Executive Summary of Anheuser-Busch Companies, Inc.
Anheuser-Busch Companies, Inc. continually seeks opportunities to maximize shareholder value and increase efficiency. Through their extremely effective marketing
strategies A-B has gained control of over 47% of the global market share. In the process of doing this, Anheuser-Busch has become one of the most recognizable trademarks.
This is not without its faults though. Anheuser-Busch’s aggressive advertising campaign has targeted more than who they bargained for. Through A-B’s catchy advertisements, they have attracted customers other than the 21+ age group, and recreational drinkers.
It is the opinion of many researchers that Anheuser-Busch is negligent in their advertising, and insists that changes need to be made. Through proper regulation of their advertising, consumers would be allowed to make choices free of media persuasion.
Situation Analysis
Environment:
Cooperative
Anheuser-Busch Companies, Inc. continually seeks opportunities to maximize shareholder value and increase efficiency. As noted in the Annual Report for 1999, Anheuser-Busch remains focused on three major objectives to enhance shareholder value:
Increasing per barrel profitability which, when combined with continued market share growth, will provide solid long-term earnings per share growth.
Profitable expansion of international beer operations by building the Budweiser brand worldwide and making selected investments in leading brewers in key international beer growth markets. The company has made significant marketing investments to build Budweiser brand recognition outside the United States and operates overseas breweries in China and the United Kingdom. The company also has a significant equity position in Grupo Modelo, Mexico’s largest brewer and producer of the Corona brand.
Continued support of profit growth in packaging and entertainment operations. Packaging operations provide significant efficiencies, cost savings and quality assurance for domestic beer operations, while entertainment operations enhance the company’s corporate image by showcasing it’s heritage, values and commitment to quality and social responsibility to 19 million visitors annually as well as adding their profit contribution.
The company’s strong commitment to achieve these objectives benefits a...
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...th the regulations.
Works Cited
1999 Annual Report, Anheuser-Busch Companies
“Anheuser-Busch Announces Record Sales and Earnings for the Fourth Quarter and Full Year 1999; Worldwide A-B Brand Shipments Exceed 100 Million Barrels.” Business Wire, 2/2/2000. Online. Electric Library.
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Sellers, Patricia. “Selling: How Busch Wins in a Doggy Market.” Fortune Magazine, 6/22/87, p. 99. Electric Library.
“Tax and Sin in Moderation.” St. Louis Post-Dispatch 2/26/98. Electric Library.
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
Ferrell, O. C. (2008). “New Belgium Brewing Company(A)” in Ferrell, O. C., and Hartline, Michael D., Marketing Strategy, Fourth Edition, Mason, Ohio: Thompson Southwestern Publishing, pp. 463-470.
Business Problem and Recommended Solution Intrigued by the opportunity to own his business, Larry Brownlow must decide whether a distributorship opportunity with Coors is a worthy venture. To aid Larry in his decision, the following pages provide an assessment of this business opportunity. With a limited research budget of $9,500 (p.143), careful selection of reports was essential to obtain both the necessary data to project profitability (e.g., revenues, cost of sales, other expenses, Coors projected market share, retail pricing data) and to provide a qualitative, consumer-focused perspective that would give these quantitative projections a solid foundation. Considering the given financial background, if Larry does not go forward with this investment, we assume he will choose to continue earning annual income from his trust at $40,000 per year (p.143). However, if he goes forward with the investment, he will cash in on the entire trust and take a significant financial risk.
Worsnop, R. L. (1997, March 14). Alcohol advertising. CQ Researcher, 7, 217-240. Retrieved from http://library.cqpress.com/cqresearcher/
Diversificationthey have recently entered into other industries to achieve more growth such as the Philip Morris Capital Corporation. This is an investment company whose portfolio consists of leveraged and direct finance lease investments and other tax-oriented and third party financing. Altria also has 28.6 percent interest in SABMiller, which is the world's second largest brewer (Altria, 2008).
Alcohol plays a major role in society today. It is constantly being in our minds through advertisements, whether its commercials or
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...
"Young People's Drinking." International Center for Alcohol Policies Meetings & News Press Releases Welcome to ICAP. 2011. Web. 22 Mar. 2011. .
The Boston Beer Company is able to obtain relatively low-cost funds for their working capital and expenditures. The company is constantly in search of the lowest cost items without suffering the quality of their products. The company has thrived and has been able to expand to become successful due to their ability to achieve this.
Alcoholics that are trapped so deep in the spell of alcoholism are leaving a legacy behind for those who continue to make alcohol companies millions of dollars by ruining their lives, making the wrong investment every time they purchase a bottle of alcohol; to them an “alternative route” to mask any issues they might be encountering at a particular time in their lives, and to those alcohol-making companies they are walking fortunes—walking billboards. Advertisement ads for these products continue targeting not only the already alcoholics, but also targeting underage drinkers. These alcohol-making companies can argue differently and have sworn to not be so focused on targeting people under 21. “Alcohol advertisers have pledged to comply with self-regulatory codes designed to limit t...
Youngerman, Barry. The Truth about Alcohol. Ed. Mark J. Kittleson. New York: Facts on File, 2005. Print.
This product could be purchased in stores nationwide. Since Anheuser-Busch is a respected and dominant partner, channel conflict does not really occur. The market exposure level is an intensive distribution, which makes it easily accessible.
After 1996, the U.S. beer industry had consistent growth with about 3,500 brands on the market in 2002 (Alcoholic Beverages, 2005). The U.S. exported beer to almost one hundred countries worldwide. The beer industry peaked production with 6.2 billion gallons in 2003 (Alcoholic Beverages, 2005). The U.S. beer industry haws over 300 breweries. However, this industry is dominated by three companies: Anheuser Bush (45% of the industry), Miller Brewing (23% of the industry), and Adolph Coors (10% of the industry) (Overview of the U.S. Beer Industry, 2005).
The company has continued to expand its marketing strategy through innovation to reach new markets and retain its current customers. Recently the company has sponsored various sporting events like the World Rally Car Championships in the US. The company has also purchased some sporting clubs in the world in the efforts to establish their brand further. The company bought SV Austrian Salzburg, and renamed it Red Bull Salzburg in Austria, and New Jersey Soccer Te...
Swayne, Matthew, and Andrea Messer. "Alcohol and Tobacco Advertising Bans Don't Work." Penn State University. Penn State University News, 16 Sept.