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Cans

During the Prohibition Era, Budweiser encountered its first major obstacle to profit and growth. As alcohol became illegal to sell and produce, all alcohol companies, including Budweiser, struggled to remain profitable. Budweiser began producing non-alcoholic beverages during Prohibition to counter its ill effects. Prohibition began in 1920, and lasted into the middle of the Great Depression in 1933. These are two major setbacks that this company experienced. Just as laws regarding prohibition were repealed, Budweiser was faced with more serious economic struggles, which made their success (like all other companies) very unlikely. In attempt to re-stimulate interest in their beer, Budweiser executed a hugely successful marketing strategy of introducing beer cans for the first time in 1936. This new packaging led to an increase in sales which lasted until the start of World War II in 1939.[1]

Over the years, Budweiser has undergone various design changes to their can which are discussed in the table below. Many of these changes are in response to market conditions and consumer tastes. Since 1936, 12 major can design changes have occurred, not including the temporary special edition designs. The table below describes each of the 12 major can designs.

Era Beer title Description[2]
1936-1942 Budweiser Lager Beer Gold colored can made of steel with American image of an eagle
1942-1945 Budweiser Lager Beer Same design as previous can, except in an olive drab color to provide camouflage for troops in World War II
1950-1956 Budweiser Lager Beer Gold colored split label can with list of breweries at the bottom of the can
1956-1958 Budweiser Lager Beer Red, white, and blue split label can with same design as previous can
1963 Budweiser Lager Beer First all-aluminum beer can; red, white, and blue color scheme
1964-1972 Budweiser Lager Beer Introduction of the tab top can, still with the same color scheme as previous design
1970s Budweiser Lager Beer Similar design as last five cans, with Budweiser creed, Anheuser-Busch logo, and eagle images
1980s-1990s King of Beers Same design as previous, with slightly different can shape
1996-1999 King of Beers Horizontal label rather than classic vertical label, and introduction of 'Born on' dating which tells exactly when the beer was brewed
1999-2000 Millennium Limited-edition can with vertical label for the beginning of a new millennium
2001-2011 King of Beers Horizontal can design with red, white, and blue color scheme
2011- King of Beers Red, white, and gold color scheme; new bow-tie design with much more modern appearance

2011 Can Design Marketing Strategy

Traditional Budweiser cans embodied a strong sense of American patriotism. They were red, white, and blue in color, and had images of eagles near the label. These cans also had a very classic appearance due to the cursive font and the Anheuser-Busch logo surrounded by wheat and barley. Red, white, and blue, being the colors of the American flag, identified the cans strongly with the American market for this product. Moreover, the eagles remind viewers of the Bald Eagle, America's national bird. These facts strongly suggest that Budweiser was targeting a primarily American market. In contrast to this previous design, the newest can takes on a much more modern appearance and eliminates blue as a main color in the design. Red, white, and gold are the predominant colors on this new can, which makes the can look much less traditionally American, and much more modern. On this new can, there are aspects that continue to resonate with an American market, such as the red and white colors, as these are two of the nation's primary colors. The presence of the yellowish-gold color is not typically American, though, and is surprising to see in the can design of the self-proclaimed "Great American Lager."

This change in can design was very shocking for a brand that had remained relatively static since its beginning. The new design was largely in response to the huge sales decline in recent years that is threatening to lose Budweiser its title as the best-selling beer in America.[3] One cause of this sales decline is the unemployment struggles that many Americans have been facing recently. A large group of individuals affected by unemployment are young men, who are the main demographic of Budweiser's target market. In order to regain the domestic market share that Budweiser has lost, the company is trying to update its appearance by giving the can a more contemporary look that is more appealing to this demographic. The company hopes that the new design will offset the effects that unemployment had on its sales.[4]

Although the more modern design is intended for young male Americans, the new design, according to the vice president of Anheuser-Busch Frank Abernante, "is one of many steps in our quest to reinforce Budweiser's role as a truly global beer brand."[5] This statement means that the new design was intended for foreign markets as well. In fact, Budweiser began selling its beer in Russia in 2010, and is currently expanding its operations in China.[6] Seeing that the new can has red and gold colors, which are the same colors as the Chinese Flag, the company's motives become visible.

Statistics show that China is the world's leading consumer of beer in terms of volume, which suggests that Budweiser is trying to capitalize on this market's potential in order to recover from these losses. Currently, of the 15 Anheuser-Busch breweries outside of the United States, 14 of them are positioned in China, which shows how interested the company is in this growing market. Budweiser is already the fourth leading brand in the Chinese beer market, and the company hopes that this new design change will push them further up the list as one of China's most dominant brands.[7] Budweiser's attempt to target China is not sudden, though. There have actually been several advertising campaigns geared toward Chinese consumers. One such campaign was in 2009 when Budweiser sponsored a competition for the creation of a Budweiser commercial involving the Budweiser ants. Here, Chinese consumers were prompted to compete in this process of submitting their ideas online for the chance to have their idea become the newest Budweiser commercial.[8]

The company hoped that the new design would appeal to a younger crowd in the American market, while simultaneously gaining the interest of Chinese consumers. Americans can continue to identify with the brand because the can is primarily red and white, which are dominant colors on the American flag. In addition, Chinese consumers can identify with the brand because the red and gold colors in the new design are reminiscent of the Chinese flag. This demonstrates how Budweiser is using the can to break into new markets with hopes to improve the company's overall revenue.

References

  1. ^ "Official website: Our History". Retrieved 2012-02-20.
  2. ^ "Budweiser Unveils New "Bowtie" Design". Retrieved 2012-02-20.
  3. ^ "Budweiser Cans Get a New Look--the Bow Tie". Retrieved 2012-03-02.
  4. ^ "Budweiser Can Redesigned". Retrieved 2012-03-02.
  5. ^ "Budweiser Unveils New "Bowtie" Design". Retrieved 2012-03-02.
  6. ^ "Budweiser Can Redesigned". Retrieved 2012-03-02.
  7. ^ "An Average US Brand in the China Market - The Budweiser Story". Retrieved 2012-02-20.
  8. ^ "Bud Drinkers, Not Agency, Will Be Behind the Next Chinese New Year Campaign". Retrieved 2012-02-20.

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