In The U.K.

1. In The U.K. Anheuser-Busch : Developing a Global Brand in Great Britain Steve Clark, Derek Laur, Ryan Patton, Willayna Roberts, Alan Yeung

2. Intro Intro • Intro • History QUESTION: • Target • Market How can Anheuser-Busch successfully market its global brands in the United Kingdom beer market which is highly competitive and steeped in tradition? • Current • Strategy • 4 P’s • SWOT • Suggestions • Conclusion

3. Pub Types / Beer Types Intro • Intro • History • 5 types of pubs: • Country Pub, Local Village/Small Town, Inner City, Roadside, Red Brick • 5 types of pubs: • Country Pub, Local Village/Small Town, Inner City, Roadside, Red Brick • Target • Market • Current • Strategy • 3 main types of beer • Stout (Guinness), Ale (Bass), Lager (Budweiser) • 3 main types of beer • Stout (Guinness), Ale (Bass), Lager (Budweiser) • 4 P’s • SWOT • Lager traditionally seen as “rowdy” and lower class • Lager traditionally seen as “rowdy” and lower class • Suggestions • Steadfast loyalty to pubs and beers • Conclusion

4. Perceptual Map UK Target Market Stout (dark) • Intro Bass • History Whitbread • Target • Market Courage • Current • Strategy More Expensive Less Expensive Carlsberg • 4 P’s • SWOT S&N • Suggestions • Conclusion A-B Lager (light)

5. History History • Intro • History • Breweries own or have exclusive deals with pubs to distribute their own beers • Large breweries = 10,000 pubs • Small breweries < 1,000 pubs • Breweries own or have exclusive deals with pubs to distribute their own beers • Large breweries = 10,000 pubs • Small breweries < 1,000 pubs • Target • Market • Current • Strategy • 4 P’s • SWOT • Smaller breweries are forming alliances • Focus shift towards bottled beers and non-exclusive pubs • Suggestions • Conclusion

6. History History • Intro • Busiest times are Friday and Saturday nights and Sunday afternoons • Many people stop by their local pub after work or after their evening meal • Stricter drunk driving laws have slightly curbed the market • Large increase in the number of women frequenting pubs • General relaxed atmosphere • History • Target • Market • Current • Strategy • 4 P’s • SWOT • Suggestions • Conclusion

7. Target Market UK Target Market • Intro • History • Younger drinkers • Trendier drinking crowd • “Take Home” market • Super-premium brand • Target • Market • Current • Strategy • 4 P’s • SWOT • Suggestions • Conclusion

8. Hands-on Control of Marketing • Intro • Imported Michelob and let Courage, a large English brewer, brew Budweiser under contract • History • Imported Michelob and let Courage, a large English brewer, brew Budweiser under contract • Target • Market • Appointed Courage as distributor of Budweiser to its network of more than 5,000 pubs • Appointed Courage as distributor of Budweiser to its network of more than 5,000 pubs • Current • Strategy • Increased Advertising 100% to $20 million while all UK brewers spent about $180 million in 1992 • Increased Advertising 100% to $20 million while all UK brewers spent about $180 million in 1992 • 4 P’s • SWOT • Suggestions • Launched first national TV campaign: two 30-second spots featuring blues music and continue the successful “Budweiser, the genuine article” theme • Conclusion

9. Hands-on Control of Marketing • Intro • Budweiser and Michelob priced higher than most local brands at super-premium price • Budweiser and Michelob priced higher than most local brands at super-premium price • History • Target • Market • Budweiser linked to American cultural icons • Budweiser linked to American cultural icons • Current • Strategy • No differentiating among advertising campaigns in all European countries • No differentiating among advertising campaigns in all European countries • 4 P’s • SWOT • “Cool, frosty Budweiser” campaign did not work in UK in the late 1950s and early 1960s • “Cool, frosty Budweiser” campaign did not work in UK in the late 1950s and early 1960s • Suggestions • Conclusion • In the mid-1970s, Budweiser became more widespread British drinkers began to demand cool beers

10. Positioning • Intro • Large segment: Premium Lager • History • Large segment: Premium Lager • Target • Market • Strength: 5% Alcohol by volume; draught and packaged • Strength: 5% Alcohol by volume; draught and packaged • Current • Strategy • Target audience: Primary - Men 18-34: all men; middle class • Target audience: Primary - Men 18-34: all men; middle class • 4 P’s • SWOT • Suggestions • Packaging: 330ml non-return bottle; 330-ml can (4, 8, 12 multipack); 11-gallon kegs • Conclusion

11. TV Advertising • Intro • History • Typical TV ad about beer was focused on humor • Target • Market • Typical TV ad about beer was focused on humor • AB used American themes (like blues music) to attract British consumers • AB used American themes (like blues music) to attract British consumers • Current • Strategy • 4 P’s Two key messages: • SWOT • Suggestions • Authentic American heritage of the brand • Authentic American heritage of the brand • Conclusion • Quality of ingredients and the consistently high-quality brewing that goes in the beer

12. 4 P’s 4 P’s • Intro • PRICE • Budweiser & Michelob marketed at super-premium pricing • History • PRICE • Budweiser & Michelob marketed at super-premium pricing • Target • Market • PRODUCT • Michelob imported, Courage given rights to brew Budweiser • PRODUCT • Michelob imported, Courage given rights to brew Budweiser • Current • Strategy • PROMOTION • Increased advertising budget. • Mainly American themes • PROMOTION • Increased advertising budget. • Mainly American themes • 4 P’s • SWOT • Suggestions • Conclusion • PLACE • Courage appointed distributor so Budweiser sold through Courage’s network of 5,000 pubs

13. S.W.O.T. Analysis SWOT Analysis • Intro • Strengths • Change in British taste preference • AB’s relationship with Courage • History • Strengths • Change in British taste preference • AB’s relationship with Courage • Target • Market • Current • Strategy • Weaknesses • British tradition and loyalty to brands of beer • Current market position not effective • Beer production was down 3% in 1992 • 4 P’s • SWOT • Suggestions • Conclusion

14. S.W.O.T. Analysis SWOT Analysis • Intro • History • Opportunities • “Take Home” segment of the market has doubled • Beer consumption by women has increased • Opportunities • “Take Home” segment of the market has doubled • Beer consumption by women has increased • Target • Market • Current • Strategy • 4 P’s • Threats • Large Domestic Breweries • New “designer beer” being introduced • SWOT • Suggestions • Conclusion

15. Suggestions Recommendations • Intro • History • Use local celebrities and sports icons to promote the brand – scale down the overpowering American image • Use local celebrities and sports icons to promote the brand – scale down the overpowering American image • Target • Market • Current • Strategy • Foster the “take home” market for beer – use pints of beer instead of twelve-ounce cans in an enclosed carrying case • Foster the “take home” market for beer – use pints of beer instead of twelve-ounce cans in an enclosed carrying case • 4 P’s • SWOT • Suggestions • Discontinue promotion of Budweiser as a premium lager • Discontinue promotion of Budweiser as a premium lager • Conclusion • Target newer country and inner city pubs for placement of product

16. Conclusion Conclusion • Intro • History • Target • Market While maintaining its American image, it is critical for Anheuser-Busch to market its product specifically for the characteristics of the British market. • Current • Strategy • SWOT • 4 P’s • Suggestions • Conclusion