Ch. 8 - Segmenting and Targeting Markets

Market segmentation is the process through which Bud Light was originally conceived and created. . Miller Light had been introduced 9 years earlier as the first light, or "diet", beer, and Anheuser Busch had been working on competitive product. Bud Light came to fruition as a product item, which later developed into a product line, as a direct result of Miller Light and its success. There was now a specific market segment consisting of beer drinkers who desired and sought out light beers.

The market segment for Bud Light can be broken down from very general all the way to a specific market segment. In the most general sense, a market segment for Bud Light could be any individual over the age of 21, since that is the legal drinking age. More specifically, Bud Light has discovered that its target market is individuals 21-27. Since its inception, it has always been that age group that makes up the largest number of consumers, starting with baby boomers and continuing to move all the way through generation X and millennials.

Bud Light uses a concentrated targeting strategy to increase its market penetration. The best example is though Bud Lights sponsorship of sporting events. With big sports organizations such as the NFL and the FIFA World Cup, Bud Light is consistently increasing its market share amongs young adults.