Post on 23-Dec-2015
In The U.K.
Steve Clark, Derek Laur, Ryan Patton,Willayna Roberts, Alan Yeung
Anheuser-Busch : Developing aGlobal Brand in Great Britain
Intro
• IntroIntro
• TargetTarget MarketMarket
• HistoryHistory
• CurrentCurrent StrategyStrategy
• SWOTSWOT
• 4 P’s4 P’s
• SuggestionsSuggestions
• ConclusionConclusion
Intro
How can Anheuser-Busch successfully market its global brands in the United Kingdom beer
market which is highly competitive and steeped in tradition?
QUESTION:
Intro• IntroIntro
• TargetTarget MarketMarket
• HistoryHistory
• CurrentCurrent StrategyStrategy
• SWOTSWOT
• 4 P’s4 P’s
• SuggestionsSuggestions
• ConclusionConclusion
• 5 types of pubs:
– Country Pub, Local Village/Small Town, Inner City, Roadside, Red Brick
• 5 types of pubs:
– Country Pub, Local Village/Small Town, Inner City, Roadside, Red Brick
• 3 main types of beer
– Stout (Guinness), Ale (Bass), Lager (Budweiser)
• 3 main types of beer
– Stout (Guinness), Ale (Bass), Lager (Budweiser)
• Lager traditionally seen as “rowdy” and lower class
Pub Types / Beer Types
• Lager traditionally seen as “rowdy” and lower class
• Steadfast loyalty to pubs and beers
UK Target Market• IntroIntro
• TargetTarget MarketMarket
• HistoryHistory
• CurrentCurrent StrategyStrategy
• SWOTSWOT
• 4 P’s4 P’s
• SuggestionsSuggestions
• ConclusionConclusion
Lager (light)
Stout (dark)
LessExpensive
MoreExpensive
Whitbread Bass
Courage
Carlsberg
A-B
S&N
Perceptual Map
• Breweries own or have exclusive deals with pubs to distribute their own beers
• Large breweries = 10,000 pubs
• Small breweries < 1,000 pubs
History• IntroIntro
• TargetTarget MarketMarket
• HistoryHistory
• CurrentCurrent StrategyStrategy
• SWOTSWOT
• 4 P’s4 P’s
• SuggestionsSuggestions
• ConclusionConclusion
History
• Smaller breweries are forming alliances
• Focus shift towards bottled beers and non-exclusive pubs
• Breweries own or have exclusive deals with pubs to distribute their own beers
• Large breweries = 10,000 pubs
• Small breweries < 1,000 pubs
History• IntroIntro
• TargetTarget MarketMarket
• HistoryHistory
• CurrentCurrent StrategyStrategy
• SWOTSWOT
• 4 P’s4 P’s
• SuggestionsSuggestions
• ConclusionConclusion
• Busiest times are Friday and Saturday nights and Sunday afternoons
• Many people stop by their local pub after work or after their evening meal
• Stricter drunk driving laws have slightly curbed the market
• Large increase in the number of women frequenting pubs
• General relaxed atmosphere
History
UK Target Market• IntroIntro
• TargetTarget MarketMarket
• HistoryHistory
• CurrentCurrent StrategyStrategy
• SWOTSWOT
• 4 P’s4 P’s
• SuggestionsSuggestions
• ConclusionConclusion
• Younger drinkers
• Trendier drinking crowd
• “Take Home” market
• Super-premium brand
Target Market
Hands-on Control of Marketing
• Imported Michelob and let Courage, a large English brewer, brew Budweiser under contract
• Appointed Courage as distributor of Budweiser to its network of more than 5,000 pubs
• Increased Advertising 100% to $20 million while all UK brewers spent about $180 million in 1992
• Launched first national TV campaign: two 30-second spots featuring blues music and continue the successful “Budweiser, the genuine article” theme
• Imported Michelob and let Courage, a large English brewer, brew Budweiser under contract
• Increased Advertising 100% to $20 million while all UK brewers spent about $180 million in 1992
• IntroIntro
• TargetTarget MarketMarket
• HistoryHistory
• CurrentCurrent StrategyStrategy
• SWOTSWOT
• 4 P’s4 P’s
• SuggestionsSuggestions
• ConclusionConclusion
• Appointed Courage as distributor of Budweiser to its network of more than 5,000 pubs
Hands-on Control of Marketing
• Budweiser and Michelob priced higher than most local brands at super-premium price
• Budweiser linked to American cultural icons
• No differentiating among advertising campaigns in all European countries
• “Cool, frosty Budweiser” campaign did not work in UK in the late 1950s and early 1960s
• In the mid-1970s, Budweiser became more widespread British drinkers began to demand cool beers
• IntroIntro
• TargetTarget MarketMarket
• HistoryHistory
• CurrentCurrent StrategyStrategy
• SWOTSWOT
• 4 P’s4 P’s
• SuggestionsSuggestions
• ConclusionConclusion
• Budweiser and Michelob priced higher than most local brands at super-premium price
• Budweiser linked to American cultural icons
• No differentiating among advertising campaigns in all European countries
• “Cool, frosty Budweiser” campaign did not work in UK in the late 1950s and early 1960s
Positioning
• Large segment: Premium Lager• Large segment: Premium Lager
• Strength: 5% Alcohol by volume; draught and packaged
• Strength: 5% Alcohol by volume; draught and packaged
• Target audience: Primary - Men 18-34: all men; middle class
• Target audience: Primary - Men 18-34: all men; middle class
• Packaging: 330ml non-return bottle; 330-ml can (4, 8, 12 multipack); 11-gallon kegs
• IntroIntro
• TargetTarget MarketMarket
• HistoryHistory
• CurrentCurrent StrategyStrategy
• SWOTSWOT
• 4 P’s4 P’s
• SuggestionsSuggestions
• ConclusionConclusion
TV Advertising
• Typical TV ad about beer was focused on humor• Typical TV ad about beer was focused on humor
• AB used American themes (like blues music) to attract British consumers
Two key messages:
• Authentic American heritage of the brand
• Quality of ingredients and the consistently high-quality brewing that goes in the beer
• Authentic American heritage of the brand
• IntroIntro
• TargetTarget MarketMarket
• HistoryHistory
• CurrentCurrent StrategyStrategy
• SWOTSWOT
• 4 P’s4 P’s
• SuggestionsSuggestions
• ConclusionConclusion
• AB used American themes (like blues music) to attract British consumers
4 P’s• PRICE
– Budweiser & Michelob marketed at super-premium pricing
• PRODUCT– Michelob imported, Courage given rights to brew
Budweiser
• PROMOTION– Increased advertising budget.
– Mainly American themes
• PLACE– Courage appointed distributor so Budweiser sold through
Courage’s network of 5,000 pubs
4 P’s
• PRICE– Budweiser & Michelob marketed at super-premium pricing
• PRODUCT– Michelob imported, Courage given rights to brew
Budweiser
• PROMOTION– Increased advertising budget.
– Mainly American themes
• IntroIntro
• TargetTarget MarketMarket
• HistoryHistory
• CurrentCurrent StrategyStrategy
• SWOTSWOT
• 4 P’s4 P’s
• SuggestionsSuggestions
• ConclusionConclusion
SWOT Analysis• IntroIntro
• TargetTarget MarketMarket
• HistoryHistory
• CurrentCurrent StrategyStrategy
• SWOTSWOT
• 4 P’s4 P’s
• SuggestionsSuggestions
• ConclusionConclusion
S.W.O.T. Analysis
• Strengths– Change in British taste preference
– AB’s relationship with Courage
• Strengths– Change in British taste preference
– AB’s relationship with Courage
• Weaknesses– British tradition and loyalty to brands of beer
– Current market position not effective
– Beer production was down 3% in 1992
SWOT Analysis• IntroIntro
• TargetTarget MarketMarket
• HistoryHistory
• CurrentCurrent StrategyStrategy
• SWOTSWOT
• 4 P’s4 P’s
• SuggestionsSuggestions
• ConclusionConclusion
S.W.O.T. Analysis
• Opportunities– “Take Home” segment of the market has doubled
– Beer consumption by women has increased
• Opportunities– “Take Home” segment of the market has doubled
– Beer consumption by women has increased
• Threats– Large Domestic Breweries
– New “designer beer” being introduced
Recommendations
• Use local celebrities and sports icons to promote the brand – scale down the overpowering American image
• Foster the “take home” market for beer – use pints of beer instead of twelve-ounce cans in an
enclosed carrying case • Discontinue promotion of Budweiser as a premium
lager
• Target newer country and inner city pubs for placement of product
• Use local celebrities and sports icons to promote the brand – scale down the overpowering American image
• Foster the “take home” market for beer – use pints of beer instead of twelve-ounce cans in an
enclosed carrying case • Discontinue promotion of Budweiser as a premium
lager
Suggestions
• IntroIntro
• TargetTarget MarketMarket
• HistoryHistory
• CurrentCurrent StrategyStrategy
• SWOTSWOT
• 4 P’s4 P’s
• SuggestionsSuggestions
• ConclusionConclusion
Conclusion• IntroIntro
• TargetTarget MarketMarket
• HistoryHistory
• CurrentCurrent StrategyStrategy
• SWOTSWOT
• 4 P’s4 P’s• SuggestionsSuggestions
• ConclusionConclusion
Conclusion
While maintaining its American image, it is critical for Anheuser-Busch to market its
product specifically for the characteristics of the British market.