AB Inbev\'s Bcg Ansoff Analysis Strategic Options.

¶ … AB Inbev's BCG ansoff analysis strategic options. Please avoid marketing product, specific strategic groth a company. In addition I summarise merger advantages/benefits/opportunities disadvantages challenges sussccessful inits bid buy S

Anheuser-Busch InBev: Market analysis

Anheuser-Busch InBev, is the largest brewing company in the United States, boasting some of the most successful brands of alcohol on the market in its portfolio. The BCG Growth-Share Matrix categorizes all business units according to market share and potential for market growth as cash cows, stars, question marks, and dogs, in relation to their largest competitor. 'Cash cows' generate a stable cash flow but are relatively mature in the market. A good example of this would be Anheuser-Busch's Budweiser brand. The Budweiser Clydesdales are some of the most famous brand icons in the world, and Budweiser is widely regarded as the world's most popular beer. Anheuser has strategically emphasized its 'cash cows' in its marketing mix, relying upon such classic brands to generate customer loyalty.

Examples of 'stars' or brands that make a great deal of money for the company and generate positive press but cost a great deal to produce would encompass brands such as Michelob. Strategically, the company has emphasized research and development of these brands. "One year after its introduction, Michelob ULTRA became the fastest-growing new brand in the industry and was a phenomenal hit among adult fitness enthusiasts, adult consumers living an active lifestyle and those looking for a great-tasting beer with lower carbohydrates and fewer calories" (Michelob Ultra Family, 2011, Great Brewers). The brand also sponsors many sports events, even though it takes a large amount of cash to promote these events. The brand is being remarketed to a new target consumer, which has required new brewing technology and new types of promotions.

Question marks are brands that are growing rapidly but generate relatively small amounts of cash because of the market share they command. Examples of this might be the company's nonalcoholic drinks, which comprise a tiny share of the marketplace but have enabled the company to establish an inroad in places where alcohol is banned, such as Saudi Arabia, where non-alcoholic Budweiser is popular. The general strategy of the company has been to continue to cultivate these niche products, particularly when they appeal to an expanding segment of the market, such as that of the international untapped demand for beer. And dogs neither command nor generate a large amount of cash -- conventional wisdom suggests they should be eliminated. There are few 'dogs' in the Anheuser-Busch portfolio, given the company's popularity, but examples of these might include brands with a less distinctive core audience like Busch Beer (What are the Anheuser-Busch brands, 2011, Drink American).

Another way of analyzing a company is the so-called Ansoff Matrix. "The Ansoff Growth matrix is a way for a business to strategize its product and market growth strategy in terms of marketing new or existing products in developed or new markets. (Ansoff matrix, 2011, Tutor2U). For example, a 'market penetration' effort for Anheuser could be defined as choosing to market its beloved Budweiser brand during the Super Bowl, using its famous Clydesdales in the advertisement. The audience of likely Super Bowl viewers has traditionally been highly receptive to the brand. In contrast, market development focuses on selling the company's existing products in new markets. Because of the changing demographic composition of its traditional markets, this has been a critical aspect of the company's 'rebranding' of its flagship products such as positioning Michelob as a healthy outdoor brand (Michelob Ultra Family, 2011, Great Brewers).

Another critical aspect of the Ansoff mix is that of product development, or creating new products for existing markets. Specialty organic beers such as Stone Mill Pale Ale and Wild Hop Larger are targeted at existing consumers, but cater to the new interest in organic food that is developing in the mainstream markets -- as manifested by the fact that even big box grocery stores like Wal-Mart are carrying organics (What are the Anheuser-Busch brands, 2011, Drink American). The final and most risky strategy is that of diversification, which introduces new products into new markets. However, because Anheuser-Busch is in a highly competitive industry and is dependent upon continually expanding its consumer base to continue its market dominance when challenged by smaller 'niche' companies, it must pursue this strategy in some product areas. Also, because of its size as a company it can afford to take a riskier strategy, while another company might not be able to do so. An example of Anheuser 'taking a risk' can be seen in its new line of non-alcoholic energy drinks, which have proved to be extremely popular with younger consumers. Monster Energy drink, for example, is targeted at the growing audience of students who want drinks that can enable them to work (or play) 24-7, all night club-goers, people who work long hours, and other Americans who live a high-powered lifestyle -- many of whom might never have considered buying an Anheuser product before or who might even be underage.