This document discusses Bud Light Lime, a flavored beer produced by Anheuser-Busch. It provides information on the beer market, consumer behavior, competitors, and Bud Light Lime's marketing strategy. The objectives are to increase sales 7% in Q4 2009, gain market share across three categories, and change positioning to year-round drinkability. The target audience is males and females ages 21-27 who want flavored beers. The marketing strategy will utilize various promotions, expand distribution, and increase spending to outpace competitors while maintaining a fun, versatile brand personality across media.

1. Bud Light LimeDustin ValdezAlicia WindingSara BronsteinKhalid JivaniKathy Tran

2. Market Composition

3. Market CompositionCategory Size and TrendsIn 2006:$88 (b) industry210 (m) barrels sold21.6 gallons per capita1, 572 total breweries946, 188 direct jobs

4. Market CompositionSignificant changes in the last three yearsMajor beer takeovers and consolidationWith saturation of domestic markets, U.S. brewers focus more on foreign marketsIncreased flavored product line extensions domestically

5. Market CompositionDistribution patterns, problems, and changes in store typesDistribution is driven by geographical location and target populationWith the recent sell of Anheuser-Busch to Belgium-based InBev, changes in distribution are expected

6. Market CompositionPackage form and size trendsPackaging decisions are based on particular target market local distributors may chose to stock a particular size to respond to the demands of their customersSingle serve size and multipack16oz aluminum bottles increase in popularity

7. Market CompositionConsumer Packaging Preferences Glass, plastic and aluminum cans96% preferred glass40% believed the taste is better37% perceived that beer stays cold longerThe trend continues to be glass bottles despite the advantages of plastic bottles (shatterproof and lightweight)Plastic closure affect quality and freshness

8. Market CompositionPackage form and size trends

9. Market CompositionPricing patternsBeer has increased in priceBud Light Lime is less expensivethan Corona and Miller Chill

10. Market CompositionPricing patterns

11. Market CompositionBrand Share and StatusAnheuser-Busch is truly ‘King of Beers’Market share leader in U.S. national beer categoryMarket share leader in U.S. national light beer categoryMarket share leader in U.S. national lime flavored beer category

12. ConsumerUsageAbout 40% of the U.S. population drink beer weekly or monthlyMore people in U.S. drink beer than wine or liquorReasons for drinking beer are wide and varied

13. ConsumerBehavioralHeavy user:Drinks dailyBuys beer 3x or more a weekBeer for any and every occasionLight user:Drinks only for special occasionsSocial drinkerInfrequent purchases of less than 1 month

14. Consumer

15. Consumer

16. ConsumerReasons for Going on Shopping Trip

17. ConsumerPlanned vs. Impulse Beer Purchase

18. ConsumerThe most important benefits in all categories for consumer are taste and priceThere is a high potential of conversion within the various segments of the beer categoryModest possible conversion from non-beer drinkers into any segment

19. Advertising and PromotionCategory and brand spending patterns and trendsNational: Has remained consistent and competitiveAnheuser-Buschand MillerCoors spent close to $1 (b) in 2007Regional and Microbrew:Brands like Blue Moon typically advertise in specialty print magazines (Men’s Health & Rolling Stone)Rely heavily on buzz or word of mouth

20. Advertising and PromotionRole of consumer promotionsMainly to used to help differentiate products from competitors and from own product lineRole of trade promotionsUsed to solicit businessUsually from national brewers to wholesalersUsually from regional and microbreweries directly to retailers and restaurants/bars/clubs

21. Recent Claims“Premium beer that combines superior drinkability of Bud Light with a splash of 100% natural lime flavor”“American take on a Mexican chelada”Relaxation associated beach imageryAdvertising and Promotion

22. Competitive FrameBud Light Lime is simultaneously competing in three beer segments

23. Key Problems and OpportunitiesAvoid similar fate as Miller ChillGrowing competition in all segmentsSince Bud Light Lime is competing in three segments, it must:Dominate its primary segmentBe evoked as a potential choice in its secondary categoryMaintain its presence as a viable competitor in its tertiary category

24. Marketing Strategy

25. Business and Marketing Objectives7% increase in sales for 2009 Q4Continue increasing market share in all three beer category segments

26. Business and Marketing ObjectivesChange positioning of Bud Light Lime from summer only to year-round drinkabilitySimilarly, change purchase behavior from seasonal only to year-round

27. Business and Marketing ObjectivesPackaging will be modified to reflect year-round appropriatenessPricing will remain consistentDistribution will expand to test markets where Bud Light Lime is currently unavailable in response to growing consumer preference for flavored beer

28. Source of BusinessWill utilize an offensive strategy:Competitive brand users: switch to our brandLight users of our brand: buy our brand more often

29. Target GroupsPsychographic-Wants flavored beer DemographicMale and female Age: 21-27White$15k-$50kGray collarHigh school educate to some college LifestyleFast pacedTrend setterOut going

30. Buying IncentivesTwo target groupsRestaurant/bars/clubs:Discount parent beer to carry Bud Light Lime on tap in selected test marketsConsumer:Bud Light Lime promotional items inside 24pk casesBud Light Lime coolers for purchase of 2 24pk cases at warehouse club stores through unique distribution

31. Buying IncentivesConsumerSummer Example:

32. BudgetBud Light Lime was $35 (m) in 2008Miller Chill was $30 (m) in 2007Coors Light $55 + (m) in 2005Corona was $50 (m) in 2007Therefore, Bud Light Lime intends to increase budget to outspend primary competitor and remain defensive against tertiary competitors

33. Communication Strategy

34. Positioning StatementBud Light Lime offers superior flavored drinkability for every occasion

35. PromisePrimary promise:Bud Light Lime is great tasting and appropriate all year longSecondary promise:Quality beer from a brand you can trustSupport for promises:Anheuser-Busch’s supreme drinkability make it perfect for all seasons

36. Sketch of Prototype Prospect

37. Tone/Manner/MandatoryTone will be informal, personal and will utilize a lighthearted approachManner will be presented in a modern and humorous wayMandatory:Never directly compare to any competitorKeep versatility as key messageAlways promote responsible drinking

38. Desired Brand PersonalityA brand consumers can trust for exceptional taste and drinkability associated with the Anheuser-Busch brandIt is fun, personal, adaptable, and spontaneous

39. MediaReach of 75%Reach of 3.0Awareness levels need to be modestVersatility theme must be continuous, executions may vary