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AB InBev Market Strategy

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Hongxu Du

on 6 May 2015

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Transcript of AB InBev Market Strategy

Positioning
Perceptual Mapping
AB Inbev Marketing Strategy
Strategic Analysis
Where are we now
Strategic fit and STP
Where do we want to go
Marketing Management Plan
Control
How do we get there
How do we get there
1860
Anheuser-Busch was established in USA
1987
Interbrew from a
merger of the two largest breweries in Belgium
1999
AmBev is a Brazilian beverages company

AB InBev 2008
merger of InBev and Anheuser-Busch was completed
InBev 2004
Belgian-Brazilian multinational beverage and brewing company.
World's largest brewer, more than 200 brands/product .
Top five consumer products companies .
150,000 employees based in 24 countries worldwide.
In 2012, AB InBev realized 39.8 billion USD revenue.
25% global market share .
17.8% market share in UK.

The UK Brewing Market
Premium Lagers, Beers & Ciders
£14.14 billion market value, 0.2% growth
AB InBev 3rd largest brewing company in the UK by market share
Top 4 companies hold 85.1% of total market share

Macro-environment - PEST Analysis
Micro-environment - Porters Five Forces
Internal Analysis - Resource Audit
Product Development
Market:
Existing UK market

Product:
Flavoured Cider beers
4 flavours
Strawberry, Passion fruit, Lemon, Berry
Create new brand and package
Potential risks: much investments

Marketing Penetration


Market:
Existing UK market

Product:
Budweiser
Attract new customer: marketing mix plan
Retain existing customers:Loyalty schemes

STP
Segmentation
Targeting
Age & Gender
Volume
Social class
(Source: Statistics on Alcohol: England 2013, ONS)
(Source: General Lifestyle Survey 2011, ONS)
(Image from: http://www.maxi-pedia.com/BCG+matrix+model)
Demographic
- Age:
18-35
-
Gender:
Male and Female


Psychographic
- Social class:
social class A, B, C1, E(student)
- Lifestyle:
pre-family, high consumption, indulgent, somewhat health-oriented, social
- Personality:
confident, passionate, adventurous

Behavioral
- Buying pattern:
depends on personal taste and brand loyalty;
- Quantity:
more or less
- Frequency:
weekly
(1% of them drink everyday)
SMART Strategic Objectives
Long-term (5 years)
By 2019, increase the market share from 17.8% to 21% in UK. And then, become market leader in the UK marketplace.

Short-term
- Expand CSR event by 2014
- Launch fruit flavor cider by 2015
- Increase market share by 3% in UK by 2016
- Achieve new position of Budweiser by 2016

SMART Objectives Timeline
Marketing Mix
Promotion Strategy
CSR Events
CSR activities In UK
Social norms in
Budweiser's designate driver programme
(FIFA in 2014)
expanding our partnerships with family talk in
the UK

Place Strategy
Supermarket
Home drinking is more popular
Bar, Pub, and Restaurant
University
Sell in university convenience stores
Online
: sale voucher online
-People can buy the vouchers as a gift card.
-Collect in stores

Cost Approach
Cost-based
(Price=Cost of producing, distributing and selling fair rate of return for company efforts and risks)
Competition Approach
-
Price leadership
- Compare with AB Inbev’s competitors.
- Benchmark and set above, below or same price.

Price range: £3.80/ Liter
Control
Summary
AB InBev have strong internal resources to support its operation

Ansoff’s strategy model to expand company’s business: market penetration and product development

Set long-term & short-term objective

Establish a detailed marketing mix

A precise implication and control plan will be used

References
AB Inbev, “AB Inbev Company Profile”,AB Inbev.
AB Inbev, (2013), “Social Responsibility, Better world programmes”, [Online], AB Inbev, Available: http://www.ab-inbev.com/go/social_responsibility/better_world_programs [Accessed 14 November, 2013]
AB Inbev, (2013), “About AB Inbev UK”, [Online], AB Inbev, Available: http://ab-inbev.co.uk/about/about-abinbev/ [Accessed 15 October, 2013]
AB Inbev, (2012), “Financial Report”, AB Inbev, pp. 45-148.AB Inbev, (2013), “Annual Report”, AB Inbev, pp. 1-180.
AB Inbev, (2013), “Brand portfolio”, Bar export, pp. 1-12.
British Beer & Pub Association, (2013), [Online], British Beer &pub Association, Available: http://www.beerandpub.com/ [Accessed: 3 November, 2013]
Datamonitor, (2011), “Company spotlight: Anheuser-Busch Inbev”, Datamonitor, pp. 25-31.
Diageo, (2013), “Annual Report”, Diageo, pp. 1-200
Euromonitor International, (2013), “Alcoholic drinks in the United Kingdom”, Euromonitor, pp. 1-34.
Euromonitor International, (2013), “Beer in the United Kingdom”, Euromonitor, pp. 1-15.
Euromonitor International, (2013), “Inbev UK Ltd in Alcoholic Drinks (United Kingdom)”, Euromonitor, pp. 1-4.
Institute of Alcohol studies,(2013),”Young people and alcohol factsheet”, Alcohol studies,pp.1-14
Keynote, (2013), “Market Report 2013 of Premium Lagers, Beers & Ciders”, Keynote, 11th Edition July 2013
Office of National Statistics, (2013), “Statistics on Alcohol: England”, National Statistics, pp. 1-116.
Office of National Statistics, (2010), “Opinions Survey Report No. 42, Drinking: adults’ behaviour and knowledge in 2009”, National Statistics, pp. 1-137
Robinson,S.,Harris,H.,(2011), Smoking and drinking among adults, 2009, Newport:Office for national statistics.

Appendix
Appendix 1:
Financial capital
(Source: Euromonitor)
Appendix 2:
Segmentation
Appendix 2:
Segmentation
Appendix 2:
Segmentation
Appendix 3:
Targeting- Budweiser

Appendix 6:
Controversial products

GeoDemographic
- Age: 26-45
- Gender: Male
- Location: UK
- Disposable income: social class A B C1 C2
Psychographic
- Lifestyle: exquisite, mature, social
- Motives: enjoyment of life, socializing
- Attitudes: pursuit the quality of life
Behaviographic
- Buying pattern: highly dependant on personal taste and brand loyalty
- Quantity: more or less
- Frequency: weekly (1% of them drink everyday)

...THE END
Thank you for listening!
Any questions?
Weakness
SWOT
Ansoff's Matrix
BCG Matrix
Strategic fit Innovation
Other Strategy
Frequency
(Source: Statistics on Alcohol: England 2013, ONS)
Appendix 4:
Perceptual Mapping Beer
Appendix 5:
Perceptual Mapping Beer
Appendix 2:
Segmentation
Promotional Mix
TV and magazine advertising Message: enjoyable and fashion
Radio
Where: BBC sports channel
Social media (Facebook, Twitter, Instagram)
Instore Promotion
-Pre-test
-Sales promotion
-University store promotion
CSR Events in the UK
Social norms in the UK
Budweiser's designate driver programme
(FIFA in 2014)
Expanding AB Inbev’s partnerships with
Family Talk

Product
Fruit Cider Beer
Price
Place
Supermarket
Bar, pub, and restaurant
University
Online: sale voucher online

Promotion
Advertising campaign: TV & Radio
Sponsorship
Social media
In store promotion: product test

Place Strategy
Positioning
Perceptual Mapping Cider

Social / Cultural
+3 (signification opportunity)
TREND
- Drinking beer for social and recreational purposes
- Pub culture,M=33%,F=20% (ONS)
- Increasing popularity for flavoured drinks
- Controversial products

IMPLICATION
- Large customer base
- Pay more attention to CSR


Technological
+2 (strong opportunity)
TREND
- Customer Health Care
- Brewing process innovation
- Equipment renewal
IMPLICATION
- Brewing production efficiency
- New product attracts more customers

Full transcript