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Case Study: US Brewing Industry (Group A)

Case Study Analysis: US Brewing Industry

PART A

1. Goals/ Purpose:- This case study’s goals are as follows:- • Entertainment, Spreading brand entities

in the world, selling beer with unique advertising as well as attracting consumers with various events

like sports events and parties.

2. Important information for analysis; Field of marketing-International marketing

External factors to analyze the market situation; Market trends; Rules and regulations For example,

any changes since the previous analysis.

3. Strategy Important list

❖ Market Penetration: Anheuser-Busch achieved market penetration through the introduction of Bud

Dry, a new product in the Budweiser family.

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❖ Product Development: The case mentions Anheuser-Busch introducing several new products in

1991, including Bud Dry.

❖ Diversification: Anheuser-Busch expanded beyond its core beer business by improving its position in

the entertainment and food industries.

❖ Cost Leadership: The case study doesn't explicitly provide information about cost leadership

strategies.

❖ However, it would be reasonable to assume that Anheuser-Busch, as a market leader, employs cost-

effective strategies to maintain its competitive edge.

❖ Partnerships and Collaborations: The case doesn't explicitly mention partnerships, but Anheuser-

Busch's international market penetration suggests potential collaborations with distributors or

retailers in those regions.

4. Internal Analysis

❖ Strengths: Market Share: The firm's total share of the American beer market climbed to 45.9%,

demonstrating its dominance.

❖ Weaknesses: Premium Budweiser Decline: Sales volume for premium Budweiser declined in 1990,

partly due to the introduction of Bud Dry, indicating a potential weakness in managing product

introductions.
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❖ Operational Efficiency: Introduction of New Products: Anheuser-Busch's ability to introduce new

products like Bud Dry within a year suggests a degree of operational efficiency in product

development and launch. However, it's reasonable to assume that a company of this scale would

prioritize a skilled workforce to support its operations and innovation.

❖ Employee Skills and Training: The case doesn't explicitly discuss employee skills and training.

However, it's reasonable to assume that a company of this scale would prioritize a skilled workforce

to support its operations and innovation.

❖ Financial Health: Record Sales and Profits: Anheuser-Busch's record sales and profits at the

beginning of 1991 indicate a strong financial position.

5. External Analysis

❖ Competitive Environment: Miller and Coors, as huge competitors, challenged Anheuser-Busch

with the help of launching new products in the market during the 1980s. This competitive landscape

influenced Anheuser-Busch the power of decision-making for the introduction of products in the

market. As well as, share dominance which reflects (45.9%) its competitive strength and highlighted

the essential of monitoring of competitor's actions.

❖ Environment Regulatory: Increase in the taxes, doubling the federal taxes in 1991 had a direct

impact on the leading industry. Which leads to changes in the amount and influences the behaviour of

people and customers. Involvement in the Anti-tax scheme depicted the value of regulatory

considerations.
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❖ Consumer Trends: The decline in volume of sales for premium Budwiser in 1990, partly

contributed to the invention of Bud Dry, which suggests a change in preferences among consumers.

Understanding and getting used to it was crucial for sustained success.

❖ Global markets: Anheuser-Busch’s efforts to penetrate the international market of beer state the

usage of global expansion. Factors like rules and regulations, difference in culture, and saturation of

the market impacts success in these markets.

❖ Economic Factors: The overall economic conditions, are reflected in factors like growth in GDP,

spending of consumers, and inflation reflected in the consumption of beer. Economic downturns

impact consumer spending on premium and super-premium brands.

❖ Technological Factors: The case mentions Anheuser-Busch's commitment to the state-of-the-art

brewery in 1989. Advancements in technology towards packaging and brewing will help to reduce

cost structures and the quality of products.

❖ Lifestyle Factor: Changes in consumers' lifestyles, drinking habits and cultural perceptions of beer

could impact product preferences. Engagement in the Anti-Tax movement and the Surgeon General’s

call for advertising restraints influences of society on the industry.

❖ Distribution: The network structure of distribution with about 4500 distributions, has implications

for how products reach consumers. Changes in distribution practices and relationships could impact

reach in the market.

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Overall, adapting its strategies, identifying its opportunities and mitigating potential threats in a competitive

brewing industry. It is very important for the company to continually monitor and respond to the changes in

the external environment to maintain its leadership in the market.

PART B

1. Preliminary Decisions list

One of the biggest breweries in the world, Anheuser-Busch is well-known for its well-known brands,

including Budweiser and Bud Light. The American brewing sector is governed by several laws and is

fiercely competitive.

Anheuser-Busch and other breweries may have to make important judgements like these:

❖ Product Portfolio: Selecting the variety of goods to sell, such as the types, tastes, and

packaging possibilities of beers.

❖ Market strategy: Choosing the marketing methods and target market is part of the market

strategy. This involves choosing between concentrating on regional, national, or global

markets.

❖ The branding and marketing processes: This includes advertising tactics, advertising

campaigns, and building and sustaining a strong brand image.

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❖ Quality management: Guaranteeing the uniformity and calibre of the brewed goods is

known as control of quality. This entails making choices about manufacturing procedures,

monitoring methods, and raw material purchasing.

❖ Managing the complicated regulatory environment: By doing this method they can control

the manufacture, sale, and distribution of alcoholic beverages is known as regulatory

compliance.

❖ Creativity: Maintaining a competitive edge by the introduction of novel and inventive

products, adapting to shifting consumer demands, and following market developments.

❖ A sustainable future: Taking care of issues related to the environment and social

responsibility, such as waste reduction, energy efficiency, and sustainable ingredient sourcing.

❖ Supply chain management is the effective management of the supply chain, which includes

planning production schedules, obtaining raw materials, and handling distribution logistics.

❖ Management of finances: Setting prices, controlling expenses, and allocating funds for

infrastructure and technology purchases.

❖ Purchases and Integrations: Taking proactive measures, including buys or alliances, to

improve your competitive edge or increase market offers.

2. SWOT analysis
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Strengths:

❖ Summary Market Share: Because Anheuser-Busch dominates the American beer industry, it has a

competitive advantage over its rivals. The company may maintain an important footprint in malls,

negotiate favourable terms with suppliers, and benefit from economies of scale.

❖ Wide Range of Products: Anheuser-Busch can get a greater market share by offering a diverse range

of beer goods to suit consumers' interests and interests. The organization's capacity to adjust to evolving

customer tastes and patterns is facilitated by its variety.

❖ Worldwide Presence: With Anheuser-Busch InBev, the business is present all over the world. Due to

its international reach, Anheuser-Busch can diversify its sources of revenue, take advantage of

developing nations, and reduce the risk of regional financial crises.

❖ Ecological Methods: Anheuser-Busch's dedication to ecological accountability and long-term viability

improves the company's reputation. Eco-friendly practices are becoming more and more valued by

clients, and this dedication might draw in eco-aware customers.

Weaknesses:

❖ Depend upon markets: Due to its heavy reliance on the American market, Anheuser-Busch is

vulnerable to the effects of national economic crises and shifts in customer tastes. Investigating

prospects in developing industries and broadening its reach across the globe could be a calculated move

to lessen this risk.

❖ Brand Viewpoint: It might be difficult for certain of Anheuser-Busch's brands to adapt to shifting

consumer tastes, particularly as handmade and specialized beers become more and more popular. For

the business to keep its image appealing, innovation must be done consistently.

❖ Regulatory Obstacles: Strict rules, such as prohibitions on marketing and different laws governing

the sale of alcohol, apply to the manufacturing industry. Following these rules complicates processes

and could restrict methods of advertising.

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Opportunities:

❖ The Craft Beer Industry and the Trend of Premiumization: Anheuser-Busch has the chance to

launch new goods or buy out profitable craft brewers by leveraging the pricing and craft beer trends.

This might assist the business in reaching specialized industries and drawing clients looking for

distinctive, superior products.

❖ Trends in Health and Wellbeing: Anheuser-Busch may want to look into prospects in low- or non-

alcoholic drinks manufacturing given the increased emphasis on well-being and good health. This

industry's innovations adapt to shifting customer tastes and broaden the business's range of goods.

❖ Worldwide Extension: Anheuser-Busch can investigate prospects in developing nations where

drinking beer is increasing by utilizing its global reach in this manner. This allows the business to

expand its sources of income and lessen its reliance on any one industry.

Threats:

❖ Craft breweries are a rival: Craft breweries are becoming more and more famous, which is a problem

because people tend to gravitate to distinctive, regional beers. Anheuser-Busch must keep an eye on

these developments and adapt as necessary, either by launching new craft beer companies or buying

existing ones.

❖ Shifting Customer Tastes: Sales of conventional beer may be impacted by changing buyer tastes,

such as a move towards healthier choices and a wider variety of flavour characteristics. To remain

profitable, it is imperative to leverage creativity in products to adjust to these shifts.

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❖ Legal and Regulating Hazards: Legal and regulatory difficulties, such as alterations related to alcohol

laws, additional fees, and lawsuits, can affect the brewing sector. When negotiating these possible

obstacles, Anheuser-Busch needs to be vigilant and well-informed.