Anheiser-Busch sales are down, solution: Make better beer? No, step up marketing!

[Sea]

This discussion is interesting and all, but I'm still stuck on the idea of A-B IINCREASING advertising. Their ads are already everywhere. What are they gonna do now, beam subliminal messages directly into our heads?

 

[billvon]

what's the profit margins on SN vs American Ale.... I bet Bud makes more on their cheaper beer.

Unlikely. When AB makes their 'cheaper beer' they are competing with Miller, Coors etc. Cost is a major decision there, and a slightly higher cost means a lot of lost market share.

When you get into the people who are going to buy better beer anyway, they're not going to care as much about cost. I doubt most people here are going to go to a store for Sierra Nevada pale, see another beer and think "oohh, Michelob Pale Ale is $2 cheaper! That's the beer for me."

 

[arturo7]

This discussion is interesting and all, but I'm still stuck on the idea of A-B IINCREASING advertising.

Hell, what else can they do? That's the only dog they've got in the fight.

Losing market share, management has to do something to show the shareholders they're on the job.

 

[wscott823]

Hell, what else can they do? That's the only dog they've got in the fight.

Losing market share, management has to do something to show the shareholders they're on the job.

I can agree on that. You'll never see Coca-Cola tweaking their recipe just to regain lost market share. They go to advertising first.

The only other option I see for A-B is additional acquisition.

 

[MeatyPortion]

I can agree on that. You'll never see Coca-Cola tweaking their recipe just to regain lost market share. They go to advertising first.

Uh, remember New Coke?

 

[wscott823]

Public didn't respond to it very well at all IIRC

 

[babalu87]

Uh, remember New Coke?

Max Headroom FTW

Pepsi had the "real" Pepsi not long ago as well.

 

[wscott823]

Crystal Pepsi too. Ah, all the failed, poorly executed marketing ploys :fro:

 

[MeatyPortion]

Public didn't respond to it very well at all IIRC

Very true. With that somewhat fresh in the minds of corporate America it's no wonder the BMCs don't want to mess with the formula.

 

[MeatyPortion]

Why would you not buy from this man?

 

[fatmoose]

Very true. With that somewhat fresh in the minds of corporate America it's no wonder the BMCs don't want to mess with the formula.

Exactly. In spite of the opinion of many folks here regarding the quality of their product they do have a specific taste, smell, etc that loyal Bud drinkers have become accustomed to. If you change that you take the chance of alienating your current customer base in the search for new customers. They can't mess around with their flagship products which is why it is that you see them try all these other approaches, including things like spending more on advertising, their attempts at mass producing "craft" beers and acquiring craft brewers.