BLGW marketing plan Essays - Leuven, Anheuser-Busch InBev

Bud Light Golden Wheat Marketing Plan Kyle Turner Marketing 5000 I.EXECUTIVE SUMMARY Anheuser-Busch Companies, Inc. traces its roots to 1852 and the Bavarian Brewery in St. Louis. Through new technologies and modern marketing practices, the local brewery was transformed into the industry leader. Budweiser was the first national beer brand, introduced in 1876. Twenty years later, Busch introduced Michelob, America?s first specialty beer. In 1957, Anheuser-Busch became the leading U.S. brewer, a position it retains today. In 1982, the company introduced Bud Light nationally, which grew quickly in popularity and today is one of the world?s best selling beer brands. In 2008, Anheuser-Busch and InBev combined to become Anheuser-Busch InBev. The new company is the world?s largest brewer and one of the top 5 consumer goods companies in the world. An evaluation of the company?s internal strengths, weaknesses, opportunities and threats served as the foundation for this strategic analysis and marketing plan. The plan focuses on the company?s ?megabrand? strategy, with the introduction of Bud Light Golden Wheat. Anheuser-Busch has a dedicated plan of over $30MM total year marketing for Bud Light Golden Wheat, which includes heavy national media and outdoor to build awareness and introduce the brand. There will be special focus on digital to reach trendsetter consumer and a full line of merchandising and branded products to support sampling and promotion. The goal is to support trial of Bud light Golden Wheat with full Public Relations push to reinforce the ?More Flavorful Light Beer? message. II.ENVIRONMENTAL ANALYSIS Anheuser-Busch will launch Bud Light Golden Wheat in early October 2009, in an effort to attract older drinkers who are looking for a little more flavor from their light beer. The Bud Light ?megabrand? will soon have three formidable prongs. A-B is trying to stay ahead of where consumers are going. The beer has been in development for nearly two years. It will roll out the week of October 5 in every market across the country. It will be backed by a $30 million annual advertising budget. Sales of wheat beers have tripled since 2003.?The goal is to ?stay true to what the mother ship, Bud Light, has to offer,? Levy said. More money may flow to Anheuser-Busch even if people shift their purchases. That?s because both wheat and lime varieties of Bud Light will sell for roughly $1-$1.50 more per six-pack than standard Bud Light. Golden Wheat will be brewed in Baldwinsville, N.Y., Cartersville, Ga., and Ft. Collins, Colo. (McWilliams, 2009) A.The Marketing Environment 1. Competitive forces. Chicago-based MillerCoors' Blue Moon wheat beer is one of the hottest-selling craft brews, but Anheuser-Busch is angling to cut in on that growth with its new Bud Light Golden Wheat. Just two months after its debut, the new wheat beer has nearly matched Blue Moon's monthly sales. Both brewers are looking for a new source of growth as sales of mass-market beers stagnate. MillerCoors beat its archrival to the new category with Blue Moon, launched in 1995. Sales of the Belgian-style wheat beer made with coriander and citrus flavors grew 14% to more than $125 million last year, according to data from Chicago-based Information Resources Inc. Blue Moon accounts for about 2% of MillerCoors' total annual sales. Anheuser-Busch showed last month that it has the marketing muscle and distribution wingspan to make up lost ground quickly. It sold 263,000 cases of Bud Light Golden Wheat in November, nearly equaling Blue Moon's total, IRI data show. Bud's wheat beer also is ma de with coriander and citrus flavors. To some extent, the wheat beers are a defensive move for both brewing giants. Independent breweries producing craft brews in small batches have skimmed customers from mass-produced beers in recent years. The big brewers apparently figure it's better to cannibalize their own sales than to let rivals take them. MillerCoors doesn't call attention to its ownership of Blue Moon, but it's using traditional mass-marketing techniques to promote the brew. Anheuser-Busch offers a line of craft beers under its Michelob brand, while MillerCoors owns Leinenkugel's. Both face a challenge in selling drinkers on craft brews from mass-market breweries. Past efforts, such as Miller Lite's Brewers Collection a few years ago, flopped. MillerCoors is investing more in craft beers such as Blue Moon because it predicts the sector

Shareholder Activism Essay The WritePass Journal

Shareholder Activism Essay Introduction Shareholder Activism Essay Can shareholder activism actually deliver the desired change?IntroductionShareholder activism – the Theoretical PerspectiveLegal BasisExamples of Shareholder ActivismAnalysis and ConclusionsReferencesRelated Can shareholder activism actually deliver the desired change? Introduction The increasing awareness of shareholders and their level of importance to the modern organisation have raised multiple questions as to the potential role which shareholders can play in influencing the decision making of the management team and their willingness to engage with a broad range of stakeholders. Where shareholders have an impact to any degree, this is referred to as shareholder activism and is largely described as being the role that shareholders play in dominating the decisions made by management teams (Bainbridge, 1995). Whilst it is readily accepted that shareholders own the company, whereas directors manage the company, there has historically been a misapprehension that shareholders are simply interested in the financial profits that the company produces. It is argued in this paper that this is not the case and shareholders are becoming much more involved in ensuring a balanced approach and that organisations have a wider awareness of issues such as corporate social re sponsibility (Schacht, 1995). The purpose of this paper is to consider whether or not this type of shareholder activism can actually be seen to be delivering a positive change, specifically in the area of corporate social responsibility. In order to look at this issue and the development of CSR, shareholder activism in its entirety needs to be looked at, before then considering the legal regime which encourages such activism and any specific cases that are relevant, before drawing conclusions on the key question. Shareholder activism – the Theoretical Perspective The management of an organisation has, for a long time, accepted that the performance of a business is down to them and that, if the shareholders are unhappy about the performance or the returns of the business they may potentially walk away from the organisation or the position of the manager may be in jeopardy. Where shareholders take this type of action on board, it can be suggested that shareholder activism is in operation. Broadly speaking, there are several key reasons why which investors may pursue the shareholder activist approach. Firstly, shareholder activism occurs in order to procure a better return on shareholder investment; secondly, to ensure that the company pursues a different corporate strategy that will ultimately improve performance and profitability, a key example of this being the suggestion that the company should demerge; thirdly, to make changes in the management team; fourthly in order to pursue some form of special interest, such as a social and ethical agenda (it is this agenda which will be looked at in more detail in the paper below). Finally, shareholder activism is undertaken to influence the outcome of some form of corporate agenda that has already been pursued (Tarrow, 1994). Shareholders have always had the option of essentially voting with their feet, when they disapprove of the decisions of the management team. For example, they can simply sell their shares, where traditionally the criticisms of management decisions would take place in private, with shareholders simply moving away when they were displeased. Although the concept of shareholder activism is not necessarily new, in recent years, it has certainly increased in its operation and become much more prevalent. Examples of recent shareholder activism include action by an institutional investor, Knight Vinke Asset Management which lobbied for changes in the HSBC strategy, or in Tesco where shareholders became involved in demanding changes in working conditions relating to clothes’ suppliers in Asia. Interestingly, shareholder activism does not depend on the size of the market, with shareholder activism being a tool that can be used in any type of organisation. Those holding shares are also potentially able to act in this way and therefore this lends a considerably more diverse meaning to the notion of shareholder activism, which can be derived from a much broader range of sources (Roe, 2003). With this potential diversity in mind, the next step is to look at the tools that are available for the activist shareholder and to identify the statutory basis upon which such action can take place. Legal Basis One of the key statutory powers which are available in order to support shareholder activism is that of the Companies Act 2006 (the Act). This Act lays down the legal framework which enables a shareholder to exercise any of their legal rights when they are pursuing an activist agenda. The precise options available to the shareholder will depend on the type of company in which they hold shares; for example, there are different rights attached to public companies. For the purpose of this analysis, all potential legal rights will be looked at and it should be borne in mind that these may not always be available, particularly to shareholders of private companies (Wrneryd, 2005). In accordance with sections 303 to 305 of the Act, shareholders are able to call a general meeting. This is a strong element of the shareholder activism as it provides members with a platform in which they can make their requirements known. In the aftermath of the Shareholder Rights Directive 2009, members and groups of shareholders representing a minimum of 5% of the public companies voting rights are able to demand that the directors call a general meeting of the company. Similarly, where the directors choose to convene a general meeting there are rules associated with giving notice to the individual shareholders. This allows shareholders the opportunity to bring a platform upon which to discuss their own issues. Secondly, in accordance with sections 314 317, members with a shareholding of at least 5% or shareholders or that have at least 100 shares with an average of at least  £100 per member are entitled to demand that the company circulates a statement to shareholders of up to 1,000 words regarding a proposed resolution or any other business that is going to take place at the meeting. This again provides the shareholders with the information that they need in order to be potentially active. It is also noted that beneficial owners of shares can count towards the threshold in order to meet the 5% trigger (Belloc and Pagano, 2009). As well as the ability to gain access to the meeting and information in relation to the meeting, shareholders are also entitled to be active within the meeting itself. In accordance with section 338, shareholders holding a total of 5% shares can propose a resolution, a strategy that was used by the investor efficient capital structures but they required a resolution as part of the 2007 AGM of Vodafone plc to pursue a specific strategy. Furthermore, section 168 provides shareholders with the ability to propose the removal of the directors. Arguably, this is one of the greater sanctions available to shareholders, from the perspective of the individual directors. Where this process is being initiated, special notice of 28 days must be given of the intention to propose this resolution and to reasonably work in line with the articles of association of the company (Filatotchev, et al 2006). Importantly, section 116 of the Act allows any shareholders to gain access to the shareholder register which then may offer them the opportunity for the shareholders to join forces in order to deal with a particular agenda, making the ability to reach the 5% thresholds somewhat easier. There are, however, requirements for shareholders to ensure that when they are canvassing support they are doing so for the proper purpose. There are certain thresholds which allow shareholders to have rights, with 5% offering the opportunity to propose a resolution, to require an independent report in the case of quoted companies, the power to require companies to publish audit concerns, again in quoted companies, and also the power to include a matter that should be considered at AGM. When the required percent of the shareholders join forces, the power becomes much more threatening to the management team, as this is the requisite amount required a specific resolution. For example, at 75%, the shareholders can require a special resolution to be passed. The regime associated with proxies can play a very important role when it comes to shareholder activism with the 2006 Act making changes as to the way in which proxies can operate, allowing the property to be much more effective. For example, members have an absolute right to appoint a proxy who can attend a meeting and vote on their behalf. Another key area of shareholder activism emerged from the ability to use corporate representation, rather than using a proxy, as this allows shareholders a much greater degree of practical flexibility when they are unable to comply with proxy deadlines, or some other form of formality. Corporate shareholders are also able to appoint representatives by virtue of their own board resolution. Finally, it is worth noting that shareholders’ rights can be utilised by indirect investors. For example, under the 2006 Act, it is possible for the beneficial shareholders holding shares to enjoy information rights, i.e. to obtain information in relation to the company and in many cases the beneficial shareholders can count towards reaching the 5% thresholds. Although this goes beyond the scope of the discussion here, it is worth noting that these beneficial shareholders can have a direct impact on any agenda for shareholder activism. Examples of Shareholder Activism In order to gain an understanding of just how effective these legal provisions can be, the situation in Tesco can be looked at. In 2007, the poverty charity â€Å"War on Want† used the fact that it held a 5% shareholding in order to present a resolution at the 2007 AGM, with a view to ensuring a better deal for suppliers, in particular across Asia. The matter did not rest there and in June 2008 Tesco was targeted once again by a group of shareholders who were headed by an individual high- profile shareholder, to look at the living conditions of chickens, prior to their purchase by Tesco for sale. The shareholders in both these cases used section 338 of the Companies Act 2006, in order to demand resolutions relating to their individual issues. Once this resolution had been demanded, the company was required to circulate information relating to the resolution, as well as any supporting statements (Aguilera, 2005). This type of shareholder activism was seen to be successful in these individual cases and provided a real forum for the shareholders with a relatively minimal percentage to change the strategy and activities of the organisation itself. Tesco is not alone in facing these types of issues and many other large companies have also faced action from minimal shareholders, relating to specific issues such as wages for staff or supplier issues. This shows a clear indication of the willingness of shareholders to become much more active in putting their points forward and being willing to take on corporations by forcing resolutions to be placed and information to be provided to the broader shareholding (Hendry et al 2007). Analysis and Conclusions The question presented here is to consider whether or not shareholder activism can truly have an impact on organisations, when it comes to encouraging changes and improving corporate social responsibility within the organisation. By looking at the history of shareholder activism and the way in which shareholders are becoming much more willing to engage in the operation of the company, as well as examining the provisions of the 2006 Act which provide shareholders with the ability to undertake these activities, it is argued here that shareholder activism is a growing and real threat to management teams of all sizes. In particular, the 2006 Act offers a considerable opportunity for shareholders to demand information and to have certain items discussed at the AGM. By merely providing this platform for discussion, shareholders can become more active in order to ensure their ultimate agenda is not pursued. By looking at this and using a company such as Tesco as an example, it can be seen that groups of shareholders are gaining real attention and are able to have a direct and dramatic impact on the decisions made by the management teams, particularly when faced with the ultimate sanction that shareholders can request the removal of those directors who fails to comply (Gillan and Starks, 2000). It is concluded here, therefore, that shareholder activism is a real and direct method whereby shareholder groups can encourage changes in the strategy of the organisation relating to both corporate, social responsibility and any other relevant issues. References Aguilera, R.V. (2005) ‘Corporate governance and director accountability: An institutional comparative perspective’ British Journal of Management, 16: S39–S53. Bainbridge, S. M. (1995) The politics of corporate governance, Harvard Journal of Law and Public Policy, Vol. 18 (3), pp. 671-735. Belloc, M. and Pagano, U. (2009) Co-evolution of politics and corporate governance, International Review of Law and Economics, Vol. 29 (2), pp. 106-114. Filatotchev, I., Jackson, G., Gospel, H., and Allcock, D. (2006) Key Drivers of ‘Good’ Corporate Governance and the Appropriateness of UK Policy Responses The Department of Trade and Industry and King’s College London. Gillan, S.L. and Starks, L.T (2000) ‘Corporate governance proposals and shareholder activism: The role of institutional investors’ Journal of Financial Economics, 57 (2): 275- 305. Hendry, J., Sanderson, P., Barker, R. and Roberts, J. (2007) ‘Responsible ownership, shareholder value and the new shareholder activism’ Competition Change,11 (3): 223-240. Roe, M.J. (2003) Political Determinants of Corporate Governance: Political Context, Corporate Impact Oxford University Press. Schacht, K.N. (1995) ‘Institutional investors and shareholder activism: Dealing with demanding shareholders’ Directorship, 21 (5): 8-12. Tarrow, S. (1994) Power in Movement: Collective Action, Social Movements, and Politics in Marens, R. (2002) ‘Inventing corporate governance: The mid-century emergence of shareholder activism’ Journal of Business Management, 8 (4): 365. Wrneryd, K. (2005) Special issue on the politics of corporate governance: Introduction, Economics of Governance, Vol. 6 (2), pp. 91-92.

Answer the question Essay Example | Topics and Well Written Essays - 250 words - 28

Answer the question - Essay Example Such people are never alone and get easily terrified at the idea of getting acquainted with solitude for even a little while. Peer pressure to constantly remain in the world of mass media like Facebook, Twitter, Instagram etc. is so high that students are left with no choice but to become part of this popular youth culture. Otherwise, they are instantly labelled antisocial introverts. Research also claims that becoming part of the â€Å"in† crowd is just part of growing up in schools and colleges (p. 100). Social media in the form of a big societal force also has another shattering influence on teenagers or youth. It is no hidden reality that everyone is busy nowadays in trying to fit into an ever narrowing social ideal because that is how others want them to act. This social ideal is impressed by our social media which makes people insecure and uncomfortable with how they naturally look. Youth is most vulnerable and susceptible. This is because they very easily become a prey to the propaganda instigated by social media which is about looking thinner and more