Anheuser-Busch Inc. is a dominating global leader in the beer industry, specifically in the United States. Its roots can be traced all the way back to 1852 from the Bavarian Brewery in St. Louis MO when Adolphus Busch traveled from Germany to join his father-in-law. In 1876 Budweiser was founded and rooted its brand in values, ethics, and quality. These core staples of the company evolved all the way to 1982 when Bud Light was introduced. Today Bud Light is the best selling beer in the U. S. and the #1 beer sold by volume in the world.
Let’s take a look into the marketing mix that makes this product so successful. Product. Bud Light was only preceded by Bamblinger and Miller in the “Light” beer segment of the industry and is brewed at all 12 Anheuser-Busch U. S. based breweries. It’s brewed with all natural ingredients (water, barley malt, rice, premium hops, and yeast) and the clean, crisp, smooth taste is derived from the two and six row malt and cereal grains used during fermentation. Each 12 ounce serving contains 110 calories, 6. 6 grams of carbohydrates and is 4. 2% alcohol by volume.
Consumers in the beer segment are very open to try different types of beverages so having a unique taste and “superior drinkability” separates Bud Light’s product from its competitors. Place. Bud Light (through Anheuser-Busch) has a very large and extremely effective distribution system. It starts with 12 breweries located all across the U. S. which in turn helps minimize delivery times and costs associated. After Bud Light is brewed a chain of over 600 wholesalers distribute the product to the suppliers, who in turn sell and deliver the beer to locations where it’s sold.
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Each business that sells Bud Light is provided with a secondary supplier to reduce the risk of stock outs. Over half of wholesalers who distribute Anheuser-Busch products deliver only its products. This vertical marketing system ensures two things: 1) Anheuser-Busch has more control over where its products are sold and the price of the beer. 2) Delivery time- in the beer sector this is crucial to quality and taste. Promotion. This area of the marketing mix is where Bud Light excels and blows the competition away!
It taps a variety of advertising media. Primarily utilizing television commercials from a comical standpoint, Bud Light ensures it reaches and relates across all demographics. Effective advertising is also attained through sponsorships of special events, concerts, and sporting events. This accomplishes two goals: 1) it guarantees that only its product will be sold during the sponsored event. 2) The event will incur a connection between the “good time” and drinking Bud Light. Symbolic attributes also play an important role in promotional strategy.
The seasonal association between Clydesdale horses and Anheuser-Busch is unmistakable. Also think about females depicted during their television ads, they are stunningly beautiful, playfully flirtatious, and seem genuinely into the target audience represented (males 18 -35).
Physical styling and packaging is also incorporated into Bud Light’s advertising campaign. It has introduced co-branding and sports marketing promotional packaging with affiliations of Major League Baseball and NFL teams. All these promotional techniques can be summarized into one simple strategy.
Bud Light uses people’s emotional need for a relationship to buy their product. This type of targeted advertising coincides with Maslow’s Hierarchy of Needs. They specifically target consumers who view their ads consistently to entice them with sexuality, attractiveness, and a sense of the “good life”. With the use of pathos, repetitiveness, and color psychology Bud Light provokes its audience to dream of a euphoric experience. Price. Bud Light retains a position most competitors envy in this particular segment.
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Since Anheuser-Busch cements itself atop of U.S. beer sales at a 49% clip, it positions itself according to projected earnings growth. There are commodity factors that influence this pricing such as: barley price, gas prices, and advertising expenditures however Bud Light continues to price itself above its competition. Historically Bud Light prices have increased about half the rate of inflation. With competition reluctant to pare its prices with Bud Light, this strategy will remain for the foreseeable future. Bud Light SWOT analysis: Strengths
Bud Light is the best selling beer in the U.S. * 37% market share * Brand Strength – leading light brand in the US * Pricing Leadership – Continues to set industry benchmarks for pricing. | Weaknesses * Many consumers consider the taste to “watered down”. * Challenge of expanding internationally due to the stigma of an American beer. | Opportunities * Possibility of expanding its target focuses to include women. * Continue to retain brand loyal consumers with “reminder” campaign. | Threats: * Fast growing light beer segment with new competitors entering the arena.
As a beer drinker I will not contest the fact that it is almost impossible to differentiate between unlabeled beer brands. This is where brand image is enormously important. The single most important factor Bud Light has on their side is the momentum from its brand culture. In a judgmental society, each person is constantly categorized by their shape, clothes, ethnicity, religion, salary, and yes even the beer they drink. With this awareness, Bud Light has proven that while they may offer a distinct and quality beverage it is the marketing strategy employed that delivers success.
