BUDNET Marketing Customer Information the Lifeblood of the Organization

1. BUDNETMarketing Customer Information the Lifeblood of the Organization CASE III MARKETING MANAGEMENT GROUP 06

2. CONTENT • INTRODUCTION • INFORMATION THAT PROVIDED BY BUDNET • BUDNET’S SUPERIORITY • BUDNET’S ADVANTAGE FOR AB COMPANY • MARKETING INTELLIGENCE • KEY OF SUCCESS • CONCLUSION AND RECOMMENDATION • QUESTION DISCUSSION

3. COMPANY BACKGROUND • Anheuser-Busch traces its origins back to the Bavarian brewery, which was established in 1852.

4. ANHEUSER BUSCH Eberhard Anheuser acquired the Bavarian brewery in 1860 and renamed it E. Anheuser & Co. In 1864, his son-in-law, Adolphus Busch, joined the company that would later become Anheuser-Busch.

5. BUDWEISER And in 1876 Budweiser was introduced… Budweiser (Anheuser-Busch) is an American-style lager and is one of the most popular beers in the United States. Budweiser is produced in various breweries located around the United States and the rest of the world.

6. BudNET Anheuser-Busch (AB) can be called "King of Data Collection" and the success of this organization can be credited to an emphasis on data collection and data sharing. Anheuser‑Busch also the leading on American brewer, holding a 49.2% share of U.S. beer sales in (Press release Aug 10, 2009/www.anheuser-busch.com).

7. BudNET The secret to their superior data mining and collection is BudNET, an online system that connects wholesalers, retailers, and other business partners by allowing them to gather data on sales, products, customers, and competitors. The company pioneered this new high-tech strategy and positive results are driving competitors to re-evaluate their own strategies

8. HOW BUDNET WORKS

9. WHAT INFORMATION THAT BUDNET CAN PROVIDE ?

10. OPERATION INFORMATION • Financial information, such as : accounts receivable, sales, etc • Other data pertaining to Anheuser-Busch's products

11. CUSTOMERS INFORMATION • Tool to track beer-lover’s buying habits: Performs Nielsen-style consumer surveys to see what beer drinkers buy and why. • Products :After seeing data on consumer shifts in dietary habits, Anheuser -Busch successfully launched low-carb Michelob Ultra.

12. COMPETITOR INFORMATION • Competitor’s products • Competitor’s prices • Competitor’s displays

13. BudNET • The public front page of BudNet advertises the following functions:

14. BUDNET’S SUPERIORITY • Collecting the data in a nightly nationwide sweep of its distributors' servers • Several thousand reps and drivers serve as the eyes and ears of a data network through which distributors report, in excruciating detail, on sales, shelf stocks, and displays at thousands of outlets.

15. BUDNET’S SUPERIORITY • Can captured information timely The key to Anheuser- Busch's real -time analysis of marketing effectiveness is timely data: getting information back from wholesalers and retailers on what is selling where and when.

16. BUDNET’S SUPERIORITY • BudNET has made a deadly accurate science out of finding out what beer lovers are buying, as well as when, where, and why. • By utilizing BudNET and its other technology data sources, Anheuser-Busch has been able to maintain control over various demographic environments within and outside of the United States

17. BUDNET’S SUPERIORITY • BudNET and bar code scan data can also be credited for helping to track consumer buying behavior influenced by cultural, social, and personal factors

18. BUDNET’S SUPERIORITY • By using a variety of internal and external data sources-including consumer's demographics, POS, and market data- Anheuser-Busch could guide product assortment decisions

19. What is the advantage of BudNET for Anhauser-Busch company?

20. THE ADVANTAGE • BudNET do much more than keep tabs on the flow of icy cold Bud off retailers' refrigerated shelves.  Using portable transaction computers, the delivery people also log data on competing products, identifying what else is on the retailers' shelves

21. THE ADVANTAGE • The company has made significant marketing investments to build Budweiser brand recognition outside the United States and operates overseas breweries in China and the United Kingdom. The company also has a significant equity position in Grupo Modelo, Mexico's largest brewer and producer of the Corona brand

22. THE ADVANTAGE • Budnet uses Sales reps. Collect new orders and rack competitors’marketing efforts on PDAs and laptops =>help Anheuser-Busch know exactly how many products need to be delivered to each store • The success of SCM system help Anheuser-usch make its supply chain more effective and efficient=> find the raw components they need to make their product,manufacture it, and deliver it to customers

23. THE ADVANTAGE • BudNet helps to keep Anheuser-Busch on top by logging competitor information as well as what worked and didn’t work for the Anheuser-Busch

24. Strategy Analysis • Old System – hardcopy invoices and sales orders get manually entered into a pc. This data gets compiled into monthly Excel reports to see best brands and trends. • New System – Data collected daily from handheld pcs and is uploaded to servers. The data tells AB what brands are selling in which packages using which medley of displays, discounts, and promotions.

25. The company use intelligence information in their marketing strategy ...

26. What is Marketing Intelligence? Market intelligence (MI) is, “the process of acquiring and analyzing information in order to understand the market (both existing and potential customers); to determine the current and future needs and preferences, attitudes and behavior of the market; and to assess changes in the business environment that may affect the size and nature of the market in future.” - Cornish S. L

27. PurposesofMarketingIntelligence • Customer satisfaction • Creative and effective marketing strategy • Realities of the company and its competitors • Strengths and weaknesses • Realities of the marketplace • Opportunities and threats • Competitive advantage • Anticipate the competitive move and develop competitive strategies

28. SourcesofMarketingIntelligence • Company’s own personnel • Executives • Consultants and specialists • Purchasing agents • Salespersons • Other employees

29. SourcesofMarketingIntelligence(Cont’d) • Company’s supply chain • Suppliers • Resellers • Customers • Business partners • Business allies • Other marketing intermediaries

30. Sources of Marketing Intelligence(Cont’d) • Competitors • Annual reports • Speeches and press releases • Products and labels • Advertisements and other marketing communications • Web sites

31. Sources of Marketing Intelligence(Cont’d) • Government sources • Census of population • Census of industries • Other government agencies and publications • Academic sources • Theses and research reports • Academic journals • Academic forum

32. Sources of Marketing Intelligence(Cont’d) • Publications and mass media - Television/radio news - Newspapers - Magazines and trade journals • Syndicated services - Panel data - Retail audit - Customized reports

33. Sources of Marketing Intelligence(Cont’d) • Electronic databases • CD-ROM • On-line databases • Internet • Search engines • Portal sites and communities web sites • Web boards • Chat rooms • Social media

34. Key Success Factors • Getting wholesalers and retailers to agree to collect the data at the front lines The best way for them to capture the detailed information was to request the responsibility be handed over to the front line, delivery people, wholesalers, and retailers. It became effortless when the distributors would benefit from access to this data as well.

35. Key Success Factors (Cont’d) • More reliable exposure to demographic environment BudNET is used internationally and allows AB to become cognizant of growing populations of various ethnicities and be able to study their specific wants and habits faster than any other competitor.

36. Key Success Factors (Cont’d) • More reliable exposure to demographic environment (Cont’d) Recognizing the fact that China is the largest beer market in the world (World’s 10 Largest Beer Markets, 2005), AB created a strategic partnership with Tsingtao Brewery Company Ltd., China’s leading brewer, and acquired Harbin Brewery Group, Ltd., the No. 5 brewer in China (www.anheuser-busch.com).

37. Key Success Factors (Cont’d) • More reliable exposure to demographic environment (Cont’d) AB has also expanded its business in order to reach out to the Hispanic community, one of the largest growing demographics in the country. In 1993, AB acquired 50 percent of Grupo Modelo creating an exclusive import and distribution agreement over Corona products. Finally, in recognition of the large presence of Hispanics in the US, AB began offering Tequiza in 1999. As a result of its extreme popularity within this demographic, Tequiza became the most successful new-product introduction in company’s history.

38. Key Success Factors • More reliable exposure to demographic environment (Cont’d) In line with the plans to expand Budweiser in high-growth markets, during the second quarter 2008, Anheuser-Busch acquired the remaining 50% ownership of its joint venture partner in India and launched Budweiser in Vietnam.

39. Key Success Factors • Keeping up with consumer behavior and quickly changing lifestyles BudNET can also give information to track consumer buying behavior influenced by cultural, social, and personal factors. AB’s marketing team searched for relationships between their products and lifestyle groups and identified a need for a low-carb, full bodied beer to complement the developing trend of low-carb diets.

40. Key Success Factors • Keeping up with consumer behavior and quickly changing lifestyles (Cont’d) On Aug 10, 2009 Anheuser-Busch launched SELECT 55, the world’s lightest beer, in the U.S.  A smooth, light golden lager with 55 calories and 1.9g carbohydrates per each 12-ounce serving, SELECT 55 answers a growing demand among a segment of adult drinkers who are seeking lower-calorie alcohol beverages to complement their busy lifestyles. Whether adult drinkers are looking for light refreshment after a busy day or if they simply enjoy delicious calorie-conscious foods and beverages, SELECT 55 offers an unparalleled clean, crisp flavor with fewer calories than any other beer currently available.

41. Key Success Factors (Cont’d) • Becoming aware of social and cultural trends Data collected through BudNET, and other data linked sources, allowed AB to recognize major trends. There has been a gradual shift in consumer tastes toward premium beers in recent years. The sales of premium beer have increased for years as more and more beer drinkers discover the pleasures of a good premium beer can rival a fine bottle of wine. They are as distinct from a cold backyard beer on a hot summer day as a fine steak is from a hamburger.

42. Key Success Factors (Cont’d) • Becoming aware of social and cultural trends (Cont’d) • AB has responded by forming partnerships to strengthen their premium offerings. August Busch IV, President and CEO, has often stated the company has a goal of increasing AB’s participation in the premium beer market (Beirne, 2006). • February, 2006, AB announced that it will be distributing five popular import brands, including Stella Artois and Beck’s, • In January, 2007, AB announced an alliance with Czech brewery Budejovicky Budvar NP to import Czechvar in the US (Janicek, 2007).

43. Conclusion and Recommendation • AB benefits from aggregating the data of all distributors, while the distributor benefits from comprehensive real-time reporting extrapolated from their own raw data. When an anomaly is recognized, an investigation of the cause is immediately initiated.

44. Conclusion and Recommendation (Cont’d) • Real-time reporting enables immediate response to competitive threats or changes in the environment. After much analysis, it is recommended that AB continue to use its data network, including BudNET, to improve its information gathering and sharing.

45. Conclusion and Recommendation (Cont’d) • The organization’s new way of thinking and high tech approach is far ahead of its competitors. The results speak for themselves. Although no specific change in strategy is recommended, there are a few key things that are imperative to maintain their success. Continued emphasis on high quality training standards and continued effort to add other sources of data to link to their robust network.

46. QUESTION DISCUSSSION What criteria that should be met as a good intelligence information?

47. THE ANSWER As a good intelligence information, the data should be : • Timely • Accurate • Reliable • Meaningful • Written • Easy to understand

48. QUESTION DISCUSSSION Why information is very useful in marketing?

49. THE ANSWER Information from an organization's marketing department would be used to guide the actions of other department's within the firm. With an information (via marketing research) the company would know that customer desired a new product, or a new usage of existing product.

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