ANHEUSER-BUSCH analysis
Anheuser Busch Inc International Case Analysis:
Global Expansion Strategy Emily Purdie, Zeenat Rasheed, Holly Turner GM601 Marketing Management (Fall 2008)
I. Executive Summary
In 2005, Anheuser-Busch Inc. is at a position of strength. The company is the industry leader in the United States, with net sales of $14.9 billion in 2004. It is also ranked as the world’s largest brewer and its subsidiary, Anheuser-Busch International Inc. (A-BII) has built a significant presence in foreign markets, selling beer in 80 countries worldwide. Additionally, A-BII is successfully meeting its business objectives for its key brands through powerful marketing mix strategies. Budweiser and Bud Light, the company’s flagship products, are extremely successful on a domestic and global scale. Budweiser is the world’s best-selling beer, accounting for 4.4% of the global beer market, and Bud Light is ranked fourth in global beer sales, with 1.5% market share.
Given the general worldwide consumption trend towards lighter and less bitter beers, these products are expected to see continued success and growth.
Global distribution is one of A-BII’s greatest strengths. Through strategic partnerships with top local brewers and distributors, the company is able to develop robust distribution models in countries throughout the world and can exercise influence in growing foreign beer markets.
These partner relationships are large scale and mutually beneficial, allowing both partners to enjoy shared production and management best practices. For instance, Kirin Lager is the world’s third most popular beer, with a 1.7% share of the global beer market. However, Kirin Brewery
Co. Ltd. is also a licensed brewer for A-BII in Japan, and provides marketing, sales and distribution support to the company. This kind of partnership allows A-BII to gain a strong foothold in the
Global Expansion Strategy Emily Purdie, Zeenat Rasheed, Holly Turner GM601 Marketing Management (Fall 2008)
I. Executive Summary
In 2005, Anheuser-Busch Inc. is at a position of strength. The company is the industry leader in the United States, with net sales of $14.9 billion in 2004. It is also ranked as the world’s largest brewer and its subsidiary, Anheuser-Busch International Inc. (A-BII) has built a significant presence in foreign markets, selling beer in 80 countries worldwide. Additionally, A-BII is successfully meeting its business objectives for its key brands through powerful marketing mix strategies. Budweiser and Bud Light, the company’s flagship products, are extremely successful on a domestic and global scale. Budweiser is the world’s best-selling beer, accounting for 4.4% of the global beer market, and Bud Light is ranked fourth in global beer sales, with 1.5% market share.
Given the general worldwide consumption trend towards lighter and less bitter beers, these products are expected to see continued success and growth.
Global distribution is one of A-BII’s greatest strengths. Through strategic partnerships with top local brewers and distributors, the company is able to develop robust distribution models in countries throughout the world and can exercise influence in growing foreign beer markets.
These partner relationships are large scale and mutually beneficial, allowing both partners to enjoy shared production and management best practices. For instance, Kirin Lager is the world’s third most popular beer, with a 1.7% share of the global beer market. However, Kirin Brewery
Co. Ltd. is also a licensed brewer for A-BII in Japan, and provides marketing, sales and distribution support to the company. This kind of partnership allows A-BII to gain a strong foothold in the