I. Executive Summary
Since it’s founding in 1852 Anheuser-Busch has brewed a great product. Today Anheuser-Busch is controlling the industry by creating brand supremacy over their competitors. Anheuser-Busch has a very successful and long standing history with their marketing and advertising, this has aided in giving them the edge they needed over the competition. In the US market their signature beers Budweiser and Bud Light can be referenced by the Anheuser-Busch Clydesdales. These horses have given this company the American feel as well as the competitive edge over other brewers. Anheuser-Busch has also put a great deal of time and money into sponsorships within the sports industry, this has also helped secure the global loyalty it has enjoyed in the past. Anheuser-Busch would not be where it is today if not for their historic practice of developing new and different products to help meet the needs of their consumers. The brewing industry has seen some generations come and go and seen trends change steadily with these generation. While Budweiser was the beer of choice of our parents, Bud Light was introduced to fill needs of a new and different crowd. This trend is bound to continue and any brewer that cannot keep up will be left in the dust.
II. Table of Contents
III.Industry AnalysisPage 4
IV.Analysis of the CompetitorsPage 8
V.Firm AnalysisPage 13
III. Industry Analysis
There has been a significant trend in the growing population of first time drinkers in this country. “The number of consumers reaching legal age has risen steadily in recent years, according to the U.S. Census Bureau. In 1999, the 21- to 24-year-old age group began increasing in size for the first time in two decades. This growth is expected to continue through 2010.” (Clark, 2005) Although there has been a dramatic increase in the target population of brewers over the past decade, this hasn’t helped increase sales in the past decade. “While beer historically has been the alcoholic beverage of choice for the first-time drinker, we have seen a surge in the consumption of spirits and wines by this group in the past couple of years, due to demographic changes and lots of marketing.” (Clark, 2005) Changing attitudes by the brewing industry’s target population has contributed to a loss of sales despite a growing population.
Do to tough economic times where the unemployment rate is rising everyday, the brewing industry has certainly taken a loss in sales. “Americans are going out much less to bars and restaurants and indeed sales of beers to businesses have also dropped.” (Alazraki, 2008) The economic recession that America is facing is forcing people to be very tight with their money, and this includes the purchasing of luxury items or non-necessities such as beer. The beer that is being bought is tending to be less expensive than beer that has been bought in the past. “So far the increase in sales of more economic beers has been at the expense of the more expensive ones.” (Alazraki, 2008) This trend is also hurting the brewing industry because of lack of sales on their higher price brew. “So unless Americans have a reason to start drowning their sorrows in beer -- and let's hope that doesn't happen -- I don't see great things ahead for beer companies”. (alazraki, 2008)
As imports and exports become more of an existing force for the brewing industry, this will also have drastic effects on brewing in the US. As more and more micro breweries and foreign breweries expand, it will be harder for the smaller breweries to keep up. The current kingpin in the US, Anheuser Busch has recently formed an agreement to further it’s distribution even further outside of the US, making the brewery industry more of a global issue. “The agreement does not impact existing...