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BUD VS. MILLER.
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Marketing strategies of Anheuser-Busch (Budweiser beer) & Philip Morris Companies (Miller Brewing). Competitive factors, positioning, advertising, pricing. 1 Table.... More...
5 Pages / 1125 Words
4 sources, 8 Citations, APA Format
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Paper Abstract:
Marketing strategies of Anheuser-Busch (Budweiser beer) & Philip Morris Companies (Miller Brewing). Competitive factors, positioning, advertising, pricing. 1 Table.

Paper Introduction:
Marketing: Bud versus Miller Introduction This paper will discuss the marketing strategies of Anheuser-Busch, the makers of Budweiser beer and some 50 other beer products, and the Philip Morris Companies, the owners of Miller Brewing, which makes Miller beers. For this analysis to be beneficial, we must keep in mind that the data concerning strategies such as pricing does not reflect the simplistic “Bud versus Miller” but instead suggests the competition between a company that is essentially a single-brand company and a single brand within a multiple brand company. In such a situation, the challenge is slanted toward the single brand within the multiple brand company (Biehal & Sheinin, 1998). All of Anheu

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114. Lovitt, J. Both companies sponsor events (golf tournaments, races, concerts andso on) and both companies also try to appeal to broad ethnic segments. Both sites feature links to the history of beer, the brands,and merchandising items. In such a situation, the challenge is slantedtoward the single brand within the multiple brand company (Biehal &Sheinin, 1998). Miller's consciously avoids any mention of beingowned by Philip Morris, and instead focuses on the elements of "Quality!Innovation! 9 percent of the retail beer soldin America is packaged beer (7 percent cans, 3 percent bottles.) Theremaining 1 percent is draft beer sold in various sized-kegs (McBride,1998). Both share thenecessity to certify through drop down menus, that the viewer is of legalage, i.e., 21. A case of balance. McBride, S. Clicking on one of the quadrants leads you to pages of productdescriptions. There appears,however, to be no shortage of beer drinkers. Bright graphics show young and vital people, and the most visibletext is "What's new" that describes how you can get free game pieces forthe "Wassup" game, one of Bud's many campaigns. Miller'scommercials are harder to identify, and they are not as effective asBudweiser. J.; Sheinin, D A. Analyzing the two companies web sites, a good indicator of marketingphilosophy; we see both similarities and differences. The Advertising Used Both companies rely heavily on television advertising. TheEuropean, 28. Marketing: Bud versus Miller Introduction This paper will discuss the marketing strategies of Anheuser-Busch,the makers of Budweiser beer and some 5 other beer products, and thePhilip Morris Companies, the owners of Miller Brewing, which makes Millerbeers. Journal of Advertising, 34. (1998, May 15). It is a tribute to the ad agenciesthat both of these commercial campaigns have generated large consumerresponse and identification, particularly among younger drinkers. Thosebreweries that are surviving are doing so by paying daily and hourlymanagement attention to innovation, cost control, marketing, developing newstrategies and utilizing technological advancements in every step of themanufacturing process from ingredient purchasing through brewing, bottling,and distribution. (1998, June 22), Managing the brand in acorporate advertising environment: a decision-making framework for brandmanagers. C. 4 |NA |1.19 ||bottle | | | | ||Bud 12 pk |8.12 |9.14 |NA |7.99 ||Bud Lite 12 |8.17 |9. All of Anheuser-Busch's efforts can be, and are, directed towardpraising the benefits of drinking Budweiser (whether Bud light, Bud dry,Bud ice, Bud light ice and so on) while Miller's is a brand category withinthe giant Philip Morris operation, and as such, must compete for marketingsupport with several hundred food brands and tobacco products. Pricing Strategy Pricing strategy is directly related to the distribution channels, andin terms of distribution, it can be generalized that Miller (thanks to itbeing part of the Philip Morris product pipeline) has easier access to thesupermarkets (which account for some 4 percent of beer sales in the U.S.) On the other hand, Budweiser appears to be the winner in tavern, bar,club, and restaurant sales with both draft offerings and bottle/can mixes.Miller's recent emphasis on its Premium Draft could be a challenge forBudweiser in this area. B. Value!" as the ingredients for the company's success. (1997, July 31). In terms ofmarket share, Bud controls between 47 and 52 percent of the market(depending on the system of analysis used, while Miller controls between 18to 21 percent of the market, again with the same qualifications (Hoover'sOnline). This suggests that the big brands such as thoseproduced by Anheuser-Busch (Budweiser, Bud Light, Busch and Michelob) andthose produced by Miller (Miller, Miller Light, Miller High Life, HenryWeinhard's and some 1 other brands ranging from Shanghai Beer toPresidente) are fighting harder to maintain their competitive lead(Hoover's Online). Pricing Comparison|Item |Super |Convenience |Bars/Clubs/Taverns|Package || |Markets |Stores | |stores ||Bud 6 pk 12 |4.29 |4.89 |NA |3.99 ||oz | | | | ||Bud Lite 6 |4.44 |5.16 |NA |4.48 ||pk 12 oz | | | | ||Bud Ice 6 pk|NA |NA |NA |5.52 ||12 oz | | | | ||Busch 6 pk |3.97 |4.33 |NA |4. Budweiser and Millers technical data from Hoover's Online CorporateCapsules at http://www.hoovers.com. Miller's intro page(http://www.millerbrewing.com/home.htm) features a flash animation beer capdivided into four animated sections. 1 |NA |8.92 ||pk | | | | ||Bud Ice 12 |NA |NA |NA |1 .17 ||pk | | | | ||Bud Draft |NA |NA |2 |NA ||Bud Lite |NA |NA |2 |NA ||Draft | | | | ||Busch Draft |NA |NA |2 |NA ||Millers |NA |NA |1.5 |NA ||Draft | | | | ||Millers |3.99 |4. The following table represents pricing available through severalchannels for selected products of both companies. 1 ||12 oz | | | | ||Bud 22 |1.39 |2. 3 |NA |4.22 ||Light 6 pk | | | | ||Millers |5. A. What is the assumption of choice?We assume that more people will respond to the Bud. In the following sections, we shall discuss the following: A) TheCompetitive Landscape, B) The positioning of the two beers, C) Theadvertising used, and D) Pricing strategies. Merchandising is a big promotional device for both companies, and theweb sites invite you to wear tee shirts, jackets, sweats, buy rafts andcoolers, get motorcycle helmets and so on with the beer logos on them. For this analysis to be beneficial, we must keep in mind that thedata concerning strategies such as pricing does not reflect the simplistic"Bud versus Miller" but instead suggests the competition between a companythat is essentially a single-brand company and a single brand within amultiple brand company. With big-brand images losing share, manufacturing and salesexecutives are cutting prices to lure consumers even as they scrambledesperately to develop or buy the types of beer that American drinkers willpay more for -- imports and microbrews (McBride, 1998). 4 |5.62 |NA |4.99 ||Premium | | | | | References Biehal, G. D. The beer industry providesthe most popular alcoholic beverage in America, involving more than 8 million Americans, and it is estimated that about 87 percent of total U.S.alcohol beverage consumption is beer. A youngbeer drinker who had just reached the golden age of 21 (and proved itthrough the login) would seem to have two choices: Quality and Dignity(Miller's) or Party Time (Budweiser). Beverage World. The Competitive Landscape The beer industry is one of the world's most competitive. Positioning Of the two beers, only Miller has what could be called a consistentpositioning statement -- "It's Miller Time." Bud, on the other hand,positions itself as the life of the party, and tends to use visualstatements to equate fun, excitement, adventure, with the drinking of thebeer. The competitive landscape of the American beer market today can bedescribed as one in which there is heavy discounting of famous-name beersto facilitate ease of entry into glutted distribution channels which arebeing forced to handle both low-priced beers and high-priced specialtybeers (Lovitt, 1997). A Bud by any name would taste bitter. In the Budcommercials, the current theme is the frogs on the lily pads, and thecollection of "Wassup?" characters. Inthis regard, Miller is better than Bud since it has a popular Asian beerand a respected Mexican beer, and when you see the commercials for Shanghaior Presidente, on Asian or Spanish cable channels, you see strong attemptsto position the respective beer lines with the respective demographics. Americans drink approximately 23gallons of beer per year per capita. When we enter the Budweiser site (http://www.budweiser.com) we are ata party.

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