Bud Light Lime

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Situation Analysis: Anheuser-Busch

Michael SpinellaTy Rosa

MAR 351

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Table of ContentsPart 1: Situation Analysis OverviewAustralian HistoryCompany ProfileCompany SWOT AnalysisBeer Industry Trends: AustraliaCompetition: Domestic and GlobalCompany Target MarketAustralian Beer ConsumersAustralia’s DemographicsAustralia’s Psychographics

Part 2: Marketing PlanU.S. Brand ImagePositioningTarget MarketMedia Selection: InternetMedia Selection: TelevisionAdvertisement: OutdoorAdvertisement: PrintAdvertisement: Health and WellnessAdvertisement: Sports and FitnessAdvertisement: FamilyAdvertisement: EventsCorporate Social ResponsibilityBudget AllocationCampaign TimelineSources

34-89-1718-2223-3031-3637-383940-4142-44

4546-4748-4950-5758-6667-6970-7273-7475-7677-7879-8081-8485868788-94

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Overview

• Today we will be discussing Anheuser-Busch’s current position in the global and Australian business world:• Australian History• Company Overview• SWOT Analysis• How industry & market trends affects them• Anheuser-Busch’s industry structure• Who are their competition?• Who are their target audience?

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Australia Info

• Australia has six states– New South Wales, Victoria, Queensland, South

Australia, Western Australia and Tasmania • Climate remains between spring and autumn • Primary language is English• The currency is called the AUD• Tourism is where they earn their highest revenue• “Unofficially” the Kangaroo and Emu are the

nations animals

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Australia Quick History Lesson

60,000 BC- 40,000 BC

People from Southeast Asia

settled in Australia

1770 A.D.Britain claimed Australia and

settled into the first six

colonies in 1788

1901The six colonies join to form the Commonwealth of Australia. It

has Democratic government

1962Aborigines are given the right to vote. Five years later

they’re recognized as

citizens

2000Sydney hosts the Summer

Olympic Games

8000 BCAborigines invent the

boomerang

1850’sGold is found in southern Australia.

Settlements are deserted

as people rush to mine gold

1927Canberra officially replaces

Melbourne as the nations

capital

1976The Aboriginal

Land Rights Act is Passed

2008The Australian

parliament formally

apologized for past wrongs committed

against Aboriginal

people

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Quirky Fact #1!

• Swimming was illegal from 1838-1902

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Quirky Fact #2!

• Australia Day – January 26th – The anniversary of ships arriving in Sydney

carrying loads of convicts

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Quirky Fact #3!

• The Wombat poops square on rocks and logs to mark its territory.

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Company Profile

• History• Mission• Goals• Objectives • Internal Trends

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HistoryIn 1861 Busch

married Anheuser

daughter and started

working for his father-in-

law

1870 Adolphus Busch became the first

American brewer to use pasteurization,allowed beer to be

shipped long distances without

spoiling

1901, The company

broke the 1 million barrels of beer sales mark

By 1938, Anheuser-Busch hit

the 2 million barrel mark.

1982 The company

introduced Bud Light nationally

In 1876 they created an American style lager

1879, the company was renamed the Anheuser-

Busch Brewing

1920 The company

marketed more than 25 different non-

alcohol products

1957, Anheuser-

Busch became the leading

U.S. brewer, a position it

retains today.

2008, Anheuser-Busch and

InBev combined to

become Anheuser-

Busch InBev

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Mission

“During production of the Budweiser Budvar lager we use traditional procedures and the knowledge passed down to us by previous generations of brewers. We produce our beer exclusively from the highest quality raw materials – whole heads of Žatec hop, selected Moravian malt and virgin clear water from our Artesian wells. Due to the unavoidable delicious flavour, unique composition and care in production, our lager is searched for by lovers of high quality beer in all continents.”

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Goals/Objectives

• The success of our company depends on more than just producing great products for adult beer drinkers and delivering outstanding services to our customers.

• Success depends on the dedicated people who come together every day and work with a sense of purpose and pride in being the best.

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Goals and Objectives

• Pride means we select only the finest ingredients to brew and package the highest-quality beers in our 12 breweries located throughout the United States.

• Our pride also drives our industry-leading role in promoting alcohol responsibility, protecting and preserving the environment and making a difference in the communities where we live and work. After all, this is our world, and it’s our collective responsibility to care for it

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Internal Company Trends

• The top-ranking US beer company in total volume terms, with a 70.1% share of sales.

• The company’s Bud Light and Budweiser brands are the best-selling light and regular lager beers in the US.

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Reported Revenue 2008-2010

• While still the leader in the US, Anheuser-Busch InBev’s volume sales have been declining since 2009 due to the recent US recession.

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• The company has launched a multitude of innovative products, but its most successful launches have been better-executed versions of competitors’ ideas.

• Although Miller Brewing Co created the light beer category, the release of Bud Light in 1982 by Anheuser-Busch dominated it.

• In 2008, the company’s release of Bud Light Lime was significantly more successful than an earlier launch, Miller Chill.

• In 2010, the company launched its version of a lower-calorie light beer, Bud Select 55, following

its rival’s launch of MGD64.


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• Strategic direction:Four Focus Areas:

1. Focus on growing its leading Bud Light brand through its new partnership with the National Football League. 2. Seek to stabilize the yearly decline of Budweiser. 3. Focus on growing its share in the premium segment. 4. Look to decrease costs by increasing its efficiency and implementing cost-cutting management procedures.

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Strengths Weaknesses

• Financial Status• Distribution Channels• Good marketing• Brand name recognition• Highly recognized reputation

• High reliance of the US market• Wholesalers and retailers do not sell

the product properly• Increase of cost of production results in

low profit margin. Rising prices of barley and wheat.

• Debt

Opportunities Threats

• The international market is four times the size of the U.S. market.

• New alliances by becoming the U.S. beer importer of a number of inBev’s premium European brands such as Beck’s, Bass Pale Ale.

• Local companies already established within every international market.• High industry competition. In 2001 the

company experienced decrease in market share due to Miller’s discounted marketing approach.• New regulatory forces can limit sales

volume• Anti-alcohol campaigns can have

negative effect on overall sales

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Strengths• Anheuser-Busch controls 70.1% of the domestic beer

market. • Have devised an incentive plan for their wholesalers that

reward them for selling only Anheuser-Busch products. This plan focuses the wholesaler on selling one product group.

• Anheuser’s manufacturing plants are the most technologically advanced in the industry.

• This has reduced cost by around $300 million per year. It has also increased the output of each facility.

• Anheuser has an advantage because of their name. Budweiser is one of the most valuable trademarks in the world today. This is due to the large number of promotions

they have each year.

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Weaknesses

• Budweiser focuses on brand positioning and massive distribution, however even though they offer great incentive programs for their wholesalers, they may not have the proper direction to sell the product efficiently. If the wholesaler is not promoting, sales in the area will be hurt.

• It needs to reduce its reliance on the US market. It has tried to build a worldwide brand by marketing campaigns, such as plastering the Budweiser logo on stadium walls at the FIFA World Cup, and through local partnerships.

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Opportunities• The international market is four times the size of the

U.S. market. U.S. only consumes 25% of the world’s beer volume.

• With a bigger market it will also give Anheuser a chance to experiment with different product lines that may appeal to different market segments.

• Less restriction on trade making it easier to import products into a country

• Creating new alliances with other large beer distributors such as inBev’s and Hansen Natural Corp.

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Threats• Even with Anheuser’s size Budweiser will still

have threats when entering new markets. • Will have to compete against the existing

companies that have already established themselves in the market.

• Competing in another country can be very expensive Extra costs involved with oversees distribution or production.

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Beer Industry Trends: Australia• Total beer volumes in

Australia decline by 4% in 2011 to reach 1.7 billion litres

• Two major players accounted for 89% of volume sales in 2011

• Citing health and wellness concerns, some beer

drinkers substituted a portion of their beer intake with wine, due to its

healthier image amongst

consumers.

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Beer Industry Trends: Australia

• Growth in craft beer in Australia has been a consequence of consumers seeking beers with more complex flavor profiles.

• Beer volume sales dropped by 4% in 2011 to 1.7 billion liters. – Fall attributed to: interest rate increases and cooler

weather. Also to ongoing “premiumisation”, increasingly attractive spirits/RTD propositions and health and wellness trends, all of which saw drinkers consume less product.

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Us

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Us

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• Excellent growth for low carbohydrate beer offerings Carlton United Brewers’ Pure Blond.

• Low carbohydrate offerings are also classed as contemporary lagers by some Australian beer players.

• Growth within this category was a significant contributor to growth within the domestic

premium larger category.

Beer Industry Trends: Australia

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Beer Consumption (1945-2009)

Wine Consumption (1945-2009)

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• The majority of beer imported into Australia is premium lager, with Corona Extra being by far the biggest single brand.

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• Imported premium lager represents 12% of total premium lager volume and 3% of total beer sales in 2011.

• Many international brands, such as Heineken, Beck’s, Guinness and Stella Artois, are produced under license locally and are, therefore, not considered to be imported brands.

Imports and Exports

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Domestic Competition• Carlton United Brewers and Lion Nathan have

very strong brand portfolios consisting of both their own and licensed brands.

• The two companies account for 89% of beer volume sales in 2011.

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• There are over 100 microbreweries and brew pubs across Australia, with new market entrants starting on a regular basis.

• Under the current taxation laws, microbreweries are entitled to an excise refund if they produce less than 30,000 litres annually. There is a cap on the total refund available at A$10,000.

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Global Competition• Anheuser-Busch/InBev (BUD) is the world’s largest brewer

by volume and owns about 200 beer brands, including: Budweiser, Busch, Michelob, Big Light, and Natural Light.

• SABMiller PLC is the world’s second largest brewer by volume. It owns a portfolio of over 150 brands, including international beers such as Pilsner Urquell, Peroni Nastro Azzurro and Miller Genuine Draft.

• Dutch beer giant Heineken N.V. is the owner of more than 200 international, regional, local and specialty beers and ciders, including Amstel, Birra Moretti, Cruzcampo, Foster’s, Kingfisher, and operates in

more than 70 countries.

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Target Market

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Consumers in USA

• 50% of Bud Light Lime drinkers either haven't tried beer or are adding it to their beer selection

• 20% of current users are believed to have switched from Corona and Miller Chill

• Anheuser Busch’s primary target audience is Males 21-49

• AB Bud Brand is working on expanding female target by advertising on E! and other popular female networks

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Consumers in Australia

• “Consumers are now looking for different beers for different occasions. With brewers developing more styles and products to cater to this growing trend, we are seeing some category shift within the Australian beer market, particularly in areas of Craft, Low Carb and Premium.”

• Foreign Premiums grew at 20.2%• Low Carb Beers have grown 300% over the past

two years.

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Australia’s Demographics

• Population: 22,015,576• 15-64 years: 67.7%• 92% of the population is White followed by

Asian at 7%• 78.5% speak English and Chinese is 2nd with

2.5%• 99% of the population is literate

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Where do Australians Live?

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Australians Psychographics

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Australian Drinking Habits

• Alcohol is part of the culture • Known for its strong drinking based around

the pub • The BBQ its just as important in social life as

sports are.• 29% of boys 16-17 binge drink on a regular

basis, 15% of girls as well

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On an average night out. Consumer

spending on beverages.

Australian consumer drinking habits.

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Marketing Plan: Bud Light Lime

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Brand Image in US

• Facebook:– Over 500,000 “Likes” on Facebook– Sports and outdoors oriented fans – Promotes active life style and all around good time

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Brand Image In US

• ConsumerReports.org:– “The lime flavor in Bud was more like lime juice.” – “Tasters thought it was refreshing and inoffensive

but not much like beer.”– “In Bud light lime the lime outshines any beer

flavor.”

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Positioning in Australia

• What we want:– “Bud Light Lime: The taste of fun!”• Show Australians how Bud Light Lime can fit into their

active life styles.• Demonstrate it as a healthier alternative to compared

to other beers.– “All the fun of beer, with less calories.”

• Show Australia that Bud Light lime wants to protect and create a more sustainable environment.

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Happy Australia

• Happiest country! – Bloomberg.com• Sydney- #2 Happiest city in the world - Forbes• “75% of Australians report they are satisfied with their

lives.”• Work about 49 hours less per year than other

developed nations.• Life expectancy: 81.8 years • Family oriented• 9th highest in disposable

income

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Target Audience

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Demographics

• Target Demographics:– 18-29• Tend to drink out at bars and clubs to socialize

– 30-49• Tend to drink more at home with friends and family

– College Educated – Income with 30,000+

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Psychographics

• Active/Sports Lifestyle• Family Oriented• In 2010, the median age at first marriage for

men was 29.6 years and 27.9 years for women• “…loyalty has faded in recent years, largely due

to the emergence of craft beers which have encouraged young Australian beer drinkers to experiment with different tastes more often.”

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Geographic

• Major Cities:– Sydney, Melbourne, Perth, Brisbane, Adelaide, Gold

Coast, New Castle, Canberra, and Wollongong• Australians have also embraced so-called light beer. • Light beers are particularly popular in Queensland.– Brisbane

• Drinking expenditure is high due to the warm weather at $737 per capita

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Geographic

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Consumer Profile

• James Taylor• Age: 19• Occupation:– Full time student at University of Melbourne/ Part time bar tender

• Single• Monthly Income: $800-$1000 AUD• Hobbies: Surfing, Socializing, Playing Guitar,

Attending sporting events

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Consumer Profile

• Emma Wilson• Age: 27• Occupation: Nurse• In a relationship• Yearly Income: $60,000 AUD• Hobbies: Hiking, Shopping,

Blogging and Working out.

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Consumer Profile

• Tom & Hannah Anderson• Age: 37 & 34• Occupation: Car Salesmen/ HR• Married for 8 years– 2 kids in daycare

• Yearly Income: $90,000 AUD• Hobbies: Barbequing, Going to the beach, Swimming, and Traveling

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Media Selection

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Media Choices: Social Networking• Nielsen- “A revolution for online Australians.” Social

media provides more customer touch points, more methods of content and communication distribution and more information about consumer preferences.

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Media Choices: Social Networking

• The number of internet subscribers in Australia has climbed to 10.4 million.

• Not just popularity in social media.• There has been enormous growth in the

number of Australians contributing to and relying on online reviews, discussions, comments and ‘Likes’ before making a purchase.

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• 73% read reviews, discussions and comments on brands.

• 46% have clicked the Facebook Like button for a brand/organisation.

• 43% discussed or commented on a product, service or brand.

• 42% have interacted with a company through social network.

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• 50% of Australians using the internet access the web through mobile devices, with 35% using smart phones.

• This ‘always on, always available’ style of internet usage presents a huge opportunity for businesses willing to capitalize and use the internet as a sales channel.

• Predictions that online advertising will outgrow TV 4:1 between now and 2014, and print by virtually 7:1.

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• #1- Facebook : 9.5 million subscribers 65% of internet social media usage in Australia.

• #2- StumbleUpon Usage amongst Australian internet users = 12%, almost as much as YouTube and Twitter combined.

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• #3- Google- Global- 90% market share, Australia- 95% market share. – Google+1 gets conversations going.– Public stamp of approval. – Add comments.– Helping out your friends decide and starting

conversations!

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Facebook

• Submit a picture of yourself representing bud light lime (drinking, gear, etc).

• Whoever gets the most likes wins free beer for a year!

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Stumble Upon

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Media Choices: Television

• Watching more Televison each year.• Older generation watching more.• 18-24 age group watching the least amount of television, therefore we hope to

attract them mostly with social media.

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Media Choices: Television

• “My Kitchen Rules”– #1 show in Australia

• “The Voice: Australia”

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Televison Commercial

• Beach Party

http://www.youtube.com/watch?v=Uj_gE0iwPrw

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Outdoor Advertisement

• Driving a car alone is the main mode of transportation by which most Australians commute to and from work, university or school (63%).

• This is more common in Perth (70%), Brisbane (69%) and Adelaide (67%) than in Sydney (62%) and Melbourne (58%).

• In the last three years, 22% of drivers experienced roadway traffic so bad that they turned around and went home. This response to chronic congestion is highest in Sydney (27%) and Brisbane (25%) and lowest in Adelaide (11%) and Perth (11%).

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Let the fun times begin!

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Snooze is not an option. • Commuting by train is relatively

popular in larger cities such as Sydney (18% of commuters) and Melbourne (14% of commuters) but not as popular as commuting by car. Commuting by bus accounts for another 3% of total commuters.

• Buses are far more popular in Sydney than in Melbourne, accounting for nearly 5% of commuting trips compared to only 1% of trips in Melbourne.

Public Transportation

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Print Advertisement

• Australia has a strong literary tradition.• According to the most recent research from the

ABS, “Reading was a favorite activity for 61% of people aged over 15 years.

• The activity was a favorite for 73% of females surveyed, compared with 50% of males.

• Of those surveyed, 77% read newspapers, 58% read magazines and 48% read books at least once a week

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Media Choices: Magazines

• “Inside Sport”– #1 sports magazine for everything sports in Australia

• Food Australia• Australian Women’s Weekly

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Health and Wellness Advertisement• Australians are well aware

of issues surrounding their health and well-being.

• This is partly due to the growing number of Australians being obese and overweight. – 30.2% of Australian

women considered obese compared to 29% Australian men.

– 2/3 of the population are overweight.

• Australians, particularly women, are big fans of diets, diet products, and light products.

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Same amount of fun, less calories!

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Sports and Fitness Advertisement• Australians take great pride in their sporting

achievements. • 2008 Olympics- 6th in medal count• 2012 Olympics- 10th in medal count• At the top of the international ICC cricket rankings.• Only 20th in the FIFA rankings, but football is an

important part of Australian culture.• Australia has more than 120 national sporting

organizations and thousands of state and local bodies.

• Most watched/played sports: cricket, rugby, “football”

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Can you handle the lime ride mate?

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Family Advertisement

• Sundays are dedicated to the family.• The barbecue is just as important in social life

as sports are.• Australia’s warm weather encourages at home

entertainment, such as gatherings of family and friends in the backyard for barbecues.

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Its not a BBQ without a twist of lime!

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Bud Light Lime Events

• Australian Day family BBQ• Bud light Lime Surf Series • Sporting Events

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Australian Day Family BBQ

• Held January 26th

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Sporting Events

• The Wallabies– Ruby World Cup

• Cricket – Australian Cricket Team– One Day International – 20Twenty International

• Promotion Giving away free beer to the first 1,000 participants Yeah. Its that good.

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Bud Light Lime Surf Series

• Bud Light Lime is proud to announce its new event competition featuring over 30 of the top male and female surfers.

• $5,000 Grand Prize to first place • All proceeds will be donated to Coastcare to

preserved the coasts of Australia.

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Corporate Social Responsibility

• #1 nation for charity.• 70% of Australians have given money to a charity. 38%

have donated their time.• Coastcare: – Tackle problems like dune erosion, loss of native plants and

animals, storm water pollution, weeds and control of human access to sensitive areas.

– To protect and manage coastal marine environments.

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Budget Allocation

30%

20%20%

5%

25%

Television

Print

Outdoor

Social Media

Events

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Media Selection: September October Novemeber December January February March April May June July August

Out Door:

Billboards

Public Transit

Magazine:

InSide Sport

Womens Weekly

Food Australia

TV:

The Voice

My Kitchen Rules

Social Media:

Facebook

Stumble Upon

Events:

Australia Day BBQ

Surf Competition

Sportinging Events

Campaign Timeline

Sources

• http://www.timeforkids.com/destination/australia/history-timeline

• http://www.portal.euromonitor.com/Portal/Pages/Search/SearchResultsList.aspx


• http://www.portal.euromonitor.com/Portal/Pages/Analysis/AnalysisPage.aspx


• http://www.just-drinks.com/analysis/just-the-facts-australian-beer-consumption-since-1945_id104242.aspx


• http://online.wsj.com/article/SB10001424052702303936704576399333639083512.html

http://www.just-drinks.com/analysis/just-the-facts-australian-beer-consumption-since-1945_id104242.aspx



• http://adcreative.wordpress.com/2008/09/19/bud-light-lime-beats-out-other-beer-giants/

• http://www.beerandbrewer.com/_blog/Magazine/post/Australia's_Coldest_100/

• http://www.indexmundi.com/australia/demographics_profile.html

• http://www.dfat.gov.au/facts/people_culture.html• http://www.portal.euromonitor.com/Portal/

Pages/Analysis/AnalysisPage.aspx

• http://www.consumerreports.org/cro/food/beverages/beer/light-beers/overview/light-beers-ov.htm

• https://www.facebook.com/BudLightLime• http://www.consumerreports.org/cro/food/beverages/

beer/light-beers/overview/light-beers-ov.htm• http://www.naturaltherapypages.com.au/article/

how_happy_is_australia• http://247wallst.com/2012/05/22/the-happiest-

countries-in-the-world-2/2/• http://www.bloomberg.com/slideshow/2012-05-25/

world-s-happiest-countries.html

http://www.consumerreports.org/cro/food/beverages/beer/light-beers/overview/light-beers-ov.htm

http://www.consumerreports.org/cro/food/beverages/beer/light-beers/overview/light-beers-ov.htm

https://www.facebook.com/BudLightLime

• http://www.nytimes.com/2012/06/25/world/asia/25iht-educlede25.html?pagewanted=all


• http://www.roi.com.au/social-media-optimisation/how-australians-use-the-internet-latest-market-data/




• http://www.roi.com.au/seo-news/what-does-googles-plus-1-mean-for-australian-business/





http://www.portal.euromonitor.com/Portal/Pages/Search/SearchResultsList.aspx

http://www.portal.euromonitor.com/Portal/Pages/Search/SearchResultsList.aspx




• http://www.smh.com.au/national/australia-tops-list-of-charitable-countries-20100909-153b5.html#ixzz247yNNl5b

http://www.smh.com.au/national/australia-tops-list-of-charitable-countries-20100909-153b5.html



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