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Anheuser Busch Corporate Research

In: Business and Management

Submitted By dustinh1
Words 4200
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Anheuser Busch
Corporate Research

Team Two:
Dustin Henderson
Jeremy Bautista
Daniel Watt
Anthony Kuck

Date Completed: April 1, 2010
Kim Marchesseault
TO: Stefan.descheemaeker@A-B.com
FROM: ResponsibilityMattersTeam@A-B.com
DATE: 04/01/10
SUBJECT: Corporate Research
Dear Mr. Stefan Descheemaeker:
Attached is the proposal for a new tool in our fight against drunk driving. We have constructed a plan to use smart phones to include an Anheuser-Busch application that will calculate the costumers BAC level. The production time is approximately six months and is explained in detail in the report. We are eager to set up a meeting with you and set this project in motion.

Sincerely,
The Responsibility Matters Team

Table of Contents

Executive Summary 4

Current Situation of Anheuser-Busch 5-6

Background on Pressing Issues 6-11

Pressing Issues in Competitors Eyes 11-12

Comparing Anheuser Busch with Top Competitor 12-13

Analysis 13

Recommendation 14

Works Cited 15

Executive Summary

As the leading distributor of alcoholic beverages in the world we have built our foundation with our commitment to being an effective, responsible, and productive corporation. Due to the nature of our business, our company must adhere to a number of laws and regulations that at times are restrictive to the business aspect of our corporation. In order to continue to make strides towards bettering ourselves we need to continue being socially responsible, in particular push our “Responsibility Matters” campaign. The opportunities for consumers to engage in drunk driving, underage drinking, and binge drinking on university campuses have historically been a major concern for all alcohol distributors. Our corporation has committed to educating our consumers in the responsibilities that come with our products.
Committees at Anheuser Busch have already developed necessary programs to deal with the risks and threats that our company faces, but we still feel there is room for improvement. We have been working with businesses and organizations to initiate alcohol awareness activities around the nation. Examples of programs initiated by the advisory panel for Anheuser Busch include: Family Talk about Alcohol as a resource for parents to talk to their children about underage drinking; AlertCab which provides taxi cab service from bars and restaurants; College Talk program which is a stem of Family Talk for parents to educate their children about responsible drinking when living on their own; and our Great Party Guide which is used by thousands of party hosts to ensure responsible drinking of guests. Aside from providing programs like these to confront the issue, we feel that there is more that we can do.
With our four main concerns being underage drinking, drunk driving, issues on college campus, and responsible drinking, we feel that drunk driving continues to affect the lives of not only those drinking but those of innocent people. As another step in our fight against drunk driving we have looked into an iPhone application that customers will be able to use to manage monitor their use of alcoholic beverages by determining their blood alcohol content. We are advising our board of directors to form a committee to expand our “Responsibility Matters” campaign using this iPhone application. The application will go through a six month process which includes the development of the product, testing in the market and some fine-tuning. Since there have already been similar applications developed we feel that a production budget of $20,000 would be an adequate amount to implement this addition to our fight against drunk driving.

I. Current Situation of Anheuser Busch

A. What do we offer and where do we stand?
Our company operates in the Consumer Goods Sector as our main focus is distributing alcoholic beverages to our consumers. We are the leading provider of a wide variety of not only alcoholic beverages, but non-alcoholic as well. Our diverse product line consists of over 300 types of beer and alcoholic drinks that we provide to our customers. We have done so by having 12 different operating breweries located across the United States, and controlling 49.2% market share. (www.anheuser-busch.com)

We offer premium drought beers, assorted light beers, and even non-alcoholic beer. Each beer is designed to, “add to life’s enjoyment through responsible adult consumption”. Two beers in particular have dominated the specific market for Anheuser Bush. Budweiser, first introduced in 1876, is still brewed the same today as it was then. The beer was designed to combine the taste of all regions of the Americas. With success it quickly became the primary beer for Americans. In 1982, Bud light was created with superior “drinkablity” and with excellent marketing it quickly became the world’s best selling beer. We have demonstrated an incredible ability to market its products effectively by offering a multitude of beers that focus on the diversity of our consumers. A variety of beers; ranging from dark to light, thick and smooth, with or without lime, low calories, seasonal brews, or even non alcoholic beverages. Each is designed to appeal to different markets within the beer industry. (www.anheuser-busch.com).
Ownership is an important part of who we are and how we behave. It begins with the mindset of everyone who works here. Our people really care about this company and treat it as if it were their own. Anheuser-Busch InBev’s culture defines us as a company, unites us wherever we do business, and is the one thing our competitors can never copy. Above all, we are truly consumer-centric, and everything we do is geared towards our mission of creating enduring bonds with consumers through brands and experiences that bring people together. (www.anheuser-busch.com)
B. What kind of problems are we facing?
As a company with demanding standards and great social views, we feel obligated to take our dedication to the highest level possible. Above making tremendous sales through the recession, having a substantially high market share in the U.S, and constantly expanding globally, we feel it is necessary to stress the importance of social responsibility. Numerous issues take place in and outside of the United States that reflect negatively on the alcohol industry. We feel that it is our responsibility to promote alcohol awareness and discourage alcohol abuse.

We have identified four areas of concern:
a) Drunk Driving
b) Underage drinking (binge drinking)
c) College Issues
d) Responsible drinking

C. What is our rationale with these issues?
We feel that in order to dissipate the problems to a degree we must provide strong awareness and educate the thousands of consumers that fall under these categories. Unfortunately many of the people fall under more than one category and are the ones who fail to listen and continually cause problems. It is this group of people that we need to be able to reach. We can make a difference in the minds of our customers and to those potential consumers unaware of these issues. We are invested in making an initiative to prevent these problems.

II. Background on Pressing Issues Faced by Anheuser-Busch
A. Underage Drinking
Underage drinking has become a major concern among Americans, not only do we discourage this behavior but we have become an active part of the solution. By the age of 18 it is said that more 70 percent of teens have had at least one alcoholic drink. What is even scarier is the age that some of these young people start. It is believed that of 12 year olds, 10 percent have had at least one alcoholic drink. (Underage Drinking Statistics)

Lifetime Alcohol use Among Persons Aged 12-20, By Gender: 2002-2006

(Underage Alcohol Use: Findings from the 2002-2006 National Surveys on Drug Use and Health, 2.1)

At Anheuser-Busch we recognize this problem and have developed programs to combat them. Family Talk about Alcohol is an important resource of ours that we distribute to parents for free. It was created by an advisory panel of education, family counseling, child psychology, and alcohol treatment professionals as a resource for parents when talking to their underage children about alcohol awareness. In 2008 alone we distributed over 154,000 Family Talk materials. (www.anheuser-busch.com)

Another program we have developed is Operation I.D./ We I.D. With this program we have gone out to retailers and given them training and materials to help properly check I.D.’s. Among those materials are the “We I.D.” stickers that you can see at most convenience stores, tips on how to spot fake I.D.’s and booklets with pictures of real drivers licenses. In 2008 we distributed 8300 “We I.D.” cards along with 126,000 I.D. booklets for retailers. (www.anheuser-busch.com)

We are also active in the Prevent. Don’t Provide program which reminds parents not to buy alcohol for their children. With this program we get our message out on television, radio and billboard advertisements. Our most recognizable slogan is “Be a Parent, not a pushover.” In 2008 39,000 advertisements were placed by our company with messages like these. And 299 wholesalers participated in our Prevent. Don’t Provide program. (www.anheuser-busch.com)

To complement our Prevent. Don’t Provide program we are also proud members of the Federal Governments program “We Don’t Serve Teens.” Along with these programs, we have speakers which include members of our Corporate Responsibility Speakers Bureau. These speakers talk to students, parents and others about responsibility and the law. These speakers hosted 800 presentations in schools reaching more than 314,000 students in 2008. (www.anheuser-busch.com)

B. Drinking and Driving
Here at Anheuser-Busch we realize the serious problem presented by drunk driving. Although deaths involving drunk drivers has decreased over the past couple decades, this is still very preventable. Just to give you a better idea of the problem we are facing here is an illustration that gives you an idea of motorist deaths with alcohol in there system, since 1987.

Graph: Drink driving statistics. (n.d.) We are strong advocates of the use of designated drivers and alternative transportation. In 2008 we placed over 96,000 advertisements that addressed drunk driving. Although we agree there should be stricter penalties for offenders, we have implemented some alternative programs to help reduce drunk driving. (www.anheuser-busch.com)
Our newest program, Wanna go home with me tonight? I’m the designated driver, is a program that encourages people to choose a designated driver before they go out. Designated drivers can win prizes at bars as encouragement to do so. At some bars these sober drivers are given free non-alcoholic drinks or discounts on food. (www.anheuser-busch.com)
Another program that we are involved in is Alert Cab, where we work with bars and cab companies in driving home bar patrons home for reduced fares or sometimes free rides. Over 204,000 shuttles and cabs were used in 2008 through the Alert Cab program. Something similar to this is the Tow to Go program where we’ve paired up with AAA to give a free tow to those who are too intoxicated to drive. (www.anheuser-busch.com)
We are also involved in the Washington Regional Alcohol Program (WARP) which is another free cab service in the Washington, D.C. area for people that have overindulged. The scooter program, like WARP, is also limited to select markets but is similar. A volunteer rides a scooter to meet the costumer, then puts their foldable scooter in the trunk and drives the customer’s car home for them. One other thing we stress is boating safety and we remind those operating any machinery around water to do so responsibly. (www.anheuser-busch.com) C. College Issues
It has been reported that 31 percent of college students meet the criteria to be considered alcohol abusers. Of those, 6 percent of them could be considered alcohol dependent. (College Drinking) Here at Anheuser-Busch this alarms us, we are committed to addressing alcohol abuse and issues among colleges. We would like to stress that if you are the legal age to drink responsibly and if you are under the legal age please respect the law. Our most influential program that addresses college issues is our College Talk program. College Talk stems from our underage drinking program, Family Talk. It encourages parents to talk to their kids about moving away and living on their own and continuing to be responsible when it comes to alcohol. More than 45,000 College Talk materials have been distributed to parents of college bound students. (www.anheuser-busch.com)

We also work with campuses to promote social norms and distribute social norms materials. These materials let students know that the majority of students make responsible choices when drinking, this helps reduce high-risk drinking among students. AB is also a leading supporter of the BACCHUS network, which is an initiative that supports positive peer pressure. We also support National Collegiate Alcohol Awareness Week which promotes responsible drinking on college campuses. Anheuser-Busch was present on 56 campuses around the country in support of the NCAAW. TIPS for the university, is a program where we help colleges and student organizations with strategies for talking to students that are believed to be abusing alcohol and/or are underage and drinking. Finally we have our Speakers Bureau which is comprised of professionals educating students similar to the ones that visit underage schools. (www.anheuser-busch.com)

Overall we have participated in 543 college and university alcohol awareness and education programs, where more than 914 students participated. Along with that we have implemented designated driver programs on 184 college and university campuses. (www.anheuser-busch.com) D. Responsible Drinking and Marketing
Here at Anheuser-Busch we believe that no company can benefit from their product being misused. So in order to combat alcohol abuse we have implemented numerous alcohol awareness programs and have spent over $750 million on alcohol awareness and education in the past three decades. One thing that we do to prevent alcohol abuse and dependency is provide support to the Alcohol Medical Scholars Program at the University of California San Diego. This program teaches physicians how to diagnose alcohol dependency, which will help to catch the problems in an earlier stage. (www.anheuser-busch.com)

Our Great Party Guide is a guide that we distribute to party hosts to help ensure that their guests drink alcohol responsibly. The guide gives a number of examples of ways to monitor the guests drinking while still making it enjoyable. It highlights examples like providing food, keeping non-alcoholic drinks around and measuring mixed drinks. The brochure also provides a graph that gives examples of common party drinks and their alcohol content. (www.anheuser-busch.com)

TIPS, or Training for Intervention Procedures is a program that we have developed to train bartenders and others alike to identify potential alcohol abuse problems before they start. The program also educates servers and bartenders on ways to prevent drunk driving. This program was developed by Morris Chafetz the founding director of the National Institute on Alcohol Abuse and Alcoholism. (www.anheuser-busch.com)

We have also started to target concert and music events with our Sound Attitude program. With this program concert goers are encouraged to drink responsibly and plan for alternative transportation home from the events other than drunk driving. Our Good Sport program is very similar to this, it is just geared towards sporting events. We have even partnered with the organization called TEAM or Techniques for Effective Alcohol Management. TEAM is sponsored by a multitude of companies including; National Highway Traffic Safety Administration, professional sports leagues and the National Association of Broadcasters. Between the two programs we have implemented more than 1,200 programs reaching 83.2 million attendees. (www.anheuser-busch.com)

We have even developed a program geared towards our hunters in correspondence with the National Shooting Sports Foundation. We provide hunters with a brochure similar to our Great Party Guide, called the Sportsman’s Guide to Firearm Safety and Hunter Ethics. For our motorcycle enthusiasts we have developed our Sports and Motorcycle Safety Tips program to remind them to drink responsibly.

Advertising Policy
Along with the programs we have developed, we abide by a personal advertising policy that coincides with the Beer Institute Advertising and Marketing code, College Marketing Code, and the Guidelines for the on-screen Use of Anheuser-Busch Properties. This policy stresses that we are only marketing towards those who are 21 and older. (www.anheuser-busch.com)

III. The Four Pressing Issues in the Eyes of our Competitor
Our biggest competitor, Miller Coors, has initiated programs to handle the responsible consumption of alcoholic beverages similar to those here at Anheuser Bush. Miller Coors focuses its resources on four main categories. Each category has specific programs designed to educate minors, students, and adults on the proper uses of alcohol.

Preventing Drunk Driving
A. “You hold the key, never drive drunk” program reminds consumers to plan ahead in arranging there rides home.
B. Partnership with TAXICAB * toll-free phone call that dispatches a taxi wherever and whenever a customer needs it.
C. Partnership with American Motorcycle Association * Program called, “Keep Your Balance” provides motorcyclist with tools for safe and successful rides on open roads.

Youth Access Prevention
A. Parents * MVParents.com, the site helps parents provide a learning experience to their children through everyday issues and conversations.
B. Retailers * “Respect 21 Responsible Retailing” uses education to help prevent the sale of alcohol to minors and uses the retail environment to encourage legal-age consumers not to provide alcohol to anyone under 21.

College Campus Programs
A. Student Emergency Medical Services Foundation, to provide training to prevent alcohol poisoning.
B. “TIPS” a program created by Health Communications, Inc., this peer to peer training equips students with intervention skills to prevent alcohol- related problems such as intoxication, drunk driving and underage drinking among their peers.
C. National Social Norms Institute, a social marketing tool and survey that communicates the real versus perceived behavior of college students and drinking.

Responsible Marketing
A. Marketing standards go beyond legal compliance.
A sales and marketing compliance committee is responsible for making advertisements acceptable by state and federal regulations. In addition it must pass the Miller Coors Marketing Compliance Code. The processes used to ensure the tough standards Miller Coors has set for its own advertisements are: 1. Conducting marketing placement advertising audits 2. Training employees, vendors, and outside agencies about the compliance code, and educating them how to promote their products in appropriate and responsible ways. 3. Participation in the Beer Institutes Compliance Review Board (CCRB) complaint process. 4. Requiring that a responsibility message be placed on all TV, Radio, and print advertisements

IV. Comparing Anheuser-Busch with our Top Competitor
The programs and initiatives that both Anheuser-Busch and Miller Coors offer are similar with the same purpose, do keep our customers safe. However, as the chart below shows, the differences between the two companies apart from “responsibility” campaigns are very distinct. Anheuser-Busch | Miller Coors | Ranked #1 for breweries | Ranked #2 for breweries | FORTUNE Magazine’s 2010 “World’s Most Admired Companies” | Ranked #8 in overall beverage companies | Employees are part of a family where ideas and insights are accepted and valued | Focus on diversity of employees and friendly environment | Bought out by InBev to become Anheuser-Busch InBev and the largest beer distributor in the world in 2008 | Completed transformational joint venture with SABMiller in the U.S., with expected cost synergies of $500 million to further drive success | $34.34 billion in gross revenue in 2008 | $6.7 billion in gross revenue in 2008 | Leading brewer, provider, distributor of beer in the U.S. with a market share of 49.2% | Portfolio of brands representing 29% share of US beer market | Two leading and dominating beers in market – Bud Light and Budweiser ranked #1 and #2 selling beers in the United States | Effectively established Coors Light as powerhouse, innovative brand | Passion for quality and commitment to innovation lament solid foundation | Commitment to innovation and investments focused on brand growth |

Anheuser Busch and Miller Coors have both shown advances in fighting the four key risks that our industry faces, but the tactics and procedures are further developed by the Anheuser Busch Corporation. In order to broaden the gap that we have created between ourself and Miller Coors in terms of market share, we must tap into the emerging technology that is appearing in the world today. This will set us apart from our competitor and bring us closer to our consumers.
V. Analysis
In recent years the amount of smart phone users has increased drastically. As a result we feel that this would be the perfect medium to reach our consumers with our “Responsibility Matters” campaign. The type of iPhone application that we are looking into, on average, will take about six months to develop. The first three months will be dedicated to developing the application. The following two months the “app” will be released to a select number of individuals that will test it and critique it. Finally the last month is used to take the feedback from our testers and finalize the “app.” Once these steps are done the “app” will be ready for use. The interactive iPhone apps can range from $15,000-$50,000 (How much does it cost, n.d.). We believe a reasonable budget for a project like this would be $20,000. With similar applications already in place and the relative simplicity of the application, the cost to develop an “app” like this will be significantly lower than that of something completely new and complex.
VI. Recommendation
Through the past 20 years Anheuser Busch has initiated programs to educate the public on the potential dangers of alcohol abuse. Anheuser Bush will always be the leader in the beer industry, and a pioneer in teaching the responsible consumption of its products. In order to continue making the rights steps towards alcohol responsibility we have designed a new iPhone application, "Bud Light, Can I drive?". This application is designed to continue Anheuser Bush progress toward preventing and eliminating drunk driving. This application will provide all alcohol users an estimation of their Blood Alcohol Content. In addition, it will provide them with easy alternatives to driving home, including Anheuser Bush programs such as Tow to Go, Alert Cab , etc. This application will help market Anheuser Bush values towards responsible beer consumption.
To insert this application, you will have to approve of the 6 month product design template we advised earlier. During the 6 months, the application will be created, tested, evaluated, and improved. The total budget of the program is estimated at $20,000 to implement. Once the “app” is has met our standards it will be released to the public and it will be a free application available to millions of smart phone users around the world. It will serve as a marketing tool for Anheuser Busch, and as an instrument to help alcohol users return safely from there night out. With your support of this recommendation you will be able to track our progress as we implement this new technology into our system by checking our status reports that will be sent to you on a weekly basis. At the end of the 6 month testing period you will be able to sign a document for its release into the market, as long as specifications are met.

Works Cited
1. Anheuser-Busch – Relevant Topics. (n.d.). Anheuser-Busch Companies. Retrieved March 2, 2010, from: http://www.anheuser-busch.com/

2. College Drinking: A Snapshot of Annual High-Risk College Drinking Consequences. (n.d.). Research about Alcohol and College Drinking Prevention. Retrieved March 30, 2010, from: http://www.collegedrinkingprevention.gov/StatsSummaries/snapshot.aspx
3. Drink driving statistics. (n.d.). TACSafety Homepage. Retrieved March 31, 2010, from: http://www.tacsafety.com.au/jsp/content/NavigationController.do?areaID=12 &tierID=1&navID=A9348A54&navLink=null&pageID=164
4.Family Talk Online. (n.d.). Family Talk Online. Retrieved March 30, 2010, from: http://www.familytalkonline.com/docs/home.htm
5. How much does it cost to develop an iphone application? - Stack Overflow. (n.d.). Stack Overflow. Retrieved March 31, 2010, from: http://stackoverflow.com/questions/209170/how-much-does-it-cost-to develop-an-iphone-application
6. How much does it cost to make an iPhone app?. (n.d.). The Toy Lounge. Retrieved March 31, 2010, from: http://www.toylounge.com/howmudoitcot.html
7. Millercoors – alcohol responsibility. (n.d). Retrieved from: http://www.greatbeergreatresponsibility.com/AlcoholResponsibility.aspx
8. Prevent Don't Provide. (n.d.). Prevent Don't Provide. Retrieved March 30, 2010, from: http://www.preventdontprovide.c
9. Table of Contents - Underage Alcohol Use: Findings from the 2002-2006 NSDUH, SAMHSA OAS. (n.d.). OAS Home: Alcohol, tobacco & drug abuse and mental health data from SAMHSA, Office of Applied Studies. Retrieved March 30, 2010, from: http://www.oas.samhsa.gov/underage2k8/toc.htm
10. Underage Drinking Statistics. (n.d.). Too Smart To Start. Retrieved March 30, 2010, from: http://www.toosmarttostart.samhsa.gov/families/facts/statistics.aspx

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