BUDWEISER:
THE LEGACY
Keosha Kane
Professor MichealMcGiven
DeVry University
November 7, 2015 TABLE OFCONTENTS

I. BUSINESS PROFILE a. Name, history, and ownership b. Country or countries where the business operates c. Stock exchanges (identifiers and listings) d. Descriptions of products and services e. SWOT analysis II. COMPETITION, SOCIAL and ECONOMIC FACTORS a. Competition b. Demographics c. Organizational Structure d. Entrance and Exit Strategies e. Government Structures and Economic indicators III. Marketing, Operations, and Human Resources a. Marketing Strategies b. Pricing Strategies c. Global operations, and supply chain d. Compensation and appraisal system e. Employe\\e culture, employee relations, and practices
IV. Conclusion a. Thoughts about the project b. How it effects professionals careers c. Thoughts of working individually than in a team. The story of this famous beer dates before any of us where even thought about. This here is a story of raw entreprenuership destined for a family to create. It starts with Adolpus Busch, who as a boy spent his childhood developing skills of winery and brewing since he is the son of a brewer. In 1857, Adolphus cam to the states bringing along his newly developed talents that would began a change in a way that Americans see beer. Aldophus began to work for his father-in-law brewing company E. Anheuser& Co. He soon became a partner in the company, establishing the Anheuser-Busch Co. By adapting to Americans love for robust dark ales and lighter Bavarian style lagers, in 1876; Adolphus brewed a Bohemian lager, that was lighter than the Bavarians, and a stark that contrasted the ales, calling it Budweiser. This beer became the first national beer brand.
The company began to grow, in fact; there was two decades of constant growth of the Budweiser brand.. Then the prohibition came into play, making it illegal to sell alcohol in the 1920's. The Anheuser-Busch Company had to retool their product line in order to survive the prohibition. By retooling, they had to alter and adapt their products so in a sense they would not be breaking any laws. So, the company began selling low alcohol or "near alcohol" products. They also began selling the brewer's yeast, malt extract, and other raw materials so consumers could buy and brew their own beers.
In, 1933,during the end of the prohibition the Anheuser- Busch Company began to brew again. By this time, the consumers began to adapt to the sweeter taste of homemade and bootlegged beer. The company saw this as a challenge and challenged the consumers to try Budweiser for five day, and if by the sixth day they still felt the same way, they could switch back. The challengesucceed.
The company hit another bump. Growth in the company became limited because of the economic hold the Great Depression had on the U.S. soil. Instead of giving up, the company introduced "the metal can; beer packaged in cans instead of bottles; by 1936 Budweiser sales began to climb again.
By World War !!, the company began to aid the West Coast by supplying resources and to relinquish the markets to conserve rail car space. By doing this , the Anheuser-Busch Corporation entered into a rapid growth In 1946, August A Busch, the son of Adolphus, and the company's new president began to create a national network of brewers'. By 1951, a new brewery was opened in Newark, New Jersey. This growth continued for the next twenty-five years, and was the first of nine to open since then.
The name Budweiser is steamed from the adjective " of Budweis". Budwies is a statutory city in the Czech Republic, located in Central Europe. Beer has been brewed in Budweis, In 1876Adolphus and a friend visited this city, and it inspired the development of this Bohemian style lager. The controversyname has made it difficult for America to market the beer as Budweiser, so the U.S. marketed the beers as simply "Bud". This beer was the best selling beer over the years which is why the slogan became " The King of Beers". BudweiserThe Busch family sold the company to InBev for approximately $52 billion. "Budweiser was wholly owned by the Anheuser-Busch InBev, the largest brewing company in the U.S. , with a market share of %49.9. The company has twelve breweries in the U.S. and nearly twenty in other countries." (Brands,2013). Budweiser remains the top selling beer in the U.S.
Products of the Budweiser company involves Budweiser, Bud light, Bud light Platinum, Bud light Lime, Budweiser Select, Budweiser Select 55, Budweiser 66, Budweiser/Bud light Chelada, Bud light Lime-a ritas,and Budweiser NA. There are also some discontinued products that include Budweiser American Ale, Budweiser Brew Masters' Private Reserved. Bud Dry, Bud Ice Light, and Bud Silver. Budweiser also have other brand like Natural light and their specialty beer Michelob.
Budweisers' strengths are the 146 year of rich tradition and heritage. People tend to flock toward known items. The Iconic American brand and well established reputation. The Budweiser name aline holds a lot of recognition. The strong brand equity. The brand developed a strong equity by taking the hard risks and succeeding. The product is produced by AB InBev, this alone is a great strength, a brewing master believed in this beer. The product is globally known.. Wherever you are in the world you can enjoy a Budweiser beer. High perceived quality than sub premium and premium light and more comparable to high end. This beer is affordable but has the taste and quality of higher end beers.
A weakness of Budweiser is weak brand loyalty. The company needs to stick with the brand and not seek change up. The lack of appeal to millennial generations. The company needs to appeal to a younger crowd,of legal age of course. Diluted image due to foreign owned. Because the company is owned overseas and the do not allow the U.S. to use the original images, the company has to market the brand under a different logo, rebranding the product under a different image. The opportunities for the company involves a reasurrance in vintage movement and popular culture. If the company engage in this movement it could boost sales. A threat is the consumer preference to wine and hard liquor. Though the company can not decide what a consumer is into, they could come up with strategies to shift consumers back to beer.
Stock exchanges of now have reached 118.96, closing at 118.86 raising the company at %0.10 .
COMPETITION
Budwwiser's competition consist of three brewing companies; Molson Coors Brewing Company, Heineken NV Company, and SAB MILLER PLC Company. The Molson Coors Brewing Company has it's headquarters in Denver, Colorado. The company produces 805 million gallons of beer a year. Coors beer account for 40% of beer sold in the country. Heinken was established in 1864 by the Heineken family. This brewing company is named one of the best in the world. Almost every country reconige the signature green bottle. This brewing company operates in 70 countries. The brands include Amstel Light and Strongbow. The company boosts sales by providing international, regional, and specialty beer. SABMIllER PLC Company produces 200 million national and local beer. The brands include Miller and Nastro.
Marketing Strageties
Budweiser and Bud light are within the same company but they operate under different demographics. Busweiser targets American importance; which is tugged and full of history. The company hopes to target middle age to older males with available disposable income is the image to be portrayed. A classy top notch beer not comparable to its counterparts. Budweiser wish to represent history and American value, an older generation with a sense of patriotism will be more inclined to purchase this beer. The bottle of the beer explains the message very clearly. The colors red, white, and blue are displayed on everything relating to Budweiserand its brand slogan, "The American Lager.
ORGANIIZATIONAL STRUCTURE
Budweiser organizational structure is a simple structure comsisting of a CEO, seven executive board member, and six zone presidents. These people make sure that the company is managed properly controlled responsibility. The rules establish a framework of best practices a way of thinking and the robus operandi within and around the company to ensure clarity and proper conduct without limiting vision and hampering. The zones reflect the geographical presence of the Anheuser_Busch. The zones include zone Pacific, Asia, Central and Eastern Europe, Latin America, North America, and Western Europe including Cuba. The Executive Board of Management consist of seven officers that represent a function. The functions are legal and communication, Finance, people and technology, stragety and sales, marketing supply and procurement. These people focus on core responsibility with the zones to deliver results.
MARKETING STRAGETIES
The Anheuser-Busch company always create new ways to create connect with beer drinkers with its product. In 1852-1900s, the advertising of beer was by word-of-mouth through the company's traveling salesmen called beer drummers. In the 1880s Adolphus Busch became the first brewer to use a multi-year single themed coordinated advertising campaigne with the introduction of the Budweiser Girl Wall Hangings. This advertisement lasted unitl 1910 and feature nine representations of women holding a visible bottle of Budweiser. By realizing that different brands attracted and suited different taste, Adolphus became a master in marketing his products. In the 1920s-30s during the Prohibition, Adolphus marketed more than twenty-five different non-alcoholoc products such as soft drinks, truck bodies, ice cream and a de-alcoholized Budweiser, which the company advertised as containing the same flavor as Budweiser without the alcohol. In the 1950s Anheuser-Busch became the first brewery company to sponsor a television shoe, The Ken Murray Show. In 1970s the company startes to develop memorable slogans. Today Anheuser-Busch continues to satisfy diverse taste by marketing more than 100 beer varieties.
PRICING STRAGETIES
Budweiser prices are fairly average and price range s very important. A 12-pack of Budweiser beer is between $7.99 and $8.99 depending on th eselling location; Budweiser will always be priced close
OPERATION AND SUPPLY CHAIN
Budweiser recognize how relevant all branches of the business are. They follow the Three-Tier System, this states that the distribution of alcohol must include independent intermediarybetween producers and retailers to eliminate unfair practices by producers. Basically, distributors are not allowed to purchase shelf apace or furnish equipment like draft coolers or offer loans or any feeliings of obligation to companies. Budweiser has found a way to get around this requirement without breaking the law. The Anheuser-Busch company essentially have ownership with distributors without actually owning the distribution channell. This is possible by creating an exclusive incentive program which did not require the distributor to carry only A-B products, but gave huge benefits if they did drop all competitors. By doing this Budweiser was able to implement a vertical forward intergration channel in which they essentially control their wholesales
COMPENSATION AND APPRAISAL SYSTEM
According to indeed.com the Anheuser- busch company is a great company to work for with excellent training and management. The company offers amazing pay and benefits packages. With every company there are cons to the company. The company requires employees to work long hours with advancement opportuntieslimited. But overall the company is good place to work.
CONCLUSION
This project was like an interesting one. I was able to write about something and research a company I always wanted to know more about. This relates to my professional career as far as the business side of things but my focus is with another practice. I really don’t mind working alone doing any project because group projects usually get miscommicated, but in this case I believe the additional minds and thinking would have equaled great projects let alone less papers for the professor to read.