Budweiser Business Analysis

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  • Topic: Adolphus Busch, Beer, Brewing
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  • Published : January 18, 2011
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Anheuser- Busch

INTRODUCTION

COMPANY

Anheuser-Busch which is a beverage company based in Saint Louis, Missouri that brews

Budweiser beer which traces its roots back to the Bavarian brewery, which was established in

1852. Eberhard Anheuser acquired the Bavarian brewery in 1860 and renamed it E. Anheuser &

Co. In 1864, his son-in-law, Adolphus Busch, joined the company that would later become

Anheuser-Busch. Adolphus Busch had keen vision, bold initiative, marketing savvy and

a commitment to quality were his legacy to those who followed, and the high standards

he established have been adhered to by each succeeding generation.

Today, Anheuser-Busch produces the two best-selling beers in the world, Budweiser and Bud

Light, also operates 12 breweries in the United States and has 15 breweries around the globe, 1

in the United Kingdom and 14 in China. Budweiser does brew Budweiser beer across the globe,

using other breweries, but having “close-watch” over the inputs and process of their brew. One

example is how they brew their beer under the Budweiser label at the Guinness brewery in

Dublin, Ireland. This process saves millions of dollars on shipping and allows breaking into

many foreign markets by “being made by the hometown brewery” in-country, in numerous

Countries. In 2008, Anheuser-Busch and InBev merged to become Anheuser-Busch – InBev.

I was narrowing my scope down to essentially the Budweiser line, due to the fact the more

background material was posted for Budweiser, prior to the In Bev take-over of the Anheuser-

Busch in 2007. (Please let me know if this is acceptable to the project). InBev controls many

other product lines of beverages which has not been merged with the Budweiser data.

MISSION STATEMENT

Budweiser’s mission is to be the number one beer company in the world by enriching and entertaining an increasing global audience. To deliver a substantial amount of 15% return to our shareholders, we will add to life’s enjoyment through our products, services, and relationships. In addition our goal is to increase sales by 25% each year. (www.Anhueser-Busch.com)

PRODUCTS, GOODS OR SERVICES

Produces more than 100 beers, many flavored alcoholic and nonalcoholic brews and imports

other beers for distribution in the United States. They brew Budweiser, Bud Light, Michelob

ULTRA, Busch, Natural Light and O’Doul’s, which are all the No.1 positions in their respective U.S. market segments. Anheuser-Busch-InBev also bottles Icelandic Glacier Water, Bud light, Bud Select, Michelob, Michelob Light, Busch, Natural Light, Stella Artois, Boddingtons, and now with the merge of InBev, have many other international lines of beverages.

COMPETITORS

Budweiser’s major competition is from the Miller Brewing Company, Coors, Stroh's

S & P Industries, Genesee, Boston Beer and few other smaller breweries. Anheuser-Busch has a

dominant foothold in the United States and a strong position in the world market. Currently, the

number 1 ranked beer in America is Bud Light.

POSITION IN THE MARKET

Anheuser-Busch had a 48.5 percent share of the overall United States beer market in 2007. They

mainly holds to a target market of males from the local drinking age (normally 21 in the United

States, but generally 18 in Europe) to any ripe old age that would by a drink to quench their

thirst.

COMPETITIVE ADVANTAGES

Anheuser-Busch shipped 104.4 million barrels in 2007, more than two times its closest domestic

Competitor.

TARGET MARKET AND PROD STRATEGY

PRIMARY ATTRIBUTES

Availability of Budweiser and all of the Anhueser- Busch products is major attribute, because they are distributed worldwide, utilizing many other satellite breweries, such as the Guinness brewery in Dublin, Ireland and the Stella Artios brewery in Spain. This “off-site” brewing is...
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