Budweiser Presentation essay

Implementation and Evaluation 10. References 11. Appendix Executive Summary Our campaign has plans to look over Budweiser’s past sales in the market. Based on its past we have understood that sales have decreased, but with our campaign we plan to increase Budweiser sales within 2012 year by 10 percent. The first thing is revising how to effectively communicate to our consumer market which will increase our sales by 10 percent. With our advertising objectives bringing back Budweiser’s strong appearance to our loyal customers while bringing in new consumers. Our ads will exemplify

Budweiser’s five ingredients which are high grade, fresh and the great American lager has a perfect pour. After looking at MR. data we realized Budweiser mostly targets middle aged and older males. The target audiences are also more likely to be watching ESP. sports or reading magazines such as Dirt Rider. Beer is associated with men and sports and males have a higher chance of wanting to grab a nice cold, fresh Budweiser after watching or reading its ad due to the visual appeal. Advertising does not come cheap so we have laid out a specific budget that will assist the SUccess of our campaign.

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For example television will have a higher budget with $70 million, or 59 percent, specifically going towards channels like CBS, ESP. as well online markets like Youth and Hull for viewers who watch sports online. We realize our campaign cannot always focus on sports so we will also run advertisements that will engage all audience members with one of Budweiser’s campaigns “The sure sign of a good time” which will send the message that Budweiser beer is good for all events, social or otherwise, for all to enjoy and to bring everyone together.

Hopefully, with our new marketing strategy, budget, and target audiences which target specific vehicles we can increase Budweiser’s sales as well as establishing loyal consumers while bringing in new ones. Situational Analysis industry/Company Overview Enhancers Busch Ellen is currently the world’s largest brewing company; distributing more than 400 million hostilities of beer annually and dominate 90 percent of the American beer market along with SAAB Miller and Nelson Coors. Although that seems like an abundance of beer, the company has seen a decrease in popularity over the last few years for the flagship brew, Budweiser.

Aside from the decrease in interest for Budweiser and a minor cent financial crisis where Ellen had to sell assets to pay a substantial amount of debt, it is demonstrating traits for future solid income and growth for next year. Even though the earnings per share decreased last year, Ebitda, the earnings before interest and taxes, rose 17 percent. Current trends and developments are focusing on the international market. “America’s largest brewer aggressively pursues China as the international beer market with the highest potential for future sales” (Workman, Daniel).

The company’s objective is to focus primarily on international sales to globally expand its trade market. Some of the product line includes the following brews of beer. Budweiser, Bud Light, Michelle, Michelle Honey Lager, Busch, Busch Ice and Bare Knuckle Stout. Those are only some of the nearly 200 beer brands. Is headlined beer however, Bud Light, is the world’s bestselling beer, accounting for 40 percent of the annual sales with 36. 7 billion in revenue. As for marketing in the United States, the company has unveiled new products such as Bud Light Lime and Bud Select 55 in order to expand the target audience and consumer base.

It has also become the exclusive beer sponsor or the National Football League, its main and most significant target audience. Product Review Perfected in 1876 by Adolph Busch, Budweiser has kept the perfection going for over 133 years. Budweiser has always strives to have the perfect combination of flavor and refreshment, to be an icon of great American beer. It has always had a great image, grounded in tradition and integrity. Its main weakness is the fact that consumers taste in beer has changed over time. With Budweiser staying the same for over 133 years, it has to focus on a fresh image.

Budweiser may not have changed their recipe but their image has hanged a bit. “Budweiser’s success is rooted in aspects of the beer that will never change a crisp, refreshing taste, an unwavering commitment to quality and the enormous pride we take in each batch,” said Rob McCarthy, vice president, Budweiser. “Our refreshed packaging design gives Budweiser an updated look, which dramatists the iconic Budweiser bootee and incorporates the brand hallmarks that loyal Budweiser drinkers will recognize and appreciate. ” Competitive Review The direct competition for Budweiser is Coors, Heinlein, and Miller.

Coors has surpassed Budweiser in ranking, coming in at number two, right after Bud light. It is one Of the biggest brands in the world today. Coors has become more successful with their product range because of their expanded target market. The company used their marketing initiatives to target women with their low calorie beers and to dispel myths about the unhealthiness of beer. Coors has also gone outside of traditional advertising and began using social media as a way to target audience. It has been able to engage consumers as they innovate and upgrade their popular products.

The company has created the “cold activated” technology which tells beer drinkers hen the beer is cold enough to provide the most optimal taste. Coors and Miller became a joint venture, which has helped both companies cut costs for marketing, and has increased the amount of marketing. Score’s simple marketing strategy claims it is a “cold refreshment. ” Their marketing focuses on the simple values they promote. The Coors light slogan is “Rocky Mountain Refreshment. ” This brand has become favorable to consumers and it’s purity of ingredients is the main focus.

It has increased advertising spending to target their specific audience, especially during sporting events. Their website promotes nature and the Rocky Mountains. It displays a wood background and a Rocky Mountain symbol, stating “Grab a piece of the legend. ” Although Coors has been trying to target women, the website is geared towards men. Their website is neither interactive nor informative. Miller is also one of the largest brands today. With the combination of strategic new acquisitions and the focus on having a balanced portfolio, Miller can become more successful.

Miller has put forth effort into being environmentally friendly. Competitive Review count. It was the first brewer to begin recycling aluminum cans. Miller competes heavily with Coors, which has a good light beer taste. Coors also has strong marketing efforts as well as a strong international presence. Some of their weaknesses include weak brand identity due to their lack of advertising. Coors is not seen as high quality beer. It lacks a dark beer line and their taste is known as inferior to Budweiser. There is a Millimeters site which includes all of their products; however the different miller products each have their own website.

Each product has their own site which makes it hard for the audience to research. The Millimeters site is not engaging and includes minimal information. Heinlein is the third largest brand in the world today. It is the most important asset of the Heinlein Company. It belongs to the top international beer brand circles in the world. Heinlein has a strong brand identity; however the company has grown so large, there may be little room for it to further expand. Their strategy is to have sustainable top-line growth and focus on the target markets for them to succeed.

The Heinlein website is better than the other competitors including having more information related o the beers as well as being interactive and exciting. Some of the indirect competition is Red Bull and liquor. Red bull has become a phenomenon with liquor. It can be added to almost any drink giving it extra flavor. Red Bull has a strong brand identity and has the largest market share for energy drinks. Budweiser may have various strong competitors, but it also has competitive advantages such as being the largest brand name and having a stable business.

There are more emerging markets for them to gain. If Budweiser wanted to merge with another brand this would give them higher success. By butting costs and using the resources effectively, they can have better advertising and put more into marketing, leading them to have their brands all in the top line-up. Average Analyst Recommendation for December 201 1 From left to right: Enhancers-Busch (BUD), Samuel Adams, Coors During the middle of last years campaign, Budweiser was the strongest buy compared to Coors and Miller. For December 2012 (BUD), Samuel Adams, Coors.

During the middle of this years HTTPS://www. Capital. Com/framework/ #? Toot=Comparator&params=AMBEV,BORN,BUD,CCU,FMX,H 5hbHlzdCJ9fQ SOOT Analysis Strengths Enhancers-Busch Ellen has more than 200 brands including flagship, core products, which include Budweiser, Stella Ratios and Beck’s. The three flagship brands are complemented by other multi-country brands like Left and Hazarded along with other leading local brands such as Bud Light, Sol and Brahmas to name a few. About 13 of the company’s brands have retail sales in excess of SSL billion.

Budweiser is one of the best-selling beers in the world whereas Stella Ratios is well-known internationally and is distributed in nearly 80 countries. Beck’s is the number-one German brand in the world, resent in more than 100 countries worldwide (Marketplace: Drinks, 2011 ABA Ellen has spread its operations across six geographical zones: North America, Latin America North, Latin America South, Western Europe, Central and Eastern Europe, and Asia Pacific. The company holds around 48. 9 percent and 42. 4 percent market shares in the SIS and Canada, respectively.

It is the leading player in Latin America, where its top market share is in Paraguay and Uruguay with 97. 5 percent. The company also has substantial market shares in Europe with its top market share in Montenegro with 91. 8 percent. In the Asian egging, ABA Invent holds its top market share in South Korea with 41. 5 percent. Overall, the company is number one or two in 19 countries. The company’s extensive operations and leading position in the top beer- consuming regions like the US, Europe, and Latin America give it a significant competitive edge.

The leading position not only enhances the sales volume but also the sales value, boosting the financial strength of the company (Marketplace: Drinks, 2011 Strength Count. The company focuses extensively on cultivating its flagship brands besides promoting its other brands with growth potential. ABA Ellen follows the “values-based brands” approach, wherein unique value is developed for each brand relevant to its target consumers. The company developed a social media site, Beasts. Com, in the US to promote its brands during the Super Bowl. Beck’s has created the Gig Finder app for phone and pod Touch to connect with music enthusiasts.

Bud Light Lime utilized the Youth platform to create a social buzz through the promotion of flash mobs during its launch events. These were some of the instances were the company employed innovative marketing strategies to promote its brands. Considering the stringent government regulations for alcoholic beverages in several countries, the company has effectively utilized these platforms to enhance its overall sales globally (Marketplace: Drinks, 201 1). Weaknesses In the Fiscal Year of 2008 ABA Ellen suffered approximately $56,660 million in debt.

The company decided to restructure initiatives by selling its Ellen LISA supplementary to an affiliate of KBPS Capital Partners in the Fiscal Year of 2009. Twisting Brewery Group was sold to Assai Breweries and Tenseness Lager brand and associated trading assets were disposed to C Group. The our metal can lid manufacturing plants in US were sold to Ball Corporation, theme parks business to private equity firm Blackstone Group, Central Europe, and the Balkan operations to C.V. Capital Partners. After removing these financial risks, ABA Ellen repaid around 537. Billion of its original acquisition facility of $54. 8 billion. The company also decided to dispose of assets to reduce its debt to $45, 174 million in 2009, a decrease of 20. 2% as compared to 2008. The continued streamlining of its operations would help the company in further improving its liquidity position so as to ease the debt ruder on the balance sheet (Marketplace: Drinks, 2011). Opportunities ABA Ellen signed a contract with deterioration (TIN) in 2009. I TN is a leading global provider of on-demand supply chain management and intelligence solutions to the food and beverage industry.

As per the agreement, ABA Invent will receive amended procurement solutions from I TN for its UK retail customers. The alliance with TIN provides a platform for ABA Invent to offer a range of support services to provide a full online transactional service to pubs, restaurants, hotels, and other leisure outlets in the UK markets. The association with I TN would not only strengthen the company’s online SEјcues but would also enhance its trading partner relationships, revenue growth opportunities, and cost rationalization (Marketplace: Drinks, 2011).

ABA Ellen is associated with the popular International Federation of Association Football (FIEF) events. Budweiser became the official sponsor of the FIEF 201 0 World Cup and will become the official sponsor again in 2014. The company has further leveraged this opportunity to promote its local leading brands by winning sponsorship rights in select markets With a strong oddball legacy. The association with the FIEF World Cup has given the company exposure and recognition, as the events are broadcast to millions of fans across the world.

The company could leverage the popularity of football to promote its beer brands, enhancing its top-line growth opportunities during the event as well as afterwards (Marketplace: Drinks, 2011). The reads The company suffered financial of nearly $45, 174 as of 2009 resulting in a debt to equity ratio of 1. 55. Fiscal deficit crisis in the European economies could also pose a threat to the ABA Envies financial issues. Unfavorable interest rate condition would increase interest costs beyond what is currently anticipated by the company. These extra costs could have a material adverse impact on ABA Ellen. S cash flows and results of operations, putting it at a disadvantage against less leveraged competitors like Scrabbles (Marketplace: Drinks, 2011). Marketing Objectives Enhancers-Busch generated gross sales of $19 billion and produced over 125 million barrels of beer in 2007, ranking it as the largest alcohol brewer in the United States and third largest worldwide, behind Belgium-based Invent NV, and U. K. Based Gabrielle. Unfortunately Budweiser sales have decreased 30% from 2005 to 2010. Our campaign intends to increase Budweiser’s sales within a year.

Times are changing fast and if Budweiser does the same, following our media plan the projected increase in Budweiser’s US market share is around Advertising Objectives In order to achieve the overall advertising objectives for Budweiser, the company needs to communicate to the consumer market. Even though Budweiser sales have declined, Bud Light is still number one in the beer charts. This decline is due to the many import, low-calorie, and craft beers hat currently exist. Although the main focus is to increase sales, we also want to bring back Budweiser’s strong appearance in the market.

Our objective is to establish top of mind awareness with 70% of the audience by the end of the fiscal year. They need to remind the consumer base and past Consumer base of Budweiser’s great assets and why it is the beer they should be drinking. For example, some of Budweiser’s great features are that their five ingredients are high grade, it’s fresh, it’s the great American lager, and has the perfect pour. Budweiser ought to create a new image not only for their existing consumer base, but their new targets.

Remind old consumers as well as new consumers that Budweiser is known as “the king of beers. ” However, they also need to incorporate the new and upcoming values of current society and this new emerging generation. Creative Strategy Examples Of prior Creative Strategy Current Creative Strategy http://www. Youth. Corn/watch? V=haggardly Budweiser’s original creative strategy, which also happened to be “the first brewer to use a multilayer, single-themed, coordinated advertising campaign when introducing the Budweiser Girl wall hangings,” according to Enchantresses. Com.

After World War II, Enhancers-Busch began its target audience in relation to the sports field by marketing America’s national pastime: baseball. Some campaigns that have followed this are in the ass, “This Bud’s for You” and the ass, “Head for the Mountains” and “Bring out your Best” with the Classless. However, today Budweiser targets the football audience. “In 2008, Enhancers- Busch celebrated its 1 10th consecutive USA TODAY “Ad Meter” victory. The USA TODAY “Ad Meter” is a real-time consumer poll that ranks Super Bowl ads throughout the game” (Enhancers-Busch Companies).

Therefore the first creative strategy focuses the advertising theme on sports, mainly football. There is the print advertisement with the football anchors being Budweiser bottles, the beer being poured into the glass from the football stands and etc. Budweiser is known for their television advertisements they use in the Super Bowl commercials. They target all types of fans; those who are tailgating, the ones at home in their living room, and the ones at BBS. The creative strategy is well rounded enough to target all types of sports fans.

In a more broad perspective they also focus on men in mineral with “the king of beers” and the women they place in the labels of the advertisements. This attracts all types Of men because men are more likely to drink beer. As for the other reached audience, Budweiser can’t always focus on football fans because it’s seasonal so they focus on those that want to just enjoy a good time. For example: “The sure sign of a good time” and “Good times, they’re out there. ” It’s a way of not focusing on a gender stereotype but anyone in general who wants to have a good time, which ultimately is everyone. Media Ejective Target Selection

The Budweiser brand would like to target middle aged to older males as well as those who appeal to the characteristics of Budweiser. According to MR. data, men ages 18-54 have a well above average index for consumption of Budweiser in the last six months. Budweiser is known to be a classier beer compared to its other brand Bud Light. Since Budweiser supposedly represents history, American values, older generations, and patriotism, it is no wonder Budweiser chose to target the middle to older male audience. As someone examines a Budweiser ad or bottle, they will notice several components.