Introduction
Bud Light has long been hailed as the king of beers, but it currently faces many problems. The beer market as a whole has been suffering for the past decade, which has led to a decrease in sales for Bud Light. Furthermore, within the beer market many consumers are moving ways from mass-marketed beers to more craft brews or homebrews. In order to solve this problem, this report will first examine current trends in the beer industry. After this is an analysis of the current market to whom Bud Light sales, followed by a look at the advertising techniques used to gain this market share. Finally, the report identifies a new potential market and provides an examination of advertising techniques and methods that most effectively appeal to this market.
Since target markets tend to change over time, this report focuses on Bud Light’s target market for the past ten years. Advertising and data with respect to this market will be limited to this time period. Additionally, current
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advertising campaigns and statistics will focus on television advertisements. Current State of the Industry Bud Light was first produced in 1982 and it almost immediately became the third highest selling beer brand in the United States thanks to heavy advertising (Russell). Due to an increased interest in health, light beers – noted for their promise of fewer calories – increased in sales throughout the 1990s, and by 2001 Bud Light overtook fellow Anheuser-Busch product Budweiser to become the top selling beer brand in the country. Bud Light maintains this top position to this day, accounting for nearly twenty percent of all beer sales (Barrow). However, Bud Light faces many challenges going forward. Beer consumption has steadily decreased over the last decade as consumers move away from beer and toward wines and spirits (Johnson 31). In 1999, beer accounted for 56 percent of all alcohol beverage sales in the United States; by 2012, beer had dropped to 48.8 percent of sales (Taube). Light beer has been hit especially hard by the shift, as it is also losing consumers to craft beers and microbrews. Bud Light specifically suffered its fifth straight down year in 2013, with sales decreasing by 3.1 percent, and sales forecasts for the light beer industry as a whole project sales to hit a 10-year low in 2015 (Leonard). The shift away from beer can be attributed to a change in preferences: young consumers entering the market are less inclined to drink beer than previous generations (Jones). Furthermore, craft beers and microbrews continue to gain consumers by offering a wider selection of products than large national brands while often boasting a superior flavor and quality. Current Target Market for Beer Many people associate beer consumption – especially light beer consumption – with college students, and it’s a fair assumption. However, current college students are part of a larger demographic known as Millennials – roughly defined as the generation that reach age 21 after the year 2000 – who serve as the primary target that beer advertisers are trying to persuade. Figure 1 below indicates what percentage of three age groups drink beer as their chief alcoholic beverage. Figure 1: Percent of Adult Drinkers who Consume Beer as their Primary Alcoholic Beverage Source: Saad. As Figure 1 indicates, beer consumption is dominated by younger drinkers, with 45 percent of the 18 to 34 age group – roughly equivalent to the Millennial generation – drinking more beer than any other alcoholic beverage. However, the 35 to 54 age group continues to keep pace with the Millennials, with 45 percent of this age group also drinking beer as their primary alcoholic beverage. The 55 and older age group, however, experiences a large decline in beer consumption, with most moving toward wine as their primary alcoholic beverage. Additionally, the same study from Gallup found that beer consumption skews toward males. Sixty-two percent of males under the age of fifty consumed beer as their primary alcoholic beverage, compared to only 27 percent of women (Saad). The trend continued into older age, as 43 percent of males over the age of fifty consumed mostly beer, compared to only 17 percent of women. However, despite women’s general distaste for beer, light beer has developed a large following among women (Goldammer). Millennials are the most important market for brewers.
By marketing to them at a younger age, Anheuser-Busch hopes to instill some level of brand loyalty, so they will continue to buy Bud Light in the long-tem. However, Millennials tend to be more adventurous than previous generations, leading them to seek out variety – part of the reason that many Millennials are moving away from national beer brands to wine, liquor, and microbrews (Jones). Anheuser-Busch has attempted to combat this shift by introducing a number of Bud Light product line extensions. In 2012, Anheuser-Busch introduced Bud Light Platinum, a premium version of Bud Light that contains more alcohol by volume. Anheuser-Busch followed Bud Light Platinum with the release of Bud Light Lime-a-Rita, a margarita-inspired beverage. Bud Light Lime-a-Rita especially enjoyed success; several additional flavor varieties were released, and trademarks have been filed for the potential release of more new flavors
(Schultz). Despite its focus on Millennials, Bud Light continues to sale to other markets – notably sports fans. Sports fans – who comprise a large portion of the 35 to 54 age group from Figure 1 above– are a large market for brewers and advertisers. Most professional sporting events continue to sell beer from concession stands; additionally, beer is viewed as the drink of choice at many sporting-related places, including tailgates and sports bars.
The company launched an initiative collaborating with the “Lyft”, which will provide free rides for drunk customers [8]. This indicates the amount of dedication the company has towards its customers. It also provides tours to customers across the 12 flagship breweries in the United States [9] and would also help customers with samplers. Any company that values its customers would become a great success and Anheuser Busch has proved this again. It also values its employees making sure every one of them feels like an owner and everybody would work as considering the results to be personal [10]. All these put together has helped the ANHEUSER BUSCH to brew beers that are loved by their customers and in making it the leader of its domain of
The beer brands were classified as popular, premium, super premium, and ultra-premium. The distinguishing factor determining if brands belonged to different classes was whether beer was produced by four largest companies (Anheuser-...
Sport is one of the largest mediums that corporations can utilize to get that mass message out to their customers. Many of us have different ways that “tickle” our fancy so to speak. What interests one does not necessarily interest another, but, even if one person can convince others to try a product or service a domino effect may occur. Corporations are always trying to “spice” up their advertisement. They probably do this to see if they can manipulate a consumer to try their service or product. For example, Budweiser has been running beer ads for many, many years and incorporated comedy into their commercials. They went from frogs to lizards to obnoxious acting. In my opinion, people are swayed by these tactics and tend to try a Budweiser beer more often than they had.
“Every day in America, another 27 people die as a result of drunk driving crashes” (MADD). Budweiser, one of the first national beer brands founded in America, is currently the number three beer brand in the United States. In their “Friends are Waiting” commercial, the viewers see the emotional connection between an affectionate owner and his playful dog. This commercial mainly targets young adults because it is more likely for them to go out and drink. By using these rhetorical appeals: ethos, pathos, and logos; the Budweiser team persuades the readers to always come back home because someone is waiting.
Belgium is known for a culture of high-quality beer and this concept was formulated by an electrical engineer from Fort Collins, Colorado. The electrical engineer, Jeff Lebesch, was traveling through Belgium on his fat-tired mountain bike when he envisioned the same high-quality beer in Colorado. Lebesch acquired the special strain of yeast used in Belgium and took it back to his basement in Colorado and the experimentation process was initiated. His friends were the samplers and when they approved the beer it was marketed. In 1991, Lebesch opened the New Belgium Brewing Company (NBB) with his wife, Kim Jordan, as the marketing director. The first beer and continued bestseller, Fat Tire Amber Ale, was named after the bike ride in Belgium. The operation went from a basement to an old railroad depot and then expanded into a custom-built facility in 1995. The custom-built facility included an automatic brew house, quality-assurance labs and technological innovations. NBB offers permanent, seasonal and one-time only beers with a mission to be a lucrative brewery while making their love and talent visible. In the cases presented by the noted authors (Ferrell & Simpson, 2008), discusses the inception, marketing strategy, brand personality, ethics and social responsibility that New Belgium Brewing Company has demonstrated. The key facts with New Belgium Brewing Company are the marketing strategy, promotion, internal environment and social responsibility with the critical issues of the public, brand slogan, growth and competition.
How it would be living without a mom when you six years old. He went to find his dad by himself when he was ten. When he gets their he finds out its his grand farther. But if he had a family his mom would be alive. He would have been treated differently. They would travel and find out Herman E. Calloway is dead.
Organizations often talk about themselves and their products when marketing to customers. The reality is that prospective customers do not care about you or your product -- they care about themselves. How much time does Budweiser's commercial spend focusing on beer? Absolutely none. Instead, the ad focuses on portraying a heart-warming relationship that every single viewer can connect with. Budweiser makes itself relevant to those watching the commercial simply by creating that experience. So stop focusing your marketing strategy on your company, product, service or yourself. Instead, develop a message that highlights what you are offering means to the targeted customer’s life.
With relation to the Bud Light advertisement, the segmentation variables that are at play are geographic, demographic and psychographic. With the use of multiple variables, it gives the company a better understanding of the segmentation and helps identify their relevant target market.
Late night driving home, and a strange man is on the side of the road with an axe, but hey, he has Bud Light so why not offer him a ride? In this video ad of Bud Light a couple is lost at night in what seems the middle of nowhere. Seeing a man with an Axe carrying Bud Light Case, the male seeing that he has Bud Light wants to offer him a ride; they pull over and he gets in the car. A glass and bottle of Bud Light appears and the words “Always Worth It” displayed (Viral 0:24). Later, they run in to a mask man with a chain saw and is also carrying Bud Light, and so the male again was to offer him a ride and leads to the commercial ending (Viralstuff 0:28). In this ad, it attracts a white male, and female audience that has low income, and between the ages of 21 and 30, which makes sense because Bud light sell more to Hispanic males that have low income rate, and are between the age of 55-65 (Bud Light Consumer). The commercial will try to persuade you using ethos, logos and pathos. The ad shows that avid Bud Light drinkers will in
Michael Messner and Jeffrey Montez de Oca explain that contemporary beer ads represent a desirable male lifestyle to reaffirm masculinity in a time when men are insecure. Their essay, “The Male Consumer as a Loser: Beer and Liquor Ads in Mega Sports Media Events,” goes on to list the reasons for their insecurities: historic and cultural shifts such as deindustrialization, declining real value of wages, feminists and sexual minorities. They support their main point by providing a window to the past as beer ads of the 1950s depicted a desirable lifestyle that was appropriate for post war style of living. By following the transitions of beer ads from the 1950s to now, we could follow the accepted lifestyles of the times during which the ad was made.
Over time the use of alcoholic drinks has become an increasing problem. Budweiser is a company that makes and sells alcoholic drinks. Although they are well aware that the alcoholic drinks can be harmful when they are over used. To advertise their drinks they made an ad that not only advertised the drink but at the same time shows people that drinking and driving is dangerous and not only hurts the people doing it but also others around them.
It is undeniable that marketing plays a major role in the success of consumer products, and that campaign tactics have changed throughout the years. One company, though, is changing the game and has become a new leader in the industry. Bud Light, has transformed the consumer products market through the new, extensive use of hyperreality. These hyperreal campaign strategies differ from the traditional campaigns in that they now focus on concepts like energy and experience rather than interest and action; and have had tremendous success in appealing to the millennial generation.
Boston beer should choose the right target consumer group for different product lines and closely follow their preference. Its main product line Samuel Adam, as premium craft beer, shall target more affluent and well-educated than the average beer drinker. While Lightship shall target 21-44year age with earnings than $50,00/year. These beer drinkers want to enjoy the flavor without the guilt of consuming too many calories, they want to remain “fresh” and “exciting” at the same time. So light beer should be best choice for these
The beverage industry is highly competitive and presents many alternative products to satisfy a need from within. The principal areas of competition are in pricing, packaging, product innovation, the development of new products and flavours as well as promotional and marketing strategies. Companies can be grouped into two categories: global operations such as PepsiCo, Coca-Cola Company, Monster Beverage Corp. and Red Bull and regional operations such as Ro...
The soft drink industry in the United States is a highly profitably, but competitive market. In 2000 alone, consumers on average drank 53 gallons of soft drinks per person a year. There are three major companies that hold the majority of sales in the carbonated soft drink industry in the United States. They are the Coca Cola Company with 44.1% market share, followed by The Pepsi-Cola Company with 31.4% market share, and Dr. Pepper/Seven Up, Inc. with 14.7% market share. Each company respectively has numerous brands that it sales. These top brands account for almost 73% of soft drink sales in the United States. Dr. Pepper/Seven Up, Inc. owns two of the top ten brands sold. Colas are the dominant flavor in the U.S carbonated soft drink industry; however, popularity for flavored soft drinks has grown in recent years. The changing demographics of the U.S population have been an important factor in the growing popularity of these flavored soft drinks. The possible impact of this factor will be addressed later in the case.