The Marketing Environment

 The marketing environment for Anheuser Busch and Bud Light can be broken down into a few different categories. The target market, a demographic which includes generation y, generation x, and baby boomers, environmental management, and purchasing power all shape the marketing environment for Anheuser Busch.

Target Market

The first, and most obvious, observation about Anheuser Busch is that, as an alcohol company, all of their consumers must meet the minimum legal drinking age. Beyond the minimum age requirement, Anheuser Busch has a target market that includes all ages and genders. According to Anheuser Busch

“We advertise and market our products exclusively to adults 21 years of age and older. The beer industry uses media and marketing to reach adult with brand messages, and we do so with responsibly through adherence to both an internal Company Code ad an industry Marketing Code”.

Although Anheuser Busch consumers encompass all ages, they target their advertising at generation y and generation x consumers, often times with sports themed or ads featuring younger people.
 

Environmental management

Anheuser Busch cannot completely control the external environment, but they can try and predict factors such as social change and the economy. Anheuser Busch has long focused on two major advertising efforts. One based on tradition and heritage, think Clydesdales, and the other on sports and major sponsorships. With the recognition of a changing market, Anheuser Busch has expanded its marketing to include ads narrated by Jay-Z and a documentary directed by Ron Howard, all in an effort to capitalize on a new and different generation and what it takes to market to them.

Purchasing Power

Purchasing power is the comparison of the cost of living versus a person’s income.  The price point of beer has always been the lowest in the alcohol market. Thus, when the economy is in a recession, beer sales remain stable and do not drop due to there relatively low price point.

Ethics and Social Responsibility

Ethics and social responsibility are at the forefront of the Anheuser Busch brand and company. As a global leader in the beverage industry, Anheuser Busch has always been committed to social responsibility and ethical business practices. Anheuser Busch focuses on three major points of differences:

• Alcohol Responsibility
• Environment
• Community

In addition, Anheuser Busch also publishes a citizenship report.

Alcohol Responsibility

Since 1982, Anheuser Busch and its wholesalers have committed more than $980 million in responsibility programs to prevent underage drinking and drunk driving.

One of Anheuser Busch's most recent campaigns that launched this May is the Budweiser Designate A Driver blimp. This is the first ever social responsibility blimp to be seen in the United States and will serve as a mobile billboard to remind legal drinking age adults to be or use a designated driver. The blimp’s flight plan includes 25 stops, many of which coincide with major festivals, outdoor celebrations and sporting events in tour cities.


Environment
Anheuser Busch is committed to conserving water in their breweries and have reduced water usage by 40 percent in the past 5 years, that's more than 7.5 billion gallons of water.

• 40% water use reduction since 2007
• 1 in 6 beers brewed with renewable fuels
• 99.6% recycling rate in our breweries

Community
Since 1997, Anheuser-Busch and the Anheuser-Busch Foundation have contributed more than $515 million to charitable organizations, including those that support education, the environment, economic development, disaster relief, and military personnel.

Anheuser-Busch has donated more than 72 million cans of drinking water to people affected by natural and other disasters since 1988.

   

Citizenship Report

Anheuser Busch has invested $1.4 billion in Corporate Social Responsibility programs since 1982 to support alcohol responsibility, the environment and local communities.

Strategic Planning for Competitive Advantage

Bud Light has been a leader in the Beverage industry since its release in 1972. In order to maintain its place as the number one selling beer in America, Anheuser Busch continues to invest in different strategies to maintain a competitive advantage. According to Anheuser Busch, the company has identified certain key tools, which enable them to implement their corporate strategy.  These tools include

• An open innovation policy on all levels, aimed at revitalizing the beer category and increasing our market share.
• A strong company culture, investing in people and maintaining a strong target-related compensation structure.
• Best-in-class financial discipline spread throughout the whole organization.

Zero-based budgeting has also become a way of life for Anheuser Busch employees. Although implementing it is much more difficult, zero-based budgeting helps to prioritize, control costs, and is a crucial element of efficiency. Zero-Based budgeting also allows for Anheuser Busch to reexamine it practices and improve operations.

In 2010, Bud Light had a 28.5% market share, well above its nearest competitor, Coors Light with 10.2%. Bud Light uses market penetration to drive its business and increase sales. Advertising concepts including TV, print, and sponsorships.

Anheuser Busch’s marketing mix also provides insight into their strategic planning. 

Products Low calorie Beer Top selling beer in America	Place Wide scale distribution Available in a vast amount of retailers
Promotion Heavy market penetration allows for the existing customer base to grow Extensive sponsorship of major sporting events and concerts	Price Relatively inexpensive when compared to other alcohol beverages On par with other domestic light beers

History and Mission Statement 

 Anheuser-Busch vision and mission statement 

Our vision:

Through all of our products, services and relationships, we will add to life's enjoyment.

Our mission:

• Be the world's beer company


• Enrich and entertain a global audience


• Deliver superior returns to our shareholders

Anheuser-Busch and Bud Light history

Anheuser-Busch is a company associated with a large portfolio of alcoholic beverages, particularly known for beer. In 1860, Eberhard Anheuser, after immigrating from Germany, bought out the other investors of the Bavarian Brewery where he had been part owner, renaming it E. Anheuser & Co. Adolphus Busch met Anheuser shortly thereafter and was introduced to his daughter, whom he married. After their marriage, Busch went to work for Anheuser, and later purchased half of the business.

Busch and his friend, Carl Conrad, created an American style lager beer and coined the “Budweiser”. In 1879 the company was renamed the Anheuser-Busch Brewing Association, and Busch became president the following year when Anheuser died.

Anheuser Busch became renowned for its innovation, including the use of pasteurization, to extend shelf life, artificial refrigeration and refrigerated rail cars, which allowed the beer to be distributed across the country, and the innovation of countless new beers.

Anheuser-Busch first introduced a light beer in 1973, Anheuser-Busch Natural Light, which was their response to the newly released, and popular, Miller Light. Anheuser-Busch Natural Light was initially born out of fear that line extensions would be the death of a brand. Later renamed Natural Light, it would be a decade later before Bud Light was born. Bud Light was introduced nationally in 1982. With a lighter flavor, 110 calories, and 4.2% alcohol by volume, Bud Light grew quickly in popularity and is now the number one selling beer in America. In addition to its record breaking sales, Bud Light sponsors many sporting events including the NFL and UFC and is renowned for its innovative and popular advertising.