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In The U.K.
Anheuser-Busch : Developing a
Global Brand in Great Britain
Steve Clark, Derek Laur, Ryan Patton,
Willayna Roberts, Alan Yeung
Intro
Intro
• Intro
• History
• Target
Market
• Current
Strategy
• 4 P’s
• SWOT
• Suggestions
• Conclusion
QUESTION:
How can Anheuser-Busch successfully market
its global brands in the United Kingdom beer
market which is highly competitive and
steeped in tradition?
Pub Types / Beer Types
Intro
• Intro
• History
• Target
Market
• Current
Strategy
• 4 P’s
• SWOT
• Suggestions
• Conclusion
• 5 types of pubs:
– Country Pub, Local Village/Small Town, Inner City, Roadside,
Red Brick
• 3 main types of beer
– Stout (Guinness), Ale (Bass), Lager (Budweiser)
• Lager traditionally seen as “rowdy” and lower class
• Steadfast loyalty to pubs and beers
Perceptual Map
UK Target
Market
Stout (dark)
• Intro
• History
• Target
Market
• Current
Strategy
• 4 P’s
• SWOT
• Suggestions
Whitbread
Less
Expensive
Bass
Courage
More
Expensive
Carlsberg
S&N
• Conclusion
A-B
Lager (light)
History
History
• Intro
• History
• Target
Market
• Current
Strategy
• 4 P’s
• SWOT
• Suggestions
• Conclusion
• Breweries own or have exclusive deals with pubs to
distribute their own beers
• Large breweries = 10,000 pubs
• Small breweries < 1,000 pubs
• Smaller breweries are forming alliances
• Focus shift towards bottled beers and non-exclusive
pubs
History
History
• Intro
• History
• Target
Market
• Current
Strategy
• 4 P’s
• SWOT
• Suggestions
• Conclusion
• Busiest times are Friday and Saturday nights and
Sunday afternoons
• Many people stop by their local pub after work or after
their evening meal
• Stricter drunk driving laws have slightly curbed the
market
• Large increase in the number of women frequenting
pubs
• General relaxed atmosphere
Target Market
UK Target Market
• Intro
• History
• Target
Market
• Current
Strategy
• 4 P’s
• SWOT
• Suggestions
• Conclusion
• Younger drinkers
• Trendier drinking crowd
• “Take Home” market
• Super-premium brand
Hands-on Control of Marketing
• Intro
• History
• Target
Market
• Current
Strategy
• 4 P’s
• SWOT
• Suggestions
• Conclusion
• Imported Michelob and let Courage, a large English
brewer, brew Budweiser under contract
• Appointed Courage as distributor of Budweiser to its
network of more than 5,000 pubs
• Increased Advertising 100% to $20 million while all
UK brewers spent about $180 million in 1992
• Launched first national TV campaign: two 30-second
spots featuring blues music and continue the successful
“Budweiser, the genuine article” theme
Hands-on Control of Marketing
• Intro
• History
• Target
Market
• Current
Strategy
• 4 P’s
• SWOT
• Suggestions
• Conclusion
• Budweiser and Michelob priced higher than most local
brands at super-premium price
• Budweiser linked to American cultural icons
• No differentiating among advertising campaigns in all
European countries
• “Cool, frosty Budweiser” campaign did not work in UK
in the late 1950s and early 1960s
• In the mid-1970s, Budweiser became more widespread
British drinkers began to demand cool beers
Positioning
• Intro
• History
• Target
Market
• Current
Strategy
• 4 P’s
• SWOT
• Suggestions
• Conclusion
• Large segment: Premium Lager
• Strength: 5% Alcohol by volume; draught and
packaged
• Target audience: Primary - Men 18-34: all men; middle
class
• Packaging: 330ml non-return bottle; 330-ml can (4, 8,
12 multipack); 11-gallon kegs
TV Advertising
• Intro
• History
• Target
Market
• Current
Strategy
• Typical TV ad about beer was focused on humor
• AB used American themes (like blues music) to attract
British consumers
• 4 P’s
• SWOT
Two key messages:
• Suggestions
• Conclusion
• Authentic American heritage of the brand
• Quality of ingredients and the consistently high-quality
brewing that goes in the beer
4 P’s
4 P’s
• Intro
• History
• Target
Market
• Current
Strategy
• PRICE
• 4 P’s
• SWOT
• PROMOTION
• Suggestions
• Conclusion
– Budweiser & Michelob marketed at super-premium pricing
• PRODUCT
– Michelob imported, Courage given rights to brew
Budweiser
– Increased advertising budget.
– Mainly American themes
• PLACE
– Courage appointed distributor so Budweiser sold through
Courage’s network of 5,000 pubs
S.W.O.T. Analysis
SWOT Analysis
• Intro
• History
• Target
Market
• Current
Strategy
• 4 P’s
• SWOT
• Suggestions
• Conclusion
• Strengths
– Change in British taste preference
– AB’s relationship with Courage
• Weaknesses
– British tradition and loyalty to brands of beer
– Current market position not effective
– Beer production was down 3% in 1992
S.W.O.T. Analysis
SWOT Analysis
• Intro
• History
• Target
Market
• Current
Strategy
• 4 P’s
• SWOT
• Suggestions
• Conclusion
• Opportunities
– “Take Home” segment of the market has doubled
– Beer consumption by women has increased
• Threats
– Large Domestic Breweries
– New “designer beer” being introduced
Suggestions
Recommendations
• Intro
• History
• Target
Market
• Current
Strategy
• 4 P’s
• SWOT
• Suggestions
• Conclusion
• Use local celebrities and sports icons to promote
the brand – scale down the overpowering
American image
• Foster the “take home” market for beer – use pints
of beer instead of twelve-ounce cans in an
enclosed carrying case
• Discontinue promotion of Budweiser as a premium
lager
• Target newer country and inner city pubs for
placement of product
Conclusion
Conclusion
• Intro
• History
• Target
Market
• Current
Strategy
• SWOT
• 4 P’s
• Suggestions
• Conclusion
While maintaining its American image, it is
critical for Anheuser-Busch to market its
product specifically for the characteristics of
the British market.