Integrated Advertising, Promotion and Marketing Communications 5th Edition by Kenneth Clow,Donald Baack

Exercise 29

ANHEUSER-BUSCH: DATABASE MARKETING AND PERSONAL SELLING
Margie Washburn was about to begin an exciting new era in her life. She had purchased the distributorship rights for Anheuser-Busch InBev products in the Denver/Aurora, Colorado area. Even though her company would be standing in the shadow of the Coors Brewing Company, she believed that through effective database marketing and personal selling tactics, Budweiser and Busch products would be widely accepted in the region.
As a distributor, Margie's primary customers are other businesses, specifically, bars, taverns, and restaurants that serve beer to patrons; retail outlets such as grocery stores, convenience markets, and liquor stores; and entertainment venues, including the arena housing the Denver Nuggets. She did not expect to make in-roads selling beer at Coors Field, home of the Denver Broncos.
Anheuser-Busch competes in a highly fragmented market. Major vendors include Miller/Coors, Heineken, Corona, and Guinness. Recently, other beer companies had created buzz and captured some market share, including Dos Equis, Stella Artois, and Samuel Adams. The microbrewery trend that expanded quickly in the 1990s had slowed; however, several popular local companies were doing well in the Denver area.
Anheuser-Busch InBev had endured some negative publicity in the past decade, when the former Anheuser-Busch, owned and operated from the United States, was acquired by Belgian brewer InBev. Some customers feared that popular products such as Budweiser and Bud Light would somehow be changed by an international company.
Advertising and promotional efforts targeted at individual consumers continue. Budweiser's "King of Beers" approach, including commercials featuring the Clydesdales, maintained a strong brand presence. Bud Light's use of comedy had also created positive reactions. A recent campaign emphasizing the romance and marriage of Bud Light with wheat had been used to kick off another variation of Anheuser products, Bud Light Golden Wheat. Anheuser-Busch produces lower-end beers, including Natural Light, as well as the higher-end Michelob line of beers.
One of Margie's challenges was finding out how each type of customer related to her products and brands. She needed to know how many restaurants and drinking establishments prominently displayed her beers. She also was interested in finding out whether her products received good, fair, or poor shelf space in off-sale outlets. From there she might be able to find ways to create bonds with individual consumers that would "pull" Anheuser-Busch brands to the forefront in these locations.

Margie faced a number of challenges with her distributorship
Margie also knew that her competitors employed brand ambassadors, especially on-campus at the universities in the Denver area. The ambassadors were college students who pitched Miller/Coors products to fellow students and local watering holes. Miller/Coors also sponsored a variety of events targeting college-age students with music and sports.
To compete, the new Anheuser-Busch InBev distributorship required an extensive, coordinated marketing communications program. The objective would be to tie brand loyalty and positive relationships with individual consumers to database programs use personal selling tactics to reach all of the business- to-business customers in the area. Margie looked forward to getting started.
1. What types of data should the distributorship collect about individual consumers How can it be used
2. What types of data should the distributorship collect about business customers How can it be used
3. Can the distributorship build any frequency or loyalty programs in the area If so, describe what would work. If not, why not
4. What sales approach should the sales staff use for the various businesses that sell Anheuser-Busch products, such as nightclubs
5. What type of sales approach should the company use to entice liquor vendors to carry and emphasize Anheuser-Busch products in both on-sale and off-sale venues