INTEGRATED MARKETING PLAN FOR BUDWEISER 0.0 Submitted in partial fulfilment of the requirements of the course MARKETING MANAGEMENT - II Submitted to Instructor – Prof. Sourav Borah Academic Associate – Ms. Shernaz Muglai Submitted by Group A2 Members: Amrit Verma (19011) Kanishk Bhawsar (19031) Rajat Garg (19050) Shashwat Salgaocar (19062) Shubham Agarwal (19058) Yash Goyal (19027) Date of Submission 18th December 2019 INDIAN INSTITUTE OF MANAGEMENT, AHMEDABAD ABinBev - About the Company Anheuser-Busch InBev, a publicly-traded company, is in the business of brewing alcoholic drinks, more specifically, beer. It currently has over 500 beer brands including global brands such as Budweiser, Corona, etc. Non-Alcoholic Beer Segment In order to cater to a larger market, ABinBev launched non-alcoholic beer globally in 2015. This was introduced in the form of various brand extensions such as Brahma 0.0 in Brazil, Budweiser Prohibition Brew in Canada, Castle Free in South Africa, etc. In India, ABinBev launched Budweiser 0.0 in 2019. Target Group Social Conformists A large chunk of the Indian population does not consume alcohol. Even though not drinking alcohol is a personal choice, this category of people looks to fit in at parties and social engagements, where consumption of alcohol is prevalent. Non-alcoholic drinks could thus empower a person to socialize without drinking alcohol. Competition The Non-Alcoholic Beer segment, despite being in a nascent stage in India, has seen the launch of products from various traditional alcohol brands as well as new brands. Non-Alcoholic beer was first launched in India in 2016 by Coolberg. It was only in October 2018, when Kingfisher launched its first non-alcoholic beverage “Kingfisher Radler’ in India that the buzz around non-alcoholic beer segment was created. This was quickly followed by ABinBev and Heineken, who launched their global non-alcoholic beer in India in mid-2019. Coolberg, an Indian Company, produces non-alcoholic beer in seven flavours of which only 1 flavour provides the taste of actual beer while the rest six are developed on fruity flavours. Packaged in beer shaped bottles, a 300 ml bottle is priced at Rs. 109. Kingfisher Radler interestingly positioned its product as non-alcoholic ‘drink’ and not just beer. As per the company website, it is a ‘soft drink with 0% alcohol’. The product comes in flavours of lemon, ginger, etc. Analyzing the packaging and colour scheme of the product, it is deduced that a customer shall not have beer as a reference point while consuming this product. A 300 ml can of Radler is priced at Rs. 45, a significantly lower price point as compared to other brands. According to our analysis, this is because the Company has put soft drinks as their frame of reference and accordingly positioned the product. Heineken 0.0 was launched in a similar time frame as Budweiser 0.0 and has followed the same trajectory in India. The product comes in only one flavour and is designed to give the taste of beer. A 330 ml can of this product is priced at Rs 75. Current Marketing Mix Product and Price As discussed above, Budweiser 0.0 is positioned as a drink for non-alcoholic beverage consumers. The product is prepared using the unique Budweiser recipe, with barley malt, choice hops, yeast, pure filtered water and the distinctive beechwood aging process; post which, during the final stage of which the alcohol is removed through a special process to retain the taste that’s true to the standards of Budweiser. It is understood from the Company personnel that there is absolutely 0% alcohol in the product as compared to a few other companies that actually carry a minimal alcohol content (less than 0.05%) even in non-alcoholic beer. This new product is available in bottles and cans with the same volume as Budweiser beer (330ml and 650ml). Externally, the pack design language resembles Budweiser, barring the 0.0 written below the brand name and blue streaks reading ‘non-alcoholic’ running along the seams of the can. Even with no alcohol, the beer tries to retain the flavour as well as the aftertaste associated with the Budweiser brand. The can is priced at an MRP of Rs 80 and the bottle can be had for Rs 90 for 330ml whereas the 650ml bottle is priced at 150. The firm currently lacks capability to manufacture 0.0 in India and imports it from China. This is why the drink is priced higher than ideal, which the firm would like to change in the future. Place By virtue of it being a unique offering, AB InBev’s distribution strategy and reach for Budweiser 0.0 is a significant departure from its existing distribution network for alcoholic beer which, almost exclusively, included Liquor off shops, pubs & bars and restaurants/lounges with a liquor license. The reasons behind this appear to be manifold including, but not limited to, government regulations, target groups, purchase occasions and the customer purchase journey. AB InBev has made the Budweiser 0.0 available in supermarkets, departmental stores and kirana shops, pubs, restaurants (with and without liquor license) and small eateries. In the absence of existing channels for distribution for a lot of the above-mentioned outlets, it has roped in distributors of other carbonated drinks like Coke or non-alcoholic beverages like Red Bull. Promotion Budweiser 0.0 has been poorly promoted in the five months since its launch in July. Most of the promotion so far has been offline. The only online promotion has been in the form of unstructured posts by a few influencers on social media platforms, particularly Instagram. On the offline front, AB InBev has put up posters outside outlets stocking the Budweiser 0.0. Bud 0.0 standees have been placed inside a handful of lounges and restaurants serving the product, while a can be seen displayed on the counters of the small eateries. New Integrated Marketing Plan Purpose o To create awareness in the minds of the target customers in India about AB InBev’s non-alcoholic beer Budweiser 0.0. o To advance its mission of "promoting responsible drinking" with non-alcoholic beers. Budweiser’s Stand by You campaign positions it as a brand which is a friend of good and bad times. o To take the campaign forward by launching its non-alcoholic beer Budweiser 0.0 which can be enjoyed on all occasions. o To expand the existing market by capturing the non-alcoholic consumers and increase brand association with restaurants and outlets where alcohol is not served. o To place Budweiser 0.0 as a must have item for all social gatherings. Problem statement The company is pondering upon how to effectively convey the utility of Budweiser 0.0 to the target group by adressing their major pain point i.e. isolation in a social gathering comprising of alcohol drinkers. It also wishes to figure out how to ensure timely and effective trial as well as adoption of Budweiser 0.0 amongst the target segment. Objective of proposed IMP 1. To bring about a change in consumption behaviour of non-alcoholic beverage drinkers and drive them towards adopting non-alcoholic beer as a preferred choice of beverage 2. To convey the pricing message in a manner that a separate category is created in the mind of customers for a frame of reference 3. To ensure availability of product through channels that the target group shall approach to consume the product 4. To ensure that the customers understand the utility of the product Proposed Integrated Marketing Plan Product The current taste conveys the spirit of beer adequately, while the packaging and insignia tie in the brand with the company’s legacy. Hence, no changes are required at present. Pricing The current price point should be maintained until production in India becomes feasible. Analysing the adoption rates amongst the consumers, the price may be lowered to match that of its closest competitor Heineken 0.0 at Rs 70 for 330 ml. Placement Both online and offline channels are hugely crucial to the success of the product. A. Offline: In its early stages, the offline channel will be responsible for creating awareness among the target non-alcoholic group. 1. Traditional Channels: ● Places traditionally associated with alcoholic products such as pubs, restobars, alcohol shops, and airport lounges should also carry 0.0. Not only do they form our strongest competency currently, but this is also where we can find socially drinking consumers. ● Non-alcoholic beers will also strongly benefit from word-of-mouth publicity such as an alcohol-consuming friend’s personal recommendation, and hence touchpoints with alcohol consumers is crucial. ● Also, some push from the side of restaurant/lounge service staff will help in inducing more trials. Hence, investment into familiarizing waiting staff as well as retail salespersons should be prioritized. 2. New Channels: ● Since the product is non-alcoholic, we can expand our reach by over 10 times by selling through large modern trade stores and supermarket chains in tier I and II cities to start with. ● We can also stock our product in restaurants where customers will be able to enjoy their meal with 0.0 as a strong contender for choice of beverage. This hypothesis is supported by healthy daily sales of Heineken 0.0 even in pure-veg, non-alcohol-serving restaurants in Ahmedabad like Sam’s Pizza, largely driven by customer pull. 3. Unconventional Channels: ● The firm should also target live sports matches, which have a long-standing association with beer in the minds of sports enthusiasts, partly due to western influences. Sale of alcohol is legally prohibited to prevent unruly behaviour resulting from drunkenness. Budweiser 0.0 can benefit from this without it resulting in cannibalisation. B. Online: ● ● The product should be made available across more e-commerce platforms beyond the current portfolio of Amazon, Big Basket, and Swiggy. Grofers, Zomato, and Uber Eats can be the next targets. Not only will the brand benefit from visibility among the scores of unique visitors to these platforms, but it will also make it possible to leverage recommendation engines and online promotions. Promotion The central message of celebration in social gatherings is the need for bonding in a group. Budweiser 0.0 is the drink that offers the opportunity to hang out, engage and celebrate moments with your friends without the apprehension of alcohol that non-alcoholic drinkers have. The side-effects of alcohol are neutralised and the claim of zero trace of alcohol should also help to penetrate India’s large untapped population exercising abstinence on religious grounds. The campaign is divided into 2 spaces – physical and digital media. Physical Media: Increasing visibility of the product at points of sale. ● ● In restaurants, optional bundling of drinks with a buffet or unlimited starters and a prime position in the drink’s menu is recommended. The aim is to create a push demand for the drink by waiters’ engagement with the diners. In lounge areas and retail outlets including small shops and chain outlets, provide Budweiser 0.0 branded mini fridges with drinks stocked in order to differentiate the product in beverages category and capture prime attention of the shopper. Digital Media: The advertisement campaign should revolve around the anxiety of missing out on moments with friends due to personal preferences, a hindrance in bonding. The touchpoints would be pages on social media through video content consumed by a potential consumer on a normal day. The initial focus is on emphasising the need for that experience of celebration then moving on to introducing the category with product differentiation introduced at a later stage. Some of the themes which convey the message can be – o Celebrating when it matters o Be yourself, Be Happy, Be a King! Additionally, partnering with fests across India where free samples of the drink can be provided as familiarising the target segment with its taste is the next step after creating awareness about the need through digital presence. Target Segment Desire Detail - Want to move away from unhealthy sugary drinks. ! There is a shift towards healthy foods because of increased knowledge emanation in the country. Market leaders like CocaCola cater to this segment through Coke Zero offering. Fitness freaks - Looking for natural ingredients in what they eat. ! Non-alcoholic beer could compete in this segment as it has lower calories than traditional soft-drinks. Its natural preparation from ingredients like hops and barley could give it a competitive advantage over diet cola offerings. ! Prohibition consumers - Want to experience the taste or process of drinking in a place where it is socially unacceptable or statutorily prohibited. The workplace, public spaces, and situations requiring driving later pose as an avenue for drinking non-alcoholic beer for people who love the taste/brand and want to stand out of the crowd. ! Non-alcoholic beer can give a familiar experience to such drinkers. ! As non-alcoholic beer gives a similar experience without the negative consequence of getting ‘high’, this segment could use non-alcoholic beer as a transition away from alcohol. ! Moreover, the similarity of the product with alcohol can induce a placebo effect of being ‘high’, thus further improving their chances of giving up alcohol. - Looking to fit-in and seeking attention. ! For the age segment 15-21, alcohol is associated with being cool and masculine. Thus, they are open to experimentation. -They want to explore the enigma that draws adults so strongly toward alcohol ! A non-alcoholic beer empowers this segment to experience the taste and partially uncover the enigma of alcohol while showing the beer off to increase their coolness quotient. Addicts Underage - Want to cut down on their excessive alcohol use but are unable to do so. EXHIBITS Exhibit 1: General reasons for non-alcoholic beer consumption in India (October 2019)
