Anheuser-Busch has become one of the most recognizable trademarks in the world. Budweiser develop a catchy marketing tactics that they called A-B’s advertisement. Doing this attracted other customers than they’re over 21 age group and their loyal recreational drinker.
Anheuser-Busch remains focused on three major objectives to improve shareholder assets. Their first goal is to increasing per barrel profitability. The second is to expand international beer operations. Their goal of doing this is to build recognition outside the United States.
Breweries in China and the United Kingdom are built by now and running. There last objective is to continue to support of profit growth in packaging and entertainment. Proper packaging brings cost savings and assures the quality for there products, while entertainment enhance the company public image. The company’s most important technique is target marketing. Anheuser-Busch sponsor’s events and runs advertising specifically aimed at all sorts of consumers: blacks, whites, blue-collar workers, computer-buffs, and sports fans. Sports fans make up a large, diverse population.
The company has strategically positioned themselves to promote to this target audience, with 70% of their advertising dollars going towards sports programming. They have exclusive deals with 21 of 24 major league baseball teams, 21 of 28 National Football League franchises, 300 college sports teams, and most professional basketball, hockey, and soccer teams. The primary economic issue affecting the company is environment taxation. The company is significantly impacted by federal, state and local taxes, including beer excise taxes. Beer excise taxes are a sin tax, which raise revenue for the government.
The national average is 18 cents per gallon of beer. An increase in taxes effects costs to the company, costs to the wholesalers and consumers. Anheuser-Busch achieved record sales and earnings in the past couple years, selling over 100 million barrels of beer worldwide for the first time in history. August A. Busch III, Chairman of the Board and President, says his company owes its success to, “The combination of outstanding domestic beer industry fundamentals, the highest quality and freshest beer in the industry and exceptional marketing and sales execution.” Word Count: 345
