MINI PROJECT ON

Presented by Meettu Francis 10KJM127

CONTENTS 1. Industry Profile

2. Company Profile 3. 4 Ps of Marketing

4. STP Analysis 5. Production

6. Environmental Aspects

BEER INDUSTRY
Beer is the world's most widely consumed and probably oldest of alcoholic beverages; it is the third most popular drink overall, after water and tea. It is produced by the brewing and fermentation of starches, mainly derived from cereal grainsmost commonly malted barley, although wheat, maize (corn), and rice are widely used. Most beer is flavoured with hops, which add bitterness and act as a natural preservative, though other flavourings such as herbs or fruit may occasionally be included. Some of humanity's earliest known writings refer to the production and distribution of beer: the Code of Hammurabi included laws regulating beer and beer parlours, and "The Hymn to Ninkasi", a prayer to the Mesopotamian goddess of beer, served as both a prayer and as a method of remembering the recipe for beer in a culture with few literate people. Today, the brewing industry is a global business, consisting of several dominant multinational companies and many thousands of smaller producers ranging from brewpubs to regional breweries. The strength of beer is usually around 4% to 6% alcohol by volume though may range from less than 1% to over 20% in rare cases. Beer forms part of the culture of beer-drinking nations and is associated with social traditions such as beer festivals, as well as a rich pub culture involving activities like pub crawling and pub games such as bar billiards.

Type Manufacturer Country of origin Introduced Alcohol by volume

American-style Lager AnheuserBusch In Bev United States 1876 5.0%

Budweiser is a 5.0% American-style lager introduced in 1876 by Adolphus Busch and one of the highest selling beers in the United States. It is made with up to 30% rice in addition to hops and barley malt. Budweiser is produced in various breweries located around the United States and the rest of the world. It is a filtered beer available in draught and packaged forms. Budweiser is widely available in Mexico due to Anheuser-Busch's half-ownership of Grupo Modelo, through which Budweiser and Bud Light are distributed. In Ireland, Budweiser is brewed, marketed, and sold by Guinness. Budweiser is also available in 80 countries including Australia, Italy, UK, Brazil, Argentina, Finland, Germany, Spain, Panama, Paraguay, Japan, India and Russia because of partnerships Anheuser-Busch has with major brewers there.

4 Ps PRODUCT PROFILE Anheuser-Busches Budweiser belongs to a family that is under an umbrella of 60 plus brands. Under the Budweiser brand family, their beers consist of Budweiser Select, Bud Ice, Bud Ice Light, Budweiser Brew Masters Private Reserve, Bud Dry, Bud Silver, Bud Extra, and their latest Chelada (Wikipedia, 2008). They are definitely adding new product integrations by changing with the times adding more beers, cocktail drinks, energy drinks, and gourmet sauces to their product line (Entrepreneur.com, 2005). Budweiser, being one of the top choices of beer and being very consistent for its refreshing taste that targets segment areas such as sports fans and leisure drinkers will boast their brand title of the Great American Lager as needed for a distinct clear position between the import, craft and specialty beers in 2008. With their delicate malt sweetness and balanced bitterness for a clean, snappy finish, Budweiser is a medium-bodied, flavourful, crisp and pure beer with blended layers of premium American and European hop aromas (Anheuser-Busch, 2007). What makes their beer unique is that its brewed using rice, barley malt, water, hops and yeast. Budweiser creates a smoother taste by having its beer laagered with beech wood chips in the aging vessel (Anheuser-Busch Companies, 2007).

PRICE The price of the 650ml bottle is Rs 75 in Mumbai.

The increase in state levies by the Andhra Pradesh government has raised the price of Budweiser to Rs 80 from around Rs 68 per bottle in Hyderabad. Hence, a further hike in Hyderabad might not be feasible at the moment, as per the sources. It is believed that the price of Budweiser in Goa could move up to Rs 45 from Rs 40 currently.

Sources say the hike could be in the Rs 5-7 price band in different markets. In the U.S. Anheuser-Busch sells approximately 70% of its products to beer distribution wholesalers, leaving varied prices from one retailer to the next to sell to the consumer. These pricing inconsistencies may cause inconsistency in consumer purchases due to environmental factors. With their reference price range of a 12pk canned Budweiser are competitively head-to-head with Coors Brand at $12.88 in most grocery stores on Oahu, the range of different volumes packaged differs from kegs, bottles, variety of ounces, including happy hour in bars to regular bar hours to nightclub prices. In addition, psychologically, Budweiser's odd even prices, influences the consumer's perception with ending prices with $ .88, $ .95, or $ .99.

PLACE Budweiser is available in 80 countries. There are 700 network distributions in USA alone. St. Lewis is the main factory at which they produce the beer. In Asia, China is the largest production centre with produce 250 gallons of beer. Budweiser produces 3.5 billion gallons of beer to meet the Worlds demand. Operating out of 12 breweries in the United States and 16 internationally, (A-B) Budweiser has produced and distributed 162 million barrels throughout 2007. Having 70% of wholesalers buy their beers to resell, distributors distribute Budweiser to their specific destinations through all available outlets geographically and territorially in which law permits such as grocery stores, convenient stores, bars, nightclubs, restaurants, gas stations, vending machines, coolers, iceboxes, and anywhere it can; making it convenient and consistent for all its consumers. In addition, Budweiser being an intensive distribution are having more distributors consolidating due to health and higher fuel cost in which will shave down cost of distribution operations.

PROMOTION Budweiser has been a sponsor for the super bowl for over 20 years and has been the ad leader for the past 9 years making their promotions very consistent. They normally spend a lot of money from one pot for one event such as the super bowl ads because theres almost a 100 million people watching it. In addition, half of the people who watch the game are beer drinkers and it is almost guaranteed they would not get up to get a bag of chips. What they rather do is watch the ad commercials just as much as the game. Their consistent sponsorships in sports such as the NFL, MLB, World Soccer Cup, NASCAR, Motor Sports, Video Games, and the Olympics etc. are also means of promotion. Anheuser-Busch Inc. plans are to spend $30 million on new ad campaigns and invest more in television advertisements while spending another $70 million more on ads for Bud Light and Budweiser, its best-selling beers in 2008. They also have new product lines promoted into the marketplace capturing new audiences from other beer categories such as cocktails, energy drinks, and spirits. The Budweiser Clydesdales have been the symbol of Anheuser-Busch for more than 75 years. To qualify for one of the hitches, a Budweiser Clydesdale must be a gelding at least four years of age. He must stand 72 inches, or 6 feet, at the shoulder when fully mature; weigh between 1,800 and 2,300 pounds; be bay in colour; and have four white stocking feet, a blaze of white on the face and a black mane and tail.

STP Analysis Segmentation:They have segmented the market and have taken the youngsters, adults (especially working people).

Targeting:
Here they have Mass Marketing strategy.

Positioning:They had the horses which was carried their product; they breed the horses because the horses had a mark on the nose and white hairs on their legs. They have made Ads which was dedicated to the mayor and others.

PRODUCTIONS

Bud is born through a series of steps that are more than mixing and aging. Starting with milling the barley and rice, the beer begins its process. From there, the malt and water are carefully mixed in the mash turn like a cooking pot. The ingredients are stirred and heated in a controlled time and temperature. Next, they are brought to a rolling boil and Budweiser brewers add hops. Hops contain oils and resins. Then it is on to the fermentation and aging step. The liquid is first settled before beginning the fermentation and cooled in a unique process. Once it is cooled to about 29 degrees, it's time for the taste test. Budweiser's taste test has three essential things:

The tasting room should be at a comfortable temperature and dim lighting to create a relaxing atmosphere. The tasters should be of good health. Any sickness will affect their taste buds. The beer sample should be poured in a clean glass at about 40 degrees Fahrenheit.

Those who have beer in stock should keep beer stored between 36 and 38 degrees Fahrenheit. Storing beer is similar to food, the fresher it is the better. Also, it is best stored in cool dark places, not frozen or multiple freezing. This will only cause the ingredients to breakdown and separate. It is best to serve beer at 40 degrees fare height. While, most of us do not carry thermometers specifically for beer, set your refrigerator for the desired temperature and you'll be ready to go. Be aware that if your beer gets too cold it may gush out when it is finally opened. The final thing to remember when serving beer is to serve it in a "beer clean glass". Most people think their glasses are "clean" but in fact, there could possibly be an invisible layer of film or bacteria. This can cause the taste of the beer to be flat or an off taste. Budweiser suggests that in order to get a "beer clean glass" you wash the glass in a sink containing warm water and a solution of suds less, non-fat cleaning compound like dishwasher soap. Make sure you brush all surfaces of the cup. The best way to rinse it is to allow the water to continuously flow in the cup preventing air pockets from forming in the glass. Let your glass dry upside down on a stainless steel wire rack. Then your glass is "beer clean". Finally, where you store your glass is up to you but you should choose a place that will not attract dust, dirt, etc.

ENVIRONMENT Today, many companies are going green. But at Anheuser-Busch, the tradition of environmental stewardship dates back to their founder, Adolphus Busch. In the late 1800s, he began recycling leftover grain from the brewing process, using it for cattle feed, a practice that continues today. At their breweries, they now recycle more than 99 percent of the solid waste we create. Their subsidiary, Anheuser-Busch Recycling Corp., has been recycling aluminium beverage containers for more than 30 years. They also strive to conserve water and energy. Their Bio-Energy Recovery System (BERS), a technology that uses nutrient-rich wastewater from the brewing process to create and capture a renewable fuel, provides up to 15 percent of the fuel for ten of our U.S. breweries. As the pioneer and world's largest user of this innovative BERS technology, they're also lowering our greenhouse gas emissions. It's good for the local communities. They're always looking for ways to operate more efficiently, while maintaining their quality standards, and be better stewards of the environment.