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Repositioning Budweiser to Women

Repositioning Budweiser to Women

A lovely cover page! Very creative and professional! In the future, please also include the date of the report submission and your course section#. MKT 2284 Marketing Research Courtney Groenewoud, Eric Williamson, Natalie Neville, Ashleigh Milne and Gen Blackburn The Fab Five MKT 2284 Marketing Research Major Research Assignment: Deliverable #1 The Research Proposal Table of Contents Formal Letter………………………………………………………………….. ……………………………. Page 2 Background ………………………………………………………………. ……………………………. Pages 3-4 Marketing research problem Definition ………………………………………………….

Pages 5-7 Research Objectives and Hypothesis ………………………. ……………………………. Pages 8-9 Research Design and Methodology ……………………….. ……………………………. Pages 10-11 Secondary and Primary Research …………………………………………….. …………. Pages12-13 Organizational Profile of Student Research Team…………………………. …… Pages 14-15 Proposed Project Schedule …………………………………………. ………………………. Pages 16-18 Bibliography… … … … … … … … … … … … … … … … … … … … … … … … … … … Page 19 Date of letter? Dear Ms. Hill, Our marketing research team has been conducting basic secondary research for Budweiser based on its current target market for males.

Based on our research, we see value in pursuing a study that focuses on the potential target market segment of females, as this is an unchartered area for Budweiser’s target market. Good! Our team believes that the primary marketing challenge for Budweiser today, is integrating a marketing campaign that will attract women (between the ages of) to Budweiser while still putting an emphasis on customer retention so that males will still drink Budweiser. Since Budweiser already owns the majority of the market share (how much exactly? ), by having women drink beer, this can make them he top-grossing beer brand. Considering Budweiser has targeted the male market with their advertisements for decades, we have seen an opening to target Budweiser towards women, who are in college/university or young professionals between the ages of 19-30. (Why this particular group of women? Main fit for the product? What’s the size/potential of this new market for your client? ) When examining the idea of Budweiser changing target markets, there are obstacles that need to be overcome and researched in order to successfully make the market changes, such as, females taking to (do you mean “responding to”? a marketing campaign aimed at making women drink beer(not really the purpose but rather, encouraging a change in beer brand loyalty – might be a better way to explain this point) as well as considering how a new marketing campaigns would effect males. Based on our outline of this proposed marketing research project, we are asking for approval to move ahead with this Budweiser repositioning proposal. If given permission we will move on to begin doing quantitative and qualitative research so that we can efficiently finish this entire project within a timely manner. Thank you for your consideration,

The Fab Five marketing Team In the letter, I would have liked some detail regarding your team’s research objectives, some secondary data to prove your team knows the industry and / or target market, and more detail on planned research methods (mention the survey and focus group in greater detail). Background Company History The Budweiser legend all started in 1876, when the E. Anheuser Brewing Association of St. Louis, Missouri, Introduced Budweiser Lager Beer. “Bud” was a hit to Americans and as the years went on, Budweiser was being consumed by the barrelful (3 million barrels per year by 1941) (source? . Budweiser soon became an American icon due to the massive quantities of Bud consumed. In 2008, Anheuser-Busch and InBev combined to become Anheuser-Busch InBev. This new company is now the world’s largest brewer and is one of the world’s top 5 consumer product companies. The combined company produced 26. 4 billion Euros in revenue in 2007 (source? ). Their beer is enjoyed by consumers all over the world as the company works through 6 operational zones, North America and Europe being the biggest in generating revenue. Current Market

In 2010, Beer stores (where? ) sold $19. 9 billion worth of beer during their fiscal year. Anheuser-Busch InBev currently controls 22% of the global market share, which makes it the world’s largest brewer. Good! The current target market for Budweiser is anyone who is 19 years of age or older and who is a fun loving, carefree individual who likes to drink occasionally or on a regular basis. And male? Other attributes? Are they selling to 55 year-old-males as well or is it more a younger demographic? Product Overview Some of Budweiser’s strengths include:

Their demographics because the number of Budweiser’s target market (19-30) is expected to increase over the next decade which will be a major factor to their growth and product development. This first sentence is unclear. Their brand name is powerful because they have the top 2 brands in the country (Canada? (Bud Light and Budweiser) and they have the leading brand of beer in all the major domestic beer categories in?. Their slogan “King of Beers” has become very popular therefore making their brand name recognizable to consumers. They have a network that consists of 12 breweries and 600 wholesalers who distribute their brand in ?.

One of Budweiser’s biggest weaknesses is that their advertisements and slogans relate mostly to men. In their commercials, they have used half-naked women in bikinis several times. As much as this gets men to drink their beer, women do not seem as intrigued. Their slogan “King of Beer” delivers a message that this beer is meant for “kings” (men) to drink, which does not appeal to women. Advertising Tactics Budweiser has used its commercial advertisements to make their beer seem like the “it” beer to drink. With having their target market age range from 19-30, their commercials are filled with partying and humour.

With the majority of their consumers being men, the commercials are filled with party scenes with girls dressed up in bud bikinis. Marketing Research Problem Definition Opportunities Considering Budweiser has targeted the male market with their advertisements for decades, we have seen an opportunity to target Budweiser towards women particularly, women who are in college/university or young professionals between the ages of 19-30. A typical ad with sexy girls serving beer to buff males may not encourage women to move towards beer.

With many male-orientated slogans and campaigns including “The King of Beers” and “Bud Camp”, Budweiser has isolated many potential female consumers from buying their products. Good point. Although the numbers of female beer drinkers are growing, they are still considered a rare breed. In July 2010, Gallup poll stated that the percentage of women who prefer beer over wine or liquor was only 27%. This is up 6% from their 2009 poll. Excellent stat. This shows us that the popularity of this product is increasing by women and shows us that this new target market we have selected may work out.

Another opportunity we see by targeting young women is that the increase of sales by men might increase also. When men realize that women are becoming more drawn to beer, the men may become instinctively charmed and will be able to connect more with the women. Thirdly, we see an opportunity by informing women on the history of Budweiser beer and beer in general. It was originally women who were brewing beer centuries ago. Even though brewing beer and consuming beer may be a “manly” act, it’s actually women who drove this popularity. Very interesting information. I can imagine it will come as a shock to many men, but they’ve got women to thank for their beer”. Women are usually the ones who are in charge of the shopping which means they will most likely be the ones picking up the beer. So why not target women more and maybe they will pick up the beer for themselves and not just for their husbands, brothers, etc… Challenges Most women between the ages of 19 and 30 will tell you that they do not like the taste of beer. Statistics show that more men enjoy beer over women, 54% to be exact. Budweiser offers many different types of beer i. . : Bud Light Lime, Bud Light etc… which gives women more options to choose from. A challenge we have will be to get women to try the different flavours of Budweiser. If women have a pre-conception for the taste of beer it might be difficult to convince them otherwise. The beer industry is a very competitive one which leads to another challenge we may have. The beer industry is continually changing and therefore Budweiser is going to have to stand out and make their product versatile, which includes targeting women who may be interested in drinking their beer.

This could be done by changing their target market to changing their strategic goals and recognizing their opportunities and threats from other competitors. Budweiser is always on top of knowing what the public wants and what style of product they’re looking for. Budweiser’s challenge will be figuring out what women want for their beer. Women want a product that provides a refreshing taste which is delivered in a stylish design (how do we know this? ). Budweiser is constantly changing their sizes, flavours, and benefits to their product so repositioning to women should be a consideration. Why Reposition?

For our marketing team’s suggested opportunity to be successful, it will require Budweiser to reposition its current target market of males, to the female gender. Specifically our marketing team is proposing that the target market will be College/University students or young professionals who are of the female gender; we also propose the age range of 19 (the minimum legal drinking age in Canada) to 30 years old. Our target market will also be only those females who are alcohol drinkers, anyone who does not drink alcohol is not helpful to the research required to understand if the new target market is successful.

Can they be users of beer as well as non-users of beer as well? This should be clarified. On top of repositioning a new target market, our proposition also includes making sure that there is a retention effort kept on the old target market to ensure that they are staying drinkers of Budweiser regardless of the new target market campaign. Very well-written. Budweiser markets many of their products through sports by placing their logo on race cars, in stadiums, arenas, and concert stages. This is how they attract so many young men to their products.

We have chosen to reposition to women because today, many women are just as into sports as men are as well as enjoying a cool glass of Budweiser while enjoying the game. Budweiser will need to use more networks so that they may be able to reach their target audience of women. Repositioning to women could be a great opportunity for Budweiser and provide them with a larger sales market. Beer is not just for watching sports; to a woman it could be about travel, romance, fashion, sophistication and dining.

Beer is for everyone, all the time. What is the current size of the female market for Budweiser in Canada? Research Objectives and Hypothesis Research Objectives Women * We need to determine what women are drinking now? How long and how loyal are they to their beverage of choice. * Determine who is a beer drinker vs other alcoholic beverages? (if we are studying users and non-users of beer products) * To determine whether women will drink Budweiser beer over other alcoholic beverages such as wine, hard liquor, or beer brands. To determine the percentage of women who will drink Budweiser beer after viewing a Budweiser advertisement targeted specifically towards women (we won’t be able to do this via a survey – do you plan on doing ad testing? ) * Determine how the behaviours and attitudes vary between users and non-users. * To determine if using advertising campaigns that feature high-profile celebrity women, good-looking men, and a social atmosphere will appeal to the target audience. * To determine if scheduling Budweiser Beer advertisements on Thursday, Friday, and Saturday nights before prime dinking hours could increase sales to women. To determine if women feel obligated to drink alcoholic beverages such as wine or hard liquor while in public because drinking beer will make them appear masculine or unattractive * To determine if Budweiser beer is priced accordingly to the target market and their appropriate income levels. * To determine if selling the 3. 41 glass Budweiser beer bottle will be more accessible for the target audience if it is sold at the LCBO. * To determine if women enjoy the taste of Budweiser Beer over other alcoholic beverages and beer brands. * For beer consumers, will you be determining which brands are most preferred and why? What about also testing for where they buy their current beverages? I would test for their level of comfort of going to a Beer Store vs LCBO for instance. Need to add: Media habits Men * To determine if the percentage of men who drink Budweiser beer will remain the same, or increase if the percentage of women who drink Budweiser beer increases. * To determine if men will continue drinking Budweiser beer if they observe advertisements targeted towards women. * To determine if men will continue drinking Budweiser beer because of brand dominance or switch to an alternative beer brand if that beer brand markets their beer towards men. To determine if men will feel emasculated when drinking Budweiser beer if they see women drinking Budweiser Integrated Marketing Communication Objective To determine if the slogan “Queen of Beers” will engage women to feel sexy, confident, and independent while drinking a Budweiser beer. Hypothesis By using an IMC campaign approach and targeting Canadian women 19-30, highlighting Budweiser beer as an accessible and brand dominant alternative to other alcoholic beverages will increase Budweiser’s market share by 20% over a 6 month period. Excellent job on the hypothesis!! Research Design & Methodology

Proposed Research Design The research methods we are planning on utilizing are exploratory and descriptive. Good! We chose to do exploratory research because we have already determined that our research problem is that beer is mainly targeted towards men in Canada. We believe that if we can reposition the target market to females aged from 19 to 30, then we will be able to form a new female customer-base while still being able to maintain the male market. Our preliminary research encompasses the uncovering the population or percent of women who drink (alcohol or beer or both? in Canada and then narrow that down to finding out the percentage of women who actually drink Budweiser. We will be holding focus groups (holding 2? ) with legal drinking aged females and males to get their perspective and opinions on alcoholic preferences and why they choose to drink what they do. We will also find out from these focus groups what attracts people to certain alcoholic beverages. By doing an exploratory study we believe it will give us more clarity as to why certain beverages are so popular to certain target markets like age groups and males and/or females.

Our second research design that we have chosen is descriptive research. We will be administering over 75 surveys to legal aged females between the ages of 19-30, of whom consume alcohol between lightly (not often) and/or heavily (often). By surveying, we will be able to understand the behaviours and attitudes of this audience and more specifically, understand if women will drink Budweiser more often if the advertisements are targeted towards them. We will also be asking questions like “What would you like to see in a Budweiser ad? ” (actually – we wouldn’t ask that question in a survey.

It is fine for qualitative research methods though) “Is taste a big factor for you in Budweiser beer? ” “Does the price of Budweiser make an impact in your decision? ” “Does using an IMC slogan in specific areas mean you’re more likely to buy Budweiser beer? ” (unclear) “If Budweiser beer was sold at both the beer store and the LCBO would you be more likely to buy this brand of beer? ” This survey will be a paper survey which will be self-administered. We have chosen the non-probability sampling method because we can make it representative of our population. It’s also less expensive and quick.

We will be using convenience, quota and judgement forms of sampling in this study. We do not have a sampling frame, we could use the white pages but due to the limitations like unlisted numbers we have chosen not to. Good! Our sampling size will be approximatley 75 women. We would have many subgroups such as; * Users vs. Non-users (domestic/imported beer consumers) * Age: 19-22, 23-26, 27-30 * Where they live: East, West, South and Central * College and university users However, surveys may also tell us that this age group possibly could choose a beer brand depending on price, cheapest to non-cheapest or just personal preference.

By doing descriptive research it will give us the answers we need, to conclude what triggers this age group to purchase what they do and why. Secondary and Primary Data Secondary Data Marketing research uses secondary data because it is available at lower costs, time and convenience compared to primary data collection. Other reasons for using secondary data include; the facts that it may help clarify or redefine the problem during exploratory research, it may also provide a solution to the problem.

Obtaining secondary data from outside sources is a required step in almost any research project. Good! Our marketing research team is making use of websites in search of the information required to properly prepare the necessary background information for the study. The following are specific secondary resources that our team plans on using. 1. http://www. gallup. com/poll/141656/drinking-rate-edges-slightly-year-high. aspx 2. Lynnette. (2005 Jun 3) Budweiser’s New Marketing Ideas. Retrieved on September 20th,2011 3. http://www. budweiser. ca/ 1: This site provides us with crucial statistics about the trends in female and male beer drinkers such as the percentage of women who drink beer over hard liquor. This secondary source provides important background information to the study. #2: This site provides us with information related to Budweiser’s marketing campaigns that assist us in analyzing a repositioning of the target market. #3: This site is the official site of Budweiser which provides us with the necessary background information. Will you be studying any of the other top beer brands using secondary sources? Primary Data

Primary data is data observed and collected directly for the first time for the study at hand. Population: Our population for this primary data study is college/university students or young entrepreneurs who are of the female gender and between the ages of 19 and 30. Our target market will also be only those females who are alcohol drinkers, anyone who does not drink alcohol is not helpful to the research required to understand if the new target market is successful. They can be either beer consumers or not? Team Sampling Plan: The sampling plan will consist of a survey for both male (really?

I thought the survey was for your primary target audience – females and you were considering including males in a focus group) and female individuals that will test the marketing objectives (females to drink Budweiser, males to maintain Budweiser drinking). The sampling plan will also include a focus group (actually – we don’t discuss qualitative research in sampling plans – just quantitative) that will be between 50-60 minutes long that will test behaviour and attitude of potential consumers towards potential Budweiser marketing campaigns aimed at women via a collage response study.

Qualitative/Quantitative: Qualitative research is research whose findings are not subject to quantification for quantitative analysis. We are using qualitative research to determine specifics about our target market such as the actual age group of female Budweiser drinkers and percentage of women who would drink Budweiser under a new marketing campaign. We are obtaining these qualitative results through the method of survey – no! Qualitative is never a survey. Quantitative research is research that uses mathematical analysis. We are using quantitative esearch to determine specific statistics about our target market such as the attitude and behaviour towards a marketing campaign for Budweiser that might employ qualitative techniques; essentially we are studying how to communicate with our target market. Limitations: The limitations that we might face include the small population of our target market (small? ), the lack of females who pick the relevance of our study (are between the ages of 19 and 30 who actually drink beer), the lack of females who actually drink alcohol in general and the amount of males willing to participate in a survey about women drinking beer.

Organizational Profile of Student Research Team Eric Williamson: Team Leader * Directing the team and ensuring all team members participate * Facilitate group meetings and oversee project deadlines Gen Blackburn: Project manager * Managing and leading the project team * Managing project deliverables in line with the project plan * Resolving project issues at a function level Natalie Neville: Project Analyst * Conducting primary and secondary research * Sourcing all documentation * Ensuring all sources are credible and reliable Courtney Groenewoud: Project Administrator Documenting group ideas and meetings * Proof reading documentation for deliverables * Finalizing adjustments regarding deliverables Ashleigh Milne: Project Planner * Focusing on deliverable dates * Outlining specific dates and times for meetings * Chart project schedule Sub-Committee Managing Qualitative Research Courtney Groenewoud * Will facilitate the focus groups? Eric Williamson * Create the design and implementation of the survey Quantitative Research Ashleigh Milne * Facilitate the focus group (survey – you have inverted the methods)_ Gen Blackburn Manage subjects within the focus group Natalie Neville * Document and film focus group Proposed Project Schedule September 2011 Sunday| Monday| Tuesday| Wednesday| Thursday| Friday| Saturday| | | | | 1| 2| 3| 4| 5| 6| 7| 8| 912:00-1:30 We looked over the team contracts and thought about product ideas. 10| 11| 1212:00-1:30 We read through the project outlines| 13| 14| 15| 16Divided up the project segments| 17| 18| 1912:00-1:30 Put deliverable #1 together| 20| 213:25 Deliverable #1 check in with Valerie Hill| 22| 23| 24| 25| 26| 27| 281:00-3:00 Finalized deliverable #1| 29| 301:30 Deliverable #1 is due. Assign deliverable #2 segments| | October 2011 Sunday| Monday| Tuesday| Wednesday| Thursday| Friday| Saturday| | | | | | 1| 2| 312:00-1:30 Draft our survey| 4| 5| 6| 7| 8| 9| 1012:00-1:30 We will confirm what we want to get out of our focus group and plan how it’s going to proceed| 11| 12| 13| 1412:00-1:30 Set a date for when our focus group will take place| 15| 16| 1712:00-1:30 We will meet to discuss deliverable #2 and see if everyone is on track| 18Midterms| 19Midterms| 20Midterms| 21Midterms| 22| 23| 24Present our primary data we have collected| 25| 263:00 Deliverable #2 is duePre-test our survey to ensure we are asking the right questions| 27| 2812:00-1:30 Look over deliverable #3 and assign parts| 29| 30| 31| | | | | | November 2011

Sunday| Monday| Tuesday| Wednesday| Thursday| Friday| Saturday| | | 1| 2Final Team Check-in| 3 | 4 Focus Group will be undergo | 5| 6| 7Continue to collect primary data| 8| 9| 10| 111:30 Deliverable #3 is dueWe will look over and assign deliverable #4| 12| 13| 1412:00-1:30 We will conclude our primary data| 15| 610:00-1:00 We will begin writing our final report| 17| 18| 19| 20| 21| 22| 233:00 Deliverable #4 is due| 24| 25| 26| 27| 28Presentations begin| 29| 30| | | | Note: It will be important as a team to assign roles for the quantitative and qualitative study at the same time. When preparing for Del. #2, you can actually start this. Deliv. #3 and #4 therefore begin to operate at the same time after Week 8. Bibliography Background 1. Abbette, A. (n. d. ). Street Directory. In A Brief History About Budweiser. Retrieved September 16, 2011, from http://www. streetdirectory. com/food_editorials/beverages/beer/a_brief_history_about_budweiser. html. 2. Brito, C. (n. d. ). Anheuser-Busch InBev.

In A Brief History of Anheuser-Busch InBev. Retrieved September 16, 2011, from http://www. ab-inbev. com/pdf/companyprofile_070228. pdf. 3. Luqman, R. (July 5th, 2011). Statistics Canada. In Control and sale of alcoholic beverages. Retrieved September 16, 2011, from http://www. statcan. gc. ca/daily-quotidien/110420/dq110420a-eng. htm. 4. D’Altorio, T. (June 18th, 2010). Daily Markets. In Budweiser: Because You Deserve What Every Individual Should Enjoy Regularly. Retrieved September 16, 2011, from http://www. dailymarkets. com/stock/2010/06/18/budweiser-because-you-deserve-what-every-individual-should-enjoy-regularly/. Market Research Problem Definition