Positioning Budweiser

Demand for a good/product as Sherman et al. (2008) note "is the quantity of that good buyers would be willing and able to purchase during a given period, at various price levels"¦" Currently, the entity has "a 48.3 percent share of U.S. beer sales to retailers" (Anheuser Busch 2011). In this case, using the percentage of beer sales the firm makes to retailers as an indicator of demand, one can easily conclude that the demand for Anheuser Busch's products is quite high. The high demand in this case can be attributed to aggressive marketing and advertising as well as a recovering economy.

The author chooses t0 write the report about Anheuser-Busch’s Bud Light because it is the best-selling beer in the world. In this report the author has outlined in detail the current status by using the SWOT and PESTLE analysis of the company Anheuser-Busch

Green Mountain Coffee Roaster’s Keurig Single Brew system is dominating the U.S. market with an overwhelming market share. Analysts expect sales of single-cup brewing systems to continue to grow in the U.S. and competitors are eyeing a piece of the pie. An analysis of Keurig’s current position, based on Michael E. Porters 5-Forces, highlights a number of key areas of opportunity and risk for the company. Handled correctly, the Keurig product line should continue its growth, however, a number of significant pitfalls threaten its dominance.

Anheuser-Busch “is among the global company’s largest and most technologically capable breweries” (About, n.d.). On Anheuser-busch.com, you can find a lot of information about the company and their products. The headquarters of Anheuser Busch is located at One Busch Place St. Louis, MO 63118 (About, n.d.). The most known beer families that they produce are the Budweiser and bud light Family. There are numerous brands that Anheuser-Busch produces aside from Budweiser and Bud light. Initial searching for Bud Light Company because most of my family is enthralled by this beer, and upon further researching the beer brand, it was surprising to find that it was actually owned and manufactured by another company, Anheuser-Busch, that also manufactured

The Bud Light brand is second to none when it comes to light beer and a good time. Although, first considered a flop in the United States after its introduction in 1982, Bud Light surged up the charts after a rebranding effort in 1986. The “Gimme a Light” campaign by the D’Arcy McManus & Mansius agency altered the brands path forever. Since then, Bud Light has drastically increased its market share while still maintaining its success in the global light beer and beverage market.

Because the advertisement was aired five months after the September 11 incident, there were intense emotions among the American citizens. Budweiser was aware of this and created a commercial with strong emotional appeals. With pathos loaded, the advertisement seems to appeal to the viewer’s emotional senses. In the beginning, a character in the form of a man is fascinated by the horses. The image of the horses is reflected in the glasses of the windows. Business takes place in this area, but he takes a break from all the activities to watch the passing horses because of the awe factor that the Clydesdales stimulates. Thus, as an audience, I will resonate with the man by showing the same reaction. The behaviors of the man are expected to the audience how they should react as well. They are expected to stop every activity they were performing and understand the powerful message conveyed by the majestic creatures.

16. Which of the following can induce a firm to expand into the international arena?

The American company Anheuser-Bush (AB) cannot market its beer using their trademark name Budweiser in every country around the world. This is due to the fact that there is an European brewing company that uses the same trademark.

Boston Beer Company Mission statement is to “seek long-term profitable growth by offering the highest quality product to the U.S. beer drinker”

High cost of entering new markets International growth is expensive. Entering new markets with a new brand

Budweiser and Bud Light are the No.1 and No. 2 best-selling beers in the world. Miller, their closest rival maintains 22.1% of the market share. The following chart illustrates market share in 1999 for the nation’s leading breweries.

However, the history keeps repeating itself. Not long ago, the country of Panama had become a headquarters for cartels and shipments of drugs in Latin America(Drug Trafficking). Due to the arising problem, an increase in trafficking and drug related crime have begin to occur. Simultaneously, new drug networks have become established in the Latin American countries of Venezuela, Brazil, and Argentina as well(Trinkunas). From the new networks, drug use and distribution has been steadily increasing throughout the entire region. To emphasize this point, statistics show the he average drug consumption throughout the world is 3.9 percent, while Latin America has a drug consumption average of 4.8 percent(Ragnhild). Although .9 percent does not seem like a significant gap, Latin America is well above the world average rate of drug consumption, which significantly points to Latin America being a drug infested region. The increasing statistics of drug consumption throughout Latin America contribute to their withstanding

As for South America, Harley-Davidson Inc. HOG +0.31% opened a permanent Latin America headquarters, joining a growing list of U.S. companies looking to tap into the emerging market. (By Melodie Warner in Market Watch) South America has a growing economy and a huge acceptance for an icon in the motorcycle industry like Harley Davidson. In the same way Japan embraced Harley “Their economy is a fast growing luxury market” p.c11.

2》 Other beer brands have occupied large market capacity, market share of Carlsberg and Budweiser far exceeds that of Tsingtao beer

Rivalry in the craft beer industry is high and in addition to the excise tax and overall high manufacturing cost have promoted mergers and acquisitions in order to consolidate and globalize the industry. Anheuser-Busch InBev merged with Belgium-based Inbev as one of the major transactions in 2008, forming Anheuser-Busch InBev. Heineken (HEINY) another major brewer, acquired the beer business of FEMSA in 2010. As in 2013, Anheuser- Busch InBev one of the market leaders acquired Grupo Modelo, Mexican brewer. In the following year 2014, Anheuser- Busch InBev reacquire Oriental Brewery, South Korea brewer. (Sharon Bailey) The acquisitions combined their market share and currently owns 41.2 percent of the US market.(Statista)