Beer industry - marketing plan abinbev

MRKT5980 International Marketing

Fall II 2008
Case study: Assignment

Beer industry –ABInBev becoming market leader in Europe within 5 years

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By group 1:

Maria, Mads, Roman & Irene

Content list

1. Corporate Strategy Components 3
2. Methodology of research 3
3. Where to play 4
4. Strategic Situation Analysis 4
4.1 Summary ofenvironmental factors 4
4.2 Main competitors 4
4.3 Summary of opportunities and threats 5
4.4 Marketing Mix –target market descriptions 5
5. How to win
Market entry strategies:
Germany 6
UK 7
Spain 8
Russia 9
The 5 year marketing plan 10

6. Appendix
Results from regional analysis 11
Porter’sfive competitive forces analysis 16
Environmental analysis 16
SWOT analysis 19
USP/differentiation of main competitors 22

References

1. Corporate Strategy Components
Scope mission and intent
Anheuser-Busch InBev (ABInbev) is a publicly traded company based in Leuven, Belgium. It is the largest brewer in the world by volume (producing over 202million hectolitre on an annual basis), and one of the world's top five consumer products companies. ABInBev manages a portfolio of over 200 brands that includes the global flagship brands Budweiser, Stella Artois, and Beck’s. Other fast growing multicountry brands are Leffe and Hoegaarden. In addition, the company owns a 50 percent share in Grupo Modelo (Mexico's leading brewer and owner of theglobal Corona brand), and a 27 percent share in China brewer Tsingtao, whose namesake beer brand is the country's best-selling premium beer.

ABInBev’s dedication to heritage and quality is rooted in brewing traditions. Geographically diversified with a balanced exposure to developed and developing markets, the company strives to be the Best Beer Company in a Better World. On a pro-forma basis for2007, the combined company would have generated revenues of 26.4 billion euro.

Objectives
ABInbev has the objective to be the market leader in Europe within a five year period.
 
Development strategy
In addition to maintaining current sales, the objective can be reached through targeting 4 main countries in Europe based on volume and growth potential. These countries are; Germany, UK, Spainand Russia. The summary of strategy per country is listed in table 1.

Table 1: Summary of strategy:
|Country |Focus |Differentiation |Value |
|Germany |Budweiser & Sport |Global quality beer |Brewed after the purity law ||UK |Stella Light and Bud Light & Healthy |Connecting beer with a healthy life |Reduced calories & “Makes you look good” |
| |lifestyle | | |
|Spain |Stella Light and Beck`s & Fashion |A fashionable beer|Reduced calories & “Makes you look good” |
|Russia |Stella and Sibirskaya Korona |Premium beer for the upper class & Quality |Affordable beer for all people |
| | |product for an affordable price | |

Sources of Synergy
Sources of synergies to increasethe efficiency of the company after the merger are:
- The Budweiser and Bud Light brands (brand recognition, reputation) will be used for Germany and UK
- R&D and marketing experience from AB on Bud Light to develop Stella Light
- Reduction of workforce (headquarters, at breweries and its distribution network)
- Structure of distribution

2. Methodology of research
Step 1: Dividing the...