Anheuser-Busch Is Subject to a Thesis

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There is limited risk from technological change, however, as it is unlikely that the beer production process will be radically altered by technological development.

The global trade environment also has an impact. The lowering of trade barriers allows a-B to enter more markets. They were able to build a brewery in China, for example. The reduction in trade barriers has also brought more imports into the United States. Rapid growth in the import segment has eroded a-B's market share. Foreign direct investment rules allowed InBev, a Belgian company, to buy a-B.

A-B is also subject to shifts in the global economy. In China, for example, increasing wealth has made a-B's products affordable for more Chinese. In the domestic market, not only is beer consumption affected by the state of the economy, but the types of beers consumed are also affected. As a low-cost provider of beer, Anheuser-Busch tends to benefit from a weak economy.

Market Segmentation

Anheuser-Busch has been a leader in market segmentation. The beer market is segmented not only by geography but by gender, age, and ethnicity as well. a-B's main segment remains young males, but the company has a broad base for its products. Consumption of Anheuser-Busch beer is higher among males than females.

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Beer consumption decreases with age.

Anheuser-Busch has enjoyed much success with the ethnic segmentation. The "Whazzup?" ads targeted to the African-American market were one of the most successful campaigns in the company's history. a-B has programs to help it reach the Hispanic market and the Asian-American market as well.

The beer industry is intensely competitive. Thus, Anheuser-Busch has been forced to become experts on market segmentation in order to understand each of their core markets. They have developed products to meet the needs of these markets, such as Bud Light Lime.

Anheuser-Busch also segments by product line as well. From the line of Michelob-branded craft beers to malt liquors and alcopops, Anheuser-Busch creates products that appeal to specific target demographics. Their vast size and distribution network allows them this capability.

Another way in which a-B segments its market is by cost. The beer industry has product positioning categories such as standard, premium and super-premium. Anheuser-Busch has a range of product in each of these segments. Segmentation in this way allows a-B to target its advertising based on factors such as income or demographics that are particular to each specific segment.

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