Steve Clark, Derek Laur, Ryan Patton,

1

Anheuser-Busch Developing a Global Brand in
Great Britain
Steve Clark, Derek Laur, Ryan Patton, Willayna
Roberts, Alan Yeung
2
Intro
Intro

• Intro

• History

QUESTION

• Target
• Market

How can Anheuser-Busch successfully market its
global brands in the United Kingdom beer market
which is highly competitive and steeped in
tradition?

• Current
• Strategy

• 4 Ps

• SWOT

• Suggestions

• Conclusion

3
Intro
Pub Types / Beer Types

• Intro

• History

• 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

• Target
• Market

• Current
• Strategy

• 3 main types of beer
• Stout (Guinness), Ale (Bass), Lager (Budweiser)

• 3 main types of beer
• Stout (Guinness), Ale (Bass), Lager (Budweiser)

• 4 Ps

• SWOT

• Lager traditionally seen as rowdy and lower
  class

• Lager traditionally seen as rowdy and lower
  class

• Suggestions

• Steadfast loyalty to pubs and beers

• Conclusion

4
UK Target Market
Perceptual Map
Stout (dark)

• Intro

Bass

• History

Whitbread

• Target
• Market

Courage

• Current
• Strategy

More Expensive
Less Expensive
Carlsberg

• 4 Ps

• SWOT

SN

• Suggestions

• Conclusion

A-B
Lager (light)
5
History
History

• Intro

• History

• Breweries own or have exclusive deals with pubs
  to distribute their own beers
• Large breweries 10,000 pubs
• Small breweries lt 1,000 pubs

• Breweries own or have exclusive deals with pubs
  to distribute their own beers
• Large breweries 10,000 pubs
• Small breweries lt 1,000 pubs

• Target
• Market

• Current
• Strategy

• 4 Ps

• SWOT

• Smaller breweries are forming alliances
• Focus shift towards bottled beers and
  non-exclusive pubs

• Suggestions

• Conclusion

6
History
History

• Intro

• 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

• Target
• Market

• Current
• Strategy

• 4 Ps

• SWOT

• Suggestions

• Conclusion

7
UK Target Market
Target Market

• Intro

• History

• Younger drinkers
• Trendier drinking crowd
• Take Home market
• Super-premium brand

• Target
• Market

• Current
• Strategy

• 4 Ps

• SWOT

• Suggestions

• Conclusion

8
Hands-on Control of Marketing

• Intro

• Imported Michelob and let Courage, a large
  English brewer, brew Budweiser under contract

• Imported Michelob and let Courage, a large
  English brewer, brew Budweiser under contract

• History

• Target
• Market

• Appointed Courage as distributor of Budweiser to
  its network of more than 5,000 pubs

• Appointed Courage as distributor of Budweiser to
  its network of more than 5,000 pubs

• Current
• Strategy

• Increased Advertising 100 to 20 million while
  all UK brewers spent about 180 million in 1992

• Increased Advertising 100 to 20 million while
  all UK brewers spent about 180 million in 1992

• 4 Ps

• SWOT

• Suggestions

• Launched first national TV campaign two
  30-second spots featuring blues music and
  continue the successful Budweiser, the genuine
  article theme

• Conclusion

9
Hands-on Control of Marketing

• Intro

• Budweiser and Michelob priced higher than most
  local brands at super-premium price

• Budweiser and Michelob priced higher than most
  local brands at super-premium price

• History

• Target
• Market

• Budweiser linked to American cultural icons

• Budweiser linked to American cultural icons

• Current
• Strategy

• No differentiating among advertising campaigns in
  all European countries

• No differentiating among advertising campaigns in
  all European countries

• 4 Ps

• SWOT

• Cool, frosty Budweiser campaign did not work in
  UK in the late 1950s and early 1960s

• Cool, frosty Budweiser campaign did not work in
  UK in the late 1950s and early 1960s

• Suggestions

• Conclusion

• In the mid-1970s, Budweiser became more
  widespread British drinkers began to demand cool
  beers

10
Positioning

• Intro

• Large segment Premium Lager

• Large segment Premium Lager

• History

• Target
• Market

• Strength 5 Alcohol by volume draught and
  packaged

• Strength 5 Alcohol by volume draught and
  packaged

• Current
• Strategy

• Target audience Primary - Men 18-34 all men
  middle class

• Target audience Primary - Men 18-34 all men
  middle class

• 4 Ps

• SWOT

• Packaging 330ml non-return bottle 330-ml can
  (4, 8, 12 multipack) 11-gallon kegs

• Suggestions

• Conclusion

11
TV Advertising

• Intro

• History

• Target
• Market

• 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

• AB used American themes (like blues music) to
  attract British consumers

• Current
• Strategy

• 4 Ps

Two key messages

• SWOT

• Suggestions

• Authentic American heritage of the brand

• Authentic American heritage of the brand

• Conclusion

• Quality of ingredients and the consistently
  high-quality brewing that goes in the beer

12
4 Ps
4 Ps

• Intro

• PRICE
• Budweiser Michelob marketed at super-premium
  pricing

• PRICE
• Budweiser Michelob marketed at super-premium
  pricing

• History

• Target
• Market

• PRODUCT
• Michelob imported, Courage given rights to brew
  Budweiser

• PRODUCT
• Michelob imported, Courage given rights to brew
  Budweiser

• Current
• Strategy

• PROMOTION
• Increased advertising budget.
• Mainly American themes

• PROMOTION
• Increased advertising budget.
• Mainly American themes

• 4 Ps

• SWOT

• Suggestions

• Conclusion

• PLACE
• Courage appointed distributor so Budweiser sold
  through Courages network of 5,000 pubs

13
SWOT Analysis
S.W.O.T. Analysis

• Intro

• Strengths
• Change in British taste preference
• ABs relationship with Courage

• Strengths
• Change in British taste preference
• ABs relationship with Courage

• History

• Target
• Market

• Current
• Strategy

• Weaknesses
• British tradition and loyalty to brands of beer
• Current market position not effective
• Beer production was down 3 in 1992

• 4 Ps

• SWOT

• Suggestions

• Conclusion

14
SWOT Analysis
S.W.O.T. Analysis

• Intro

• History

• 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

• Target
• Market

• Current
• Strategy

• 4 Ps

• Threats
• Large Domestic Breweries
• New designer beer being introduced

• SWOT

• Suggestions

• Conclusion

15
Recommendations
Suggestions

• Intro

• Use local celebrities and sports icons to promote
  the brand scale down the overpowering American
  image

• Use local celebrities and sports icons to promote
  the brand scale down the overpowering American
  image

• History

• Target
• Market

• Current
• Strategy

• Foster the take home market for beer use
  pints of beer instead of twelve-ounce cans in an
  enclosed carrying case

• Foster the take home market for beer use
  pints of beer instead of twelve-ounce cans in an
  enclosed carrying case

• 4 Ps

• SWOT

• Suggestions

• Discontinue promotion of Budweiser as a premium
  lager

• Discontinue promotion of Budweiser as a premium
  lager

• Conclusion

• Target newer country and inner city pubs for
  placement of product

16
Conclusion
Conclusion

• Intro

• History

• Target
• Market

While maintaining its American image, it is
critical for Anheuser-Busch to market its product
specifically for the characteristics of the
British market.

• Current
• Strategy

• SWOT

• 4 Ps

• Suggestions

• Conclusion