3. Market Composition Category Size and Trends In 2006: $88 (b) industry 210 (m) barrels sold 21.6 gallons per capita 1, 572 total breweries 946, 188 direct jobs
4. Market Composition Significant changes in the last three years Major beer takeovers and consolidation With saturation of domestic markets, U.S. brewers focus more on foreign markets Increased flavored product line extensions domestically
5. Market Composition Distribution patterns, problems, and changes in store types Distribution is driven by geographical location and target population With the recent sell of Anheuser-Busch to Belgium-based InBev, changes in distribution are expected
6. Market Composition Package form and size trends Packaging decisions are based on particular target market local distributors may chose to stock a particular size to respond to the demands of their customers Single serve size and multipack 16oz aluminum bottles increase in popularity
7. Market Composition Consumer Packaging Preferences Glass, plastic and aluminum cans 96% preferred glass 40% believed the taste is better 37% perceived that beer stays cold longer The trend continues to be glass bottles despite the advantages of plastic bottles (shatterproof and lightweight) Plastic closure affect quality and freshness
11. Market Composition Brand Share and Status Anheuser-Busch is truly ‘King of Beers’ Market share leader in U.S. national beer category Market share leader in U.S. national light beer category Market share leader in U.S. national lime flavored beer category
12. Consumer Usage About 40% of the U.S. population drink beer weekly or monthly More people in U.S. drink beer than wine or liquor Reasons for drinking beer are wide and varied
13. Consumer Behavioral Heavy user: Drinks daily Buys beer 3x or more a week Beer for any and every occasion Light user: Drinks only for special occasions Social drinker Infrequent purchases of less than 1 month
18. Consumer The most important benefits in all categories for consumer are taste and price There is a high potential of conversion within the various segments of the beer category Modest possible conversion from non-beer drinkers into any segment
19. Advertising and Promotion Category and brand spending patterns and trends National: Has remained consistent and competitive Anheuser-Buschand MillerCoors spent close to $1 (b) in 2007 Regional and Microbrew: Brands like Blue Moon typically advertise in specialty print magazines (Men’s Health & Rolling Stone) Rely heavily on buzz or word of mouth
20. Advertising and Promotion Role of consumer promotions Mainly to used to help differentiate products from competitors and from own product line Role of trade promotions Used to solicit business Usually from national brewers to wholesalers Usually from regional and microbreweries directly to retailers and restaurants/bars/clubs
21. Recent Claims “Premium beer that combines superior drinkability of Bud Light with a splash of 100% natural lime flavor” “American take on a Mexican chelada” Relaxation associated beach imagery Advertising and Promotion
23. Key Problems and Opportunities Avoid similar fate as Miller Chill Growing competition in all segments Since Bud Light Lime is competing in three segments, it must: Dominate its primary segment Be evoked as a potential choice in its secondary category Maintain its presence as a viable competitor in its tertiary category
25. Business and Marketing Objectives 7% increase in sales for 2009 Q4 Continue increasing market share in all three beer category segments
26. Business and Marketing Objectives Change positioning of Bud Light Lime from summer only to year-round drinkability Similarly, change purchase behavior from seasonal only to year-round
27. Business and Marketing Objectives Packaging will be modified to reflect year-round appropriateness Pricing will remain consistent Distribution will expand to test markets where Bud Light Lime is currently unavailable in response to growing consumer preference for flavored beer
28. Source of Business Will utilize an offensive strategy: Competitive brand users: switch to our brand Light users of our brand: buy our brand more often
29.
30. Buying Incentives Two target groups Restaurant/bars/clubs: Discount parent beer to carry Bud Light Lime on tap in selected test markets Consumer: Bud Light Lime promotional items inside 24pk cases Bud Light Lime coolers for purchase of 2 24pk cases at warehouse club stores through unique distribution
32. Budget Bud Light Lime was $35 (m) in 2008 Miller Chill was $30 (m) in 2007 Coors Light $55 + (m) in 2005 Corona was $50 (m) in 2007 Therefore, Bud Light Lime intends to increase budget to outspend primary competitor and remain defensive against tertiary competitors
35. Promise Primary promise: Bud Light Lime is great tasting and appropriate all year long Secondary promise: Quality beer from a brand you can trust Support for promises: Anheuser-Busch’s supreme drinkability make it perfect for all seasons
37. Tone/Manner/Mandatory Tone will be informal, personal and will utilize a lighthearted approach Manner will be presented in a modern and humorous way Mandatory: Never directly compare to any competitor Keep versatility as key message Always promote responsible drinking
38. Desired Brand Personality A brand consumers can trust for exceptional taste and drinkability associated with the Anheuser-Busch brand It is fun, personal, adaptable, and spontaneous
39. Media Reach of 75% Reach of 3.0 Awareness levels need to be modest Versatility theme must be continuous, executions may vary
Editor's Notes
All beer in the US is broken down into Domestic or ImportThen National, regional, and microbrewThen types such as low alcohol, light, flavored, etc.
While its introduction was phenomenal, Bud Light Lime faces potential wear out due to primary association with SummerAs more national brewers add flavored extensions to their portfolios, Bud Light Lime needs to keep its uniqueness and relevance
