Research On The Brand Internationalization Of Budweiser

With the continuous development of global economic integration, the competition in the world beer industry is becoming heated which featured with beer brand internationalization. China's successful accession of WTO generates tremendous impact on both domestic beer market and the world beer market. As a country with over 100 years'brewing history, China faces beer brand competition from the world beer market. At the same time, foreign beer giants realized the important strategic place of Chinese beer market because of the huge potentiality of Chinese beer market. It is reported that, at the beginning of the 21st century, traditional beer markets are approaching to saturation, such as Europe, America, and Japan. Some of these beer markets even appeared to shrink. However, Chinese beer market sustained rising trend during this period. It is reported that the Chinese beer consumption reached to 24 million tons in 2003, which represented China has become the biggest beer consumption market in replace of America, according to the research done by China Alcoholic Drinks Industry Association that. In the 21st century, domestic beer brands were characterized with diversification which owing to full market competition, diversified taste, and individualized consumption psychology. The expansion pace of national beer brands is slowing down, but with reviving of foreign beer brands in China.Compared with famous beer brands in the world, Chinese beers manifest many problems, such as low technology, local protectionism, poor concentration of beer brand, and low level competition. Meanwhile, many beer brands in China manifest the problem of lacking competitiveness. At present, there are 400 domestic beer brands in circulation area. However, only a few of these brands are capable of impacting nationally, let alone internationally. Among these brands, Tsingtao Beer, China Resources Snow Beer, and Yanjing Beer are major brands that develop rapidly and up to national management and operation. It has to be acknowledged that high-end beer market of China is almost controlled by foreign beer brands, such as Budweiser, Heineken, and Carlsberg. With the strengthening of national comprehensive national strength, FMCG (Fast Moving Consumer Goods) which represented by beer is tending to brand centralization, competition internationalization, and capital globalization.Faced with competitive rivals, how to go abroad in order to become a real beer brand country instead of consumption power is a problem need to solve for Chinese beer industry after the accession to WTO. The beer brand internationalization of China is in the starting stage. The annual export volume merely accounts for less than 1% of total beer production of Chinese beer. The only one brewer that can be called going abroad of domestic beer is Tsingtao Beer. However, the export volume accounts for 5% of its total production. Simultaneously, Chines beer industry is confronted with the fact of being internationalized. Since 1990s, foreign beer began to carve up Chinese beer market successively in three stages. From that time, Chinese beer brands were pushed into the fierce competition in the world beer arena. It deserves great attention from Chinese beer industry that many domestic beer brands are acquired by foreign beer companies to different extent.As the brand leader in the world beer industry, Budweiser enjoys high brand recognition and brand loyalty which is unparalleled by any other beer brands. The brand internationalization of Budweiser starts earlier and achieves great success through strategic brand marketing in the world. Base on the updated global brand marketing theories, this paper researches on the brand internationalization strategies applied by Budweiser with the purpose of enlightening on domestic beer industry.There are seven chapters in this paper:ChapterⅠ:Introduction. In this chapter, background, research content and meaning of this paper are introduced briefly. Research methods and structure can be found in the end of this chapter.ChapterⅡ:Relative Theories on Brand Internationalization. There are mainly three key points in this chapter:at the very beginning, definitions of international brand and brand internationalization are presented. In addition, some common modes for brand internationalization are discussed, such as brand exporting, franchising, sole proprietorship, joint-venture, and M&A (Merger and Acquisition). Finally, spread modes of brand internationalization are presented.ChapterⅢ:Status Quo and Trend of Beer Industry in the World. To begin with, major beer brands in the world are introduced, such as Budweiser, Beck's, Carlsberg, Corona, etc. Furthermore, status quo of world beer market is introduced by regions. At the end of this chapter, beer brands developing trend of the world is proposed, including reduce brands quantity, foster flag brands, and emphasize on cooperating among brands.ChapterⅣ:Brand Internationalization Analysis of Budweiser.First, an overview of Anheuser-Busch InBev (ABInBev), which includes its beer markets in the world, and major brands.Second, SWOT analysis on Budweiser is proposed distinctively. The strength of Budweiser mainly reflected in their financial status, good marketing channel, high brand recognition and brand loyalty, advanced technology, and unparalleled market share. Comparatively, net debt due to large scale acquisition, ineffective operation of wholesalers, and overdependence on North American market are weaknesses of Budweiser. Besides these, emerging beer markets, such as China, Latin America South, and some developing countries provide great opportunities for Budweiser enlarging its business. Meanwhile, like other beer brands in the world, Budweiser is facing problems, such as aging people, rising price for raw materials used in brewing, and heated competition from the rest of the world.Third, analysis on brand internationalization strategies applied by Budweiser is presented. Budweiser improves its brand competitiveness through various methods, such as individualized brand position in the world, global advertising, global marketing through music and sports event, and upgraded management and quality.Finally, Localization Strategy used by Budweiser in China is introduced.ChapterⅤ:this chapter focuses on analyzing Status quo of Chinese beer brand internationalization. To begin with, the overview of Chinese beer market is introduced, with emphasis on the three major brewers in China:Tsingtao Beer Brewery, China Resources Snow (CR Snow) Brewery, and Yanjing Beer Group. Furthermore, features of domestic beer market are analyzed. Thereafter, foreign beer development status in Chinese beer markets is presented, especially the development progress of ABInBev in China. Finally, the status quo and problems of Chinese beer brand internationalization are introduced.ChapterⅥ:Marketing Strategies and Suggestions for Brand Internationalization of Chinese Beer. Suggestions are proposed in the following six aspects:the first is product strategy. New product development and updated technology should be attached high importance. Second, in pricing strategy, price should be determined by various markets, and in accordance with market mix. The third strategy is positioning in global beer market. Some successful cases of famous beer brands can be used for references, such as according to product characteristics, brand image, etc. The fourth strategy is about place, or beer market to enter in other word. Base on status quo of domestic beers, an easy-difficult mode is more appropriate, i.e. south-east Asia beer market is the first priority for brand internationalization of domestic Beer. The fifth suggestion is about talent. Local talent internationalization and International talent localization are two important strategies. At last, effective brand communication methods are introduced, such as global advertising, marketing through sports events, and cross-cultural brand communication.ChapterⅦ:Conclusion.