Budweiser Presentation

Budweiser Presentation

• 1.
  Budweiser – TheWay Forward
• 2.
  Team 24
• 3.
  Outline Team 24 1 Recommendations 4Ideation and Execution 2 Industry Analysis 5 3 Strategy Formulation Strategy Evaluation
• 4.
  Recommendations Industry Analysis Strategy Formulation Ideationand Execution Strategy Evaluation Team 24 Recommendations  Leverage heritage and tradition of Budweiser to re-brand Budweiser as the beer that offers the classic American drinking experience  Introduce new product variant targeted at a hybrid “Premium-High end” segment
• 5.
  Industry Analysis Team 24 Strengths:  146 years of rich tradition and heritage  Iconic American brand, with well-established reputation  Strong brand equity  Produced and marketed by AB InBev  A globally known brand  Higher perceived quality than Sub-premium & Premium Light; more comparable to high-end Weakness :  Weak brand loyalty  Lacks appeal to the millennial generation  Sticky brand image  Diluted image due to foreign ownership Recommendations Industry Analysis Strategy Formulation Ideation and Execution Strategy Evaluation
• 6.
  Industry Analysis Team 24 Opportunities:  Resurgence in vintage movement and popular culture  Highly fragmented market with numerous small players  Huge untapped overseas market, where Budweiser enjoys a strong brand reputation  Dynamic demographical shifts Threats :  Consumer preference for light and craft beers  Threat from wine and hard liquor  Relatively lower perceived quality with mass production Recommendations Industry Analysis Strategy Formulation Ideation and Execution Strategy Evaluation
• 7.
  Team 24 Industry Analysis Porter’s5 Forces Analysis Threat of new entry 1. Microbreweries 2. High capital expense required to compete effectively on a national scale. Rivalry among existing competitors 1. Highly fragmented market with competition from small players 2. Stiff competition across categories from premium light to high-end beer Threat of substitutes 1. Many substitutes including wine, home brewing and hard liqueur. Bargaining power of suppliers 1. Easy to switch between suppliers Bargaining power of customers 1. Wide variety of beer to choose from 2. Consumers eager to try new varieties of beer Low threat Moderate threat High threat Recommendations Industry Analysis Strategy Formulation Ideation and Execution Strategy Evaluation
• 8.
  Team 24 Industry Analysis Opportunity to increase market share Anheuser -Busch InBev 48% MillerCoo rs 30% Others 22% Sub- premium 31% Premium Light 37% High End 17% Premium Regular 15% Budweiser ~ 7.6% share U.S Beer Market Segmentation by category Recommendations Industry Analysis Strategy Formulation Ideation and Execution Strategy Evaluation
• 9.
  Industry Analysis Activity SystemsMap Strong heritage and tradition Well- recognized brand Iconic Strong distribution networkProduced by AB InBev Global Presence Advertising campaigns Professional marketing team Established manufacturing process Strong brand building tools Top global brewery Recommendations Industry Analysis Strategy Formulation Ideation and Execution Strategy Evaluation
• 10.
  Strategy Formulation Team 24 >Consumer behaviors and trends drive business strategy  Growing marketing trend toward vintage (Wall Street Journal)  Authentic, Time-tested, Original Observations: Precedence:  Many companies have successfully gone vintage with their flagship brands  Pepsico - Pepsi, Hostess - Twinkies, General Mills – Cheerios  Lessons from Pepsi Recommendations Industry Analysis Strategy Formulation Ideation and Execution Strategy Evaluation
• 11.
  Strategy Formulation Team 24 >Consumer behaviors and trends drive business strategy  Draws on Strengths  Iconic, Heritage  Engages Millenial Generation without compromising their loyal customer base  Fosters consumer-generated marketing support Why this strategy works for Budweiser: “Classic American Drinking Experience” Recommendations Industry Analysis Strategy Formulation Ideation and Execution Strategy Evaluation
• 12.
  Strategy Formulation Team 24 SWOT Analysis Porter’s5 Forces Analysis Market evaluation Consumption behaviors and trends Leverage Budweiser’s heritage to re-brand Budweiser to reach out to non AB InBev “Sub-Premium” and Premium (19%) consumers 1 Recommendations Industry Analysis Strategy Formulation Ideation and Execution Strategy Evaluation
• 13.
  Team 24 Ideation andExecution Strategy 1: Leverage Budweiser’s heritage to re-brand Budweiser Vintage brand • Can Label • Tap Design Sell beer in cans at targeted bars • Local establishments • Metropolitan cities Non-traditional, understated advertising • All-American Beer Paraphernalia • Traditional print ads • Sponsor targeted events Product Pricing Promotion Placement Price to remain unchanged  Signal to current Premium consumers that product has not changed Recommendations Industry Analysis Strategy Formulation Ideation and Execution Strategy Evaluation
• 14.
  Team 24 Strategy Evaluation Internalconsistency Strategy 1: Leverage Budweiser’s heritage to re-brand Budweiser Capitalize on popular vintage trend without alienating current drinkers Dynamic consistency Leverage brand association with tradition, heritage, and authenticity External consistency Unrivaled credibility due to number of years in business Recommendations Industry Analysis Strategy Formulation Ideation and Execution Strategy Evaluation
• 15.
  Strategy Formulation Team 24 SWOT Analysis Porter’s5 Forces Analysis Market evaluation Consumption behaviors and trends Launch new hybrid “Premium-High End” product variant targeted at consumers in “Premium-High End” (15.8%) categories 2 Recommendations Industry Analysis Strategy Formulation Ideation and Execution Strategy Evaluation
• 16.
  Ideation and Execution Strategy2: Introduce new “Premium-High End” product variant • New product name and recipe • Available at select high-end pubs and bars for onsite consumption only • Market to high-end bars and pubs • Celebrity association in a non-intrusive, subtle way • Targeted print advertising for niche consumer segments • Community engagement Product Pricing Promotion Placement • Price at 130 of index Team 24 Recommendations Industry Analysis Strategy Formulation Ideation and Execution Strategy Evaluation
• 17.
  Team 24 Strategy Evaluation Internalconsistency Strategy 2: Introduce new product variant targeted at a hybrid “Premium-High End” segment Caters to needs of consumers with unique tastes and a preference for a beer that matches their societal status Dynamic consistency Leverages AB InBev’s brand building and management experience while reinforcing market leadership position External consistency Growing demand for high-end beer in a highly fragmented category and an increasing sophistication of consumers Recommendations Industry Analysis Strategy Formulation Ideation and Execution Strategy Evaluation
• 18.
  Team 24 Recommendations 1. Leverageheritage and tradition of Budweiser to re- brand Budweiser as the beer that offers the classic American drinking experience 1. Introduce new product variant targeted at a hybrid “Premium-High End” segment
• 20.
  Performance Assessment &Risk Mitigation Performance Assessment  1. To review performance of strategies on semiannual basis  2. Conduct brand audit to monitor performance Goals of Strategies  Stabilize performance of Budweiser  Contribute to AB InBev’s growth Recommendations Industry Analysis Strategy Formulation and Evaluation Ideation and Execution Performance Assessment & Risk Mitigation Risk Mitigation  Potential cannibalization to be expected  May need to alter promotion strategies in response to consumer reaction  Ensure strategies are well integrated  Harness power of social media judiciously