BudNET - Building Competitive Advantage through Information*

            


Details


Case Code : CLIT009
Publication date : 2012
Subject : IT and Systems
Industry : Breweries
Length : 03 Pages
Price : Rs. 100


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Key words:

Anheuser Busch, BudNet, information, competitive advantage, distributors, retailers, data mining, mobile technology, real time marketing, intelligence reports


* This caselet is intended for use only in class discussions.
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Abstract:
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This case explains how Anheuser-Busch (AB), largest brewing company in the USA, used information to gain advantage over the competitors. AB used a data network called BudNet to optimize its product mix, decide on the right price, fine-tune promotional campaigns and distribution strategies. BudNet helped the company make its marketing more effective and efficient.


Issues:

Understand using data and technology as a competitive advantage
Analyze the importance of the right information
Learn the importance of a system like BudNet which provides real-time data


Introduction

Anheuser-Busch (AB), the largest brewing company in the USA, was founded in 1852 as Bavarian Brewery. It was renamed E. Anheuser & Co. in 1860 after it was acquired by Eberhard Anheuser. In 1864, Adolphus Busch joined the company, which went on to become AB. The popular Budweiser was introduced in 1876, followed by Michaelob in 1896.

In 2008, the merger of AB with Belgium-based InBev resulted in the creation of Anheuser-Busch InBev NV, one of the top five consumer product companies in the world, as of 2011. For the year ending December 2010, AB-InBev generated revenue of US$ 36 billion and managed a portfolio of more than 200 brands.


In the late 1990s, in the US, AB had around 750 national-level distributors who employed more than 8,400 sales representatives. These representatives were responsible for distributing ABs products to more than 450,000 retailers spread across the country...

Questions for Discussion:

1. How can information give a company a competitive advantage? Discuss with reference to BudNET?
2. How can BudNET be used in designing promotional campaigns for the company?