Bud Light Beer Which Is to Be

¶ … Bud Light beer which is to be introduced in Turkish market. The paper has covered all the important sections of the marketing research proposal including background to the research problem, product and industry profile, internal and external analysis, research approach and methodology, and technical appraisal using timeline and cost analysis for the project.

The purpose of this paper is to present a complete marketing research proposal for Anheuser-Busch that wants to introduce its top rated brand, Bud Light beer in Turkish market. The marketing research proposal starts with the definition of the problem statement and proceeds by describing the product profile, market snapshot, SWOT analysis, and competitive patterns for Bud Light beer. The second section gives a brief explanation to the research objective and possible research questions that can be answered for the purposes of this study. The "Research Approach' section presents a comprehensive description of the methodological framework including data collection methodology, measurement instruments or analytical techniques. For this particular research study, focus group and survey questionnaire have been proposed as the primary sources of data whereas authentic governmental websites have been researched to obtain the secondary data. The final section presents an activity timeline and cost analysis for the whole marketing research project.

Business Proposal Background

The Problem Statement:

Anheuser-Busch, the leading brewing company in the United States wants to introduce one of its top brands, "Bud Light Beer" in Turkey market. In order to make its country penetration strategy successful, the company has to do a comprehensive market analysis and technical appraisal.

a. The Product: Bud Light Beer

Bud Light is one of the most recognized beer brands in the world. It is manufactured by Anheuser-Busch which is also the top market leader in the U.S. Brewing industry. Anheuser-Busch has captured the largest -- more than 47% share in the total beer sales to the local and international retailers. The company has a huge supply chain and distribution network in the United States with more than 600 wholesalers and distributors. At present, Anheuser-Busch has 12 breweries all over the country along with aluminum cans manufacturing and aluminum recycling units. The most successful beer brand categories of the company include Bud Light, Budweiser, Shock Top, European beers, Beck's, Alexander Keith's, Landshark Lager, Michelob, Kirin, O'Doul's, Margaritaville, Belgian beers, Bud Ice, Tilt, Malt Liquors, etc. (Anheuser-Busch, 2013).

Bud Light beer was first introduced in 1982. It is an American style premium light lager beer with malt sweet and crisp taste. It is manufactured using premium aroma hop varieties, rice, and barley malts. Aroma hop used in the manufacturing of Bud Light beer are grown in the United States and some other countries. Anheuser-Busch uses the slogan "Here We Go" for Bud Light Beer which represents excitement, passion, and enthusiasm -- the attributes of active and keen people (Anheuser-Busch, 2013).

b. SWOT Analysis for Bud Light Beer:

A. Internal Analysis

Strengths

Weaknesses

Bud Light beer is the world's largest and best selling beer brand.

Its unique taste and low calories makes it the most liked beer among its target consumers.

Bud Light beer is also the price leader among its competitors which gives it a competitive edge over them (Anheuser-Busch, 2013).

Bud Light beer has a vast distribution network. It is distributed and marketed to a huge market segment around the Globe.

A wide array of brand extensions like Bud Light Lime, Bud Light & Clamato Chelada, Bud Light Paltinum, etc. also helps it in strengthening its presence in the beer industry (Anheuser-Busch, 2013).

One of the major weaknesses of Bud Light beer is its decreasing level of acceptability in various target markets. This decrease in acceptability and popularity is due to its "American" origin and the demand of local beer brands in those markets (Thomas & Maurice, 2011).

Bud Light beer has recently seen sales stagnate in some of its brand extensions. This is due to the customer preferences and loyalty with their favorite brands and flavors.

The consumer segment for beer industry is a little price-sensitive. Therefore, Anheuser-Busch has to set a competitive price for its top brands like Bud Light beer.

B. External Analysis

Opportunities

Threats

Anheuser-Busch can introduce more flavor variations in its Bud Light beer family in order to attract new customers and satisfy the existing customers in a more innovative way. Specifically for the Turkish market, Bud Light beer can be introduced in flavors which are more liked in the Turkish culture.

It can enter into new potential markets and promote its Bud Light beer by communicating the benefits of non-alcoholic beers.

It can run more effective advertising campaigns in order to keep its brand alive in the minds of its consumers (Kurtz, MacKenzie, & Snow, 2010).

Competitors have always been the biggest threat for Bud Light Beer. These competitors are producing equally competitive and substitute beer brands for the same target consumers. Therefore, they are posing a direct negative impact on the sales and profitability of Bud Light beer

Being an American brand, Bud Light beer faces boycotts and low acceptability in various markets of the world.

There are strict Governmental regulations and policies against drinking. The beer manufacturers have to comply with these regulations in order to operate in a lawful and legal way.

c. Market Situation:

Turkey is a potential market for beer manufacturers due to the ever-increasing demand for high quality beers and beverages by the local consumers. A large volume of branded beers are imported to Turkish cities every year which shows that Anheuser-Busch can find a large number of potential consumers for its Bud Light beer (Heritage, 2013). However, the tax rates for beer manufacturers have been continuously showing an increasing trend with almost triple digit increase every year. This increase is about 2.5% greater than the average tax rate increase in the European Union. The rising tax rates, inflation, and strict governmental regulations will put a direct negative impact on the company's profitability. It will be 15% more expensive for Anheuser-Busch to manufacture and sell its Bud Light beer in the Turkish market as compared to the United States (Economist, 2005).

d. The Customers (Target Market):

The target market for Bud Light beer consists of both male and female consumers above 21 years of age. Since beer industry is strictly prohibited to target younger customers, Bud Light beer cannot be advertised and promoted to the consumers who are below the minimum maturity age (Anheuser-Busch, 2013). Anheuser-Busch has not set a high price for its Bud Light beer brand; therefore, it can target all the income groups of the society who want highest quality light beer at very affordable price (Cadle, Paul, & Turner, 2010). The most potential target market for Bud Light beer constitutes professionals, students, and beer connoisseurs at large. Moreover, the Bud Light family consists of various flavor variations which are manufactured by keeping in view the different tastes and occasional requirements of the target consumers. Although Bud Light beer is sold throughout the year, the company observes a faster growth during special events, festivals, fairs, occasions, and seasonal celebrations.

e. Competitor Analysis:

The strongest competitors for Bud Light beer are the multinational beer brands which are offering the same highest quality beers at very competitive prices. The top industry rivals of Bud Light beer in the Global market include Coors Light, Tsingtao, Snow, Becks, Carlsberg, Guinness, Foster Lager, Heineken, Snow, etc. In addition to these direct competitors, Bud Light beer also faces an indirect competition from Anheuser-Busch's own brands like Corona, Brahma, Skol, Harbin, Antarctica, Busch, etc. In its business expansion strategy for the Turkish Market, Anheuser-Busch will have to analyze the local beer brands in addition to these Global brands. The top Turkish beer brands which can pose direct competition for Bud Light beer include Efes Pilsen, Becks, Miller, Gusta, Marmara Gold, Tuborg, Mariachi, Ritmix, Warstiener, and Fosters. These top beer brands have largely captured the Turkish beer industry; therefore, Bud Light beer will have to face a very strong competition in the course of establishing its presence in Turkish market (Mu-hlbacher, Dahringer, & Leihs, 2006).

Objectives

Management Objective: Anheuser-Busch aims to introduce its Bud Light beer brand in the Turkish market.

The possible research questions which can be answered and analyzed to achieve the aforementioned objective include:

1. Is the introduction of Bud Light Beer in Turkey market a potential opportunity for the company to expand its business network, strengthen its International presence, and become a more competitive brand?

2. What is the most potential consumer segment which Anheuser-Busch can target for its Bud Light beer?

3. What are the consumer preferences, life styles and cultural values which can affect the company's strategy to target Turkey market?

4. Is there any need for brand extension? Or the existing flavors will suffice for an effective country penetration?

5. What would be the most effective promotional and advertising medium in Turkey for Bud Light beer?

In the light of aforementioned research questions, the company will conduct market analysis to find out the ways in which its Bud Light beer brand can be presented to its potential target market in the most effective and competitive way. This market research will give an idea to the company about its consumer segment, market and competitive patterns, and strategies to design a unique selling proposition for the Bud Light beer in Turkey.

In order to address this management objective, it is proposed that the company uses both primary and secondary sources of data.

i. Primary Sources of data:

The company can use focus group for qualitative research and customer survey for quantitative research.

ii. Secondary Sources of Data:

The strategy to introduce Bud Light beer into Turkey market will require Anheuser-Busch to analyze the income levels, competitive pressures, industry growth, and other economic factors which can affect its business operations in the short and long run. For this purpose, secondary data can be accessed from the governmental websites, market surveys, industry reports, newspapers, articles, etc.

Research Approach

The research study for introducing Bud Light beer into Turkish market will be carried out with the following five tasks:

Task 1: Meeting with the Client:

In this task, the researcher will have to personally meet with the clients who can become potential customers or otherwise stakeholders of the Bud Light beer in Turkey market. The purpose of meeting with the client is to clarify him the problem statement, the management objectives, access internal data, and find ways to collect the data for the research study.

Task 2: Secondary Data Research:

As per International Monetary Fund, the Turkish economy will grow by almost 3.5% during the current year. The country will see growth in all its leading sectors including energy, mining, financial, transportation, communication, manufacturing, advertising, and housing sector (Ministry of Economy, 2013). On the basis of this report, it can be anticipated that the beer manufacturers will be able to promote their businesses with a more rapid pace due to the advancements in communication and advertising sectors and the growth of manufacturing sector (Paley, 2006). The GDP per capita will continue to rise in the coming years whereas unemployment levels will show a decreasing trend (See Fig 1.1). Both these economic indicators are showing positive sign for Bud Light beer, i.e. The company will be able to target its potential customers from a stabilizing economy.

The trade sector of the country has also shown a positive growth in both imports and exports categories which is a positive thing for Anheuser-Busch to manufacture and export its Bud Light beer from USA to Turkey market (See Fig 1.2). USA is also one of the leading trade partners of Turkey which will also give the company a positive governmental support while introducing its Bud Light beer in its markets (See Fig 1.3).

Task 3: Primary Data Research:

In order to collect primary data, the researcher can conduct both qualitative and quantitative research. Focus group can be used for qualitative research whereas customer survey can be used for quantitative research.

a. Focus Group:

The purpose of holding a focus group meeting is to define the research problem and significance of the research study for the company. First of all, the researcher will make sure that he conducts focus group meeting with the participants who are directly or indirectly associated with the beer industry, manufacturing, employment, or usage. Afterwards, he will have to design a script which can be used by the focus group members in the meeting. He can also design some screening questions to find the most potential members for the focus group meeting; like:

i. Do you drink beer?

ii. What type of beer do you like (In order to find if he/she likes light beer or not?)

iii. What are your age group, income class, and type of profession?

iv. What is your favorite international beer brand?

v. What are your parameters of ranking beer brands? (Quality, taste, price, manufacturer, availability, etc.)

vi. Where would you rank Bud Light beer among the top International beer brands?

vii. Where would you rank Bud Light beer among Turkish Beer brands? etc.

The focus group panel will consist of 7 members. The researcher will pay $200 to each member for participating in the focus group and giving his/her valuable comments, suggestions, and critics.

Task 4: Conducting the Customer Survey:

The purpose of conducting customer survey is to get deep insights into the market patterns which are largely affected by consumer preferences and competitor activities. The customer survey will be carried out at large scale with a minimum of 550 respondents. The researcher will evaluate the first 500 responses. The survey will be conducted in the major cities of Turkey where Anheuser-Busch can find the most potential customers for its Bud Light beer. The researcher will assume that the selected respondents are the true representatives of the total target population, i.e. The results obtained from the 500 respondents can be generalized for the entire Turkish population.

Task 5: Data Analysis and Presentation:

The final step in the research study will be to analyze the available results. The survey will be conducted in 30-45 days and the results will be analyzed and interpreted in the next 1-2 weeks. The researcher will feed his finding in tables or charts in order to present the data in the most concise way.

Technical Appendix

a. Focus Group Script:

i. Introduction:

Good afternoon everyone. Me ____, the moderator of this meeting want to thank you for participating in the focus group which is specifically being held for discussing the research problem regarding the introduction of Bud Light Beer in the Turkish market. The prime objective of this discussion is to present a comprehensive marketing research proposal to Anheuser-Busch, the manufacturer of Bud Light beer. Through this focus group meeting, we will try to highlight the major issues, challenges, and opportunities which Bud Light beer will face in the Turkish market including consumer responses, brand extensions, supply chain and distribution network, competitive patterns, etc.

It is a humble request that every member of the focus groups actively participates in the discussion and respects the opinions and critics of his fellow members. The meeting will be recorded and the minutes will be written for future analysis.

ii. Consumer Preferences:

In order to find out the perception of target consumers in Turkey market about Bud Light or any other light beer brand, we have to ask some general questions which address and explore the consumer preferences through different angles. These are:

What (light) beer brand do you always or most of the times prefer to drink? (Brand loyalty)

What are your criteria for choosing a good beer brand among a wide range of alternatives available in the market?

How do you perceive a light beer as compared to regular beer? Tell us some advantages of light or non-alcoholic beer which motivate you to buy it.

How often do you purchase light beer? Does the ease of availability affect your purchase decision?

iii. Brand Extensions:

Should the company introduce Bud Light beer with the existing taste and flavors in the Turkish market? Will it match with the beer culture which Turkish customers have developed over the years?

What new tastes can be introduced in the Bud Light family in order to meet the exact needs of the Turkish customers? (flavor variations in the existing Bud Light beer)

How does this brand extension affect the company's sales, profit margins, marketing and promotional activities?

iv. Competitive Patterns:

Which (light) beer brands will become the direct competitors of Bud Light beer in the Turkish market?

Where do you rank Bud Light beer among the top light beer brands in the world which are also available in Turkey?