Free Essay Sample: Analysing Budweiser and American Beer Industry

The success of an organization depends on several factors among them the mission and vision of the organization. While mission describes the main aim of the company, vision is based on the future of the organization based on its targets and values. The cooperate sector is also characterised by competition which also determines a company strategy to avert possible losses. Another important aspect to note is that there are drivers of change in the competitive landscape of an industry such as technology. Although Budweiser Company, a beer industry has previously been noted to struggle with retaining its target audience, it is defined by its mission, vision, and strategies which are also the basis of its success in the beer industry.

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Budweiser Company Overview

Budweiser Company is part of a multinational organization, Anheuser Busch. Since its inception more than a century ago, it has moved up the ranks in the beer industry to become one of the greatest selling beers in the United States. Currently, it is available in more than 80 countries globally and is still expanding. However, the issue of trademark prevents the beer from being referred as Budweiser in other countries although the elements combination is the same, rice of 30% besides hops and barley malt (Svetle, 2010). The beer is available in various forms among them draft and packaged. It is a beer that was introduced to provide an alternative to the previous beers and to have a lighter brand that was lighter than the previous Bavarians. The company embraces a unique manufacturing process to provide high-quality beer, and important to note is that the raw materials are grown in America (Abbette, 2016). Among other beers that the company produces include Black Crown, Select 55, Select and Chelada Beer. Besides being a beer production company, the organization integrates well with the society through recreational activities such as sports. The company also has various principal subsidiaries which include Budweiser Budvar (Croatia, Germany, and the United Kingdom). It is also important to note the principle competitors which include Altria Group, Madhvani Group and Asahi Breweries limited among others.

From:

Abbette, A. (2016). A brief history about Budweiser. Retrieved September 13, 2016, from http://www.streetdirectory.com/food_editorials/beverages/beer/a_brief_history_about_budweiser.html

Svetle, K. (2016). Budweiser Budvar, national corporation - company profile, information, business description, history, background information on Budweiser Budvar, national corporation. Retrieved September 13, 2016, from http://www.referenceforbusiness.com/history2/40/Budweiser-Budvar-National-Corporation.html

Mission

From the Mission Statement of the company Be the worlds beer company, it implies that the company aims at being the global leading beer industry through producing a quality product

From

Anheuser-Busch. (2015). Budweiser Beer, About Us. Retrieved September 13, 2016, from http://www.budweiser.com/en/home.html

Vision

The vision of the company provides the organizational future and values regarding its operations. Its vision statement states Through all of our products, services, and relationship, we will add to lifes enjoyment. Enrich and entertain a global audience, deliver superior returns to our shareholders (Anheuser Busch, 2015) Through this statement, the company expresses confidence in all its operations and not only are they aimed at delivering quality products and services but also improving the lives of its stakeholders, from workers to customers globally.

From:

Anheuser-Busch. (2015). Budweiser Beer, About Us. Retrieved September 13, 2016, from http://www.budweiser.com/en/home.html

Values of Budweiser and their relationship with the companys strategy

The values and strategy of the company can be depicted from the manner in which it conducts its activities and some of the factors that have propelled it to be a leading beer producer and seller. Some of these strategies include those in marketing. Since the sixteenth century Budweiser has been referred as the beer of kings and through its humorous advertisements and game sponsorship, the companys culture has been adopted not only in the United States but across Europe. Examples of advertisements that have greatly contributed to a successful marketing of the beer included the Budweiser Clydesdale, where a donkey only thinks of becoming a Clydesdale horse and only thinks of things it can do to become one. In the end, the donkey achieves this and becomes all it has ever desired (Arnold, 2010). Notably, the brand is promoted in sports and particularly the motor games such as hydroplane boat and the top fuel dragster.

One of the significant values of the company is social interaction which is characterised by continuously doing activities that are aimed at enhancing the community. An example is the company sponsoring various teams such as Junior Johnson and Stewart - has raced (Kwasniewski, 2016). On the other hand, the larger organization, Anheuser Busch has been a sponsor of many events under the name of Budweiser such as Budweiser Shootout. Through these activities, the company upholds its values of being community centred while on the other hand achieve the marketing strategy of advertising the beer brand. Another marketing strategy is the can design where through the traditional companies cans, they were creating an impression of the companys patriotism to America. Through the colours, red, blue and white, and also the Anheuser logo which was surrounded by barley and wheat, the cans had a classic and attractive appearance and also, through the colours, which are in the American flag, it was an indication that the beer targeted the American market. There has since been a change in the design which however has not altered the American market view. Budweiser design of the new can is in response to the declining sales in the recent past which threatened to deny the company it continuous position as the leading beer seller (Euromonitor International, 2016). Among the reason for the decline in sales included unemployment of the larger target audience.

Another value that the company is identified with is innovation and creativity which are in line with the product placement marketing strategy. Through the new cans that have an improved appearance; Budweiser aims at averting the challenge of declined sales as a result of unemployment. Additionally, the improved appearance was aimed at regaining control over its largest market shareholder, the young Americans. The design gave the can a more contemporary look which was appealing to the target audience while offsetting the unemployment effects on the sales (Dunham, 215). Budweiser is also characterised by treating its employees in the best manner possible which also brings an added value to the company regarding the marketing of its products. Workers are identified as the best approach to improving a company success. Some of the ways of doing this are through providing them with benefits and ample working environment which they enjoy. In turn, they provide quality services and products.

From:

Arnold, T. (2010, October 27). Budweiser marketing strategy. Retrieved September 13, 2016, from Advertising, http://60secondmarketer.com/blog/2010/10/27/budweiser-marketing-strategy/

Dunham, J. (2015). THE BEER INDUSTRY. Retrieved from http://www.beerservesamerica.org/assets/uploads/general-upload/BSA-2015-Report.pdfEuromonitor International. (2016, May ). Beer in the US. Retrieved September 13, 2016, from http://www.euromonitor.com/beer-in-the-us/report

Kwasniewski, M. (2016). Budweiser re-branding as America: A case study. Retrieved September 13, 2016, from http://www.businessesgrow.com/2016/05/12/budweiser-re-branding/

Competition strength in the beer industry and drivers of change

The United States beer volume is characterised by three major aspects among them craft, import, and export. In 2015, the volume sales for craft were 12.8% while those of import beer were 6.2% according to the national beer sales and production data (Euromonitor International, 2016). The trends in 2015 saw the beer industry dynamics shift from negative to positive. These dynamics allowed for some of the big companies in the industry improve their sales and reverse the decline in volumes. For instance brands such as Miller Lite and Coors Light resumed their total growths which had not been seen for years in the recent past. Regarding Budweiser, it improved the declines to realize its improved sales again. The competitive landscape was characterised by Anheuser Busch which was able to remain top in the beer industry market share with a 44% total volume share.

There are various drivers of the changes in the beer industry which include competition, regulatory policies, and economy. As noted in the Budweiser analysis, unemployment has resulted in the company losing most of its target audience. However, these industries have had to reconsider their manufacturing and marketing strategies as future prospects (Taylor, 2015). For instance, the brand Budweiser changing to America as at that time was to make an attempt to revive its lost market (Schultz, 2016). It is important to note that before the move, the company had lost more than 1.7 billion litres between 2006 and 2015. Another significant aspect that characterises the changes in the sector is the changes in technology which is relevant to the manufacturing and marketing processes. Technology has also been the main factor behind producing quality products and improving the production processes.

One of the major processes in the beer production process is the distribution and selling of the products. Essential to note is that the beer industry has been responsible for numerous jobs across all fields from farming and manufacturing to distributing and selling (Taylor, 2016). On the other hand, there are new and upcoming companies in the beer industry which are also the causes for the dynamics in the sector. These industries are responsible for cheaper products which also have an effect to the big companies. Another driver to change are the united states regulation policies regarding quality and branding which prompt the companies to develop more quality products.

From:

Schultz, E. J. (2016, May 6). A-B InBev looks to replace Budweiser with America on packs. Retrieved September 13, 2016, from http://adage.com/article/cmo-strategy/a-b-inbev-replace-budweiser-america-packs/303918/

Taylor, K. (2015, December 30). The beer industry is going through 4 seismic changes that are impacting how America drinks. Retrieved September 13, 2016, from Business Insider, http://www.businessinsider.com/4-beer-industry-trends-to-expect-in-2016-2015-12

Taylor, K. (2016, February 8). Budweiser crushed all other beers in super bowl 50. Retrieved September 13, 2016, from Business Insider, http://www.businessinsider.com/budweiser-won-the-marketing-super-bowl-2016-2In conclusion, an organization is defined by its organizational structure and culture which also describe the values of a company regarding the future operation. Additionally, it is through these values that other factors can be determined such as the companys future. Through the mission and vision of a company, it is possible to identify the organization direction and future which are also noted to play a part in the success of a company. Regarding the beer industry in America, one of the big players is Budweiser Company whose brand is regarded as the best-selling product in the country.