Anheuser-Busch Adjust Approach to Sports Sponsorship

Terry Lefton of the Sports Business Journal documents Anheuser-Busch’s plans to tackle sports sponsorships – a major component of their product marketing strategy.

Since the introduction of Bud Light in 1982, A-B has pursued an approach under which Budweiser and Bud Light have been paired with the brewer’s largest sports sponsorships. Now, individual brands will be matched with specific properties. The most immediate impact starts next week, as Bud Light will get 80 percent of the considerable dollars A-B spends on the NFL. The league had been split evenly between Budweiser and Bud Light in terms of media support.

With regard to other sports properties, MLB’s position as America’s sport with the deepest heritage means it will become primarily a Budweiser play. Since the NBA and Budweiser both index higher among African-Americans, the NBA will receive marketing support from Budweiser. NASCAR will continue to be a Budweiser brand, while the NHL will maintain its longtime affiliation with Bud Light. Budweiser will continue to be the brand associated with A-B’s various soccer properties, including MLS, FIFA and Manchester United, while Bud Light will continue to support niche sports, like UFC, AVP and MLL.

A-B’s new strategy of breaking up multiple brands from its largest properties brings it in line with rival MillerCoors’ one brand/one property approach for sports media and sponsorship buys. A-B marketers said the move was being made both to achieve stronger and more cohesive integration between individual properties and brands.

Payout Perspective:

MMAPayout.com reported a few weeks ago that A-B was looking to revamp its Bud Light brand by pumping millions of dollars into a series of humorous commercials meant to stir up a renewed interest in the “drinkability” campaign. Now, comes the word that the organization is trying to link its individual brands with specific sports properties.

Bud Light is the newer, hipper beer that targets a younger demographic than Budweiser – it’s no surprise that the brand is targeting the UFC, NFL, and NHL.

I’m still adamant that a UFC themed commercial needs to happen. If the company is looking to better align itself with sports properties and their respective demographics, it’s actively got to seek out and engage those fan bases within those demographics. It wouldn’t be difficult to play on the tough guy, UFC theme and link it with “drinkability.”

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While I am a fan of these latest moves from A-B, I’m not necessarily a fan of their newest Bud Light Lime extension. Despite the possibility for increased sales volume in the short-term, there’s a real possibility that it dilutes the Bud Light brand over the long-term and that’s obviously far more detrimental. Any time you start expanding a brand with extensions you risk losing the identity and core following of the brand itself.

The brewer might have been better off creating an entirely new brand for the BLL product. It’s all quite reminiscent of the Coke/Tab to Coke/Diet Coke situation of the 80s. Tab, a diet cola brand owned by Coca Cola, was far and away the leader in the segment for sometime. When Pepsi introduced Diet Pepsi to compete, Coke then created Diet Coke, which essentially killed the Tab brand. Now Coca Cola has less of an overall market share in the diet segment than when they started.

Again, this raises the issue of Al Ries “law of expansion:” the power of a brand is inversely related to its scope.