CASE III
MARKETING MANAGEMENT
GROUP 06
•
•
•
•
•
•
•
•
INTRODUCTION
INFORMATION THAT PROVIDED BY BUDNET
BUDNET’S SUPERIORITY
BUDNET’S ADVANTAGE FOR AB COMPANY
MARKETING INTELLIGENCE
KEY OF SUCCESS
CONCLUSION AND RECOMMENDATION
QUESTION DISCUSSION
COMPANY BACKGROUND
• Anheuser-Busch traces its origins back to the
Bavarian brewery, which was established in 1852.
ANHEUSER BUSCH
Eberhard Anheuser acquired the Bavarian brewery in
1860 and renamed it E. Anheuser & Co.
In 1864, his son-in-law, Adolphus Busch, joined the
company that would later become Anheuser-Busch.
BUDWEISER
And in 1876 Budweiser was introduced…
Budweiser (Anheuser-Busch) is an American-style lager and
is one of the most popular beers in the United States.
Budweiser is produced in various breweries located around
the United States and the rest of the world.
BudNET
Anheuser-Busch (AB) can be called "King of Data Collection"
and the success of this organization can be credited to an
emphasis on data collection and data sharing.
Anheuser-Busch also the leading on American brewer,
holding a 49.2% share of U.S. beer sales in (Press release
Aug 10, 2009/www.anheuser-busch.com).
BudNET
The secret to their superior data mining and collection is
BudNET, an online system that connects wholesalers,
retailers, and other business partners by allowing them to
gather data on sales, products, customers, and competitors.
The company pioneered this new high-tech strategy and
positive results are driving competitors to re-evaluate their
own strategies
HOW BUDNET WORKS
OPERATION INFORMATION
• Financial information, such as : accounts receivable,
sales, etc
• Other data pertaining to Anheuser-Busch's products
CUSTOMERS INFORMATION
• Tool to track beer-lover’s buying habits : Performs
Nielsen-style consumer surveys to see what beer
drinkers buy and why.
• Products : After seeing data on consumer shifts in
dietary habits, Anheuser -Busch successfully
launched low-carb Michelob Ultra.
COMPETITOR INFORMATION
• Competitor’s products
• Competitor’s prices
• Competitor’s displays
BudNET
• The public front page of BudNet advertises the following
functions:
BUDNET’S SUPERIORITY
• Collecting the data in a nightly nationwide sweep of
its distributors' servers
• Several thousand reps and drivers serve as the eyes
and ears of a data network through which
distributors report, in excruciating detail, on sales,
shelf stocks, and displays at thousands of outlets.
BUDNET’S SUPERIORITY
• Can captured information timely
The key to Anheuser- Busch's real -time analysis of
marketing effectiveness is timely data : getting
information back from wholesalers and retailers on
what is selling where and when.
BUDNET’S SUPERIORITY
• BudNET has made a deadly accurate science out of
finding out what beer lovers are buying, as well as
when, where, and why.
• By utilizing BudNET and its other technology data
sources, Anheuser-Busch has been able to maintain
control over various demographic environments
within and outside of the United States
BUDNET’S SUPERIORITY
• BudNET and bar code scan data can also be credited
for helping to track consumer buying behavior
influenced by cultural, social, and personal factors
BUDNET’S SUPERIORITY
• By using a variety of internal and external data
sources -including consumer's demographics, POS,
and market data- Anheuser-Busch could guide
product assortment decisions
THE ADVANTAGE
• BudNET do much more than keep tabs on the flow of icy cold
Bud off retailers' refrigerated shelves. Using portable
transaction computers, the delivery people also log data on
competing products, identifying what else is on the retailers'
shelves
THE ADVANTAGE
• The company has made significant marketing investments to
build Budweiser brand recognition outside the United States
and operates overseas breweries in China and the United
Kingdom. The company also has a significant equity position
in Grupo Modelo, Mexico's largest brewer and producer of
the Corona brand
THE ADVANTAGE
• Budnet uses Sales reps. Collect new orders and rack
competitors’marketing efforts on PDAs and laptops => help
Anheuser-Busch know exactly how many products need to be
delivered to each store
• The success of SCM system help Anheuser-usch make its
supply chain more effective and efficient => find the raw
components they need to make their product, manufacture it,
and deliver it to customers
THE ADVANTAGE
• BudNet helps to keep Anheuser-Busch on top by logging
competitor information as well as what worked and didn’t
work for the Anheuser-Busch
Strategy Analysis
• Old System – hardcopy invoices and sales orders get
manually entered into a pc. This data gets compiled
into monthly Excel reports to see best brands and
trends.
• New System – Data collected daily from handheld
pcs and is uploaded to servers. The data tells AB
what brands are selling in which packages using
which medley of displays, discounts, and
promotions.
What is Marketing Intelligence?
Market intelligence (MI) is, “the process of acquiring and analyzing
information in order to understand the market (both existing and potential
customers); to determine the current and future needs and preferences,
attitudes and behavior of the market; and to assess changes in the
business environment that may affect the size and nature of the market in
future.”
- Cornish S. L
Purposes of Marketing Intelligence
• Customer satisfaction
• Creative and effective marketing strategy
• Realities of the company and its competitors
– Strengths and weaknesses
• Realities of the marketplace
– Opportunities and threats
• Competitive advantage
• Anticipate the competitive move and develop competitive
strategies
Sources of Marketing Intelligence
• Company’s own personnel
– Executives
– Consultants and specialists
– Purchasing agents
– Salespersons
– Other employees
Sources of Marketing Intelligence
(Cont’d)
• Company’s supply chain
– Suppliers
– Resellers
– Customers
– Business partners
– Business allies
– Other marketing intermediaries
Sources of Marketing Intelligence
(Cont’d)
• Competitors
– Annual reports
– Speeches and press releases
– Products and labels
– Advertisements and other marketing
communications
– Web sites
Sources of Marketing Intelligence
(Cont’d)
• Government sources
– Census of population
– Census of industries
– Other government agencies and publications
• Academic sources
– Theses and research reports
– Academic journals
– Academic forum
Sources of Marketing Intelligence
(Cont’d)
• Publications and mass media
- Television/radio news
- Newspapers
- Magazines and trade journals
• Syndicated services
- Panel data
- Retail audit
- Customized reports
Sources of Marketing Intelligence
(Cont’d)
• Electronic databases
– CD-ROM
– On-line databases
• Internet
– Search engines
– Portal sites and communities web sites
– Web boards
– Chat rooms
– Social media
Key Success Factors
• Getting wholesalers and retailers to agree to collect
the data at the front lines
The best way for them to capture the detailed
information was to request the responsibility be
handed over to the front line, delivery people,
wholesalers, and retailers. It became effortless when
the distributors would benefit from access to this
data as well.
Key Success Factors (Cont’d)
• More reliable exposure to demographic
environment
BudNET is used internationally and allows AB to
become cognizant of growing populations of various
ethnicities and be able to study their specific wants
and habits faster than any other competitor.
Key Success Factors (Cont’d)
• More reliable exposure to demographic environment
(Cont’d)
Recognizing the fact that China is the largest beer market
in the world (World’s 10 Largest Beer Markets, 2005), AB
created a strategic partnership with
Tsingtao Brewery Company Ltd., China’s
leading brewer, and acquired Harbin Brewery
Group, Ltd., the No. 5 brewer in China
(www.anheuser-busch.com).
Key Success Factors (Cont’d)
• More reliable exposure to demographic environment
(Cont’d)
AB has also expanded its business in order to reach out to the
Hispanic community, one of the largest growing demographics
in the country. In 1993, AB acquired 50 percent of Grupo
Modelo creating an exclusive import and distribution
agreement over Corona products. Finally, in recognition of the
large presence of Hispanics in the US, AB began offering
Tequiza in 1999. As a result of its extreme popularity within
this demographic, Tequiza became the most successful newproduct introduction in company’s history.
Key Success Factors
• More reliable exposure to demographic
environment (Cont’d)
In line with the plans to expand Budweiser in highgrowth markets, during the second quarter 2008,
Anheuser-Busch acquired the remaining 50%
ownership of its joint venture partner in India and
launched Budweiser in Vietnam.
Key Success Factors
• Keeping up with consumer behavior and quickly
changing lifestyles
BudNET can also give information to track consumer
buying behavior influenced by cultural, social, and
personal factors.
AB’s marketing team searched for relationships
between their products and lifestyle groups and
identified a need for a low-carb, full bodied beer to
complement the developing trend of low-carb diets.
Key Success Factors
• Keeping up with consumer behavior and quickly changing lifestyles
(Cont’d)
On Aug 10, 2009 Anheuser-Busch launched SELECT 55, the world’s lightest
beer, in the U.S. A smooth, light golden lager with 55 calories and 1.9g
carbohydrates per each 12-ounce serving, SELECT 55 answers a growing
demand among a segment of adult drinkers who are seeking lower-calorie
alcohol beverages to complement their busy lifestyles.
Whether adult drinkers are looking for light refreshment after
a busy day or if they simply enjoy delicious calorie-conscious
foods and beverages, SELECT 55 offers an unparalleled clean,
crisp flavor with fewer calories than any other beer currently
available.
Key Success Factors (Cont’d)
• Becoming aware of social and cultural trends
Data collected through BudNET, and other data linked
sources, allowed AB to recognize major trends. There has
been a gradual shift in consumer tastes toward premium
beers in recent years.
The sales of premium beer have increased for years as more
and more beer drinkers discover the pleasures of a good
premium beer can rival a fine bottle of wine. They are as
distinct from a cold backyard beer on a hot summer day as a
fine steak is from a hamburger.
Key Success Factors (Cont’d)
• Becoming aware of social and cultural trends (Cont’d)
• AB has responded by forming partnerships to strengthen
their premium offerings. August Busch IV, President and CEO,
has often stated the company has a goal of increasing AB’s participation in
the premium beer market (Beirne, 2006).
• February, 2006, AB announced that it will be distributing
five popular import brands, including Stella Artois and Beck’s,
• In January, 2007, AB announced an alliance with Czech
brewery Budejovicky Budvar NP to import Czechvar in the
US (Janicek, 2007).
Conclusion and
Recommendation
• AB benefits from aggregating the data of all
distributors, while the distributor benefits from
comprehensive real-time reporting extrapolated
from their own raw data. When an anomaly is
recognized, an investigation of the cause is
immediately initiated.
Conclusion and
Recommendation (Cont’d)
• Real-time reporting enables immediate response to
competitive threats or changes in the environment.
After much analysis, it is recommended that AB
continue to use its data network, including BudNET,
to improve its information gathering and sharing.
Conclusion and
Recommendation (Cont’d)
• The organization’s new way of thinking and high tech
approach is far ahead of its competitors. The results
speak for themselves. Although no specific change in
strategy is recommended, there are a few key things
that are imperative to maintain their success.
Continued emphasis on high quality training
standards and continued effort to add other sources
of data to link to their robust network.
QUESTION DISCUSSSION
What criteria that should be
met as a good intelligence
information?
As a good intelligence information, the data
should be :
• Timely
• Accurate
• Reliable
• Meaningful
• Written
• Easy to understand
QUESTION DISCUSSSION
Why information is very useful
in marketing?
Information from an organization's marketing
department would be used to guide the actions
of other department's within the firm.
With an information (via marketing research)
the company would know that customer desired
a new product, or a new usage of existing
product.
Octawati
Buntaran
M987Z249
Yanni Putri
M987Z255
Phailin
Thampramuan
M987Z216
Nong Hong Sa
M987Z231
Nguyen Pham
Nhut Thien
M987Z240
Rahul Kohli
M987Z207