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

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

3. Intro Intro Intro Target Target Market Market History History Current Current Strategy Strategy SWOT SWOT 4 P’s 4 P’s Suggestions Suggestions Conclusion Conclusion 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 3 main types of beer – Stout (Guinness), Ale (Bass), Lager (Budweiser) 3 main types of beer – Stout (Guinness), Ale (Bass), Lager (Budweiser) Lager traditionally seen as “rowdy” and lower class Pub Types / Beer Types Lager traditionally seen as “rowdy” and lower class Steadfast loyalty to pubs and beers

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

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

6. History Intro Intro Target Target Market Market History History Current Current Strategy Strategy SWOT SWOT 4 P’s 4 P’s Suggestions Suggestions Conclusion Conclusion 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

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

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

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

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

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

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

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

14. SWOT Analysis Intro Intro Target Target Market Market History History Current Current Strategy Strategy SWOT SWOT 4 P’s 4 P’s Suggestions Suggestions Conclusion Conclusion S.W.O.T. Analysis 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 Threats –Large Domestic Breweries –New “designer beer” being introduced

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

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