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  1. 1. Bud Light Lime<br />Dustin Valdez<br />Alicia Winding<br />Sara Bronstein<br />Khalid Jivani<br />Kathy Tran<br />
  2. 2. Market Composition<br />
  3. 3. Market Composition<br />Category Size and Trends<br />In 2006:<br />$88 (b) industry<br />210 (m) barrels sold<br />21.6 gallons per capita<br />1, 572 total breweries<br />946, 188 direct jobs<br />
  4. 4. Market Composition<br />Significant changes in the last three years<br />Major beer takeovers and consolidation<br />With saturation of domestic markets, U.S. brewers focus more on foreign markets<br />Increased flavored product line extensions domestically<br />
  5. 5. Market Composition<br />Distribution patterns, problems, and changes in store types<br />Distribution is driven by geographical location and target population<br />With the recent sell of Anheuser-Busch to Belgium-based InBev, changes in distribution are expected<br />
  6. 6. Market Composition<br />Package form and size trends<br />Packaging decisions are based on particular target market <br />local distributors may chose to stock a particular size to respond to the demands of their customers<br />Single serve size and multipack<br />16oz aluminum bottles increase in popularity<br />
  7. 7. Market Composition<br />Consumer Packaging Preferences <br />Glass, plastic and aluminum cans<br />96% preferred glass<br />40% believed the taste is better<br />37% perceived that beer stays cold longer<br />The trend continues to be glass bottles despite the advantages of plastic bottles (shatterproof and lightweight)<br />Plastic closure affect quality and freshness<br />
  8. 8. Market Composition<br />Package form and size trends<br />
  9. 9. Market Composition<br />Pricing patterns<br />Beer has increased in price<br />Bud Light Lime is less expensivethan Corona and Miller Chill<br />
  10. 10. Market Composition<br />Pricing patterns<br />
  11. 11. Market Composition<br />Brand Share and Status<br />Anheuser-Busch is truly ‘King of Beers’<br />Market share leader in U.S. national beer category<br />Market share leader in U.S. national light beer category<br />Market share leader in U.S. national lime flavored beer category<br />
  12. 12. Consumer<br />Usage<br />About 40% of the U.S. population drink beer weekly or monthly<br />More people in U.S. drink beer than wine or liquor<br />Reasons for drinking beer are wide and varied<br />
  13. 13. Consumer<br />Behavioral<br />Heavy user:<br />Drinks daily<br />Buys beer 3x or more a week<br />Beer for any and every occasion<br />Light user:<br />Drinks only for special occasions<br />Social drinker<br />Infrequent purchases of less than 1 month<br />
  14. 14. Consumer<br />
  15. 15. Consumer<br />
  16. 16. Consumer<br />Reasons for Going on Shopping Trip<br />
  17. 17. Consumer<br />Planned vs. Impulse Beer Purchase<br />
  18. 18. Consumer<br />The most important benefits in all categories for consumer are taste and price<br />There is a high potential of conversion within the various segments of the beer category<br />Modest possible conversion from <br /> non-beer drinkers into any segment<br />
  19. 19. Advertising and Promotion<br />Category and brand spending patterns and trends<br />National: <br />Has remained consistent and competitive<br />Anheuser-Buschand MillerCoors spent close to $1 (b) in 2007<br />Regional and Microbrew:<br />Brands like Blue Moon typically advertise in specialty print magazines (Men’s Health & Rolling Stone)<br />Rely heavily on buzz or word of mouth<br />
  20. 20. Advertising and Promotion<br />Role of consumer promotions<br />Mainly to used to help differentiate products from competitors and from own product line<br />Role of trade promotions<br />Used to solicit business<br />Usually from national brewers to wholesalers<br />Usually from regional and microbreweries directly to retailers and restaurants/bars/clubs<br />
  21. 21. Recent Claims<br />“Premium beer that combines superior drinkability of Bud Light with a splash of 100% natural lime flavor”<br />“American take on a Mexican chelada”<br />Relaxation associated beach imagery<br />Advertising and Promotion<br />
  22. 22. Competitive Frame<br />Bud Light Lime is simultaneously competing in three beer segments<br />
  23. 23. Key Problems and Opportunities<br />Avoid similar fate as Miller Chill<br />Growing competition in all segments<br />Since Bud Light Lime is competing in three segments, it must:<br />Dominate its primary segment<br />Be evoked as a potential choice in its secondary category<br />Maintain its presence as a viable competitor in its tertiary category<br />
  24. 24. Marketing Strategy<br />
  25. 25. Business and Marketing Objectives<br />7% increase in sales for 2009 Q4<br />Continue increasing market share in all three beer category segments<br />
  26. 26. Business and Marketing Objectives<br />Change positioning of Bud Light Lime from summer only to year-round drinkability<br />Similarly, change purchase behavior from seasonal only to year-round <br />
  27. 27. Business and Marketing Objectives<br />Packaging will be modified to reflect <br /> year-round appropriateness<br />Pricing will remain consistent<br />Distribution will expand to test markets where Bud Light Lime is currently unavailable in response to growing consumer preference for flavored beer<br />
  28. 28. Source of Business<br />Will utilize an offensive strategy:<br />Competitive brand users: switch to our brand<br />Light users of our brand: buy our brand more often<br />
  29. 29. Target Groups<br /><ul><li>Psychographic</li></ul>-Wants flavored beer <br />Demographic<br />Male and female <br />Age: 21-27<br />White<br />$15k-$50k<br />Gray collar<br />High school educate to some college <br />Lifestyle<br />Fast paced<br />Trend setter<br />Out going<br />
  30. 30. Buying Incentives<br />Two target groups<br />Restaurant/bars/clubs:<br />Discount parent beer to carry Bud Light Lime on tap in selected test markets<br />Consumer:<br />Bud Light Lime promotional items inside 24pk cases<br />Bud Light Lime coolers for purchase of 2 24pk cases at warehouse club stores through unique distribution<br />
  31. 31. Buying Incentives<br />Consumer<br />Summer Example:<br />
  32. 32. Budget<br />Bud Light Lime was $35 (m) in 2008<br />Miller Chill was $30 (m) in 2007<br />Coors Light $55 + (m) in 2005<br />Corona was $50 (m) in 2007<br />Therefore, Bud Light Lime intends to increase budget to outspend primary competitor and remain defensive against tertiary competitors<br />
  33. 33. Communication Strategy<br />
  34. 34. Positioning Statement<br />Bud Light Lime offers superior flavored drinkability for every occasion<br />
  35. 35. Promise<br />Primary promise:<br />Bud Light Lime is great tasting and appropriate all year long<br />Secondary promise:<br />Quality beer from a brand you can trust<br />Support for promises:<br />Anheuser-Busch’s supreme drinkability make it perfect for all seasons<br />
  36. 36. Sketch of Prototype Prospect<br />
  37. 37. Tone/Manner/Mandatory<br />Tone will be informal, personal and will utilize a lighthearted approach<br />Manner will be presented in a modern and humorous way<br />Mandatory:<br />Never directly compare to any competitor<br />Keep versatility as key message<br />Always promote responsible drinking<br />
  38. 38. Desired Brand Personality<br />A brand consumers can trust for exceptional taste and drinkability associated with the Anheuser-Busch brand<br />It is fun, personal, adaptable, and spontaneous<br />
  39. 39. Media<br />Reach of 75%<br />Reach of 3.0<br />Awareness levels need to be modest<br />Versatility theme must be continuous, executions may vary<br />