In The U.K. Steve Clark, Derek Laur, Ryan Patton, Willayna Roberts, Alan Yeung Anheuser-Busch :...

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


• HistoryHistory


• SWOTSWOT

• 4 P’s4 P’s



• 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


• HistoryHistory


• SWOTSWOT

• 4 P’s4 P’s



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


• HistoryHistory


• SWOTSWOT

• 4 P’s4 P’s



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


• HistoryHistory


• SWOTSWOT

• 4 P’s4 P’s



• 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


• HistoryHistory


• SWOTSWOT

• 4 P’s4 P’s



• 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


• HistoryHistory


• SWOTSWOT

• 4 P’s4 P’s



• 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


• HistoryHistory


• SWOTSWOT

• 4 P’s4 P’s



• 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


• HistoryHistory


• SWOTSWOT

• 4 P’s4 P’s



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


• HistoryHistory


• SWOTSWOT

• 4 P’s4 P’s



• 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


• HistoryHistory


• SWOTSWOT

• 4 P’s4 P’s



SWOT Analysis• IntroIntro


• HistoryHistory


• SWOTSWOT

• 4 P’s4 P’s



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


• HistoryHistory


• SWOTSWOT

• 4 P’s4 P’s



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


• HistoryHistory


• SWOTSWOT

• 4 P’s4 P’s



Conclusion• IntroIntro


• HistoryHistory


• SWOTSWOT

• 4 P’s4 P’s• SuggestionsSuggestions


Conclusion

While maintaining its American image, it is critical for Anheuser-Busch to market its

product specifically for the characteristics of the British market.

In The U.K. Steve Clark, Derek Laur, Ryan Patton, Willayna Roberts, Alan Yeung Anheuser-Busch :...

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Transcript of In The U.K. Steve Clark, Derek Laur, Ryan Patton, Willayna Roberts, Alan Yeung Anheuser-Busch :...