Positioning Budweiser

Marketing Case Study: Positioning Budweiser

SOMMAIRE

PART 1 : Situation Analysis

1- The Environment p 3

2- The Industry p 4

3- The Company p 5

4- Marketing Strategy p 6

PART 2: The solution

A- Recognition of the problem p 8

B- Analysis of the different alternatives p 9

1- Domestic Strategy

2- Foreign Strategy

PART I: Situation analysis

I The Environment

According to the BudweiserÐŽ¦s file, we can find some of the Opportunities and threats that Anheuser-Busch has to face nowadays.

Opportunities Threats

„« AB is the Biggest brewer in the USA and globally.

„« It had 50% on the US market share in 2001.

„« Increasing number of international sales, which is also accelerating.

„« Significant sales volume in Europe

„« Fast growing market in the developing world

„« ChinaÐŽ¦s market is developing itself

„« Attractiveness of Latin America

„« Growing number of competitors, especially out of the US (imports).

„« Consumers are getting interested in their ÐŽ§belt sizeЎЁ.

„« Local restrictions because of the trademark dispute.

„« Internationally speaking, Anheuser-Busch is a newcomer, therefore on those markets there is a lot of competitors.

„« Substitutes

„« Tough price competition in the USA

„« State of the economy

In the USA, the GNP is slowing down since last year. The currency (Dollar) is falling, whereas the Euro is getting stronger. This is positive for the American exportations.

In Europe, there is a strong internal demand which leads to a significant and continuous growth. ( http://www.minefi.gouv.fr/minefi/index.htm )

„« Political values

In the United States, the drinking legal age is 21. The law is really strict towards the legal age. It is forbidden for a minor to buy any kind of alcohol, but it is also strictly forbidden to sell any liquor to the minors. There are also laws regarding to the driving under alcohol.

In Europe, there is an overall will, even if there are no specific regulations, to reduce the drinking. Therefore, nationally, laws are becoming tougher, regarding to the alcoholic consumption. A European Charter on alcohol has been agreed in Paris on December 12 to 14 1995. ( http://www.eurocare.org/who/eaap/charter/1995eng.html )

„« Social values

Nowadays, it seems clear that people are getting concerned with their look and health. The trend is to a healthy life, a balanced diet and bio food. Alcohol in general but also beers are not considered as diet drinks. There is a trend for diet drinks and flavoured water.

„« Cultural values

In the Czech Republic, and moreover in the eastern European countries, there is an immoderate taste for alcohol. Czech Republic is the first Beer drinker in Europe, it is strongly in the local Tradition, and Czech beer is globally known. (http://www.centreurope.org/tchequie/cdromtch/1.4/habitudes-alimentaires-republique-tcheque.htm )

Beer is also widely consumed in the United Sates.

II/The Industry

1) The industry

In this case, we consider the problem of the biggest brewer and larger player in the US market: AB or Anheuser Besuch.

2) The major competitors

The main competitors or ÐŽ§rivalsЎЁ of AB are Heineken, Interbrew and South African breweries. In the following list, we are going to see what are the strengths and weaknesses of the competitors in the beer industry:

STRENGHTS WEAKNESSES

- Heineken: a German beer, active internationally, sold in 160 countries

- Carlsberg: sold in 140 countries, 80% of its sales are made outside of the domestic market (Denmark)

- Guinness: a global successful presence

- Budweiser is only sold in 80 countries and is consider as a relative newcomer - Even though, Budweiser dominates, she is larger than its competitors

- Budweiser is winning the rights to sell in other countries like Spain, Sweden, Finland and under the Bud name in Norway >> A more and more expanding firm

- The Czech privatization process

We must underlined that all the elements considered as weaknesses for the competitors are in fact some of the strengths of Budweiser to enter the market and, conversely, the strengths of competitors are weaknesses or even sometimes threats for Budweiser (more information about that in the third part: ÐŽ§The companyЎЁ).

3) The opportunities and threats for the company

OPPORTUNITIES THREATS

- - A new idea : the calorie-conscious trend

- - To develop a foothold in established markets like Canada and Europe (number of equity links)

- Some attractive markets because:

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