...Brand Analysis: Bud Light Introduction In a competitive industry with multiple product options, beer companies are constantly looking for new ways to market their brand and attract consumers. Bud Light has emerged as a market leader through a successful understanding of their consumer’s behaviour. This report will analyze the major concepts in Bud Light’s marketing strategy that makes them “the number one light beer in the world” (Articlearn). Through their ability to develop a strong brand personality, motivate its consumers, and utilize various social media outlets, Bud Light has successfully influenced the purchasing decisions and buying habits of consumers worldwide. Company History Anheuser-Busch, the brewery that produces Bud Light, was founded in the early 1800’s and grew rapidly due to the early success of their flagship brand, Budweiser. Over the years they continued to add products to their brand profile and quickly became America’s largest brewer. Through the company’s success they were able to acquire Labatt, Canada’s largest brewer in 1995. This merger brought sales of Budweiser and Bud Light north of the border as well as many years of prosperous sales. This was all temporary, because during the recession of 2008, Anheuser-Busch merged with InBev in a hostile takeover. The final result was ABInBev which is currently the “largest brewer in the world” (Reuters). Bud Light is ABInBev’s largest brand in their portfolio, something that contributes to them being...
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...Introduction Our vision at Anheuser-Busch is to add to life’s enjoyment through our products, relationships and services. With our Mission being to be the best beer company in the world, while still enrich and entertaining. We also wish to give amazing results to the shareholders and the community. We try to bring to life our dream to be the best beer company in the world. Our goal is to connect our efforts to a collective responsibility we share with our employees, consumers, wholesalers, retailers, law enforcement, elected officials, educators and other partners. After all, these are our roads, our kids, our neighborhoods and this is our Earth; and it is our obligation to work together to help support our communities. Budweiser, Bud Light and other brands also take ownership of our Corporate Social Responsibility efforts by creating consumer centric programs for adults. These programs enhance brand sponsorships and through our work with wholesalers, we reach consumers...
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...general shift in preference among consumers to prefer other types of alcoholic beverages to beer. In addition to losing sales to a different beverage option, Budweiser is losing market share in the U.S. beer market. At its peak in 1988, Budweiser sold 50 million barrels. In 2013, consumption was down to 16 million barrels and market share had decreased from 14.4% to 7.6% in ten years. Part of this is due to cannibalization of sales from other Budweiser products, such as Bud Light. This shows a macro change in consumer preferences, favoring options with fewer calories to help combat weight-gain. Another big reason for the decrease in sales is due to consumers switching to the craft beer market. In 2015 sales for craft breweries were estimated at 24.5 million barrels (a 13% increase since 2014) and dollar-sales were just over $22 billion (a 16% increase from 2014). These sales have given the craft brewery industry a 21% share of the beer market. This increase in sales is not coming from a single competitor. There are 4,269 breweries in operation in the U.S. as of early this year, which is the most in U.S. history. This makes the fight difficult for Budweiser, as they are fighting another trend with consumers moving away from the macro-brand that they represent to small, local breweries. Budweiser is fighting (and currently...
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...provide a great tasting fresh beer to our consumers by limiting self life to 110 days, and providing a “born on date” on all our products. * To build a high-performing, diverse workforce, while providing a safe, productive and rewarding work environment, in which all our employees can benefit. * To be a good corporate citizen and good neighbor in every community where we do business and promote the responsible consumption of our products. * To preserve and protect the environment and support communities where we do business, by complying with all applicable environmental laws, regulations, and permits. Products and Services Anheuser-Busch's best known beers include brands such as Budweiser, Busch, Michelob, Bud Light, and Natural Light. The company also produces more than 100 beers, import beers, specialty beers, nonalcoholic brews, malt liquors ( such as King Cobra and Hurricane), and flavored malt beverages (e.g. the Bacardi Silver family and...
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...Analysis of the Anheuser-Busch Company Report by Valanium Analysts: Chris Rigopulos, John Schneider, Jayne Tan Investment Recommendation: MARKET PERFORM December 5, 2001 BUD – NYSE (11/30/01) 52 week range Revenue (2001E) Market Capitalization Share Outstanding $43.10 $36.75 – $49.00 $14.9B $38.2 B 884.3M EPS Forecast (FYE 12/30) EPS Ratios Trailing P/E Forward P/E Leading PEG M/B Price/Sales 1999A 2000A 2001E 2002E $1.49 $1.71 $1.89 $2.09 Dividend Yield 1.67% Avg. Daily Trading Volume (3mo) 2.13M Book Value per Share (mrq) Return of Equity (ttm) Return on Assets (ttm) Est. 5 Years EPS Growth Rate Sector: Consumer/Non-Cyclical Industry: Beverages (Alcoholic) $4.83 40.39% 10.71% 11.0% BUD 23.2 20.6 1.87 8.93 3.11 Competitors Avg. 17.4 15.9 1.37 3.10 1.21 Valuation Predictions Actual Current Price Trailing P/E Valuation Leading P/E Valuation PEG Valuation M/B Valuation Price/Sales Valuation EBO (Abnormal Earnings) Valuation DCF Valuation Performance (Trailing, Annualized) Return on BUD Return on S&P 500 Return on Competitors $43.10 $32.38 $33.24 $31.48 $14.95 $16.73 $19.25 $46.87 6 mo -2.1% 18.3% - 2.9% 12 mo 24 mo -7.4% 9.9% -13.4% -10.3% 2.1% 8.9% Source: finance.yahoo.com, Valanium analysis • • Our valuations reflect a range of predictions, all falling below the current price point with the exception of the DCF estimate. However, we believe that A-B’s brand value and domestic presence are not captured within the accounting numbers...
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...MillerCoors vs. Anheuser-Busch Salman Boer Carly Gorka Stephanie Kalin Kenny Koelling Felipe Naranjo Nizam Qutubuddin Executive Summary The beer industry in the United States is an extremely competitive one. For years, the industry has been solely dominated by one contender, Anheuser Busch. However, large brewers have always been looking for opportunities to extend their reach in the industry and gain more market share. Miller Brewing Company and Coors Brewing Company have been historical staples of the American beer industry since the nineteenth century. These companies merged with international giants South African Breweries and Molson, respectively, in efforts to better compete in the United States brewing industry. However, they still could not manage to take a share of the Anheuser Busch Empire. SABMiller and Molson Coors saw an opportunity in forming a joint venture that would be able to successfully compete with Anheuser Busch in the beer industry, and in 2008, created a third company called MillerCoors. The creation of MillerCoors was a success. Since the creation of the company, in June 2008, MillerCoors has been very profitable and has enjoyed steady growth in their market share. They have done this by integrating innovation as a major goal in their products, providing them with a certain level of differentiation, while reducing costs through the exploitation of synergies that exist in their different processes. MillerCoors was one of the very...
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...My favorite ad was the commercial for Bud Light. It was actually a two part commercial, right at the beginning of the game, which I feel helps its memorability. It was the commercial that stated ‘Bud Light. The Perfect Beer For When You’re Watching A Super Bowl Ad About A Guy Who Doesn’t Know He’s In A Super Bowl Ad, And We’re Just Getting Started.” I thought it was clever and original because it took a normal guy, Ian, who didn’t know he was being filmed and sent him on an adventure. It is different from most beer commercials because it doesn’t mention their new bottle or cold temperature. They did that in a later commercial! Plus the commercial had star power with Arnold Schwarzenegger and Don Cheadle. My second favorite ad was the commercial for T Mobile with Tim Tebow stating that “everybody thinks I want a contract, but I’ve accomplished so much without one.” The ad was clever because Tim Tebow has been out of the NFL this year, yet the majority of people know who he is, and will pay attention to the commercial. It was funny because it had him delivering a baby, capturing big foot, and walking on the moon. The message and differentiation from competitors was to be free from contracts and achieve more. I feel that this commercial had great memorability because you first see Tim Tebow and think, “hey there he is,” even if you forget what the commercial is at first. My least favorite ad was The Geico commercial where the pig gets his picture taken for his driver’s...
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...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,...
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... Executive Summary Naturally brewed with no added preservatives in Golden, Colorado, the heart of the Rockies, Coors Light is the eighth leading beer brand in the world. As Molson Coors’ largest brand, the new parent company after the 2005 merger, Coors Light has established itself as the biggest selling brand in both the US and Canada. The merger, however, left the company heavily indebted and with limited capital suffered a loss of partnering and sponsorship for major sporting events. Coors Light has worked extremely hard to maintain the positioning as ‘The Worlds Most Refreshing Beer” withstanding the susceptibility the brand faces with only a single brewing site and third party distributors. This promotion plan includes the following objectives for the upcoming year: * To attract non-users and create brand awareness among 90% of females aged 21-30 seeking a refreshing tasting light beer, * To retain the 18-24 year old male target currently held by Coors Light. * To engage the mobile community through the use of Mobile Insider, connecting the brand to consumers. The objectives should be met through various promotional activities tied closely to the company’s long-standing brand image, and mobile promotions to increase accuracy in reaching target markets. Over the next 12 months it is recommended that Coors Light continue to use the Maxim Golf Experience to maintain the current target market. The brand will increase awareness among the female...
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...Company Analysis The Boston Beer Company- Britton McGlachlin As a relatively new entrant into the beer brewing industry, the United States has often been poked fun at and considered to be an inferior beer brewing country among global competitors. Up until 1984, most domestic beer options were pale lagers produced by the mass market brewers. If a person wanted to get a full and flavorful beer, it was considered that importing was the only option with beers such as Heineken and Beck’s establishing themselves as the premium beer leaders. American craft beers were virtually non-existent other than a few small basement and kitchen operations, and there were no widely distributed micro brewed, now known as craft, beers available. (History) In the early 1980s, Jim Koch, a would be sixth generation beer brewer, was convinced that he could find a niche in the competitive beer market for a high-quality American beer. In 1984, Koch used his great-great grandfather’s 150 year old recipe called “Louis Koch Lager” to brew his first batch of what eventually became Samuel Adams Boston Lager. (About) Jim began to take bottles of his beer bar-to-bar for tasting and received excellent feedback about the quality and flavor of his beer, which used all natural ingredients with no adjuncts. In 1985, Jim decided to debut in the Boston market with small batches focusing primarily on quality. Six weeks after its introduction, Samuel Adams was selected as “The Best Beer in America” in The...
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...Mountain Man Brewing Company’s Positioning in the East Central Market According to Alvin J. Silk, a positioning statement is designed to define who are a company’s customers, what set of needs does the product fulfill, and why is the product the best one to fill those needs (2006, p. 90). I found this question challenging because a positioning statement should define “the place the firm wishes to occupy in its’ target customers’ minds” (Silk, 2006, p. 90). In the case of MMBC, the definition of the target customer was under discussion. For purposes of the first question, I developed the following positioning statement based on what I believe was the historical perspective of MMBC. Mountain Man Brewing Company produces Mountain Man Lager; the most authentic regional beer for working class East Central Americans, among all premium domestic beers, because of its distinctive quality, bitter flavor, slightly higher than average alcohol content and competitive price (Abelli, 2007, pp. 2-3). This positioning statement would help MMBC to target its product toward the blue collar worker in the East Central region. While not specifically stated in the case, I believe Mountain Man Lager met the following needs of this target audience: a need to feel toughness, pride in an East Central quality product, and an affordable price. MMBC’s strategic focus on this target audience helped it to be successful in the highly competitive market for premium beers, even when other local brewers...
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...Company Overview 3 Executive Summary 5 Mission Statement 6 Vision Statement 6 Objectives 6 Strategies 6 Products 8 External Assessment 9 Competition 9 AB/InBev 9 SABMiller 11 Heineken 12 Craft Beer 13 External Trends 14 AB/InBev Trends 14 Water Management 15 Energy Use 16 Recycling 16 Government/Political/Legal 17 Economics 17 Internal Assessment 18 Growth Strategies 24 AB/Inbev Strategies 25 SAB Miller Strategies 26 Heineken Strategies 27 Craft Beer Strategies 28 Growth Strategy Advantages v Disadvantages 28 Space matrix 29 SWOT Analysis 30 IFE Matrix 31 Company Overview As the largest brewer in the world, Anheuser-Busch InBev (AB/InBev) has had quite an intense but creative history. In 1852, George Schneider, St. Louis brewer and saloon operator opened the Bavarian Brewery. Four years later, he expanded into a larger location for his brewery to operate due to positive production. However, shortly after the second opening financial problems resulted in Schneider having to sell his brewery to various owners. In 1860, as the brewery reached a worsening financial position, William D’Oench, a local pharmacist, and Eberhard Anheuser, a wealthy German-born soap manufacturer, purchased the brewery and saved it from bankruptcy (Anheuser-Busch...
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... requires new competitive skills, not just the deepening of current ones. Consider the "beer wars" and how Anheuser-Busch shifted the basis of competition in the beer industry by developing multiple competencies throughout its distribution system. Miller's introduction of Lite beer was a single-factor challenge based on deepening a not-so-unique core competency-brewing beer with fewer calories. An unqualified success, this move helped propel Miller from seventh to second place in the domestic beer industry. Anheuser-Busch not only responded with a trio of low-calorie beers (Natural Light, Michelob Light, and, later, Bud Light), it also developed new, multiple competencies on the distribution side of the business. These competencies included: 1. Hiring a cadre of experienced brand managers from Procter & Gamble who extended each brand (Michelob) into a brand family (Michelob, Michelob Light, Michelob Dark, Michelob Dry), thereby commanding more retail shelf space. 2. Locking in its independent distributors by having them make sizable investments in environmentally controlled warehouses. These state-of-the-art warehouses enabled local distributors to store for longer periods the greater diversity and quantities of beer being "pulled" through the distribution system by the brand-management approach. 3. Changing the sales system from the traditional driver-sell (where drivers peddle beer off their trucks at each stop) to a predominantly presell system (where orders are...
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...domestic product contracted 0.4 per cent between the second and first quarters of this year, when expressed in annualized terms. That's the weakest performance since the 3.7 per cent decline seen in the second quarter of 2009. Although the recession has past and Canada has improved, the unemployment rate in Canada was last reported at 7.4 percent in November of 2011. A decline of 53,000 in part-time work was partially offset by an increase of 35,000 in full-time. Compared with a year earlier, the number of part-time workers was down 1.9% (-62,000), while full-time employment grew by 2.0% (+274,000). Social and Demographics: Marketing communications has always played a key role in creating an image to attract a target market. Budweiser and Bud Lite are popular brands in the NFL and NASCAR, and true fans will then purchase those specific brands. It becomes their brand of choice. Labatt Blue had sponsorship ties with the NHL and Canadian teams and the CFL and several teams but recently, Molson has taken over the sponsorship of The Toronto Maple Leafs, which Labatt used to have. This was a huge loss for the company as Toronto is the largest city in Canada and generates one-fifth of the gross domestic product of Canada. This being said, The Air Canada Center sells Molson Canadian rather than Labatt at hockey games. There are 18,800 seats at the Air Canada Center, and say at least 16,000 people purchase at least one beer, which costs $8.00, that is $128,000 in sales that Labatt...
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...generations of Busch family leadership, Budweiser has become an authentic, truly genuine, American beer. These superior qualities are the result of Busch’s original dreams and visions, the stable leadership through three major crises, and the diversification of a company over the years. The story begins with Adolphus Busch. Born in July of 1839 in Kastel near Mainz, Adolphus was the second youngest of twenty-one children. After studying at the Gymnasium in Mainz in Germany, he immigrated to the United States in 1857, and soon after married Lily, the daughter of a successful St. Louis businessman Eberhard Anheuser. Anheuser was also a German immigrant, and had recently obtained a local brewery in St. Louis. Adolphus began as a salesman who sold brewing supplies to Anheuser. Adolphus soon worked his way into the family business and up the corporate ladder, and eventually became a partner and finally the company’s president. With great dreams and aspirations, Adolphus was considered the driving force of the company that would eventually transform it into an industry giant. Because of this, many see Adolphus Busch as the founder of the company, and the Father of Budweiser (www.beerhistory.com). Adolphus was clearly a man of great dreams. His early aspirations included a national beer market as well as a national beer that would appeal to virtually every taste. In pursuit of his dream, Busch still needed to develop a beer that would be widely accepted by everyone’s taste...
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