budkingofbeers-blog

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Post 8

Budweiser has various logos and symbols used for many products in their product mix. Budweiser branding is well known for its ‘King of Beers’ and red with white label. Their other products such as Bud Light has the classic Blue can which everyone recognizes. Budweiser has over the years made many acquisitions and owns a variety of beer companies such as Corona and Stella. Corona attracts and brands towards a relaxing beach vibe, pool day drinker. Budweiser with Bud light has created the slogan “This buds for you’ with pictures and videos of the hops. ABInveb owns nearly 400 different brands and have a huge diversity of products and many different products within their product mix. Budweiser does have different lines because although everything surrounds alcohol there are mixed drinks and beer with a huge variety of each with different kinds and flavors.

U. (n.d.). It's Good to be the King. Retrieved November 27, 2017, from https://www.underconsideration.com/brandnew/archives/new_logo_and_packaging_for_budweiser_by_jones_knowles_ritchie.php

 (n.d.). Retrieved November 27, 2017, from http://www.ab-inbev.com/our-brands.html

 Post 9 

Budweiser consist of a product and not a service, even though the company tries to provide a service to benefit others outside their normal way of business. Budweiser provides a tangible good but also have promotions that give a communication gap to the consumer on a certain service from time to time. Budweiser each year gives back to America’s fallen solders and disabled solders, by raising up to a million dollars in proceeds. This service is called ‘Folds of Honor’ and lets the customer feel that they are giving back to a certain cause while still enjoying a Budweiser product. This promotion has generated over 11 million dollars over the years.

 Budweiser Sets Goal of Raising $1 Million for Folds of Honor via Limited Edition Patriotic Packaging. (n.d.). Retrieved November 29, 2017, from http://www.anheuser-busch.com/newsroom/2017/05/budweiser-sets-goal-of-raising--1-million-for-folds-of-honor-via.html

 B. (2017, June 27). Budweiser | A Dream Delivered | Folds of Honor. Retrieved November 29, 2017, from https://www.youtube.com/watch?v=huQrvmrJbXk

Post 10

The newest trend in the beer market is craft beers. Budweiser has target return pricing for its loyal customers and hasn’t been trying to compete with these new craft beers but their parent company AB InBev has been buying up craft breweries instead of trying to have a company like Budweiser compete with the new trend. Although craft beers have been a niche market, recently this niche has turned into the new trend and brands need to catch on quickly if they are to continue to grow revenue. Budweiser is down 5.7% in sales this quarter and is sales oriented product because it is one of the cheapest beers on the market. AB Inbev Ballast Point beer is a great example of customer oriented pricing and maximizing profits because a 6 pack of beer is 14.99 while Budweiser sales an 18 pack of beer for roughly that same price.

InBev, A. (n.d.). Not America's beer? Budweiser sales down in U.S. Retrieved November 29, 2017, from http://money.cnn.com/2017/10/26/investing/anheuser-busch-inbev-budweiser-beer-sales/index.html

It Begins with the Search for Flavor. (n.d.). Retrieved November 29, 2017, from https://www.ballastpoint.com/our-story/

 Post 11

Budweiser has 12 breweries’ here in America and over 50 wholesale distribution centers. Budweiser over the years has acquired data and turned that data into information to build distribution centers in the best places in America to provide the freshest product. Marketing research has shown that distribution centers need incentives at times to help promote and sale certain kind of product. AB Inbev Budweiser’s parenting company created an incentive program from distribution centers which sale 98% of their product that AB will reimburse 75% of the money used for those sales. This will be tracked by using scanner data and will determine if there is a churn in the market.

Anheuser-Busch Wholesaler. (n.d.). Retrieved November 29, 2017, from http://www.abwholesaler.com/

Bartz, D. (2016, May 25). Exclusive: U.S. queries AB InBev on distribution incentives amid merger probe. Retrieved November 29, 2017, from https://www.reuters.com/article/us-a-b-i-craftbeers-probe-exclusive/exclusive-u-s-queries-ab-inbev-on-distribution-incentives-amid-merger-probe-idUSKCN0YG0EG

Post 12

Budweiser uses different advertisements for its different product lines. Budweiser is best known for its media advertisements and eye-catching commercials. Budweiser also allows business 2 consumer sales so the business can attract customers with deals. I have personally seen this in many stores when Budweiser products are on a buy 2 for 5 dollar special. Budweiser also has coupons almost weekly in newspapers grocery ads to attract loyal and new customers. I think these sales are beneficial because I myself sometimes go into the store looking for a certain product but will settle for the Budweiser company beer because of the deal.

McCrystal, R. (2017, April 12). Super Bowl Commercials 2017: Ad Costs Review, Value Before Patriots vs. Falcons. Retrieved November 29, 2017, from http://bleacherreport.com/articles/2691166-super-bowl-commercials-2017-ad-costs-review-value-before-patriots-vs-falcons

R., Says, F., Says, J., & Says, D. (2016, October 11). Great Budweiser deal at Jewel! Retrieved November 29, 2017, from https://www.mashupmom.com/great-budweiser-deal-at-jewel/

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Post 7

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Post 3

The key differentiator for Budweiser over the years has been the same recipe since the very beginning. The unique flavor of beer separates Budweiser from any other beer in past and present markets. Budweiser’s sustainable competitive advantage from their personal website is something called “dream-people culture.” Somewhat comical that a beer company dream is “to bring people together for a better world.” Tell that to the kids and families of alcoholics and drunk driving accidents. Ironic to say the least but a great goal if this would be true

In my eyes the sustainable competitive advantage has to do mainly with Budweiser main tangible good (beer) and the way they have been able to innovate to the consumers. Budweiser has kept loyal customers but through correctly looking at the market and finding the correct target market. Bud Light grew into another form of product for loyal customers that wanted a beer with basically the same taste but with less carbs and less calories. Budweiser has been able to innovate by analyzing the microenvironment with new products such as mixing michaladas (tomato juice and beer) a classic drink and recently attacked the margarita market to try and give consumers another option at great taste at a great price.

References:

Our Business & Our Strategic Platform For Growth. (2017). Retrieved October 06, 2017, from http://www.ab-inbev.com/investors/our-business.html

Friedersdorf, C. (2015, February 02). The Super Bowl's Riskiest Ad. Retrieved October 11, 2017, from https://www.theatlantic.com/business/archive/2015/02/budweiser-super-bowl-commercial-brewed-the-hard-way/385072/

Post 4

Strengths

-       Brand recognition gives competitive edge

-       Experience in industry since 1876

-       Cutting edge manufacturing plants

-       Actively involved in sporting sponsorships

Weaknesses

-       Lots of competition globally allows for low market growth rate

-       Fake Budweiser were being made and distributed from China in 2017 (check source fox news)

Opportunities

-       international market is 4x larger than American

-       new manufacturing in china and Russia

Threats

-       Anti alcohol campaigns

-       Grain market which consist of barley and wheat has a growth rate of 5 cents per year which makes production more expensive year after year for beer makers

-       Additional cost with overseas production

Recommendations:

1.     Figure out a way to set up new manufacturing in China and Russia, which hold huge alcohol target markets. Figure out a deal with each foreign government to regulate the production and distribution of authentic Budweiser products so fake products do not tarnish the real.

2.     Keep up the advertising in major sporting events around the world and try to land the official beer of The World Cup, because soccer is the number one sport watched world wide.

References:

Chinese factory busted for making fake Budweiser beer. (n.d.). Retrieved October 07, 2017, from http://www.foxnews.com/food-drink/2017/06/05/chinese-factory-busted-for-making-fake-budweiser-beer.html

Z. (n.d.). Budweiser SWOT Analysis | USP & Competitors | BrandGuide. Retrieved October 07, 2017, from http://www.mbaskool.com/brandguide/food-and-beverages/4215-budweiser.html

Post 5

Budweiser uses a slogan “king of beers” which portrays a higher level of self-value  to the customers for consuming their product.

Budweiser targets the male gender during sporting advertisements such as football.

As a previous bud user, I know that when watching sport and I hear “This Buds for You”, this slogan Budweiser created grabs my attention and almost make me want to try a bud light at the moment by targeting a certain lifestyle.

Budweiser has started to target a younger generation that doesn’t drink beer but drinks margaritas. This new target market has expanded their line of products and is called bud-mar-Rita.

The self-concept market is the way Budweiser created bud light to target the self-conscious customer looking to watch his or her weight while still enjoying an alcoholic beverage 

References:

Lime-A-Rita. (n.d.). Retrieved October 07, 2017, from http://www.limearita.com/

(n.d.). Retrieved October 07, 2017, from http://www.budweiser.com/en/our-brand/our-legacy.html

Post 6

Competitors – Biggest single competitor to Budweiser is Heineken Company, which owns roughly 9% of the global market share. (Reports) Budweiser currently holds a 45% market share in America 29% and roughly US globally.  (Team,T)

Position – Budweiser became the biggest global company in the beer market by acquiring other companies over the years. The most recent acquisition of SABMiller, was the biggest acquisition by Budweiser and a bit of a financial risk because, of the price Budweiser’s paid at 107 Billion dollars. Budweiser believed their functional need was at par with customers but with this acquisition, Budweiser was  able to expand their psychological need for their product and services to a far greater amount of customers.

References:

Reports, T. W. (2015, November 12). Big beer merger leaves future uncertain for competitors. Retrieved October 11, 2017, from http://www.chicagotribune.com/business/ct-big-beer-merger-20151112-story.html

Team, T. (2017, January 26). The Year That Was: Anheuser-Busch InBev. Retrieved October 11, 2017, from https://www.forbes.com/sites/greatspeculations/2017/01/26/the-year-that-was-anheuser-busch-inbev/#75ee611e1558

Post 7 

Budweiser has many different types of packaging for many different products. The packaging does seem to attack the consumer psychological need with providing either loyalty to a sports team the consumer cheers for or simply supporting America itself. Personally, I think the packaging of sports teams is genius and leaves the consumer decision rules pretty much game over. As a big sports fan, if I was unsure of what kind of beer to bring to a party, I would bring the beer with the hometown team. This packaging alone I believe would bring the conversion rate to that portion of the niche market. Budweiser also uses new packaging frequently to try and grab the consumer’s attention by adding a new perception to their products.

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Post 2

King of Beers - This Buds for You - Good Times Are Coming - When There Is Life There Is Bud - Just to name a few of the popular slogans Budweiser has used over the years and rightfully so because they own over 100 brands of beer which make up more than %45.8 share of the beer market world wide. 

Adolphus Busch came to America from Germany in 1857 and immediately started working at a local brewery in St. Louis. Eberhard Anheuser was a client of the brewery that Busch worked at and eventually gave Busch a job at his own company. Soon after Busch started working with Anheuser he married Anheusers daughter and the year before Anheuser died in 1879 they renamed Anheusers Company to Anheuser-Busch.

Around 1880 the beer scene was very big but consisted of mainly dark beers from Germany. St. Louis got very hot in the summers and that is when Anheuser-Busch used a sustainable competitive advantage by creating a beer that was easy to drink during hot days. This is when the first Budweiser was brewed and still the same recipe is used today.

Busch created the first pasteurized beer and was able to keep the beer fresh for up to 4 months. His secret was that he pasteurized the beer even before milk was pasteurized.  Busch went as far as creating the first ice railroad cars to bring his beer to the consumers and gain customer excellence. 

Budweiser that provides a product and services is a publically traded company in the NYSE under the symbol BUD.

BUD provides mainly a product of beer to service by B2B (Business to Business) locations or B2C (Business to Consumer) to 12 separate brewery locations that are scattered around the United States.

APA Citations:

An Ambitious Legacy. (2017). Retrieved September 19, 2017, from http://www.budweiser.com/en/our-brand/our-legacy.html

BUD Analyst Opinion | Analyst Estimates | Anheuser-Busch Inbev SA Sponsor Stock. (2017, September 19). Retrieved September 19, 2017, from https://finance.yahoo.com/quote/BUD/analysts?p=BUD

We Are More Than Just A Company. (n.d.). Retrieved September 19, 2017, from http://www.anheuser-busch.com/about.html

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Anheuser-Busch Budweiser: A Marketing Analysis

Post 1

Anhesuser-Busch Budweiser or better known as just Budweiser is one of the most well known beers worldwide that was created in America. I’m interested in this company because I wanted to know how Budweiser became the successful beer company it is today.

 Beer has been evolving over recent years with popularity of craft beers, how is Budweiser’s tangible good (beer) changed with innovation to keep their relevance to new and old consumers? 

 Budweiser started as a Business to Consumer (B2C service) brewery in St. Louis and evolved into a massive producer that created their Business to Business (B2B) service/product. This has given Budweiser the ability to serve their people (costumers) at many different places around the world like convenient stores, restaurants and their own brewery’s. 

Budweiser or beer in general, is important to me because it gives me a relaxing vibe while being a parent at stressful times or after a long day at work.