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01.31.2009 12:19 pm

Grading Anheuser-Busch’s marketing: Pass or fail?

St. Louis Post-Dispatch
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It seemed a simple question, so Lager Heads asked it. Exactly how good is Anheuser-Busch at marketing, particularly when it comes to advertising on the Super Bowl? We all know A-B is a prolific advertiser — it will be the No. 2 advertiser on the big game this year and also ranks as the world’s most generous sports marketer. But for these purposes, we are interested in the quality of its work, not just the quantity.

When we called a few experts, we got a wide variety of opinions. Which perhaps shouldn’t be surprising, since the merits of Budweiser beer also divide many people.

Count Mark Schupp among the critical. Schupp, a former Bud Light brand manager and now leader of a marketing shop in St. Louis that works with rival brewer MillerCoors, said A-B does “reasonably well” in squeezing value from Super Bowl commercials by building an entire marketing campaign around them. It’s important to build buzz on the Internet to extend the company’s message, and to use the commercials to get A-B’s sales force revved up, he said.

“In today’s environment, you can’t just run one commercial on the Super Bowl without doing the other things that increase your topspin,” Schupp said. “You have to look at it as an entire package.”

Still, Schupp said Anheuser-Busch has too many commercials on the Super Bowl. Anheuser-Busch buys a ton of air time to lock competitors out of the game, among other reasons. But Schupp said “they have hit their optimum point of diminishing returns.”

Tom Pirko, president of consulting firm Bevmark, thinks so, too. Anheuser-Busch executives “are stuck in a posture where they think they have to carpet bomb the viewing public,” he said. Big advertising might help Anheuser-Busch hang onto its market share, but it doesn’t raise consumption of beer, he said. “There’s a huge amount of money being spent for not a lot of return.”

For Anheuser-Busch InBev’s part, a spokeswoman told Lager Heads that “it is all about effective and efficient marketing, helping us to build lasting consumer connections, driving sustainable, profitable, growth. … We are focusing our spend on activities that directly relate to what our consumers ’see, touch and enjoy’ and on those brands with greater growth potential.”

Okay, fair enough. But Schupp’s main philosophical beef with Anheuser-Busch remains. At one point, he says, the company was the best marketer in the word. “Ten, twenty years ago, Anheuser-Busch used to be very entrepreneurial and cutting edge,” he said. “They were the first sponsor of ESPN. I remember thinking, ‘What the hell is ESPN?’”

Now, he says, “they don’t want to make any major missteps and offend anybody and lose any market share.” In other words, Schupp argues, Anheuser-Busch gone a little more conservative, waiting until competitors try things, and then swooping in and doing it on larger scale. “They need to get their entrepreneurial spirit back,” Schupp said.

Of course, others believe Anheuser-Busch is still at the top of its game.

Jan Slater, a branding expert and the head of the department of advertising at the University of Illinois, said Anheuser-Busch brings a unique cache to the Super Bowl.

“When you think of beer in the Super Bowl, Anheuser-Busch is always the one that’s there,” she said. “Historically, Anheuser-Busch has always been a very big brand leader because they always understood what Anheuser-Busch meant and what Budweiser meant and what their relationship was with their consumers.” It treated consumers like family, she said.

“They’re one of the premier marketers in terms of knowing what they’re doing,” up there with Coca-Cola and Procter & Gamble, she said. “It is the category leader in the world; It’s a great American brand.”

Slater said the appearance of the Budweiser Clydesdales in epic American events — including the Super Bowl and the Rose Parade — builds Budweiser’s status as “a tremendous heritage brand.” And it’s an American brand that made inroads in places not typically known for embracing Americana, such as Britain and Germany, she said.

“All of the Budweiser advertising is what I would call atmospheric,” said Neil Alperstein, professor of advertising and popular culture at Loyola College. “It’s brand reinforcement. It’s an investment in people’s emotional connection to the brand.”

“We live in a world where symbolism is very important,” he said. “It’s transcended the actual object that people want to sell.”

Anheuser-Busch’s quality control is impressive, Slater said, citing the St. Louis brewery tour. The company has been proud to tout that fact in its advertising.

“They’re visible in all the right spots,” Slater said of Anheuser-Busch. “They understand who drinks their products.”

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15 comments

Comments are closed.

That’s an easy question. AB’s marketing? A+ times a billion. They’ve convinced millions of sheeple that Bud Light is the best tasting beer out there. The fact is, that it has no flavor. Saying that Bud Light has good flavor and drinkability is the equivalent of serving Spaghettios and calling it fine Italian dining.

I enjoy a real Bud on a hot summer day, but instead of beeing some fanboy and refusing to drink anything else but one beer, I actually will try other kinds of beer, too.

— b
5:26 pm January 31st, 2009

AB ceased to be about beer a long time ago. -b is absolutely correct. AB is about marketing, selling their watery “beers”, and making money. Mostly making money. Their “beer” is pretty awful for the most part. Crud Light? Why not just drink water instead? What is “drinkability”? Please. It’s not anything of relevance. It’s just marketing claptrap.

Their craft brews can actually be decent, but they just want to try and take market share from those smaller companies that make much higher quality brews. They are not serious about producing those good beverages.

— GuinnessRules
10:34 pm January 31st, 2009

The only thing AB is making right now that I can stomach is the Bud Ale. It’s like a bad Sierra Nevada, which makes it better than the rest of their horrible, horrible “craft” lineup.

— Brian White
9:22 am February 1st, 2009

A-B commercials have been in a free fall since the early 1990’s. Remember the Yes I Am guy, I Love You Man, the men dressed as women for Ladies Night, etc.? Where did that go??!!! Now they talk about drinkability? Anything liquid has drinkability. Like saying shoes have walkability. But they started losing their grip on marketing long, long before the frogs and all of that with Budweiser. This Bud’s For You was bulletproof, yet A-B managed to murder it. Why?

— link
11:56 am February 1st, 2009

I can always count on the whiners chiming in on LagerHeads, which should be called “Let’s Bash A-B” since that is the only reason this blog was created in the first place. So keep it up, I’m enjoying it.

— StL Man
1:43 pm February 1st, 2009

This year’s Super Bowl commercials were a waste of money for most of the advertisers. Monster, CareerBuilder and GoDaddy stood out the most. A-B’s ads were stunningly boring and unfunny after several years of being far and away the best. AB InBev: the difference is suckability.

— Bring Funny Back!!
12:19 am February 2nd, 2009

I no longer drink AB after the Lohr’s debacle, getting rid of hard workers when financial times were good.

How good can their marketing be if they’re not the Official Beer of the NFL?

OOOOPS.

— scott_simon
8:03 am February 2nd, 2009

Headline should read that Even the Potatoe Heads Kicked AB InBev’s Butt. Also, Pedigree was great, and CareerBuilder ad was very much on target (especially for some of our friends working at AB InBev?).

— Potatoe Head Fan
8:22 am February 2nd, 2009

“It treated customers like family”… A-B used to treat employees like familt too. But those days are long gone now.

The commercials A-B ran were lack-luster and boring.

— Jimmie_J
8:24 am February 2nd, 2009

I believe the AB message was that they are in the “Horse” business.

— TimB44
9:06 am February 2nd, 2009

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