This is a three-part discussion questions pertaining to the attached Anheuser-Busch Case. Please Detailed QuestionsThe Anheuser-Busch Case: Part 1Brand Capital: advertising; consistency of expenditures, message* How much does A-B spend annually on advertising? Isn’t it less than rivals on a per-barrel basis? How can less spending lead to a brand advantage?* How long has the Budweiser brand been around? Have they been investing over this entire period? Product Profile: Bud Dry with 2.5% market share in one year, but Bud Dry cut into Budweiser traditionally, a single brandManufacturing Capacity: 12 plants; $300 m apiece; incremental investment.The Anheuser-Busch Case: Part 2What has been Miller’s strategy since its acquisition by Philip Morris in 1971? Has Miller also been a steady moderate performer?* How did Miller’s strategy change with the Philip Morris acquisition?* Was the success of Lite something that Anheuser-Busch should keep in mind as it assesses the threat from this competitor? How damaging was Lite to A-B’s position?* How has Miller’s success affected Anheuser-Busch’s market share?* What are Philip Morris’ goals for this business? Is the company targeting moderate profitability? Has Miller achieved significant profitability?You may want to look at the following in relation to Miller: Transfer of skills from Philip Morris, new product based on demographic shifts, extensive advertising and distribution support.The Anheuser-Busch Case: Part 3Do microbreweries and brewpubs promise to change the structure of the U .S. brewing industry? Why was there product proliferation and price discounting around 1990?* Should Anheuser-Busch respond aggressively to the product proliferation that’s occurred in this industry? Should it lower its prices significantly to win back share from Miller?* What’s the most aggressive option available to Anheuser-Busch? Is it likely to knock Miller out of play? Would it hurt A-B’s profitability? Could A-B easily retrench to the old model if it were unsuccessful with a more aggressive approach?* What’s the worst-case scenario if A-B takes a less aggressive approach? Is A-B likely to lose share rapidly? Has this product proliferation cost A-B a lot more than Miller so far?* What should A-B do? Should it take the most aggressive approach?
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