Uploaded by Shubham Agarwal

Group A2 MMII Assignment

Submitted in partial fulfilment of the requirements of the course
Submitted to
Instructor – Prof. Sourav Borah
Academic Associate – Ms. Shernaz Muglai
Submitted by
Group A2
Amrit Verma (19011)
Kanishk Bhawsar (19031)
Rajat Garg (19050)
Shashwat Salgaocar (19062)
Shubham Agarwal (19058)
Yash Goyal (19027)
Date of Submission
18th December 2019
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.
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.
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.
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
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
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
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
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.
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.
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
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
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
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.
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
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.
- Want to move away
from unhealthy sugary
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.
- 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.
- 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
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.
- Want to cut down
on their excessive
alcohol use but are
unable to do so.
Exhibit 1: General reasons for non-alcoholic beer consumption in India (October 2019)