SWOT Analysis of Anheuser-Busch InBev (ABInBev)

STRENGTHS The three global flagship brands increase brand recognition among the customers. Stella Artois, Budweiser and Becks are the three global flagship brand with include 200 other brands of ABInBev. The three flagship brands are complemented by other multi -country brands like Leffe and Hoegaarden, and leading local brands such as Bud Light, Skol, Brahma, Quilmes, Michelob, Harbin, Sedrin, Klinskoye, Siberian Crown, Chernigivske, and Jupiler, among oth ers. 13 of the company's brands have retai l sales in excess of $1 billion. Brand Z announced Stella Artois as the most valuable global brand in the beer category for the past three years and ranked top most on chart. Stella Artois is the largest selling be er in the world, among the several beer brands. In 80 countries, Stella Artois is a well known name and successfully doing business. Beck's is the number one German brand in the world, present in more than 100 countries worldwide. In Western Europe mostly in France and Belgium, the other brand Leffe is very popular. It has also increased its presence across 60 countries including the US and Canada. Strong brands such as these have strengthened the company's position in an intensely competitive beverage indu stry. The increased brand recall and recognition associated with popular brands have also helped the company in boosting its top -line growth and becoming a leading player in the beverage category. The second strength of the company is based on its leading position across multiple geographies. Asia Pacific, Latin America south, Latin America north, Eastern and Central Europe, western Europe and North America are the six new geographical zone of ABInBev where company expanded its operation. The company holds nearly 49.2% and 41.3 % market shares in the US and Canada respectively. Besides, it is the leading player in the Latin America where it holds nearly 69.6% market share in Brazil, 74.9 % in Argentina, 96.9% in Bolivia, and 98.6 % in Paraguay and Uruguay. The company also has substantial market share in Europe. It holds nearly 57.6% share in Belgium, 43.7% in Luxembourg, 43.1% in Croatia, 92% in Montenegro, 40.1 % in Ukraine. In the Asian region, ABInBev holds 41.5% market share in South Korea and nearly 10.7 % in China. Overall, the company is a number one or two players in 19 countries. The leading position of the company is helping in its sales volume and the sales helping to enhance companies financial status. Company has the future plans to get top growth . The third strength of the company is communication and marketing strategy. Growth promotional activity is the promoting tool of the company because company focuses extensively on the flagship brand. Value based brand approach followed by the ABInBev; i ts a unique value which developed to target their costumers. Company is using the world class commercial program (WCCP). Company develop the social media site ABExtras. Com. Different promotion plans and marketing techniques helping company to get busine ss. In the US to promote its brands during Super Bowl. Becks, a flagship brand of the company, created the Gig Finder app for iPhone and iPod Touch to connect with the music enthusiasts. Bud Light Lime utilized the YouTube platform to create social buzz through the promotion of ash mobs during the launch events. These were some of the instances where the company employed innovative marketing strategy to promote its brands. Considering the

stringent government regulations for alcoholic beverages in several countries, the company has effectively utilized these platforms to enhance its overall sales globally.

WEAAKNESSES In European segment company is not doing well on financial aspects. The yearly growth of the company in western and central Europe is going down and its performance is not at all good in this part. The total revenue of year 2009 was $4,312 million, a decline of 9% as compare to 2008. The annual growth rate was declined by 10% in during 2007 to 2009. In year 2009 the revenues was $2,492 millio n in eastern and central Europe which decreased by 23.7% as compared with 2008. The revenues have primarily declined due to weak demand dynamics in the European region. As per Data monitors report on "Beer in Europe", the European beer market shrank by 0.4 % in 2008 to reach a value of $223.2 billion. The European beer market not only faces the decline in value but also decline in volume. The market shrank by 0.6% in 2008 to reach a volume of 45.7 billion litres. As compare the data of the company it shows t he weakness of the company because the Europe is the one of the biggest beer consuming region in the world. Competition and prices of the product also affected the sale of the product. This performance of the company was a big loss in the year 2009 with 18 .5% in revenues and the share price of the company also came down in Europe market.

Competitors
Carlsberg Breweries Carlsberg is the fourth largest beer company in the world with 500 brands in the market and thy sell their product in the all Asia and Europe. Coca -cola is a brand of Carlsberg and they sell in Denmark and Finland. Brand differs significantly in volume, target and price audience, but the big and the strongest market share is held in Northern Europe. In Europe, the three out of six top brands are Baltika, Carlsberg and the tuborg and the Baltika is the number one in the Europe market. Heineken N.V With 170 brand of beer in the international m arket and sell in over 70 countries Heineken is also a big competitor of ABInbev. Wine, soft drinks and the soda is product of Heineken in addition to beer. Their two principle international brands are Heineken and Amstel, but the company has over 200 int ernational premium, local, and regional brands, including Tecate, Dos Equis, and Cruzcampo. SABMiller PLC SABMiller markets and produces over 200 brands of beer worldwide and sells in over 70 countries. SABMiller is the second largest producer of beer in the U.S., behind AB InBev, holding 30% of the market share. International brands include pilsner Urquell, P eroni Nastro Azzurro and Miller Genuine Draft.