, merchandising, sponsorships, product placement, special events, and specialty items The company has always believed strongly in continuity, advertising consistently in good times and bad" ("The Advertising Age," 73). Anheuser-Busch has mastered the art of advertisement. Because of their large amounts of capital, they are able to afford television and radio advertisement. They also advertise in numerous newspapers and magazines as well as billboards. Because they are such an old company, they are extremely well known by the public and definitely have a sense of mystique working for them.
Marketing Research
By using different types of research, Anheuser-Busch has been able to find out from the consumers themselves what they want and need. From questionnaires to looking at financial statements, Anheuser-Busch knows exactly what their customers want. Anheuser-Busch also uses feedback from current customers enabling them to optimize their products and to evaluate what is working and what they need to change. Knowing exactly what your customers want is not an easy task, but because of the different resources Anheuser-Busch has acquired throughout its lifetime, they simply can gather the information wanted and needed to answer any question about their customer and their wants and needs.
Marketing Organization
Being such a strong and experienced company, Anheuser-Busch is able organize their marketing strategy and provide for the needs and wants of those who are looking for the very best alcoholic and non-alcoholic beverages. The marketing departments are organized by products, allowing the company to reach for optimal results in each beverage category.
his father-in-law's brewery in 1864. Almost exactly 100 years later in 1967, the St. Louis brewery was declared a National Historic Landmark. Like most immigrants, Adolphus came to America in search of a better life. Little did he know that his friendship with Eberhard Anheuser and their tag team effort with the small brewery in St. Louis would turn into a Fortune 500 company.
Executive Summary
Anheuser-Busch targets consumers who are interested in alcoholic beverages that provide the best taste and quality. Their targets are anyone from the lower class of society, all the way up to the upper class. They have a wide range of brands and beverages to offer that are appealing to each social class. They have mastered the art of branding so that at least one type of beer is the ultimate and premier beer for that individual consumer. Anheuser-Busch is a distinguished company that offers sexy and innovative products that have a strong image. Anheuser-Busch has developed and designed their products for consumers who are concerned or aware of their presentation. Even in the commercials, it always seems like there's a guy holding a beer with a bunch of girls around him, or it's a girl holding cocktail with a bunch of guys around her. Regardless of the situation, Anheuser-Busch's alcoholic beverages offer a sense of being cool.'
As earlier mentioned, Anheuser-Busch Inc. is headed by August A. Busch IV. They are also lead by Patrick T. Stokes. Stokes is the Chairman and CEO of Anheuser-Busch Inc., as well as Chairman of Anheuser-Busch International. Vice President and CFO of Anheuser-Busch Inc., W. Randolph Baker assists both Busch IV and Stokes in leading America's strongest beer and brewery company. August A. Busch IV is obviously the fourth generation of Busch to be the leader of Anheuser-Busch which was started by Adolphus Busch in 1880 when Eberhard Anheuser past away. Anheuser Busch is a company that started out as a small brewery in St. Louis and now leads the United States with a market share of around 50 percent and it doesn't stop there. Anheuser-Busch also owns about 50 percent of Mexico's best brewer, Grupo Modelo, the company responsible for brewing the world famous Corona brand. Anheuser-Busch is looking towards expanding their market share and with over $15 billion in sales in the year of 2005, as well as a 17.9% growth in one year of net income.
Current Marketing Situation
From a company that was founded over a hundred and fifty years ago, Anheuser-Busch has grown into a major supplier of not only beer and malt liquors, but now non-alcoholic beers, organic beers and even energy drinks. Anheuser-Busch is the parent company of Budweiser, Michelob, Busch, Natural, Rolling Rock and Tequiza. They also have spider webbed themselves in the beverage market with specialty beers such as Bud Extra, Bare Knuckle Stout and Anheuser World Lager and import beers such as Grolsch, Harbin Lager and Tiger Beer. Anheuser-Busch didn't stop there. They were able to identify the untouched market opportunities in Non-Alcoholic beers, Specialty Malt Liquors, Organic beers all the way down to Energy Drinks. With the modern day competition, Anheuser-Busch was and is continuously looking for the chance to take advantage of opportunities to set themselves apart from the rest of the pack.
Recently, Anheuser-Busch seems to have found one of these opportunities to set itself apart from competition. They have started a new packaging system for their most prestige beers. For Budweiser, Bud Light and Michelob they are trying a new bottle which is totally different than the traditional glass bottles that almost every brand of beer comes in. They have chose to start using aluminum bottles that are boldly appealing, sleek, and plain out sexier than the previous bottles. These aluminum bottles stand taller with enormous logos that span across the whole bottle. They also hold 16 ounces instead of the original 12 ounces. Finally, with this change of packaging they made these newer bottles available in packs of four, which is a mild change from the traditional six-pack. The figures on the next page are the two different packaging types. When the two types of packaging are placed side by side for analyzing, there's no doubt which is more appealing to the consumer. The newer bottles made of aluminum support an image of sophistication, superiority and professionalism. "Householders under age 35 spend 26-39% more than the average household on beer, making them the best customers of this product" (Who's Buying Alcoholic, 42). These newer bottles are targeted towards consumers between the ages of 21 and 27, although they are appealing to all age groups. Anheuser-Busch has definitely started a new path in packaging their products and it's interesting to see what their competitors are doing in return. Within the next couple of months I am expecting to see an attempt by the different beer companies such as Heineken, Molson Coors and Miller to try something similar to add to their current market share.
Market Description
Anheuser-Busch's main market is the beverage market. From there you can break it down even further into alcoholic and non-alcoholic beverages. In regards to the alcoholic beverage market, Anheuser-Busch has developed a niche in brewing, marketing, selling and innovating. They are on a somewhat new quest in the non-alcoholic beverage market. As mentioned earlier, they are expanding with non-alcoholic beers and energy drinks. A couple of their secondary markets would be considered agriculture and food, but undoubtedly their focus is in the beverage market. They are interested in consumers who do and don't drink alcohol, but mainly in consumers who looking for a boost in their appearance or state of mind. It's often to find yourself thinking that you are cooler' holding a beer or cocktail in your hand. Anheuser-Busch consumers are offered a wide variety of drinks from low-price light beers to higher-end specialty beers. Anheuser-Busch has worked carefully to make sure that all bases are covered. For example, they offer low-carb drinks for those who are concerned about their diet. They have made their products relatively affordable, giving access to all levels of income and have branched off enough brands to be attractive to all sorts of consumers. With nearly 50% of the market share, Anheuser-Busch is proven to be a heavyweight in the beverage market. Below is a chart that points out their sales from the last five years.
Molson Coors, a main competitor of Anheuser-Busch posted a little over four billion dollars in net sales for the year 2004 and about five and a half billion dollars for 2005. Anheuser-Busch has tripled these numbers, showing their dominance of the market.
Product Review
Anheuser-Busch has many different products that all offer their own benefit to the consumer. They have broken their product line down into different categories; the Budweiser Family, the Michelob Family, the Busch Family, the Natural Family, Alliance Partner Products, Imports, Specialty Beers, Malt Liquors, Specialty Malt Liquors, Specialty Organic Beers, Non-alcohol Brews, and Energy Drinks.
Crisp, Clean Taste
Innovative Design
Creative Packaging
Easily Affordable
Readily Accessible
Image Booster
Various Sizes and Quantities
Multiple Types and Brands
Competitive Review
Heineken- Heineken has been able to continue to be one of the world's leading customer and corporate brands for more than 130 years. Heineken is a key competitor of Anheuser-Busch and has been for a while. Heineken has been operating since 1863, based on values from the beginning they are focused on the long-run and customer satisfaction. They have a good understanding of their targets, but just haven't expanded quite yet. They definitely have been around long enough to know the market in and out, but haven't taken advantage on the new opportunities of the other beverage outlets.
Molson Coors- Molson Coors is the world's fifth largest brewer. Molson Canada is the largest brewer in Canada with six brewing facilities throughout Canada. Coors is the third largest brewer in the U.S. Located in Golden, Colorado, Coors has the biggest brewing facility in the world. By teaming up, Molson and Coors have achieved recognition that is deserved. One of their main goals is to re-establish constant growth trends for Coors Light in the U.S. and Canada.
Miller- Miller is a brewing company that is the world's third-largest brewer, behind InBev Co. and Anheuser-Busch. Miller is known for beer, but they have also extended themselves into bottling for Coca-Cola. With over $15 billion in sales this last year, Miller flexes their muscle to show how strong of a company they are. Miller is a company that has expanded itself somewhat like Anheuser-Busch, but the company is the #2 U.S. brewer, behind Anheuser-Busch. Miller has branched different brands such as: Miller Lite, Miller Genuine Draft, and Miller High Life, as well as Meister Bräu, Milwaukee's Best, Red Dog, nonalcoholic Sharp's, and Olde English 800 malt liquor.
Distribution Review
Anheuser-Busch is a company that fully understands the importance of a well operating distribution system.
Stopping at any gas station, liquor mart, grocery store or any other retail store that has a license to sell alcohol, you will be able to find a Budweiser, Bud Light, or Michelob. In the early years, Anheuser-Busch would distribute their product by horseback or carriages. Then they then moved to a better form of transportation which was by train and truck. Now in the modern day, they rely on trucks, trains, airplanes, ships, and any other thing that has wheels or wings to get their product to the end user. In translation, Anheuser-Busch has a top-notch, state of the art distribution system that allows them to move their product throughout the world with the smallest cost possible. Below is a small list of the different strategies that Anheuser-Busch applies to be the best in the …show more content…
world.
Well-known gas stations- You would be able to find an Anheuser-Busch product in any Shell, Chevron, ARCO or any other gas station that is able to sell alcohol.
Liquor Marts- When walking into a local liquor mart, without a doubt, you are going to find countless amounts of Anheuser-Busch product. Ranging from hard alcohol to beers and wines, local liquor marts are known to always having plenty of alcohol in stock.
Grocery Stores- From Ralph's to Albertsons and from Costco to Sam's Club, you are guaranteed to find a large amount of Anheuser-Busch products. The best place to find the most Anheuser-Busch products in one place is probably Beverages and More.
Restaurants- Restaurants like Outback, Olive Garden, BJ's, Chili's, all carry Anheuser-Busch products. Because of Anheuser-Busch's prestige and popularity with the general public, middle to higher-end restaurants thrive on alcohol sales.
SWOT Analysis
Strength
Anheuser-Busch has a sense of character that displays an image of never-ending success.
They are able to display this strong image because of their determination to be the best. Through thick and thin, they are going to give their best effort. "Even when products were unavailable or rationed or sales were in a slump, the company continued to place its name and those of its products before the public" ("The Advertising Age," 73). This is a specific example of Anheuser-Busch's character and what they are all about. Along with a strong character, they have size. Because of Anheuser-Busch's sheer size, they have an enormous amount of capital to work with. They have access to several resources that keep them among the top companies in the world. With their size comes history. They are one of the oldest companies in the business that's still running and running strong. Along with size Anheuser-Busch is experienced. They know how things work and what it takes to be number one. Anheuser-Busch's continuous growth is credited to the organization and values system that is rooted in the company since the beginning. They are a company that has built a sort of mystique and Culture that has thrived in the various markets they pursue. With profits near five and a half billion dollars, Anheuser-Busch is a serious contender and what you would call the defending champ for the last decade in the beverage
business.
Weaknesses
This goes to show that size is not only a benefit, but also proving to be a weakness as well. Anheuser-Busch's size seems to be a double-edged sword, meaning that because they are such a big company and they are involved in so many different fields, they do not only focus on beer. This leaves somewhat of a small hole for competitors to try and gain some market share. Like a lot of big businesses are finding out today, it's hard to keep track of all the little things and sometimes things can get out of control. When your company is running a large operation, it's imperative that every thing runs sound and smooth.
Opportunity
One of the biggest opportunities for Anheuser-Busch is the growth of technology. Although most would consider the growth of technology a benefit for everyone, but because Anheuser-Busch is already past the rest of the companies, they will benefit most from the technological advances. The market stays at a constant level and so the ultimate way to gain market share is gain familiarity with the targeted customers and to be the most appealing for the given situation. Now that Anheuser-Busch is going down the newer paths of non-alcoholic beers, premium malt beverages and energy drinks, they have extended their net to catch all the stragglers and to increase their advantage to gain market share. Along with extending the product line, Anheuser-Busch has innovated packaging. They have developed a new bottle that is made of aluminum and that is extremely attractive to the consumer. The beverages that Anheuser-Busch produces are in increasing demand and they have been there to meet the demand with a promising supply.
Threats
The threat of competitors is probably number one on the Threat List.' As consumers look for the best beverage with an affordable price and an image that is attractive, they are bombarded with substitutes. Anheuser-Busch's competitors are the real deal and like Anheuser-Busch, they are all looking to gain more market share. Luckily for Anheuser-Busch "market leadership is especially important in the alcoholic beverage industry because advertising restrictions make it difficult to establish a new brand or to gain share from an existing leader. Once a firm attains market leadership, competitors usually will have a hard time trying to unseat it" (Standard & Poors, 27). Currently, Anheuser-Busch is the market leader and the market or the consumers have shown a preference towards Anheuser-Busch's products justifying the quote previously mentioned. Anheuser-Busch has eluded most of the threats by offering an assorted amount of beverages that seem to be enjoyed be all sorts of consumers with different preferences. Competitors are able to make similar products and sale them at cheaper prices, making it more difficult for Anheuser-Busch to stay on the top of the market.
Objectives and Goals
First Year Objectives
Anheuser-Busch would like to see increasing numbers in their sales, revenues, and profit. Anheuser-Busch is not only concerned with their numbers, but also about the awareness of their alcoholic beverages. They are currently working on ads to prevent the problem of under-aged drinking by consumers as well as the problem of over-drinking by consumers. Anheuser-Busch has been intensively working on this project to promote a healthier and more educated approach towards consumption.
Second Year Objectives
Although Anheuser-Busch currently has nearly 50% of the market share, they are looking for more. In their eyes, they see the global market as an opportunity to gain more market share. Global marketing has been in the mind of Anheuser-Busch since the late 90's. They understand that the global beer market is four times larger than the U.S. beer market. Their "two main strategies for global operations are to build Budweiser into an international premium brand' and to build partnerships with foreign brewers" (Company Profiles, 99)
Issues
Because of Anheuser-Busch's size and because they have so many companies within itself, they lack a niche. Like mentioned earlier, they don't just focus on making and supplying Budweiser and Bud Light. They are a huge company that is involved in the entire beverage market. They have to focus on aspects of the game in order to remain as the powerhouse for the beverage market. Not only do they produce alcoholic and non-alcoholic beverages, but they also bottle. Anheuser-Busch is a huge bottling company in addition to making the beverages themselves. Many of the competitors, especially their toughest competitors, have tried to develop a niche in the beverage market by just focusing on producing beverages. Some people would argue that Anheuser-Busch's niche is Budweiser and Bud Light, but those are just their best sellers. Every company has a best selling product, not every company has a niche in the market. If you were to say that Anheuser-Busch's niche was anything, it would have to be their ability to run such a large operation with precise organization and execution.
Marketing Strategy
"Anheuser-Busch summed up its corporate strategy with four key phrases: focusing on the ore business of beer, entertainment, and packaging; leveraging resources; thinking differently; and making friends'" (Company Profiles, 97).
Positioning
Anheuser-Busch is a company that uses product differentiation and innovation to distinguish a difference from its competitors. Using history and mystique, they make the consumer believe that their products are the best and that there are no real substitutes without compromises. Anheuser-Busch uses the saying "Crisp, Clean, Taste," to capture the idea they are portraying to the consumer. They say that Budweiser is "The king of beers" and that Bud Light is "Less filing and wont let you down." They have numerous mottos and sayings to try and persuade the potential customers to choosing their product. With the well-known history of Anheuser-Busch and some help from popularity and mystique, Anheuser-Busch has been able to successfully position them in the beverage market and definitely has some leverage. Anheuser-Busch has started with a good foundation and has continued to build towards the sky in search of rising sales, revenues and customer satisfaction, which in turn point to rising market share.
Product Strategy
Anheuser-Busch produces beverages that are crisply tasteful, stylish and attractive, cost efficient, dependable and affordable. They are almost customizing everything for the customer without actually customizing things for each individual customer. By this I mean that because they offer such a wide range of beverages, most likely every individual is going to find something in the Anheuser-Busch family that they like. On every single product and package you are guaranteed to find the Anheuser-Busch logo, with the individual product/brand logo as well. Anheuser-Busch like most other large companies in the world make an effort to have as much promotion as possible. This means that if they can squeeze a logo here and a logo there tastefully, they are going to do it. All Anheuser-Busch products are bottled and packaged in eye-catching packaging. Anheuser-Busch commitment to excellence spirals down through every aspect of the product. Every idea and decision is carefully thought out and weighed to gain the most leverage on their competitors.
Pricing Strategy
Anheuser-Busch's products are easily affordable and vary depending on the type of a beverage you are looking for. Staying close to most of their competitors prices, Anheuser-Busch almost eliminates the threat of substitutes based on price, making it much easier on the consumer. "Good pricing begins with a complete understanding of the value that a product or service creates for customers" (Armstrong and Kotler, 264). Overall, Anheuser-Busch's strategy on pricing would be value-based pricing. The reason is because they set the price based on the buyers' perceptions of value rather than on the costs.
Distribution Strategy
The strategy used by Anheuser-Busch to supply their targeted consumers is actually quite simple, place product anywhere and everywhere it can be legally sold. Because most of Anheuser-Busch's products are alcoholic, retail stores must have a license to sell alcohol. Of the stores that can, you are guaranteed to see an Anheuser-Busch product. Whether you're in a grocery store, liquor store, gas station, restaurant, club, hotel or any type of special event, your eyes will find an Anheuser-Busch product.
Marketing Communication Strategy
"While advertising is the company's primary tool, it adroitly applies all the tools of savvy marketing communications- sales promotion, public relations, packaging, merchandising, sponsorships, product placement, special events, and specialty items The company has always believed strongly in continuity, advertising consistently in good times and bad" ("The Advertising Age," 73). Anheuser-Busch has mastered the art of advertisement. Because of their large amounts of capital, they are able to afford television and radio advertisement. They also advertise in numerous newspapers and magazines as well as billboards. Because they are such an old company, they are extremely well known by the public and definitely have a sense of mystique working for them.
Marketing Research
By using different types of research, Anheuser-Busch has been able to find out from the consumers themselves what they want and need. From questionnaires to looking at financial statements, Anheuser-Busch knows exactly what their customers want. Anheuser-Busch also uses feedback from current customers enabling them to optimize their products and to evaluate what is working and what they need to change. Knowing exactly what your customers want is not an easy task, but because of the different resources Anheuser-Busch has acquired throughout its lifetime, they simply can gather the information wanted and needed to answer any question about their customer and their wants and needs.
Marketing Organization
Being such a strong and experienced company, Anheuser-Busch is able organize their marketing strategy and provide for the needs and wants of those who are looking for the very best alcoholic and non-alcoholic beverages. The marketing departments are organized by products, allowing the company to reach for optimal results in each beverage category.