This was a project that my team - which I am very proud of - did for a business school case competition. I took charge of conceptualizing, designing and producing the final deck of slides for presentation to our client from AB-InBev -- all within 24 hours! We delivered a great presentation and impressed the judges enough to achieve an outstanding team score. I hope you will enjoy viewing the slides as much as I did putting them together. And, if you ever find yourself in need of help to put together a professional slide presentation, remember to reach out to me -- I'd be more than happy to lend my expertise !
p.s. Thanks for the love, everyone. I'm excited to see my slides go viral within a day! Great if you could post your comments on this wall or email to francisfoo@wustl.edu.
4. Recommendations Industry Analysis
Strategy
Formulation
Ideation and
Execution
Strategy
Evaluation
Team 24
Recommendations
Leverage heritage and tradition of Budweiser to
re-brand Budweiser as the beer that offers the
classic American drinking experience
Introduce new product variant targeted at a
hybrid “Premium-High end” segment
5. Industry Analysis
Team 24
Strengths :
146 years of rich tradition and heritage
Iconic American brand, with well-established reputation
Strong brand equity
Produced and marketed by AB InBev
A globally known brand
Higher perceived quality than Sub-premium & Premium Light; more comparable to high-end
Weakness :
Weak brand loyalty
Lacks appeal to the millennial generation
Sticky brand image
Diluted image due to foreign ownership
Recommendations Industry Analysis
Strategy
Formulation
Ideation and
Execution
Strategy
Evaluation
6. Industry Analysis
Team 24
Opportunities :
Resurgence in vintage movement and popular culture
Highly fragmented market with numerous small players
Huge untapped overseas market, where Budweiser enjoys a strong brand reputation
Dynamic demographical shifts
Threats :
Consumer preference for light and craft beers
Threat from wine and hard liquor
Relatively lower perceived quality with mass production
Recommendations Industry Analysis
Strategy
Formulation
Ideation and
Execution
Strategy
Evaluation
7. Team 24
Industry Analysis
Porter’s 5 Forces Analysis
Threat of new entry
1. Microbreweries
2. High capital expense required
to compete effectively on a
national scale.
Rivalry among existing competitors
1. Highly fragmented market with
competition from small players
2. Stiff competition across categories
from premium light to high-end beer
Threat of substitutes
1. Many substitutes including
wine, home brewing and
hard liqueur.
Bargaining power of suppliers
1. Easy to switch between
suppliers
Bargaining power of
customers
1. Wide variety of beer
to choose from
2. Consumers eager to
try new varieties of
beer
Low threat
Moderate threat
High threat
Recommendations Industry Analysis
Strategy
Formulation
Ideation and
Execution
Strategy
Evaluation
8. Team 24
Industry Analysis
Opportunity to increase market share
Anheuser
-Busch
InBev
48%
MillerCoo
rs
30%
Others
22%
Sub-
premium
31%
Premium
Light
37%
High End
17%
Premium
Regular
15%
Budweiser ~ 7.6% share
U.S Beer Market Segmentation by category
Recommendations Industry Analysis
Strategy
Formulation
Ideation and
Execution
Strategy
Evaluation
9. Industry Analysis
Activity Systems Map
Strong
heritage
and
tradition
Well-
recognized
brand
Iconic
Strong
distribution
networkProduced by
AB InBev
Global
Presence
Advertising
campaigns
Professional
marketing
team
Established
manufacturing
process
Strong brand
building tools
Top global
brewery
Recommendations Industry Analysis
Strategy
Formulation
Ideation and
Execution
Strategy
Evaluation
10. Strategy Formulation
Team 24
> Consumer behaviors and trends drive business strategy
Growing marketing trend toward vintage (Wall Street Journal)
Authentic, Time-tested, Original
Observations:
Precedence:
Many companies have successfully gone vintage with their flagship brands
Pepsico - Pepsi, Hostess - Twinkies, General Mills – Cheerios
Lessons from Pepsi
Recommendations Industry Analysis
Strategy
Formulation
Ideation and
Execution
Strategy
Evaluation
11. Strategy Formulation
Team 24
> Consumer behaviors and trends drive business strategy
Draws on Strengths
Iconic, Heritage
Engages Millenial Generation without compromising their loyal customer base
Fosters consumer-generated marketing support
Why this strategy works for Budweiser:
“Classic American Drinking Experience”
Recommendations Industry Analysis
Strategy
Formulation
Ideation and
Execution
Strategy
Evaluation
12. Strategy Formulation
Team 24
SWOT
Analysis
Porter’s 5
Forces Analysis
Market
evaluation
Consumption
behaviors and trends
Leverage Budweiser’s heritage to re-brand
Budweiser to reach out to non AB InBev
“Sub-Premium” and Premium (19%)
consumers
1
Recommendations Industry Analysis
Strategy
Formulation
Ideation and
Execution
Strategy
Evaluation
13. Team 24
Ideation and Execution
Strategy 1: Leverage Budweiser’s heritage to re-brand Budweiser
Vintage brand
• Can Label
• Tap Design
Sell beer in cans at targeted bars
• Local establishments
• Metropolitan cities
Non-traditional, understated advertising
• All-American Beer Paraphernalia
• Traditional print ads
• Sponsor targeted events
Product
Pricing
Promotion
Placement
Price to remain unchanged
Signal to current Premium consumers that product has not
changed
Recommendations Industry Analysis
Strategy
Formulation
Ideation and
Execution
Strategy
Evaluation
14. Team 24
Strategy Evaluation
Internal consistency
Strategy 1: Leverage Budweiser’s heritage to re-brand Budweiser
Capitalize on popular vintage trend without alienating current
drinkers
Dynamic consistency
Leverage brand association with tradition, heritage, and
authenticity
External consistency
Unrivaled credibility due to number of years in business
Recommendations Industry Analysis
Strategy
Formulation
Ideation and
Execution
Strategy
Evaluation
15. Strategy Formulation
Team 24
SWOT
Analysis
Porter’s 5
Forces Analysis
Market
evaluation
Consumption
behaviors and trends
Launch new hybrid “Premium-High End”
product variant targeted at consumers in
“Premium-High End” (15.8%) categories
2
Recommendations Industry Analysis
Strategy
Formulation
Ideation and
Execution
Strategy
Evaluation
16. Ideation and Execution
Strategy 2: Introduce new “Premium-High End” product variant
• New product name and recipe
• Available at select high-end pubs and bars for onsite
consumption only
• Market to high-end bars and pubs
• Celebrity association in a non-intrusive, subtle way
• Targeted print advertising for niche consumer segments
• Community engagement
Product
Pricing
Promotion
Placement
• Price at 130 of index
Team 24
Recommendations Industry Analysis
Strategy
Formulation
Ideation and
Execution
Strategy
Evaluation
17. Team 24
Strategy Evaluation
Internal consistency
Strategy 2: Introduce new product variant targeted at a hybrid “Premium-High End” segment
Caters to needs of consumers with unique tastes and a
preference for a beer that matches their societal status
Dynamic consistency
Leverages AB InBev’s brand building and management
experience while reinforcing market leadership position
External consistency
Growing demand for high-end beer in a highly fragmented
category and an increasing sophistication of consumers
Recommendations Industry Analysis
Strategy
Formulation
Ideation and
Execution
Strategy
Evaluation
18. Team 24
Recommendations
1. Leverage heritage and tradition of Budweiser to re-
brand Budweiser as the beer that offers the classic
American drinking experience
1. Introduce new product variant targeted at a hybrid
“Premium-High End” segment
19.
20. Performance Assessment & Risk Mitigation
Performance Assessment
1. To review performance of strategies
on semiannual basis
2. Conduct brand audit to monitor
performance
Goals of Strategies
Stabilize performance of Budweiser
Contribute to AB InBev’s growth
Recommendations Industry Analysis
Strategy
Formulation
and Evaluation
Ideation and
Execution
Performance
Assessment & Risk
Mitigation
Risk Mitigation
Potential cannibalization to be expected
May need to alter promotion strategies in
response to consumer reaction
Ensure strategies are well integrated
Harness power of social media judiciously