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