Beer Company Segmentation

IV. Market Strategies of Selected Brands

Anheuser Busch Companies

Demographic:

From the market analysis portion of the paper we already established that internationally, Anheuser is expanding both into the Asian and Latin American markets. But typically what segment of the market do they target specifically? Well currently, the company is making an attempt to target the female population. Michelob Ultra is being marketed in women's magazines like cosmopolitan and other AB brands are placed on woman-focused channels such as Oxygen and Lifetime. Women however aren't the only focus. With the recent focus being on FMB's, the most consistent and continuous market has been the 21-27-age bracket, mostly college students. It's Bacardi line of flavored malt beverages and the latest additions, Tilt and B-to-the-E agree with the lifestyle of the contemporary adult looking for innovative drinks that is suitable for a variety of occasions and is an alternative to beer. For the more traditional and patriotic consumer, Anheuser markets towards its US customers by boasting on the fact that it is the only American made beer.

Geographic:

Currently, Anheuser is a global enterprise with distribution centers in the U.K, Japan, Canada, and Spain. It holds a 50% market share in the U.S beer market and a 50% market share in Grupo Modelo, Mexico's leading brewer. Anheuser Busch owns 27% stake in China's number one brewer Tsingato and is pursuing Harbin brewery Group in China.

Psychographics:

The trend today is for people to lead healthier lifestyles and be more conscientious in the activities and interests that they partake in. This is ever so visible in the diet plans and low-carb phase that has emerged and has become dominant. To capitalize off of this Anheuser promotes its low-calorie beer to these individuals. Anheuser also places more emphasis on it flavored malt beers to appeal to its wine and spirit consumers and to compete in a changing environment where people lead highly social lifestyles by going to bars/clubs, shows, sporting events, etc. Sponsorships of the 2006 Fifa world cup, MLB and its 26 domestic teams and the Mexican national soccer team are an attempt to capture this segment of the market.

Behavioral:

"18-34 year old Hispanics are consuming Spanish and English broadcast media at nearly equal rates with Spanish-language television and radio outpacing English-language television and radio; * A greater percentage of young Hispanics shop at more store types than do young non-Hispanic adults; * Young Hispanics are more likely to be impulsive shoppers. They like to keep up with styles and will spend what they have to look younger -- more so than non-Hispanics young adults; * Young Hispanic adults are heavy readers of magazines with lifestyle, entertainment, automotive and sports-focused titles taking the lead; * 18-34 year old Hispanic consumers are more persuaded by advertising in Spanish and are more loyal to companies with ads in Spanish." (Hispanic business) The trend is for Hispanics to be trendsetters and innovators instead of followers/laggards so the pattern has been to market on a personal portfolio basis instead of brand-loyalty aspect. The younger generations tend not to be brand loyal but adoptive of the newest and trendiest innovations. The behavior marketing of Anheuser Busch is tailored to the Hispanic with events, in magazines, television stations and sporting events. It sponsors the 2006 Fifa World Cup, MLB and its 26 domestic teams and the Mexican national soccer team. Not only is the behavior of Hispanics evaluated but all of diverse nations. Anheuser promotes diversity in the workforce at distribution centers across the world to be familiar with the consumer behavior of all groups.

Positioning strategies:

Beer is always associated with negative stereotypes of death, drunken behavior, a male activity and many other bad connotations. The fun image of Anheuser Busch (more commonly known as Busch Gardens) land looks to change the appearance as a fun image for the family. Children at a young age will be familiar with the product and see it as user friendly because it is positioned as healthy and acceptable for everyone. The addition of the low carb line of beer also helps to suggest that the beer is also healthy and socially suitable.

Product strategies:

Anheuser Busch product strategy includes the eye catching 7ounce shrink-wrap bottle that comes in six colorful festive designs. Bud Light, one of the brands of AB, is including the addition of flavorful beer with Bud light Oranguatang and Bud light berry. It also introduced two new one of kind brews, Celebrate by Michelob and Brews Masters Private Reserve by Budweiser.

Pricing strategies:

To better target the Hispanic market, AB increase the Latino budget to more than 60 million dollars, which is 66% more than last year. The increase of national media spending will also increase by three times more than last year topping 3 million dollars. "While the domestic beer company has increased tactical price promotions this year on a specific market, brand and package basis to reduce price premiums versus competition, company executives confirmed that the company's long-term pricing strategy continues to target increases at or slightly below the consumer price index."(Forbes)

Promotion strategies:

As stated before the company is promoting its product to attract woman through woman-focused channels like Oxygen and Lifetime. In addition to becoming familiar through sponsorships of major sporting events, it promotes its products through marketing messages as the only American brewery that is still American owned with profits staying in the states.

Miller Brewing Company

Demographic:

Many breweries realize the potential of the growing Hispanic market and Miller is no different. Especially important, 75% of the Hispanic population is under 45 years old- a prime age group for beer consumption. Hispanics are the most brand-loyal demographic among beer consumers. However this is not the only segment that it targets. Miller is tailored to the contemporary drinker minimum age 24. Commercials for products such as Miller Light show the masculine image of men in masculine environments. Most of Miller products