Marketing

THE AMERICAN COLLEGE OF

THESSALONIKI

Marketing 301: Entrepreneurial and

Corporate Marketing Strategy Instructor:

Dr Eirini Tsichla

Individual Case study Please read the below case study and address all three discussion questions in a 2.000

word report.

In the rapidly changing world of today’s marketing manager, for a brand to survive and thrive

over the long run, its marketing strategy must stay ahead of the curve. It must continually evolve-

responding to the changing needs and preferences of customers and taking advantage of the

many new tools for connecting with its target markets. Over the course of its 150 years, the

Budweiser brand has not only survived but thrived, thanks to strong marketing management

focused on providing value to its customers.

In 1864, Adolphus Busch partnered with his father-in-law, Eberhard Anheuser, to begin brewing

beer in St. Louis. Anheuser was a marketing pioneer in those early years, using a strong mix of

the most cutting-edge promotional tools of the day: print and outdoor advertising, point-of-sale

material in saloons, an inventory of giveaway items, and a large cadre of traveling salesmen (yes,

they were all men back then).

Fast-forward to 1908. Anticipating Prohibition, Busch used newspaper ads to remind readers

(and regulators) that the beer industry employed 750,000 people who touched 4 million women

and children family members, and that 400,000 more people were employed on farms that

produced crops needed to make beer. In a patriotic theme to be revisited in future years, Busch

and Anheuser proclaimed to everyone that beer industry employees “love their homes” and “are

good, honest citizens, temperate, patriotic and true.”

Despite their best efforts to thwart it, Prohibition arrived in 1920, and the minds behind

Budweiser responded with a major modification to the product component of the marketing

mix: the introduction of nonalcoholic beer and soft drinks. When Prohibition ended in 1933, the

knee-jerk marketing approach of most beer brands was to simply announce they were back in

business with ads in the key newspapers of the day (The New York Times, for example).

Budweiser took a bit bolder marketing approach. In an early example of event marketing,

Budweiser celebrated the return of legal booze with six Clydesdale horses pulling a red, white

and gold beer wagon up New York’s Fifth Avenue to the Empire State Building. The majestic

horses were a very early “brand character” and of course they would go on to appear many times

in Budweiser promotions in the coming years.

After the Great Depression, Budweiser made a major product packaging innovation in the form

of beer in cans instead of bottles, which dramatically boosted product sales. The 1940s brought

the now-famous slogan, or tagline, the “King of Beers”, which is still in use today. In the 1980s,

faced with more health-conscious consumers, Budweiser responded with one of its biggest

product innovations: Bud Light. Although Budweiser grew to be the number one American beer

brand in 1988, by 2001 the Bud Light brand line extension overtook its big brother for first place

in U.S. beer sales. Also in the 1980s, Budweiser took the bold marketing strategy step of focusing

almost exclusively on sports-watching males. So it was only natural that Budweiser would decide

to dominate the premier sporting event-the Super Bowl, of course! While requiring a huge

promotional expenditure, the annual event gave them instant access to a massive audience of

these targeted sports-watching males, and it was also a great platform for some of the most

creative and memorable advertising in history (search for “Budweiser frogs commercial” or

“Budweiser Whassup commercial” to see a couple of famous classics). Budweiser was indeed the

King of Beers-and the King of Marketers!

But alas, markets rarely rely static for long and consumer tastes and preferences in the alcoholic

beverage category shifted in the 1990s toward wine and cocktails, causing a market decline in

beer sales and heightening the role of marketing management even more for Budweiser.

Ultimately, the emerging microbrewery craze set in; in 2008, Anheuser-Busch was sold to the

Belgian company InBev (the new corporate name is AB Inbev). Although no longer an

“American-owned” beer, Budweiser continues to push its strong association with Americana

through cutting-edge Super Bowl commercials and the return (after a hiatus) of the beloved

Clydesdales. Budweiser’s 2020 Super Bowl ad related the brand to “Typical American” people.

Defying prejudicial stereotypes such as “showing off his strength” where a firefighter pulled a

heavy horse in combating a forest fire, or “touching other people’s things” when a man helps free

a car stuck in the snow, the ad showed that Budweiser is a “typical American beer”.

And the innovations from Budweiser just keep on coming, including more products focused on

females and millennials. In 2012, it launched a blend of beer and cocktail called Lime-A-Rita, with

additional flavors subsequently released. In 2019, Budweiser introduced Natural Light Seltzer

and Bud Light Seltzer to compete in the 1$ billion seltzer market. Natty Light became the Official

Hard Seltzer of the Big 12 Conference, a first in college sports.

So, you may wonder, how did Ansheuser-Busch respond initially to the covid-19 crisis of 2020?

It redirected 5$ million from its sports budget to the American Red Cross. A-B worked with

sports partners to identify stadiums and arenas that could be used for temporary blood drive

centers. It also created a new version of the iconic Whassup ad as a public service announcement

seen on television and social media. The new Whassup featured basketball stars Dwyane Wade

and Chris Bosch in a video chat and are joined by Wade’s wife actress Gabrielle Union, WNBA

legend Candace Parker, and DJ D-Nice, all sticking out their tongues and asking “whassup?” The

spot ended on a serious note with Wade asking if everyone is truly doing okay. A message

appeared on the screen directing viewers to contact the Salvation Army if they are feeling lonely

during the time of isolation. Another spot called “One Team” championed everyday people

responding to the covid-19 crisis from health care workers to grocery clerks. It aimed to remind

people that America is at its best when people pull together.

What an amazing journey! Over all these years, Budweiser’s longevity and continued success is

a testament to the power of strong, adapting marketing management-always staying fresh in the

market, exhibiting relevance to new and upcoming groups of customers, and effectively using

the day’s most successful promotional tools to communicate the brand’s value and

differentiation.

Source: Marchall. G.W. & Johnston, M.W. (2023), Marketing Management, McGraw Hill 4th edition

Questions

1. Over the course of history, Budweiser’s marketing responded to major regulatory and cultural changes, such as Prohibition and the changing role of women in society. What other

changes are either happening now or are on the horizon to which today’s marketing

managers at Budweiser should respond? What should that response be?

2. In this account of Budweiser’s history, there is evidence of both “Big M” and “little m” in practice. Which of these two types of marketing do you think is Budweiser’s greater strength?

Support your answer with examples to demonstrate your understanding of these concepts

3. What do you think of using Bud Light and Natural Light brands in naming the new hard seltzer products? Does this brand extension dilute the beer brands even if bolstering the new

hard seltzers?

4. Budweiser is known for using humor and tug-at-your heartstrings appeals in advertising. Compare the original and new Wassup ads. View the “One Team” video. Do you think they

are effective? Why or why not?

Submission guidelines ü Upload the report on Activity. Do not send it over e-mail. ü The report should be typed in a 12pt font, double spaced and fully justified. ü A word count should also be included. ü The file should be named after your last name as: MKT301_MYLASTNAME ü A cover page should be provided including your name, student number, course, semester

and title of the assignment. ü Please spell check your report before submission ü Always use Headings and Subheadings to signpost the different sections of your report. ü Students are expected to use at least 5-7 academic references or well-respected

publications in the report. Powerpoint slides, blogs, student papers/theses, youtube videos or Wikipedia are not academic references.

ü Academic references should be provided both in-text and at the bibliography section following Harvard Style For more information please visit: https://www.open.ac.uk/library/referencing-and-plagiarism/quick-guide-to-harvard- referencing-cite-them-right

Caution: Non-original work will NOT be marked. Plagiarism is UNACCEPTABLE.

Assessment rubric

Grade Criteria (weight)

A B C F

Content knowledge & Analysis (70% of grade)

Addresses all assignment re- quirements and demonstrates an excellent knowledge and understanding of relevant the- ories and prac- tices. Provides a thorough analysis of key concepts. Con- clusions drawn are clear, logi- cal and origi- nal.

Addresses most assignment re- quirements and demonstrates a good knowledge and understand- ing of relevant theories and practices. Pro- vides a clear analysis of key concepts. Con- clusions drawn are mostly clear and logical.

Addresses some assign- ment require- ments and demonstrates an adequate knowledge and understanding of relevant theo- ries and prac- tices. Key con- cept analysis lacks clarity and conclusions drawn are not always clear and logical.

Assignment re- quirements are addressed in a superficial man- ner, if addressed at all. Poor un- derstanding of relevant theories and practices. Limited analysis and arguments. Conclusions are neither clear nor logical.

Structure and Presen- tation

(10% of grade)

Clear and well articulated ideas are pre- sented in a co- herent and log- ically structured manner. Ap- propriate pre- sentation lay- out and effec- tive use of FTPs (figures, tables and plates).

Information and ideas are pre- sented in a logi- cal sequence. Good presenta- tion layout and use of FTPs.

Adequate at- tempt at articu- lation and logi- cal structure. Inappropriate use of FTPs or not used where clearly needed to aid under- standing.

Poorly structured, lack of articula- tion. No use of FTPs where clearly needed to aid understand- ing.

Written Eng- lish (10% of grade)

Excellently written with standard spelling and grammar. Style is very clear, resourceful and academic.

Well written with minor lapses in spelling and grammar. Style is clear and academic.

Competently written with some lapses in spelling and grammar. Style is readable and academic in most places.

Poorly written with numerous deficiencies in grammar, spelling and expression. Style is non-aca- demic.

References (10% of grade)

A very wide range of academic and well- respected sources are used and are correctly cited both in-text and at the bibliog- raphy section.

A range of academic and well-respected sources are used, mostly correctly cited both in-text and at the bibliography section.

Some relevant references are provided. Weak referencing technique.

Very limited or no academic sources. Poor referencing technique.