Anheuser-Busch and logistics
Nameof the institution
Anheuser-Buschis a brewery company founded in Missouri in 2008. The company came tolight after merging of Interbrew and Am-Bev. The company has grownthroughout the world and has done well in terms of marketing anddistribution of beer to its customers across the globe. The paperwill dig deeper into the logistics of the company and how it hasimpacted the marketing strategy of the firm among other strategies tomarket company`s products.
Inan effort to influence its market, Anheuser-Busch has established arelationship with retail outlets and local distributors. The companydistributes directly to the retailers in order to ease theavailability of its products. In so doing, the brewer has influencedthe retailer to stock all their beer products in their shelves in aneffort to edge out competitors (Grimmett, 2015). Direct distributionhas led to increasing in sales as well as reducing the supply chainsbureaucratic stages that involve several players.
Anheuser-Buschhas in the recent past considered its pricing to accommodate harsheconomic situation of its customers. The company is utilizing what itis calling `tactical price promotion.` The campaign involvesallocation of discounting its prices in different markets. Forexample, in the recent political shake- up in Brazil, the company hasreduced its beer prices to 10%. The effort was to encourage consumersto spend more even in economic hardship. In the US, the discount hasassisted to improve the share prices in stock markets. The pricing inthis market was done to cater for recent presidential election marketvolatility. Also, the company used data and software to manage itsmarkets and account for every cost associated with marketing[ CITATION Pan15 l 1033 ].
Thecompany has also engaged in sponsorships deals and promotionsespecially in sports. The sponsorship is a strategy to increase salesand brand visibility. A good example is a partnership deal with MLBNew York by replacing Budweiser to exit their signs in Citi fields. [ CITATION IEG16 l 1033 ]Thesecampaigns have led to increased consumptions in the fields andstadiums as well as associated advantages of rightsizing associatedwith more products visibility.
Inconclusion, the company efforts to reduce supply logistics to asimpler model are highly benefiting the brewer by ensuring the storesfor retailers are always full of company`s products. Other strategiesas highlighted above will promote the product to its consumers andincrease profitability and a bigger market share.
Grimmett, D. (2015). APSU JABR Vol 1, No 2, November 2014. Raleigh: Lulu.com Publishing.
IEGSR. (2016, May 2). From The Biggest To The Best: Inside Anheuser-Busch’s New Sponsorship Strategy. THE LATEST ON SPORTS, ARTS, CAUSE AND ENTERTAINMENT MARKETING. Retrieved from http://www.sponsorship.com/iegsr/2016/05/02/From-The-Biggest-To-The-Best–Inside-Anheuser-Busc.aspx
Mourdoukoutas, P. (2015). Business Strategy in a Semiglobal Economy. London: Routledge.
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