TOPIC

“RESEARCH METHODOLOGY”
ON
“A STUDY ON ABInbev”

SUBMITTED BY
KAVITHRI B P
MBA Ⅰ SEM
REG NO:19MBA018

SUBMITTED TO
DR. VISWANATHAIAH M
IFIM COLLEGE BANGLORE AFFIALIATED
TO BANGLORE UNIVERSITY

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 ACKNOWLEDGEMENT

I take this opportunity to thank the IFIM College for giving me a chance to do this Report and
I express my sincere gratitude to Dr. Viswanathaiah M and other faculty members for their
constant support and helping for completing this report and I am also grateful to my friends
for giving support in my project. Lastly, I would like to thank each and every person who
helped me in completing the project especially MY PARENTS.

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 DECLARATION

I am the MBA student of IFIM College Bengaluru ,hereby declare that I have completed
Assignment report on “RESEARCH METHODOLOGY ON ABINBEV” in the academic
Year 2019-2020. This information submitted is true and original to best of my Knowledge.

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 CONTENTS

Sl No Heading Page Number

1 1.1 Executive Summary 5

2
2.1 Introduction 6

2.2 SWOT 8

2.3 PESTEL 8

3 3.1 Literature review 10

4 4.1 Research objective 13

5 5.1 Research methodology 14

6 6.1 Data analysis and interpretation

15
7 7.1 Findings and Conclusion
19
8 8.1 Bibliography
20

REPORT ON ABINBEV 4
 1. EXECUTIVE SUMMARY

1.1 Executive Summary

ABInBev has been continually seeks opportunities to maximize shareholder value and
increase efficiency. Through their extremely effective marketing strategies ABInBev has
gained control over 47% of the global market share. In this process ABInBev has become one
of the most recognizable trademarks globally. ABInBev belligerent advertising campaign has
reached more than who they bargained for. Through ABInBev catchy advertisements, they
have attracted customers other than the 21+ age group, and recreational drinkers.

Budweiser and Bud Light are the No.1 and No. 2 best-selling beers in the world. Miller, their
closest rival maintained 22.1% of the market share until it was merged with ABInBev in
2016. Carlos Brito CEO of ABInBev says his company owes its success to, “The
combination of outstanding domestic beer industry fundamentals, the highest quality and
freshest beer in the industry and exceptional marketing and sales execution.” According to
Fortune Magazine, the company applies venerable marketing techniques more vigorously and
imaginatively than the competition. The company’s most important technique is target
marketing. ABInBev sponsors events and runs advertising specifically aimed at all sorts of
consumers: blacks, whites, blue collar workers, computer-buffs, and sports fans. Sports fans
make up a large, diverse population. The company has strategically positioned themselves to
promote to this target audience, with 70% of their advertising dollars going towards sports
programming. They have exclusive deals with 21 of 24 major league baseball teams, 21 of 28
National Football Leagues. Budweiser inks deals with Premier League & La Liga
as football push continues. Budweiser has renewed its commitment to global football by
agreeing to multi-year partnerships with both the Premier League and La Liga,
complementing its role as a partner of the Fifa football World Cup.

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 2. INTRODUCTION

2.1 Introduction

Anheuser-Busch InBev commonly known as ABInBev is a multinational  drink  and

brewing company based in Leuven, Belgium. ABInBev has a global functional management
office in New York City, and regional headquarters in Sao Paulo, London, St.
Louis, Mexico City, Bremen, Johannesburg and others.
The company was enlarged in October 2016 when AB InBev purchased SABMiller and
concluded a merger of the two biggest beer entities in the world. It was the world's largest
brewer even before the acquisition of SABMiller and is considered one of the largest fast-
moving consumer goods companies in the world. The annual sales for the company in 2018
were US$54.6 billion. Prior to the merger, AB InBev had realized US$45.5 billion in revenue
in 2016. ABInBev was formed through InBev (itself a merger between  Interbred  from
Belgium and AmBev from Brazil) acquiring Anheuser-Busch from the United States. In
October 2015, Anheuser-Busch InBev announced a successful all-cash bid to acquire
multinational competitor SABMiller for £69 billion (US$107 billion). The deal closed on 10
October 2016. The new entity has approximately 500 beer brands in over 100 countries.
SABMiller ceased trading on global stock markets.
Interbrew was formed in 1987 from a merger of the two largest breweries in
Belgium: Artois and Piedboeuf. The Artois brewery, previously known as Den Hoorn, was
established by 1366. And, the Piedboeuf brewery established by 1812. In 1995, Interbrew
expanded by acquiring Labatt Brewing Company (founded 1847), the largest brewer in
Canada. In 2002 it acquired Beck's (founded 1873), the maker of the world's top selling
German beer. AmBev was created in 1999 with the merger of the two biggest Brazilian
brewers, Antarctica (founded in 1880) and Brahma (founded in 1886). Anheuser-Busch was
established in 1852 in St. Louis, Missouri as Anheuser & Co.
In 2004, Interbrew and AmBev merged, creating the world's largest brewer, InBev. The deal
was valued at $11.5 billion and combined the 3rd largest (Interbrew) and 5th largest (Ambev)
brewers into the world's No.1 beermaker. The deal consolidated the top brands from
Belgium, Canada, Germany and Brazil.
In 2008, the acquisition by InBev of Anheuser-Busch was completed, creating Anheuser-
Busch InBev, expanding on InBev's previous status as the world's largest brewer, creating
one of the top five consumer products companies in the world. Under the terms of the merger
agreement, all shares of Anheuser-Busch were acquired for US$70 per share in cash, for an
aggregate of US$52 billion.

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On July 21, 2017, Anheuser-Busch InBev continued its investment in the non-alcohol
beverage sector with the purchase of energy drink company Hiball.
ABInBev, the world’s largest beer company, has been expanding beyond beer over the past
year, making minority investments and small acquisitions in cider and soft drinks.

REPORT ON ABINBEV 7
 2. INTRODUCTION

2.2 SWOT analysis

Swot analysis of ABInbev is as follows:

Strengths Threats

1. World's largest breweries 1. Water scarcity

2. Old heritage 2. Legal compliance

3. Heritage brands 3. Tax rules and regulations of each state in India

4. Future oriented 4. Natural calamities

5. Believe in smart drinking

6. Diversified work force

7. Strong Culture

Opportunities Weakness
1. New market in India 1. Start-up in India from 2017
2. Non-alcoholic beer market 2. Understanding of local market.
3. Strengthening local brands
4. Introduction of global brands to India
5. Development of new local brands

2.3 PESTEL analysis

Pestel analysis of ABINBEV is as follows:

P 1. High state wise tax for alcoholic beverage and exercise duty.

2. Labour Laws.
Political
3. Trade restrictions on Beer.

E 1. Increasing spending capacity of people in India.

Economical 2. Economic growth.

S 1.  Negative perception towards alcohol in Indian society.

Social
2. Changing lifestyle and adoption of western culture.

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 3. Highest percentage of youth in Indian population.
T 1.  Complex nature of beer and sensitivity of Yeast.

Technological 2. Constant R&D towards improvement of Yeast strains and Beer quality.

E 1.  Environmental policy compliance.

2. Sustainability in terms of Water availability, circular packaging, smart

Environmental agriculture, renewable energy and climate action.

L 1.  Exercise rules and regulations

2. Factory act rules and regulations

Legal 3. State wise tax rules

4. Safety and environmental legal requirements

REPORT ON ABINBEV 9
 3. LITRATURE REVIEW

3.1 Literature review

[1] In the ABInbev 2017 magazine ,It presented a new opportunities and ways to improve
growing the business, building brands, increasing shareholder value and helping
communities to thrive. Delivering consistent, superior top-line growth is top priority. Strict
financial discipline maintaince on route and company culture drives ahead and to grow
global brand, generate more excitement around beer through specialty and premium brands,
raise the perception and relevance of core beers; and to enhance consumers experience by
providing more choice, including no and low alcohol beers.

[2] The first quarter 2019 result report presented the Highlights of the quarter period which
are Out performance of market in Brazil with double digit volume growth in both beer and
non beer and Best market share trend performance in the US, Double digit revenue growth of
High End Company and global brands,Continued progress on sustainability goals, as it
reduced carbon footprint by 4.5% . Ranked 3rd by CDP in climate readiness for Food &
Beverage Industry. < 3.0 Hl/hl global average water usage v. 2017,- 4.5% GHG emission / hl
reduction v. 2017.
[3] In the ABInBev’s $71 Billion Hangover report ,It presented acquisition price of US$107
billion paid by ABInBev for SABMiller implies a colossal value of US$120 billion when
debt is accounted for. Just US$13 billion of this is made up of tangible assets such as
property, plant, machinery. The remaining $107 billion is composed entirely of intangible
assets (formulas, recipes, customer relationships, Goodwill and brands) which constitute 89%
of the value.David Haigh CEO of Brand Finance says that with this deal ABInBev has
created a huge Goodwill figure in its balance sheet. It has created huge seasonal Goodwill
with the happy shareholders at SAB Mille
[4] On 7th may 2019 ABInbev released a press meet which enclosed the highlights such as
companys Momentum continued from 4Q18 into 1Q19 with healthy volume growth of 1.3%,
revenue growth of 5.9% and EBITDA growth of 8.2% with margin expansion of 86 bps and
Ongoing success of premiumization strategy supporting top and bottom line growth with
global brand revenue growth of 8.5% (14.0% outside of the brands’ home markets) and High
End Company revenue growth of almost 20% and Double digit volume growth in Brazil in
both beer and non-beer businesses, outperforming the industry in both categories and
Continued market share trend improvement in the US, with the best quarterly market share
trend performance since 4Q12 led by premiumization and innovation initiatives and continue

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to make good progress towards ambitious 2025 sustainability goals, reducing carbon
emissions across our value chain by 4.5% over the last year.To facilitate the understanding of
ABInBev’s underlying performance, the analyses of growth, including all comments in this
press release, unless otherwise indicated, are based on organic growth and normalized
numbers. In other words, financials are analyzed eliminating the impact of changes in
currencies on translation of foreign operations, and scope changes. Scope changes represent
the impact of acquisitions and divestitures, the start or termination of activities or the transfer
of activities between segments, curtailment gains and losses and year over year changes in
accounting estimates and other assumptions that management does not consider as part of the
underlying performance of the business.
[5] In 2017 annual report of ABInbev presented a new way of looking at the beer category
that recognizes different market maturities and the role of brand portfolios in driving category
growth.This has only been possible through Dream- People-Culture platform, which has
driven in the past and will continue to drive performance for the next 100+ years. For the
five years ending 2017, ABInbev revenue CAGR of 4.6% exceeded that of all our global
FMCG peers. The structural change in global footprint resulting from the combination with
SAB positions towards higher growth markets, as evidenced by the accelerated momentum in
2017, with revenue growth of 5.1%. In addition to the synergy capture from one of the largest
business combinations in history and continued to reshape the portfolio in the US in order to
reach consumers in more occasions. ABInbev achieved 5.1% revenue growth, up from 2.4%
in 2016, and 13.4% EBITDA growth, up from -0.1% in 2016.ABInbev 2017 financial
performance was our best in the past three years. Company grew top-line in many of our new
and established markets. Gaining momentum throughout the year, It delivered particularly
strong results in the fourth quarter. three global brands led the way, with 2017 revenue
growing by a combined 9.8%. Budweiser grew its global revenue by 4.1% and remains the
world’s most valuable beer brand according to BrandZ™. According to Plato Logic in 2017,
Budweiser extended its lead as the #1 beer brand in ex-domestic sales volumes. Stella Artois
continued its long-term trajectory, with revenue up 12.8% driven by sales in North America,
repatriation in Australia and its entry into South Africa and other new markets. Corona grew
its revenue by 19.9% globally, led by Mexico, China, Australia and Argentina.
ABInbev grew profitability in two largest markets. In the US, EBITDA was up by 1.9% and
Michelob Ultra remains the biggest share gainer in the country for the 11th straight quarter. It
continued to develop high end brands while working closely with its wholesaler partners to

REPORT ON ABINBEV 11
grow total portfolio. Company knew that it has work to do in the US to balance the share and
profitability equation and to remain committed in improving share performance. In Brazil,
despite the challenging macroeconomic conditions, ABInbev outgrew the industry, with beer
volumes up by 0.7%. Strong revenue per hl growth of 6.2% supported our top line and was
enhanced by our premium portfolio, which grew volumes by double-digits. In 2H17,
EBITDA grew by 20.4%, rebounding from a -19.7% decline in 1H17, finishing the year up
1.7%. and Deleveraging to around 2x remains its commitment. ABInbev is tracking in line
with internal deleveraging targets. Specialized teams are dedicated to accelerating growth rate
versus historical performance with revenue of 4.6 billion USD in 2017 and 25.8% growth
versus 2016.Company gaining share in virtually all relevant beer types and It introduced new
variants of our core brands to increase consumers’ beer choices. It employs a number of
strategies to reinforce the quality heritage of core lager, including leveraging social media,
sponsoring events, using differentiated messaging and developing unique packaging.
Companys goal was always to convey the unique character and quality of brands and
connect with beer drinkers and to Create new consumer experiences and occasions, ABInbev
has broadened its approach beyond near beer products. It continued to respond to consumers
desire for more balanced lifestyles by increasing selection of no and low alcohol beer
products (NABLAB) and near beer options that go well with a variety of experiences and
occasions. Several of these brands also support Global Smart Drinking Goals to have
NABLAB represent 20% of our global beer volumes by 2025. In addition, It is creating new
experiences and occasions that bring people together and make beer more relevant.

REPORT ON ABINBEV 12
 RESEARCH OBJECTIVE

5.1 Research objective

 To study the history of ABIn Bev and its beginning in india.

 To identify the impact of brand image on ABIn Bev.
 To inspect the different advertising methods of a brand of product

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 5. RESEARCH METHODOLOGY

5.1Research Methodology
Source of data: The study is based on secondary data The secondary data is collected
through the various secondary published sources like journals, magazines, websites and
annual reports of the company.

Sampling Design: In this study 300 product consumers were selected to collect the data with
the applicability of Non-random sampling method.

Tools of data analysis:

The statistical tools used for the study is
1. Simple percentage analysis
2. Ranking analysis
3. ANOVA

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 6. DATA ANALYSIS AND INTERPRETATION

Data analysis and interpretation

This chapter includes analysis of the collected data from the consumers, testing of Hypothesis
and analysis using various tests such as ANOVA.

6.1 Simple percentage analysis

Data analysis related to general information
Table 6.1.1: Notice about ABInbev
Notice about No. of the respondents- Percentage
frequency
Wall advertisement 22 7.3℅
Tv 90 30℅
Newspaper 95 31.6℅
Word of mouth 18 6℅
Radio 50 16℅
Magazins 25 8.3℅
Total 300 100℅
Source: Secondary data

Interpretation:
The above table 6.1.1 indicates that notice about ABInbev drink wise classification of the
consumers. It indicates that wall advertisement 90 having 30 per cent where as the Tv were
90 with per cent 30 respondents where as the Newspaper was 31.6 per cent with 95
respondents where as the Word of mouth was 6 per cent with 18 respondents where as the
Magazines was 8.3 per cent with 25 respondents where as the radio was 16 per cent with 50
respondents.

wall advertisement
Tv
Newspaper
Word of mouth
radio
magazine

Fig no 1: know about ABInbev

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6.2 Ranking Analysis
Ranking analysis based on consumer consumption preference towards ABInbev product is
shown as below.

Table 6.2.1: Rank for consumption of ABInbev product

Particulars Mean Rank

Flavour 6.79 Ⅰ

Brand image 6.90 Ⅱ

Cost 4.87 Ⅵ

Suitable 4.6 Ⅶ

Accessible 5.74 Ⅳ

Ready to drink 5.2 Ⅴ

Drinks quality 6.56 Ⅲ

Interpretation:
In the above table 6.1.2 indicates that the survey respondents reason for consuming ABInbev
drinks. The favour was ranked first with the mean rank of 6.79 till 7.Where as Brand Image
was ranked second with the mean rank 6.90 till 7 ,quality was ranked third with the mean
rank 6.56 , Accessiblity was ranked fourth with the mean rank 5.74 ,Ready to drink was
ranked fifth with the mean rank 5.2 ,cost was ranked sixth with the mean rank 4.87 and last
one is convinient ranked seventh with the mean rank 4.6.

6.3 ANOVA Analysis

This analysis is done to find out if there is any significant difference in the sales among
different varieties of product of ABInbev globally. Secondary data is collected from the 2019
quarterly annual report of ABInbev.
Table 6.3.1: sales of variety of products of ABInbev
H0 The sales do not differ significantly in the different varieties of product

H1 The sales differ significantly in the different varieties of product

REPORT ON ABINBEV 16
Table 6.3.2: Data of sales of different products using different advertising methods

Method Corona Extra Budweiser Becks Blue Modelo leffe

Ⅰ 81 83 77 83 80
Ⅱ 79 85 71 88 79
Ⅲ 78 92 82 78 81

Table 6.3.3: One way anova analysis

Source of Sum of Degree of Mean Square F Sig.
Variation Squares Freedom
Between sample 98.01 4 25 1.508 5.96
Within sample 162 10 16.201
Total 260.01 14

Interpretation
The table 6.3.3 value show that the F factor obtained is 1.508 with the significant value of
5.96 which is lesser than 5% (0.05) level of significance hence the Null Hypothesis is
accepted.That means sales do not differ significantly in the different varieties of products of
ABInbev.

6.2 Volume vs Investment correlation on Budweiser for the year 2019

Pearson correlation: 0.819

P – Value: 0.000

Source: lean six sigma training document of ABInBev.

REPORT ON ABINBEV 17
7.1Findings and conclusion

ABInBev is a company with core values integrated within every employees through constant
focus on their DPC principles.
 From simple percentage analysis we came to know that majority of the sample
respondents prefer alcoholic drinks.
 Many of the sample respondents get to see the advertisement 30.0 per cent to 1 Times
a week.
 The ranking analysis survey clearly indicates that the respondents reason for
consuming drinks of abinbev.
 Anova analysis indicates that sales do not differ significantly in the different varieties
of products of ABInbev.

DREAM
1. Shared Dream energizes everyone to work in the same direction: Bringing people
together for a better world.
PEOPLE
2. Greatest strength is our people. Great people grow at the pace of their talent and are
rewarded accordingly.
3. We recruit, develop and retain people who can be better than ourselves. We will be
judged by the quality of our teams.
CULTURE
4. We are never completely satisfied with our results, which are the fuel of our
company. Focus and zero-complacency guarantee lasting competitive advantage.
5. The consumer is the boss. We serve our consumers by offering brand experiences
that play a meaningful role in their lives, and always in a responsible way.
6. We are a company of owners. Owners take results personally.
7. We believe common sense and simplicity are usually better guidelines than
unnecessary sophistication and complexity.
8. We manage our costs tightly, to free up resources that will support sustainable and
profitable top line growth.
9. Leadership by personal example is at the core of our culture. We do what we say.

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 10. We never take shortcuts. Integrity, hard work, quality, and responsibility are key to
building our company.
ABInBev are already the largest breweries in the world who are constantly in the lookout for
continuous opportunities to expand their reach throughout the world. The eagerness to grow
combined with skilled workforce and eye on sustainability has ensured ABInBev to rule over
the beer market throughout the world and will continue till the passion for beer is engrained
in the company workforce. ABInbev is constantly promoting smart drink and has been
shifting its large portfolios into non-alcoholic beer segment gradually.

REPORT ON ABINBEV 19
8.1 Bibliography

1.  "Financial Report 2018" (PDF). AB Inbev. Retrieved 8 March 2019.

2.  Jump up to:a b "Financial Report 2017" (PDF). AB Inbev. Retrieved 2 March 2018.
3.  "Anheuser Busch Inbev NV (BUD) Profile". Reuters Finance. 15 July 2018.
Retrieved 15 July 2018.
4.  "Anheuser Busch Inbev NV (BUD) Profile". CNN Money. 15 July 2018.
Retrieved 15 July 2018.
5.  "Anheuser Busch Inbev NV (BUD) Profile". Business Insider. 15 July 2018.
Retrieved 15 July 2018.
6.  "The AB InBev World". Retrieved 2 October 2018.
7.  Jump up to:a b c Brown, Lisa (11 October 2016). "A-B InBev finalizes $100B billion
acquisition of SABMiller, creating world's largest beer company". Chicago Tribune.
Chicago. Retrieved 29 January 2017.
8.  "InBev to buy Anheuser-Busch for $52 billion". The New York Times. 14 July 2008.
9.  "Interbrew buys AmBev and becomes world's number one". Beverage Daily. 3
March 2004. Archived from the original on 13 February 2008. Retrieved 9
February 2008.
10. "Carlos Brito: (Brew) master of the universe". Fortune.
11. Bid talk boosts Budweiser maker. BBC News. 23 May 2008.
12."Financial Report 2014" (PDF). Anheuser-Busch InBev.
13. "Global Press Release Archive" (PDF). AB-InBev.
14. "Beer giants AB InBev and SABMiller agree takeover terms". BBC News.
15. "The beerhemoth". The Economist. ISSN 0013-0613. Retrieved 20 October 2015.
16. "AB InBev makes higher offer for SABMiller". BBC News.
17. "AB InBev Lifts SABMiller Takeover Proposal to $103.6 Billion". Bloomberg News.
12 October 2015.
18. "Anheuser-Busch InBev to Sell Former SABMiller's Central and Eastern European
Business to Asahi". Bloomberg News. Bloomberg. 21 December 2016. Retrieved 1
February 2017.
19. "AB InBev, Efes to merge Russian operations as sales slide". 9 August 2017.
Retrieved 12 December 2018 – via uk.reuters.com.
20. "Press Release FY2018" (PDF). AB Inbev. Retrieved 9 March 2019.

REPORT ON ABINBEV 20
 21. "Anheuser-Busch InBev Bilanz, Gewinn und Umsatz | Anheuser-Busch InBev
Geschäftsbericht | A2ASUV". wallstreet-online.de. Retrieved 6 November 2018.
22. "Budweiser wants to buy Miller — and the Brazilian private-equity titan who bought
Kraft, Heinz, and Burger King is behind the deal". Business Insider. 16 September
2015. Retrieved 15 May 2017.
23. "Stocks - Anheuser Busch Inbev NV (ABI.BR)". Reuters Business. Thomson
Reuters. 27 January 2017. Retrieved 1 February 2017. ABI.BR on Brussels Stock
Exchange
24. "About Anheuser-Busch InBev". Money Web. Moneyweb Holdings Ltd. 10 October
2016. Retrieved 8 February 2017. the company’s portfolio of well over 200 beer
brands ... In 2015, AB InBev realized 43.6 billion US dollar revenue.
25. "Anheuser-Busch and 10 Barrel Brewing Announce Purchase
Agreement". Newsroom. Anheuser-Busch. Archived from the original on 18
December 2014. Retrieved 17 December 2014.
26.Anheuser-Busch to buy Devils Backbone Brewing Company in Nelson County  12
April 2015 Richmond Times Dispatch
27. ABInBev press release, Brussels / 07 May 2019 / 7.00am CET, www.ab-inbev.com
28. Reusable packaging solutions case study on ABInBev, www.reusables.org
29. ABInBev 2019 second quarter’s results.
30. ABInBev annual reports 2017 and 2018.
31. How to brew beer from scratch, Sharath Chandra K C, Presentation for the companies
Lunch and learn session, 2019.

REPORT ON ABINBEV 21