By

Nancy Markmann (32137)

Christoph v. Ruediger (34037)
Oezguer Guevenc (35105)
Emrah Simsek (35281)
Ebru Nurcan (35268)
Ruben Schultz (33530)

1
“The Beck’s Experience”

handed in to M.C Pedley

Wintersemester 2009/10
Marketing to Europe
17th November 2009

2
Contents

1 Introduction 4

2 Company’s History 5

3 Segmentation 6

4 SWOT 7

5 Marketing Mix 8
5.1 Product…………………………………………… 8
5.2 Place……………………………………………… 10
5.3 Price………………………………………………. 11
5.4 Promotion…………………………………………. 12

6 AIDA 16

7 Matrixes 17
7.1 Boston Consulting Group……………………….. 17
7.2 Ansoff Matrix……………………………………… 29

8 Product Life Circle 20

9 Commercial Comparison 21

10 Conclusion 23

3
11 References 23

1. Introduction:

For our marketing project we chose Brauerei Beck GmbH & Co KG from
Bremen, Northwest Germany which first brew in 1873. Within its first three years
of launch Beck’s already won two prizes, one being international[2]. Today Beck’s
beer is the best-known beer in Germany, and represented in over 120 countries
worldwide and thus became an optimal product for our marketing project[6]. We
decided to choose Beck’s for several other reasons. The Beck’s GmbH comes up
with an interesting history starting as little brewery becoming an international
company. As we are simply regularly consumers of Beck’s, it makes it an
attractive product for us to look behind the scenes. The continuous
advertisement in familiar areas, such as concerts and bars, made us wonder
about the versatile marketing strategy of Beck’s.

Our marketing analysis has the entitlement to give the reader an outright
picture of Beck’s’ marketing strategy in Germany plus a comparison and outlook
to their strategies in the UK.

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 2. Beck’s’ History:

Currently
Beck’s is
selling over 7
million
hectoliters a
year in more
1948, Beck’s facilities than 120
are restored after countries
being completely worldwide
destroyed 2 years
earlier.
1949, Beck’s gets
back on the German
2009
market after 26 years.
1964, first year that
domestic sales are
higher than export
sales

1973, sells over a

1876, Beck’s is million
1873, Beck’s given an award hectoliters for
1921, Beck’s
is founded by for “best the first time. for
produces
Thomas May, continental export only, and
Lueder beer”, at a 2002,makes
Beck’sa is
contract,
Rutenberg World bought by the
stating that Haake-
and Heinrich Exposition in Belgian
Beckbrewery
Brauerei AG
Beck in Philadelphia InBev.
would be
Bremen responsible for
the brewing of all
5
domestic products
 1875, Beck’s
receives its
first gold
medal for
“best beer”

1850 3. The Segmentation Process

3.1 Segmentation

The beer market is segmented on a broad scale. There are various types
of beer, each represented by several companies and their products.

3.2 Targeting

Every segment of the beer market can be highly profitable, depending on

the beer, because there are just as many different types of beer drinkers as
there are segments in the market.

3.3 Positioning

As Heinrich Beck in 1873 created a very good and successful pilsner beer,
the company for over 120 years strictly concentrated on the pilsner segment
of the market. In 1993 Beck’s non alcoholic was introduced, with the intend to
taste the like their original pilsner.

After the company was taken over by the InBev brewery company, the
marketing strategy was thought over and changed. With Beck’s Gold the
company brought its first lager on the market and two years later started
integrating into the mixed-beer market (Beck’s Green Lemon 2005, Beck’s
Level 7 and Beck’s Chilled Orange 2006, Beck’s Ice 2008). All these
introductions and moves into new market segments proved to be successful
and profitable.

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Sources:
http://www.inbev-deutschland.de/B2C7C4894C8C42F591E110EFDF57F530.htm
http://www.becks.de/
http://www.suchtmittel.de/info/bier/001536.php
http://www.marketing-boerse.de/tools/download/?type=article&id=3530

4. SWOT-Analysis:

• Quality • Under-resourced services

> holds true to the > website not user-friendly
Reinheitsgebot > long waiting lines when calling
(beer purity law)

• Value of brand recognition

> green bottle &
key on label ('Key Beer')

• Technological skills
> second brewery using
stainless steel barrels (1928)
> using UV resistant bottles
Internal harmful
l uf pl e h

External

• Locational advantage • World Wars

> located by the Weser
simplifies export by ship • Competition
world wide > other international breweries such

• Changes in trading laws as Heinicken, Corona etc.

> e.g. no more trade barriers within
EU, more convenient to spread • World depressions
product within EU (1929, 2008 - present)

• Alcohol advertising allowed in UK

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 Even though the Beck’s company had to struggle with several heavy
economic setbacks and challenges they managed to handle these difficult
situations and stayed in business. The company obviously had a lot of trust in its
Pilsner and that it could reach the profit they were hoping for. Today they are one
of the biggest and most popular beer breweries in the world.

5.The Marketing Mix:

5.1 Product:

Beck’s beer has wide international presence through a global network of

distributors and breweries. Beck’s owns and manages one of the world’s top
portfolios of beer brands and is among the leading brewers in terms of sales
volume and profitability[2]. Brewed in Germany, Beck’s holds true to the “Beer
Purity Law”, which states that beer should only consist out of three natural
ingredients.[2] This rare way of brewing has given Beck’s a unique flavor.

With a 260% growth in the last 26 years, Beck's has seized the opportunity
to expand to even more countries throughout the world, and to bring new flavors
to the market. This growth of the enterprise lead to further developments, not
only in the logistic and distribution area, but also in the product itself. It now has
13 different flavors, eight of which are to be found on the market in Germany and
the UK.[1] Furthermore, the product is now being exported to more than 120
countries.[2] The product Beck’s is marked by being a drinking experience, and is
recognized by its pure, crisp, and fresh pilsner taste.[7] For those who don’t
belong to the classic “beer-drinker”, Beck’s has developed different flavors. This
combination undoubtedly reaches a broad consumer demographic.
By having a “Always drink Beck’s responsibly”[7] link on the bottom of their
website, Beck’s gives a hint to the “Corporate Social Responsibility (CSR)”
strategy, increasing their market value.[7]

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 Figure 1: Beck’s’ Sales Figures[3]

Beck’s is mainly sold in green glass bottles (275-660ml)[10], which they were
the first to do, and now use as one of their recognition tools. It is also to be found
in cans (440ml), and Keg’s (5L). The cans usually come in packs of 4 or 15, and
the bottles either in six-packs, or in boxes of 24 or 18[10]. By having Beck’s
available in different container, it is not only more convenient for the costumer, it
also creates more market space, since they now have different flavors and
different sizes.

The labeling of the bottles hasn’t changed much since they first appeared
on the market, although the color of the label changes with different flavors. The
logo, which is a red emblem with a white key and is similar to the Bremer city
emblem, has been on the product since it was first released to the market. It
stands for the key to heaven, and standardizes the product, and makes it easy
for the costumer to recognize the beer worldwide.

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5.2 Place:

Beck’s beer products are almost available in any grocery store, bar, kiosk,
concession stand, and nightclubs, in the UK and Germany. With retail stores like
Tesco, Sainsbury’s, and Waitrose in the UK and Edeka, REWE, Kaisers, and
Kaufland in Germany providing these products, Beck’s is an easy accessible
good. It is also possible to buy Beck’s on an airplane, such as British Airways[8],
and also at the BordBistro in trains in Germany. Beck’s makes use of many ways
of distribution, and is being provided to the mass market using as many ways as
possible.

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 Figure 3: Price of Beck’s at different locations[10] [11]

At all of the named, and more, retailers Beck’s is selling 2.1 billion bottles a
year[5], and experiencing a supply exceeding demand for certain flavors, and
special editions.

5.3 Price:

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Depending on the location, Beck’s pricing differentiates (as seen in Figure 3). But
in comparison to other leading beer brands, Beck’s is somewhere in middle,
tending towards the expensive side. The choosing of the pricing goes hand-in-
hand with their marketing strategy, making Beck’s a product that is accessible for
almost any costumer, regardless of their salary. Not being the cheapest product
on the market, not only raises the profit, it also gives the beer a better reputation,
and indicates better quality.

Figure 4: Beck’s in comparison to its competition[10]

5.4 Promotion:

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 Ken Valledy, Director of Marketing, Becks at InBev UK[13], and the Beck’s
marketing Team in the UK have started different marketing projects, and used
various marketing strategies, in the UK to increase their sales, their market value,
their costumer loyalty and their distribution channels.
channels.

Figure 4: Place-Distribution Beck’s

One promotion they were having in 2008, was giving away and authentic
Beck’s beer glass, which is identical to the ones that were first used in pubs and
bars in the UK. The promotion ran 300 wholesalers and 3000 independent
retailers in the UK and Wales. When buying two six-packs of Beck’s Vier, a
clean, crisp and refreshing beer which also holds true to the “Beer Purity Law”, a
buyer would receive an authentic glass. Distinctive themed counter top display

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stands and “empty belly” posters, were helping the communication of the offer to
the costumers. Furthermore, there was a national TV advertising campaign,
which stated that Beck’s Vier is “Different by Choice”, running for about a month.
This also helped raise awareness of the promotion. The target-audience for this
promotion were 18-34 year olds, who are into authentic and progressive brands.
[12]

“We are raising the retail profile of the brand with an appealing promotion
which will make more people aware of Beck’s Vier and encourage them to
sample it for the first time. This distinctive glass will allow independent shoppers
to enjoy a truly premium drinking experience in their own home. Added-value
offers are very popular with shoppers because they receive an immediate reward
rather than having to send off vouchers or coupons, which is the case with many
promotions. They are also popular with retailers as they are proven to stimulate
impulse purchase among customers because of the strength of the on-shelf
offer.” says Simon Harrison, Commercial Director, Off-Trade at InBev UK.[12]

This promotion not only made it attractive for the costumer to purchase the
beer, it also tempted him to return to a retailer, since each costumer was given a
50p money-off voucher with the purchase.[15]

With help of this promotion Beck’s Vier increased take home volume sales
by 82.5% within a year. The product is also recognized as the most successful
draught lager launch of the decade, and is now available in 18.000 on-trade
outlets, and is still expanding.[12]

Another promotion in the UK, was the overtaking of three hangouts in

London, and redecorating these places. This act was part of the Beck’s Music

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Inspired Art, and these three locations were chosen, because of their live music,
and the crowd they were attracting.

Ken Valledy, UK brand director for Beck's, said: "Beck's has been involved
with music and art for more than 20 years, and we are proud to extend our
collaboration to these three pubs, which are some of the most iconic in
London.”[14]

“Genau mein Geschmack”, was a promotion Beck’s used in Germany to

attract costumers. In this sweepstake, the grand-prize winner would receive a
sailing trip with three of his friends. There were other prices, such as amazon or
maxchoice gift cards. This sweepstake was promoted in the POS (point of sale),
and was held by over 10.000 retailers. The communication to the costumer was
done through posters, stands, boxes where you could drop your ticket to the
sweepstakes, and online through www.becks.de. [16]

Beck’s also has standardized promotion, which are the same worldwide,
such as their famous green sailing boat “Alexander von Humboldt [17[, which was
and is still used in many TV advertisements. Beck’s’ international motto “The
Beck’s Experience”, indicates that drinking a Beck’s beer is rather an experience
than just a drink, giving the product an unique characteristic. Furthermore, Beck’s
is well-known for sponsoring bars, night clubs, and hosting and sponsoring music
events, such as concerts and events at bars or night clubs, worldwide. This form
of promotion helps Beck’s connect directly to their consumers, and has the
costumer associate Beck’s with emotional satisfying moments. This kind of
promotion, including Beck’s being environmentally active, helped build up an
emotional connection between the costumer and the product, which increases
the brand value (CSR). Another advantage of the sponsoring and hosting of
concerts is word of mouth marketing. It is said to be the most efficient and
effective way of marketing, and since it can be assumed that consumer is
amusing him or herself at the concert, he/her will most likely have a positive
recommendation about the product. The dangerous element of word of mouth
marketing is that a negative opinion about a product is spread much faster than a
recommendation is.

Viral marketing, is modern kind of marketing, which is a method of product

promotion that relies on getting customers to market an idea, product, or service
on their own by telling their friends about it, usually through the internet, by email,
Twitter, Facebook, and other communication methods.

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 The Beck’s website is an example of viral marketing, with the problem
being that it more negative feedbacks, due to its non user-friendly platform, and
its lack of information on basic information of Beck’s.

Beck’s.

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6. AIDA (for Beck’s Pilsner)

Awareness
- Green bottle
- Advertising
- Promotion
- “top-of-the-line” beer

Interest
- Tradition
- Natural Ingredients (Reinheitsgebot)
- Good reputation

Desire

Awareness and Interest, such as their

promotion and advertising, create a
desire to try Beck’s

Action

- Customer will buy a Beck’s

- In case the customer likes it, he/she
will buy it again

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Source: http://www.muellerman.com/Becks_Flasche.jpg

7. Matrixes

7.1. BCG- Matrix

Founded in 1873, Beck’s can be classified as a ‘Question Mark’ because

at that time the Beck’s beer was a product with low market share and a high
potential of market growth. By developing a new Pilsner, which was perfect to
ship all over the world the company had found a niche in the international
beverage market. Since the beer had won the first prize ‘for the best of all
continental beers’ on the world exhibition in Philadelphia in 1876 the degree of
popularity explosively increased in a very short period of time. From then on
Beck’s can be classified as a ‘Rising Star’ and the company invested heavily to
reach maximum market growth. The constantly growing market share brought the
company to a total of 30,000 sold boxes in Australia in 1906 and an allover
breakthrough of 200,000 hl for inland and export sales in 1911.

The ‘Rising Star’ broke down in 1914 where World War I had started,
leading the company to stop the export and focus on delivery to the German
troops. After World War I was over, Beck’s recovered until 1934, after the
domination of National Socialists over Germany became intensive. The export
market was instable and sensitive which showed results in 1939 after World War
II had started. The export was cut down and the sales ended up being as low as
they had never been before. Finally in 1945 the production had to be completely
stopped.

The company re-entered the market as a ‘Rising Star’ in 1948 by selling its
first 200 boxes to Bangkok. After several actions on the international market,
Beck’s market share was on its peak in 1993. Only by selling the classical Beck’s
beer over the years the company became a “Cash Cow” and invested their profits
into new products such as Beck’s alcohol free in 1993, Beck’s Gold in 2003,
Beck’s Green Lemon in 2005, Chilled Orange and Level 7 in 2006 and Beck’s Ice
and Green Lemon alcohol free in 2008 to keep up cash flow.

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7.2 Ansoff Matrix

19
 Existing Product New Product
Existing Market
New Market

20
Figure 7: PLC for Beck’s[3]

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9 Commercial comparison:

United Kingdom vs. Germany

Germany
http://www.youtube.com/watch? http://www.youtube.com/watch?
v=7j7EDL1jeEw gl=DE&hl=de&v=V_1rMWl6Tik

What is shown?
One puppet, one comic figure, one wax
figure, one human actor (all male, actor
around 30 years old)
Dancing a choreography
In a city
Backstreet in poor neighborhood
It is night
Weather: wet and cold
About 30 year old men and women
Actors drinking beer and sailing
Ocean
Sailboat (Alexander von Humboldt) with
green sails
It is day
Weather: sunny, warm and windy

Interpretation –
Differences
The actors are all male and three of the Both male and female seem to be
four are none-human. They are target customers. The whole setting
dancing a choreography in a city’s implies a strong feeling of freedom and
backstreet at night. The weather seems independence which is created by the
to be quite wet and cold (but not wideness of the ocean, the bright day,
raining). This setting represents the all the extremely good weather and the
known British art scene and its theme song ‘Sail Away’ (“Sail away!
coolness. This coolness, together with Dream your dreams! ...”). The sailboat
the naturalness (Reinheitsgebot) of the ‘Alexander von Humboldt’ also stands
beer is the main focus of the advert. for the open-mindedness and spirit of
exploration of the ship’s name giver.
The whole advert is meant to be close
to the nature.
This is what the Beck’s company wants This is what the Beck’s company wants
its image to be in the United Kingdom. its image to be in Germany.

Interpretation –
Similarities
They both give the audience a feeling of togetherness because all of the persons
shown are needed to make a whole. Furthermore both adverts are reflecting the
way of lifestyle the company wants to stand for in the different countries.

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10 Conclusion:

After investigating and analyzing the market strategy of Beck’s, through

the use of marketing models, and comparing this strategy to one in another
country, it can be seen that Beck’s has been successful. To understand this
strategy, Beck’s’ goals have to be analyzed. Higher profitability, a greater market
share, and making Beck’s an easy accessible good, are the main goals of
Beck’s. Through their marketing strategy, the have been able to reach these
goals, starting with higher profitability. This has been mainly achieved, by making
Beck’s available in a variety of retailers, such as Grocery stores, bars,
nightclubs and airplanes, worldwide (>120 countries), by releasing new flavors of
the beer, e.g. Beck’s Gold, Beck’s Green Lemon. Through the establishing of
new tastes of the beer, Beck’s has gotten a greater market share, and since they
are located by the Weser, exporting is extremely convenient helping Beck’s’
international success, and making it an very easy accessible good.

But they need improvement on their services department, and their

homepage. They’re service line is a Belgian number, meaning any costumer
outside of Belgium has to pay long-distance fees, which is inconvenient and
unacceptable for a product as widely known and spread as Beck’s. Their
homepage was an attempt of an innovation. It does provide the visitor with a lot
of information about the beer, like their compepitors do, and states that the visitor
should “check out their Wikipedia page”[2]. The homepage is blog, led by a
comedian, but is not user-friendly and a person wanting to read blogs wouldn’t
visit the Beck’s homepage.

In short, Beck’s has established itself as a premium beer brand in the

market and has created a top-notch reputation for itself.

11 References:

1. http://en.wikipedia.org/wiki/Beck%27s
2. http://www.becksbeer.com/Default.aspx
3. http://www.suchtmittel.de/info/bier/001536.php
4. http://www.becks.com/who-we-are/
5. http://www.becks.com/qa-about-becks/

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6. http://www.absatzwirtschaft.de/Content/Print-
Archiv/_pv/_p/1004040/an/080001012/default.aspx/document.html
7. http://www.becks.co.uk/about_becks.aspx
8. http://www.airlinemeals.net/meals/Lufthansa221240.html
9. http://archive.ite.journal.informs.org/Vol4No1/KoksalanSalman/images/dat
a.gif
10. http://www.sainsburys.co.uk/groceries/index.jsp
11. http://www.bahn.de/p/view/mdb/bahnintern/services/bordgaastrono
mie/november09/MDB68063-bordrestaurant_1109.pdf
12. http://www.inbev.co.uk/6EA4308701634708A2C0F573FB911D2E_
507F4316B2E04558AE40992BCCA074E7.htm
13. http://www.linkedin.com/pub/ken-valledy/7/664/369
14. http://www.promotionsandincentives.co.uk/news/936418/Becks-
takes-London-hipster-hangouts/
15. http://www.talkingretail.com/products/drinks-news/13634-becks-
glass-as-promotion-proves-a-winner.html
16. http://www.automobilsport.com/lifestyle-beer-becks-geschmack-
pos-promotion-outlets-leh-gam-convenience-bereich-inbev---19868.html
17. http://de.wikipedia.org/wiki/Beck’s
18. http://www.perfectbeers.com/prodimages/becks.jpg
19. http://www.inbev.co.uk/Becks_Vier_10x440ml_FreeGlass_2_main.j
pg
20. http://erpics.de/data/media/13/1821091_400.jpg

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