Marketing Case Study: Positioning Budweiser SOMMAIRE

PART 1 : Situation Analysis

1- The Environment p 3

2- The Industry p 4

3- The Company p 5

4- Marketing Strategy p 6

PART 2: The solution

A- Recognition of the problem p 8

B- Analysis of the different alternatives p 9
1- Domestic Strategy
2- Foreign Strategy

PART I: Situation analysis

I The Environment

According to the Budweiser¡¦s file, we can find some of the Opportunities and threats that Anheuser-Busch has to face nowadays.

Opportunities Threats
„« AB is the Biggest brewer in the USA and globally.
„« It had 50% on the US market share in 2001.
„« Increasing number of international sales, which is also accelerating.
„« …show more content…

A problem for Budweiser in its domestic market is that the image of Budweiser is nowadays too traditional: teens identify this beer with the classic brown bottle and busy label, as an old one. Also, some regular customers say ¡§Whatever you do, don¡¦t change that¡¨; but the youngsters see the tradition, the image of a Dad¡¦s beer. According to us that can be considered as a power point for them; because of that the firm has to react and update its products if she wants to survive.

III The Company

The mission statement:

„« Update the image of Big Red, especially in making humoristic advertising.
„« Increase its sales abroad, in particularly in Europe. (Now exports represent around 21% of total earnings).
„« Win the battle against Budvar and obtain the right to use the Budweiser name all over the world.

STRENGTHS WEAKNESSES
„« AB is globally the biggest brewer.
„« AB is larger than its largest rivals.
„« AB owns 50% of the MGM¡¦s stakes; MGM represents 56.9% of the Mexican market¡¦s shares.
„« AB has a growing portfolio of brands.
„« AB makes creative advertising for which it spends lots of money.
„« AB launches innovative products as ice beer, dry beer or light beer.
Bud Light is a star product, which appears with the calry-conscious trend. „« ¡§The brand had grown so strong that it was institutionalized, established, difficult to move¡¨
„« The last star product of AB, Big Red, has an old-fashioned image.
„« The