Positioning Budweiser
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Marketing Case Study: Positioning Budweiser
SOMMAIRE
PART 1 : Situation Analysis
The Environment
The Industry
The Company
Marketing Strategy
PART 2: The solution
Recognition of the problem
Analysis of the different alternatives
Domestic Strategy
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 sizeÐŽÐ.
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. (
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. (
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. (
Beer is also widely consumed in the United Sates.
II/The Industry
The industry
In this case, we consider the problem of the biggest brewer and larger player in the US market: AB or Anheuser Besuch.
The major competitors
The main competitors or ÐŽ§rivalsÐŽÐ 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 companyÐŽÐ).
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:
Modelo represents 56,