Business Case Studies, Marketing Strategies / Strategic Marketing Case Study, Anheuser-Busch Goes Niche, Concentrates on China

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Case Title:

Anheuser-Busch Goes Niche: Concentrates on China

Publication Year : 2006

Authors: Snehasis Chaudhuri

Industry: Beverages

Region:China

Case Code: MKS0105K

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
Segmenting, Targeting and Positioning” (STP) formed the base for marketing strategies of any firm. Global organizations used to segment the market either continent wise or according to the level of economic development (i.e. developed, developing and under developed). But Alcoholic beverage industry was definitely a different ball game, as climate and tradition played an important role in consumer preference. The global players in this industry had varied in terms of their business and marketing strategies. While the market leader Inbev and players like SABMiller, Heineken etc. had applied mass marketing strategies; Diageo had stuck up with differentiated marketing. A major surprise in the top bracket was Anheuser-Busch (A-B), which had successfully applied niche marketing strategy and concentrated primarily on five markets, US, Canada, Mexico, UK and China. But, the intensive competition and stagnation of most of its targeted market had forced A-B to highly depend on China’s beer market. The huge market potential combined with ongoing economic development made China the most important target market for the company. But, going forward various socio-economic factors such as the overflow of products, high transport cost, intensive price pressure, decrease of beer consuming population, government regulations etc. might cause a major blow to A-B’s niche marketing strategy.

Pedagogical Objectives:

  • To understand the trends and structure of global Alcoholic Industry
  • To have a brief understanding of the Chinese Beer market and its driving forces
  • To understand the concept of “Segmenting, Targeting and Positioning” (STP) with respect to alcoholic beverage industry
  • To understand the reasons behind Anheuser-Busch’s focus on China
  • To analyse the possible threats for a niche marketing strategy.

Keywords : Anheuser, Alcohol, Beer, Marketing Strategies Case Study Segment, Niche, China, Tsingtao, Harbin, Yanjing, Inbev, SABMiller, Bud, Brand, Logistic, Advertising

Contents:

  • Company Overview
  • Industry Overview
  • Anheuser-Busch Had to Bank upon China
  • Road Ahead

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