GROUP ASSIGNMENT GROUP 1 BUDWEISER COMPANY ANALYSIS BUDWEISER COMPANY ANALYSIS

GROUP ASSIGNMENT

GROUP 1
BUDWEISER COMPANY ANALYSIS
Lecturer: DUONG THANH HANG
Subject: ADVERTISING AND PROMOTION
Class:
MKT 359 A
MEMBER: Nguyễn Thị Thảo Nguyên (5834)
Nguyễn Thị Như Thảo (6338)
Lương Nguyễn Quốc An (8610)
Mai Hồ Chi Bảo (8898)

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BUDWEISER COMPANY ANALYSIS

TABLE OF CONTENTS

Part 1.
Part 2.
Part 3.

Introduction..........
Competitors..........
SWOT analysis....
3.1.
3.2.
3.3.
3.4.

Recommendation.
Preferences..........

Part 4.
Part 5.

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BUDWEISER COMPANY ANALYSIS

1. INTRODUCTION
In the 19th century, in a place known as Bohemia - a small land in Western Europe.
Brewing in Bohemia dates back many centuries, but in 1845 the town of Plzen had a
breakthrough in beer production. At that time, beers were usually just stout or foam
ale, but the brewers of Plzen town refined it in the process of making a transparent
beer called “blonde” beer. At this time, Bohemia belonged to the Austrian kingdom
of the German-speaking region. In German, when denoting something that comes
from a region, the suffix "er" is often added. So brewers also use this to indicate the
origin of their beer, signifying that their beers come from a town. Not long after
Plzen's breakthrough, another Bohemian town also refined in the process of making
another beer, which was sweeter and more golden in color. The town is called Ceske
Budejovice or Budweis in German. In keeping with local practice, beer produced in
the town tends to refer to the town's country of origin and Budweiser to the product's
name, with the town derived from "Budweis". At that time, most of the breweries at
Ceske Budejovice were able to produce beers using the name “Budweiser” for their
product. The town is also home to the Royal Court of Bohemia brewery – the
brewery that officially supplies the royal family with beer. The connection to the

royal family makes this brewer's beer known as the "Beer of the Kings".
Within a quarter of a century, the Pilsener style of beer had reached as far afield as
America, a brewing industry that was rapidly evolving. The desire to produce a beer
was widespread, many American breweries began to develop beer in the style of
brewers in Bohemia, referencing Pilseners. One of those breweries is Bavarian. The
Bavarian brewery was founded in 1852 by George Schneider. However, Schneider
failed in the brewery business and in 1860 sold it to Eberhard Anheuser. In 1865,
Anheuser's son-in-law Adolphus Busch joined the company. In 1913, Adolphus died
and his son August took control. In 1919, the company was renamed AnheuserBusch, the name by which it is known today.
In 1876, still under the original name of Bavarian Brewery, it was engaged in the
production of another beer in America in the style of 'Bohemia'. The new beer was
developed by Adolphus Busch, in association with a local restaurateur named Carl
Conrad. Adolphus Busch is someone who can do anything to sell his beer, from a
salesman to an advertising strategist… One of those strategies is the use and
development of the Budweiser brand.

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Anheuser-Busch's Budweiser beer quickly dominated the market and became their
flagship brand. Thus, in 1897, Anheuser-Busch sought to build the Budweiser brand.
Unfortunately, they were blocked from worldwide protection of the "Budweiser"
trademark because Budejovicky Budvar had claimed it in advance, through use. For
four years, Anheuser-Busch tried to get worldwide trademark protection for its
Budweiser brand but could not come to a satisfactory agreement with Budejovicky
Budvar. Finally, in 1911, Anheuser-Busch decided to cut its losses and signed an

agreement with Budejovicky Budvar, whereby the agreement determined how the
parties could use the brand. Under the terms of the agreement, Anheuser-Busch
obtained the rights to use the Budweiser name only in North America and the United
States, and Budejovicky Budvar obtained similar usage rights in Europe and Russia.
This agreement is satisfactory for both parties, as it means that each side will focus
on its territory without fear of conflicts of interest. However, during the second half
of the 20th century, Anheuser-Busch increased its market share in its home country
to the maximum, making it difficult to continue growing domestically. As a way to
maintain their growth, the brand has begun to push their beer beyond traditional
markets. In particular, they began to look at new profits in the European markets.
Anheuser-Busch InBev SA/NV (abbreviated as AB InBev) is a multinational
brewing and beverage company headquartered in Leuven, Belgium. It is the largest
beer producer in the world and has a 25% share of the global market. AB InBev was
formed through the merger of three uninterrupted c 3 corporation international beer
brewing: from the Belgian Interbrew, AmBev from Brazil, and Anheuser-Busch
from the United States. The group has 16 code brands each generating more than $1
billion per year in revenue out of a portfolio of more than 200 brands (2014). This
portfolio overall includes brands Budweiser, Corona and Stella Artois, international
brands Beck's, Hoegaarden and Leffe and domestic brands such as Bud Light, Skol,
Brahma, Antarctica, Quilmes, Victoria, Modelo Especial, Michelob Ultra, Harbin,
Sedrin, Klinskoye, Sibirskaya Korona, Chernigivske and Jupiler. As a global leader
in beer and among the top 5 consumer product companies in the world, total sales
for all 200 AB InBev brands in 2014 were more than 47 billion dollars. The group
employs more than 155,000 people in 25 countries. Following the merger of US
companies Anheuser-Busch in 2008, headquartered in Saint Louis, Missouri, the
company began reporting its financial results in US dollars.

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BUDWEISER COMPANY ANALYSIS

Known as the "King of Beers" Budweiser is Adolphus Busch introduced and Bases
to the first time since 1876, it has become kind of beer sold in the world since 1957
and distributed in over 70 countries family. Budweiser is the leader in premium
American beers, acquiring all other premium beers in the country. Budweiser beer is
the world's number 1 most expensive beer brand, produced using premium malt and
hops from the United States and Europe. It is then aged for 1 month in an oak barrel
for a fresh clean and crisp taste. Budweiser is brewed with only one of the finest
double and six row barley malts, selected from over 2,500 plants grown in the US
and Canada. Budweiser products are produced under extremely strict quality control
and brewing processes. Premium Budweiser beer is made from 70% malt 30% rice
and uses an original yeast preserved from more than 140 years ago to provide the
perfect balance between gentle bitterness and gentle sweetness. unmistakable
sophistication with other beer brands.
In Vietnam, before officially inaugurating the brewery, Budweiser has been
imported to consumers. Believing in the acceptance of users and the great potential
of the market, AB InBev has chosen. Budweiser is one of the main products for
investment in Vietnam. “We not only sell beer, we also brew it here,” said Michel
Doukeris, AB InBev's president in charge of Asia-Pacific. The brewery will bring to
Vietnamese consumers the freshest Budweiser beer with the same premium quality
since 140 years.”
2. COMPETITORS
Heineken: Nearly 150 years ago, from a small brewery in Amsterdam, the
Netherlands, Heineken has grown into a global business with the world's most
valuable international premium beer brand, present in 192 nation.
One of the key factors that makes Heineken famous flavor is the unique Heineken A
- Yeast. Developed in the late 19th century by Dr. Elian, a student of the famous

French scientist Luis Passter. This special yeast from Heineken helps to balance
intense flavors and delicate aromas, creating a homogeneity. for every glass of
Heineken beer for over 140 years, unchanged from the first time. Completely natural
ingredients and yeast Heineken A - Yeast is one of the survival secrets that create
Heineken's signature beer flavor.
Heineken beer bottles not only stop for fun or parties but also show the personality
and trendy lifestyle of consumers. This is considered a strong point of this beer
company in expressing the brand's core values through packaging design.
Understanding the thoughts of beer fans that enjoying beer is an art from taste
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enjoyment to packaging design to product perception, Heineken has succeeded in
cleverly change the packaging design by capturing the customer's psychology during
the experience, maintaining all the familiar images, refining some small details but
bringing big surprises.
One of the strengths of Heineken that brings great success to this famous beer brand
comes from Advertising. Heineken is very famous for its television commercials
with metaphorical content that arouses curiosity and discovery of viewers,
interspersed with subtle messages. Heineken's advertisements often focus on the
actual experiences of consumers when enjoying beer, bringing everyday problems
around people to the side of the image of a beer bottle, showing closeness and
intimacy care about the customer experience. Typically in 2016, Heineken sent out
the message "Moderate Drinkers Wanted" to urge people to drink less beer and be
more moderate, more responsible for their actions.
In addition, Heineken has done a great job in co-producing musical and sporting

events such as the UEFA Champions League, the European Rugby Cup, organizing
events such as the Heineken coutdown to celebrate the new year. These events affect
all human senses from sight, hearing, touch to smell and taste. They promote their
brand through real experiences that consumers have, it is close and highly effective.
Once again, Heineken succeeds in reaching consumers through the experiences they
perceive.
It can be seen in the eyes of the fans of this brewery brand and the majority of young
people, Heineken has shown that selling as many beer bottles as possible is not their
goal, but rather the image, the brand's influence is spread to a wide range of
consumers around the world through the messages they bring, through the
connection with the consumer's experience.
Tiger: Launched in 1932, Tiger beer became Singapore's first beer brewed in the
island nation. To date, Tiger is brewed in 11 countries, consumed in more than 75
countries worldwide. Tiger beer is constantly evolving to become one of the
premium, loved, and imported beers around the world. and Tiger are known
globally for their authentic Asian flavors and recipes.
Instead of going in the direction of promoting image cooperation with football
events like Heineken or Budweiser, Tiger focused on promoting in smaller locations
but in large numbers. Tiger beer is found in more than 8,000 bars, luxury clubs and
retail outlets throughout major cities as well as luxury places such as the Sanderson
Hotel, OXO Tower, and Harvey Nichols in London and Crazy. Bear in
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Oxford. Tiger works selectively with a number of partners in the fields of art,
fashion, music, film and design such as exhibitions or displays. Combined with a

much more affordable price compared to European and American beer brands, this
origin brewery has attracted a large number of consumers who are young and have
active personalities.
Tiger's "Uncage" advertising campaign has turned into a highly influential
advertising campaign. This is a campaign with the message that wants to awaken the
bravery of young people in both Asia and Europe. Each story is characterized by the
constraints that young people have to endure when living in a society full of
demands and challenges. standard. It can be seen that this campaign of Tiger shows
their sympathy to the minds of young people around the world, as well as the target
customer class that Tiger targets. Since then, Tiger has consolidated its brand image
as a strong, young and modern Asian brewery.
Tiger Crystal product line is produced from an extremely unique cold fermentation
technology called Cold Suspension. Each line of beer is refined with Crystal Cold
deep cooling technique so that the beer will not be mixed with any yeast during the
brewing process and retains its characteristic aroma and excellent taste. This is a
special product line that Tiger has launched to exploit the target customers who
cannot drink the high alcohol content and too bitter taste, which is typical of other
traditional beers.
As can be seen from the advertising campaigns and the scale of the brand, Tiger
focuses on mainly Asian consumers and the mid-range price segment, always
focusing on building a youthful and energetic brand image. As a result, Tiger has
gained a certain high position in the Asian market as well as a market share in
Europe.
3. SWOT ANALYSIS
3.1. Strength
- Budweiser is a long-standing beer brand so it has a strong position in the market

and is loved and trusted by many customers. This makes its brand awareness high.
Budweiser beer brand has a global presence: Including Budweiser, Anheuser Busch
sells about 100 different brands of alcohol to about 80 countries around the globe.

They have a strong beer presence, and their top brands are Budweiser, Bud Lite,
Busch Beer, Stella Artois, etc.

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- Reliable suppliers: Budweiser has a strong base of the reliable supplier of raw

material thus enabling the company to overcome any supply chain bottlenecks.
Having such success is mainly based on quality, the entire batch of Budweiser beer
is produced by the manufacturer and brewed with a rigorous process. And the
American brand Budweiser uses only the highest quality and most expensive hops in
the world. Therefore, Budweiser is one of the few brands that can conquer difficult
markets such as Korea, Japan, Dubai...
- Promotion: The promotional campaigns, as well as public relations initiatives of

Budweiser, have been the strong reason for the success and popularity of the brand.
The beer sponsors key sporting events as well as sports teams. The brand sponsored
the US Olympic Team in 1984 and the recent 2014 Olympics in Brazil. It also
became the “official” beer of the FIFA World Cup since 1986 until 2022. At present,
Budweiser sponsors 28 NFL teams and was named as the official beer of the NFL,
until at least 2022. These events and sponsorships garner a lot of publicity. By
sponsoring famous sports teams and major sports events, the brand automatically
becomes famous by association. In addition, Budweiser launched its own live events
—the Made in America Festival and The Budweiser Country Club. In the Made in
America Festival, the brand collaborated with Jay-Z’s Roc Nation to attract 80,000

fans.
- High level of customer satisfaction: the company with its dedicated customer

relationship management department has able to achieve a high level of customer
satisfaction between present customers and good brand equity among the potential
customers. Budweiser always care about the customer, they try to research and
provide things what customer’s needs and wants. Americans have always been into
football and another thing is apps and technology. According to Monique Danao
(2020), she said “In fact, statistics show that Americans downloaded an average of
88.7 apps in 2016 and used an average of 7.6 apps in a day”. Interestingly,
Budweiser decided to combine what Americans loved the most in its new
advertising campaign. The brand launched an interactive game called “Bud Bowl” in
Snapchat’s Discover panel.
- Strong dealer community: It has built a culture among the distributor & dealers

where the dealers not only promote company’s products but also invest in training
the sales team to explain to the customer how he/she can extract the maximum
benefits out of the products. Over the years Budweiser have built a reliable
distribution network that can reach majority of its potential market.
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- Creative idea and meaningful messages: Budweiser always brings humanistic

messages to customers through its advertising campaigns. Typically, Budweiser has
released a short video that does not have any images of beer but only talks about the

beautiful friendship between Golden Retriever dogs and Clydesdales horses.
According to Hai Yen, “the clip was shown during the Super Bowl football final
(2104) - the most popular live show in the US every year, so the video clip has the
opportunity to appear in front of 100 million people across the US”. Contrary to the
exciting atmosphere of the match, "Puppy Love" is a gentle and profound story
about friendship, so it has made a deep impression on viewers.
- Excellent marketing strategy: Recently, it was reported that Budweiser canceled

the Super Bowl ad, spending $ 5.6 million to raise awareness about the Covid-19
vaccine. Recently, it was reported that Budweiser canceled the Super Bowl ad,
spending $ 5.6 million to raise awareness about the Covid-19 vaccine. It was a wise
move when Budweiser used its marketing budget to fund activities to promote
awareness about the Covid-19 vaccine. The public will realize that Budweiser is a
brewery that always cares and upholds the interests of its customers. Budweiser's
move has more to do with building a long-term brand than generating short-term
revenue.
3.2. Weakness
- Grabbing the millennial market: In comparison to the older generations,

Millennial prefer the craft beer and Budweiser are still to break into the millennial
market failing which its sustainability in the years to come will be a question.
According to Kate Taylor (2018), Budweiser, once the best-selling beer in America,
is no longer in the top three best-selling brands in 2017. One reason for Budweiser's
drop in the list of best-selling US brands is that the beer has failed to capture
millennials' interest in the same way it won over Gen X-ers who came of age in the
'80s. UBS data has shown that millennials are less likely than the general population
to recommend Budweiser.
- Not very good at product demand forecasting leading to the higher rate of missed

opportunities compare to its competitors. One of the reasons why the days inventory

is high compare to its competitors is that Budweiser is not very good at demand
forecasting thus end up keeping higher inventory both in-house and in the channel.

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- The marketing of the products left a lot to be desired. Even though the product is a

success in terms of sale but its positioning and unique selling proposition is not
clearly defined which can lead to the attacks in this segment from the competitors.
- High Day Sales Inventory: The time it takes for products to be purchased and sold

is higher than the industry average, meaning that Budweiser builds up on inventory
adding unnecessary costs to the business.

3.3. Opportunities
- Increased awareness of foreign brands: Online and social media marketing, as well

as increased exposure to the internet, has increased global awareness of foreign
brands of alcohol and current clients in pubs even in India and Malaysia ask for
Budweiser or Bud Light. This is helping such brands look for business in Asia.
- E-commerce: There has been a new trend and a growth in sales of the e-commerce

industry. This means that a lot of people are now making purchases online.
Budweiser can earn revenue by opening online stores and making sales through
these.

- Social Media: there has been an increase in the number of social media users

worldwide. The three social media platforms; Facebook, Twitter and Instagram,
have shown the greatest number of increase in monthly active users. Budweiser can
use social media to promote its products, interact with customers and collect
feedback from them.
- Technological developments: technology comes with numerous benefits among

many departments. Operations can be automated to reduce costs. Technology
enables better data to be collected on customers and improves on marketing efforts.
- Globalisation: Increased globalisation does not restrict Budweiser to its own

country. It can extend its operations to other countries, entering into these markets
and making use of the opportunities that lie in these markets.
- Expanded consumer market: Difficult markets such as Korea, Japan, Dubai; North

Korea, Japan, and China and Vietnam in Asia are increasingly interested in
American Budweiser beer. According to the Association of American Businesses in
Vietnam, Budweiser beer is quite competitive in foreign markets. If it was
previously difficult for this product to compete with Czech Budweiser or high-end
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Belgian beers, German beers have a long history. Now it is very popular in
fastidious countries.
3.4. Threats

- Increasing competition: there has been an increase in competition within the

industry putting downward pressure on prices. This could lead to reduced revenue
for Budweiser if it adjusts to the price changes or loss of market share if it doesn’t.
Budweiser and Anheuser Busch face a lot of competition from Miller, Fosters,
Heineken and Molson Coors.
- New entrants: there are already a lot of companies entering the market and are

gaining market share by taking market share from existing companies. This is a
threat to Budweiser as they could lose customers to these new entrants. With
customers tending to experience new products differently, Budweiser must ensure to
retain its customers with product quality and changing campaigns constantly.
- Changing consumer buying behavior from online could be a threat to a supply

chain model driven by existing physical infrastructure. Brands must make sure to
capture the consumer trends of online customers and provide products and services
to them.
- Increased promotions by competitors are a threat to Budweiser. In most media,

there is more clutter than ever before and customers are bombarded with multiple
messages. This reduces the effectiveness of Budweiser's promotional messages.
- The tastes of consumers are constantly changing, and this puts pressure on

companies to constantly change products to meet the needs of these customers.
- Epidemic: In recent years, businesses have suffered heavy capital losses because of

the Covid-19 pandemic. Budweiser is no exception. According to Moc Tien (2021),
"AB InBev stock - Budweiser's parent company fell 14.5% last year, bringing the
company's market value down to $113 billion. Despite beer consumption in
Budweiser's home sales increased due to the pandemic, but the closure of a series of

bars, restaurants and sports stadiums caused a 6.8% decrease in revenue for the first
9 months of 2020."
4. RECOMMENDATION
Because the world market is such a large market, it is impossible for our team to
make recommend at that level. So the recommend here are only domestic or Asian.
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-

The first of Budweiser's weakness is the Latecomer. The lack of attention
from the millennial market has caused a decrease in Budweiser's revenue in
markets, especially in Vietnam, Budweiser has faced great competition from
brands that have gone before and have been trusted by millennial market in
Vietnam since long time ago. For example, in the South it is 333 and Beer
Saigon, in the Central is Huda and in the North is Beer Hanoi. Some other
competitors are also ominous, including Tiger, Larue for the mid-range
segment and Heneiken for the high-end segment. My team thinks that
Budweiser should not focus too much on this market anymore but should
focus on making images in more potential new markets, such as Gen Z or
Alpha later. Recommend for this is to make viral videos with famous KOLs
conveying the company's message. This will greatly affect the image and
impression of the beer company in the eyes of young people. Young people
today are more and more interested in their idol's image and life such as
streamers, actors, football players... and the allowed age to use alcohol in
Vietnam with the year of birth from 2002 to 1990 are increasingly interested

in the use of foreign beer. These two factors can create success in terms of
image and customer confidence in the product based on the reputation of the
selected KOLs. A good example of this model was made by Budweiser last
year when it released the short film "The Say", making Lionel Messi a brand
ambassador on a global scale, it created a fever at the time. and made a big
splash around the world.

-

Budweiser should also develop its franchise, such as offering promotions or
discounts to restaurants and beer dealers in the medium and large segment to
advertise its image more broadly.

-

The fact that reputable restaurants and Beer agents use Budweiser's signs,
names and products will attract everyone's attention.

-

Regarding e-commerce, my team found that Budweiser currently does not
have an official website in Vietnam, most of their online sales are sold
through e-commerce platforms such as Shopee, Lazada, Tiki, Bachhoaxanh.
They should invest more in online to be able to receive feedback from
customers directly, quickly and handle them effectively.

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5. REFERENCES
Hai Yen. Budweiser beer and the touching story of “Puppy Love”
/>Kate Taylor (2018). End of an era: Millennials brought about the downfall of one of
America's most iconic beer brands
/>Moc Tien (2021). Marketing wise like Budweiser: 'Take a break' from advertising
during the Super Bowl, spend that $ 5.6 million to raise awareness about the Covid19 vaccine
/>Monique Danao (2020). How Budweiser Maintains Itself as America’s Best Beer
Brand
/>
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