Ch. 17 - Personal Selling and Sales Management

Personal selling is defined as a purchase situation involving a personal, paid- ­for communication between two people in an attempt to influence each other. Most of these purchases involve products such as cars, insurance policies, or construction projects. Since buying Bud Light is part of a routine response behavior, there is limited interaction with a sales associate, and that interaction is usually just limited to paying for the purchase.

Bud Light does try and use the internet and its own website to manage the relationship it has with customers. Each Bud Light product has a twitter account, and these tweets, along with photos that customers have shared via Facebook and Instagram, are the first thing visible on Bud Light's website.
There is also a section of the website completely dedicated to ads, where people can rematch there favorite Bud Light ads, including popular ads that have been aired during the Super Bowl.

Probably the most aggressive way Bud Light tries to interact with its customers is through sports. At this moment, there is a section of the website dedicated to college basketball and "March Madness". There are tools to help people pick a bracket, as well as games and a "Mini Hoops Challenge".

In addition to there website, Bud Light introduced a campaign in 2011 to create a more personal relationship with consumers. Bud Light created beer bottles that featured a personalized label that people could write on using a coin or a key. The medal activation technology allowed customers to express their individuality, or simply label their beers to avoid confusion.

Ch. 16 - Advertising, Public Relations and Sales Promotion

Anheuser Busch and Bud Light have a had a long and storied history with regards to advertising. The general sense of advertising is to manage the communication between Anheuser Busch and the target market. Bud Light has found a particular niche in the world of professional sports and goes to great lengths to promote its products there.

Bud Light's first advertising campaign, when it was introduced nationally in 1982, centered around the theme "Bring Out Your Best" and featured the famous Budweiser Clydesdales. 



Not long after the advertising campaigns of the Clydesdales, Bud Light began focusing on campaigns featuring slogans like "Make it a Bud". Thanks to these successful ad campaigns, Bud light became the number one favorite light beer in the United States in 1994.

Today, Anheuser Busch focuses much of its energy and budget towards TV ads and sports sponsorships. If fact, 97% of Bud lights annual budget, which was $350 million dollars, goes towards TV ads. Bud Light is also the official sponsor of the NFL and spends up to $4 million dollars for a 30 second ad spot during the Super Bowl. 

Ch. 14 - Marketing Channels and Retailing

Anheuser Busch is distributed worldwide to a vast amount of retailers. From local convenient stores to big warehouse clubs, Anheuser Busch products and Bud Light are easily found.

Anheuser Busch uses an intensive distribution plan to distribute its products in every outlet where a target consumer might want to purchase its products. With Bud Light being the Star of the Anheuser Busch portfolio, it is usually placed where consumers where easily see it. Depending on the retailer, Bud Light may simply be placed on the shelves or may have a more elaborate display.

Anheuser Busch uses wholesalers to distribute Bud Light and all of their products. Anheuser Busch has grown to include more than 600 independent wholesalers. Bud Light is first produced in one of 12 breweries across the United States, it's producer. From the breweries, Bud Light then moves to one of the 600 Anheuser Busch wholesalers. The wholesalers are responsible for product distribution to retailers, where consumers can finally purchase Bud Light.

I visited two different retailers this week that both sell Bud Light, a traditional supermarket and a liquor store. The retailers were similar in customers and staff. Customers in both settings seemed like they knew what they wanted, with maybe a slightly more perusing taking place in the liquor store. the liquor store did have employees who approached me and asked if i needed assistance, something that did not happen at the supermarket. The associate at the liquor store explained to me how the beer selection was laid out, from local, craft beers to brands like bud light with a wide distribution network.

The liquor store did not have any special display for Bud Light. In fact, the only special display was the staffs favorite wine selections. The supermarket did have a small display at the end of the aisle for Anheuser Busch products that featured collateral focusing on outdoor activities, getting consumers excited for spring and summer. I did notice that in both the liquor store and the supermarket bud Light had a very visible location on the shelves. The liquor store associate explained to me that the Anheuser Busch wholesaler who delivers Bud Light is in charge of putting the product directly on the shelves, ensuring it is visible and easily found by shoppers.

Bud Light is a retail success, due in part to its intensive distribution and the active role its wholesalers play in the display and and delivery of the product. 

Ch. 6 Consumer Decision Making

 Ch. 6 Consumer Decision Making

 

Understanding consumer behavior and the decision-making process is vital for marketers and their companies to understand. Understanding how consumers make decisions helps shape the marketing environment for a product and helps products compete in the marketplace.

So what drives a consumer to purchase beer over wine or spirits?

What guides them in their choice of a light beer, specifically Bud Light?

Beer consumption is primarily reserved for social and leisure activities, and 80% of beer drinkers are men. Bud Light is a product readily available. It is sold in supermarkets, drugstores, mass-market retailers, convenient stores, and military commissaries, just to name a few. The availability of Bud Light adds a level of convenience for shoppers. They can find it for purchase without have to make an additional trip to a liquor or specialty store, where wines and spirits are sold.

 

The price point of Bud Light also makes the purchase of it a routine response behavior, a product that requires low-involvement. The national median for a case of 30 beers is $15.99 and a 6-pack is only $7.99. Research has shown that consumers round the price down, so their thought process is that they are only spending $7.00 for a 6-pack of beer, a price point that is approachable for most household incomes. 

The choice of light beer introduces another variable into the decision making process. Bud Light sales topped $5.9 million for 2013, making it the number one selling beer in America, but why choose Bud Light? The obvious fact is that Bud Light has 35 fewer calories, 4g fewer carbohydrates, and is 0.8% less in alcohol content than Budweiser. Going back to the history of Bud Light also helps to answer the question of why consumers choose Bud Light. Bud Light only came to fruition as a response to the popular Miller Lite, which was formed under the guile's of a “diet beer”. Miller Lite had already become a top seller, but do to Bud Lights heavy advertising and recognizable name, it took only two years to overtake Miller Lite. Once light beer was introduced into the American market there was no going back. Americans continue to seek out low-calorie, “diet” options in their everyday lives and beer is no exception.

Ch. 5 Developing A Global Vision

Anheuser Busch has long been known as an American brand, embodying Classic Americana. Anheuser Busch and Bud Light have not been left out of the global markets, though. The values and personality of the brand go far beyond a local market. Anheuser Busch has worked diligently on creating new marketing for an international marketplace and has grown to include 17 breweries internationally, in addition to the 13 domestic breweries.

In 1972 when Bud light was first launched, there was no internet, no cell phones, and no cable TV. In turn, there was no international market for beers. It took almost two decades before Bud Light was considered a global brand. In 2008, Anheuser Busch merged with InBev, an international brewing company, creating Anheuser Busch InBev. The Merger with InBev resulted in the worlds largest brewer, and one of the top five consumer product companies in the world. In recent years, Anheuser Busch InBev has implemented a number of key strategies to gain momentum in the global market. 

Anheuser Busch has expanded its distribution to 86 countries from just one, and is particularly popular in China. In 2009, Anheuser Busch partnered with Tudou.com, a Chinese video sharing site, to create a user generated online video contest. In 2010, Anheuser Busch created Bud United, an international entertainment property. Bud United's first effort centered around an online reality series called Bud House. Bud House featured 32 international football fans representing each country in the 2010 FIFA World Cup, illustrating Anheuser Busch's commitment to the global market.