Budweiser Assignment Adv 390
- 1. Robert Puetz ADV 390 Assignment#1 Budweiser Fact Finding Questions & Summary Questions Asked: How is the Industry performing? Who are the major players? What are the major trends within the industry? What societal trends are affecting the market and in what way? Who drinks alcohol/beer on a frequent basis? What makes a beer brand desirable? What marketing techniques have been successful? Which factors appeal to consumers? What makes a beer brand undesirable? What situations and events does/can beer pair well with? How do consumers see Budweiser? Who is most likely to drink Budweiser? What do beer drinkers value? What has placed Budweiser at the top of the market in the past? What changes in society have taken place that changed the demand for Budweiser? What influences consumers as to what brands are “cool”? What distinguishes Budweiser from its competitors? What are some negative perceptions of Budweiser? What are positive perceptions of Budweiser? What considerations are taken when choosing an alcoholic drink among millennials? What is the most efficient way to speak to our target market?
- 2. Robert Puetz ADV 390 Assignment#1 Summary: Currently, the entire beer industry is in a slow decline in terms of volume sales. According to data from Mintel Oxygen, there were 2.79 billion cases of beer sold in the U.S. in 2013, nearly stagnant from the 2.9 billion cases sold in 2009. In the midst of this decline, Budweiser sits in third place in terms of volume sales of domestic beers, owning a 9.6% share of the overall market, behind Bud Light and Coors Light. (Mintel) Reasons for this decline have been attributed to the economic recession, which put many blue collar middle class white males out of work, the main target market for beer manufacturers. (Derek Thompson, Senior Editor, TheAtlantic.com) Also, Thompson points out, Americans are becoming more and more health conscious, and beer is notorious for its high calorie count and effects on a person’s waistline. (Caloriesecrets.net) Finally, the most important reason and the one this summary will focus mainly on, alcohol preferences among young drinkers have shifted away from beer in favor of wine and hard liquor over the past 20 years. A survey from Gallup reports that beer drinking among 18-29 year olds has declined from 71% in 1992 to just 41% in 2013, while sales of hard liquor among that age group rose from 13% to 28% and wine from 14% to 24% over that same time period. (Gallup) A chart taken from the Atlantic illustrates the declining interest in beer among younger drinkers in correlation with the rise in popularity of liquor/wine:
- 3. Robert Puetz ADV 390 Assignment#1 The importance of this shift in preferences among younger drinkers lies in the fact that drinkers aged 21-34 are the target market for all alcohol marketers. This is because, as Personal Finance Reporter for MarketWatch.com Quentin Fottrell points out, Baby Boomers do not drink as much as they used to, and the population of consumers aged 25-34 is forecasted to increase by 10.7% by 2018, making them a prime target. (Fotrrell) Furthermore, Mintel reports that people aged 22-34 are the most likely to drink beer on a semi frequent basis. Of those respondents, Mintel reports that men are substantially more likely to drink beer than women, and white men, typically middle class, are most likely to drink domestic beers, suggesting that Budweiser focus its marketing attempts at that segment. MarketWatch.com points out that 20 years ago, beer was the most preferred alcoholic beverage by far. However, in 1996 the ban on television advertising of liquor products was lifted, and since then sales of hard liquor and wine have increased dramatically among younger consumers, according to an article from AdAge.com. (AdAge) Health consciousness and higher alcohol content have been offered as causes for this shift in taste, however, the fact that most of these advertisements focus on brand image and value added benefits rather than alcohol content and lower calorie counts suggest that image is the driving factor behind purchasing decisions among millennials. This information highlights the stiff competition Budweiser faces, not only from our main competitors within the domestic beer market, but also from marketers of wine and hard liquor. Furthermore, within the beer segment Budweiser faces a growing threat in the rise in popularity of craft beers as well. Jennifer Zegler, a drinks analyst for Mintel, states that the craft beer segment is the only segment of domestic beers that experienced significant growth recently as around 1,000 new brands enter the market a year flooding the market with new
- 4. Robert Puetz ADV 390 Assignment#1 products almost weekly. (Zegler) These products are gaining traction among target consumers as 37% of respondents to one of Zegler’s surveys agree that smaller brewers make better products than mass producing brands like Budweiser. Surveys from Mintel indicate that similar to liquor and wine, consumers’ appeal to craft beers is based around their uniqueness and the quality of the ingredients. These younger drinkers want to drink trendy, fresh, unique drinks that distinguish themselves from the crowd. A study from the US Chamber Foundation states that millennials are “masters of self-expression”, as 75% of millennials have a social network profile, 38% have 1-6 tattoos, and 23% have a piercing in some place other than the earlobe (USChamberFoundation.org) Furthermore, an article from LiveScience.com based off survey results states that the trend among millennials is focusing on extrinsic values such as fame, money and image. (LiveScience) This trend of personal branding indicates a passion for individualism and uniqueness, which is achieved through the products people wear and consume. In terms of alcohol consumption, this means that consumers don’t only factor in price and taste anymore, but image as well in choosing an alcoholic drink. Consumers want their drink to say something about themselves, and view choosing an alcoholic drink as another chance to assert their uniqueness. Some analysts say that in their quest to distinguish themselves as unique, millennials do not want to drink the beer brands that the generation before them drank, backing their claim with statistics from a Gallup survey showing beers popular with Generation X-ers such as Budweiser and Miller Lite steadily losing traction among millennials. (Gallup) This suggests that Budweiser’s advertising efforts should be focused creating a younger, more unique image for the brand that will appeal to these younger consumers. In order to get an idea of how millennials currently perceive Budweiser’s image I conducted several interviews with males aged 21-25, all of whom drink alcohol around 2-3 times
- 5. Robert Puetz ADV 390 Assignment#1 a week. Over the course of my research I found a recurring response of, “My dad drinks that beer.” (Personal interviews: Chaz Ray, Patrick Ciaglia, Steve Perez, Patrick Corbett, Brendan Cloney) This finding suggests that Budweiser has fallen out of favor among millennials because it is associated with being old fashioned and a beer for old men, and not the type of image they would like to project. However, aside from these negative perceptions, there are some lighter perceptions of what drinking Budweiser says about a person that can be taken advantage of. An article from Ad Age by Beth Bulik based on psychographic research revealed that drinkers of Budweiser are perceived to be sensible, grounded, and practical. (AdAge) Furthermore, Bud drinkers are perceived as assertive, a man’s man who lives in the now, with a capacity for spontaneity. After researching on the Budweiser Facebook page, I noticed a post from someone saying that everyone who likes Budweiser should try a real beer instead, and posted a picture of five or six specialty craft beers. The response from a Budweiser drinker was priceless, “. . . and become a beer snob and stick your nose way up in the air whenever you see anyone drinking a beer you think is "inferior". That sounds like fun, but . . . I'll pass.” (David Burton, taken from Facebook) Though this is just one fan’s opinion, the ensuing comments of agreement suggest that Budweiser drinkers are a tightknit community of beer drinkers, not beer snobs. This means they enjoy drinking beer, even on a frequent basis, but are not the type of people who brag about their beer choice and try to recite its ingredients/brewing process to everyone they meet, they laugh at those people. The image Budweiser should be promoting is one of unapologetic individualism, with a rock solid sense of identity that doesn’t falter just to fit in to the crowd.
- 6. Robert Puetz ADV 390 Assignment#1 Work Cited 1. Bulik, B. (n.d.). Psychographics: What Your Taste in Beer Says About You | News - Advertising Age. Advertising Age News RSS. Retrieved October 4, 2014, from http://adage.com/article/news/psychographics-taste-beer/140106/ 2. Chamber, U. (n.d.). The Millennial Generation Research Review. U.S. Chamber of Commerce Foundation. Retrieved October 3, 2014, from http://www.uschamberfoundation.org/millennial-generation-research-review 3. Fottrell, Q. (n.d.). Is America facing a beer crisis?. - MarketWatch. Retrieved October 2, 2014, from http://www.marketwatch.com/story/why-you-wont-be-drinking-a-bud-during- the-super-bowl-2014-01-31 4. Oxygen, M. (n.d.). Login to Mintel Reports - Mintel Group Ltd.. Login to Mintel Reports - Mintel Group Ltd.. Retrieved October 4, 2014, from http://academic.mintel.com/display/69073 5. Poll, G. (n.d.). U.S. Drinkers Divide Between Beer and Wine as Favorite. U.S. Drinkers Divide Between Beer and Wine as Favorite. Retrieved October 4, 2014, from http://www.gallup.com/poll/163787/drinkers-divide-beer-wine-favorite.aspx 6. Thompson, D. (2013, August 5). Why Are American Drinkers Turning Against Beer?. The Atlantic. Retrieved October 4, 2014, from http://www.theatlantic.com/business/archive/2013/08/why-are-american-drinkers- turning-against-beer/278370/
- 7. Robert Puetz ADV 390 Assignment#1 7. Harkness, K. (n.d.). What a Man's Choice in Beer Reveals About His Personality. Fox News Magazine. Retrieved October 4, 2014, from http://magazine.foxnews.com/food- wellness/what-man%E2%80%99s-choice-beer-reveals-about-his-personality 8. Research, P. (n.d.). Millennials: Confident. Connected. Open to Change. Pew Research Centers Social Demographic Trends Project RSS. Retrieved October 4, 2014, from http://www.pewsocialtrends.org/2010/02/24/millennials-confident-connected-open-to- change/ 9. Schultz, E. (n.d.). Hard Time: Liquor Advertising Pours Into TV | News - Advertising Age. Advertising Age News RSS. Retrieved October 3, 2014, from http://adage.com/article/news/hard-time-liquor-advertising-pours-tv/234733/ 10. Lauro, P. (2003, March 4). Grey Goose's path to vodka popularity takes an unusual turn: extensive advertising on cable TV.. The New York Times. Retrieved October 4, 2014, from http://www.nytimes.com/2003/03/05/business/media-business-advertising-grey- goose-s-path-vodka-popularity-takes-unusual-turn.html 11. Gross, T. (n.d.). The New Millennial Values. Forbes. Retrieved October 4, 2014, from http://www.forbes.com/sites/prospernow/2012/07/05/the-new-millennial-values/ 12. Tuttle, B. (n.d.). How Budweiser Is Trying to Lose Its Stale Image and Appeal to Young Drinkers. Business Money How Budweiser Is Trying to Lose Its Stale Image and Appeal to Young Drinkers Comments. Retrieved October 4, 2014, from http://business.time.com/2012/08/29/how-budweiser-is-trying-to-lose-its-stale-image- and-appeal-to-young-drinkers/ 13. Crocker, R. (n.d.). Budweiser stokes mixed feelings among beer drinkers, survey finds. Beer TX. Retrieved October 4, 2014, from
- 8. Robert Puetz ADV 390 Assignment#1 http://blog.chron.com/beertx/2014/01/budweiser-stokes-mixed-feelings-among-beer- drinkers-survey-finds/ 14. Personal interviews: Chaz Ray, Wesley Durbin, Patrick Corbett, Patrick Ciaglia, Brendan Cloney, Arman Castillo, Steve Perez, Daniel Foley. 15. Burton, D. (n.d.). Connect with friends and theworld around you on Facebook.. Facebook. Retrieved October 6, 2014, from https://www.facebook.com/BudweiserUSA 16. Main, D. (2013, July 9). Who Are the Millennials?. LiveScience. Retrieved October 6, 2014, from http://www.livescience.com/38061-millennials-generation-y.html
- 9. Robert Puetz ADV 390 Assignment#1 Budweiser Key Insight: Consumers’ desire for uniqueness through the brands they consume is not being fulfilled by Budweiser’s current image as an old man’s beer
- 10. Robert Puetz ADV 390 Assignment#1 Budweiser Creative Strategy Who is our target market? Millennials, Men aged 21-34 who value old traditions and notions of masculinity. The well rounded, sensible, man’s man who asserts his individuality in opposition to fads. Men who don’t follow trends as easily and have a strong sense of identity. Iconoclasts Where are we now in the mind of this person? “My dad’s beer” Old fashioned Where is our competition in the mind of this person? Hard Liquor brands such as Grey Goose vodka are viewed as high end, classy choices for young drinkers. Craft Beer brands are viewed as each unique in their own way. Quality products that project some sort of knowledge of alcoholic beverages. Bud Light is perceived as the party beer, following their new campaign, “the perfect beer for whatever happens.” Where would we like to be in the mind of this person? A great tasting beer for the man who knows exactly who he is and isn’t afraid to stand apart from the trends and fads. What is the consumer promise, the “Big Idea”? Drinking Budweiser projects an image of unapologetic, rugged individualism, rooted proudly and firmly in a strong sense of identity. What is the supporting evidence? Psychographic survey results depicting Budweiser drinkers as well-rounded, practical man’s men. Supportive Facebook community that bands together in opposition of “beer snobs” What is the tone of voice for the advertising? Unapologetically Masculine
- 11. Robert Puetz ADV 390 Assignment#1 Budweiser Manifesto An Ode to the Men of the King Not all men are cut from the same cloth. There are some who are content lag one step behind the rest, letting society define them, dress them, design a diet for them, determine the bars they go to, and the drinks they buy when they get there. Then, there are Men of the King: the elite group of men worthy enough to wield the legendary crowned can of Budweiser. The original man’s man, who defines society, dresses himself, eats what he wants, goes where he pleases, and drinks what he deserves, the King of Beers. But not everyone is meant to be a Man of the King. No, it takes a special breed of man to be fit for the crowned can. Men of the King are the type of men who wear a t shirt, jeans, and work boots as confidently as they would a $5000 suit. They are those who know what they want and aren’t afraid to sweat to get it, and if anyone tells them they can’t have it, they crack open a Budweiser and tell them to kiss their ass. A true Man of the King is true to himself, because he knows that nothing is more immature than following fads. Pumpkin Spice flavored beer? That’s cute, but King’s Men prefer their beer in one flavor: beer. And what a cool, crisp flavor it is. Words like “Swag” are not in a Man of the King’s vocabulary, and they know that “low calorie count” might as well mean “low quality.” Not because Men of the King don’t stay fit, but because they know that any extra calorie intake will be burned off whether it be in the work place, the gym, or even the dance floor of the local bar (Yeah, that’s right, a true wielder of the crowned can won’t hesitate to conquer the dance floor with the style, grace, and confidence of Vincent Vega). You might think we are a dying breed, but we’ve been here since 1876, and we’re not going anywhere soon. So Hail! To the King of Beers! Hoist your crowned can high for all to envy at and salute your fellow Budweiser drinkers. For they are Men of the King, and if you don’t like them, don’t hold your breath waiting for an apology.
- 12. Robert Puetz ADV 390 Assignment#1 ADV 390 To: Peter Sheldon From: Robert Puetz Student ID: 658609585 Email: Rpuetz2@illinois.edu Subject: Assignment #1, Budweiser Date: 10/7/14