Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing...

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Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research • National Retail Sales • Jan 2005

Transcript of Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing...

Page 1: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree

Anheuser-Busch • Marketing Planning & Research • National Retail Sales • Jan 2005

Page 2: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

BackgroundBackgroundWhat is a Decision Tree?Why Have One?

Page 3: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Decision Tree: Background and MethodologyDecision Tree: Background and Methodology

• What is a Consumer Decision Tree? A CDT is a hierarchical marketing model used to understand consumer choices made at the point of sale. CDTs illustrate the considerations consumers use to focus on their choices from a total category assortment.

• Why do a decision tree? CDTs allow the ability to visually portray product relationships based on real consumer perceptions. CDTs allow manufacturers to provide retail accounts with suggested actionable solutions based on how consumers think about and shop their category.

• How do manufacturers and retailers use CDTs? Some of the preferred implementations of CDTs include:

Strategic promotional choices

Shelf space allocation

Optimizations of product assortments

Development of new planograms

Product acceptance/deletion criteria

Other in-store ventures such as promotion and merchandising decisions, marketing communications, new product introductions

Page 4: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

The Decision TreeThe Decision TreeShoppers’ Decision ProcessStructure of Decision TreeDifferences Between Each “Branch”

Page 5: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

OCCASION…Defines Amount and Scope of Product(s) Needed / Desired

Category(ies)

Brand(s) / Price Segment(s)

Class Of Trade / Shopping Experience

Sales/Deals (Within Evoked Set of Occasion-Appropriate Items)

Package Size & Container

Order may switch

depending on occasion

Alcohol Beverage Shopper Decision Process(General Sequence of Shoppers’ Conscious Decisions)

Order may switch

depending on occasion

Source: A-B In-Store Decision Tree Study, 2005

Page 6: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Alcohol Beverage Shopper Decision ProcessExamples

Alcohol Beverage Shopper Decision ProcessExamples

Sequence Example 1 Example 2

Occasion…Defines Amount and Scope of Product(s) Needed /

Desired

Personal refreshment only; one occasion;

limited means

Casual home party with contemporary adult

friends; one occasion

Category(ies) Beer Liquor and Beer

Brand(s) / Price Segment(s)(not necessarily in that order)

Busch Light; Value Segment

Good beer variety and need to pick up other stuff

for party

Grocery Chain X near friend’s house

Class of Trade / Shopping Experience

C-store; just need beer; easy in & out Tequila (Jose Cuervo),

Vodka (Smirnoff), Premium Light (Bud Light)

and Micro (Fat Tire)Store C-Store Chain X, on my

way home

Sales / Deals Large single, canMaybe, if any other

occasion-appropriate brands are on sale

Package size & containerWould willingly switch brands for a better deal

750 ml of Liquor; Multi-pk bottles of beer (pack sizes

depend on # of people)

Source: A-B In-Store Decision Tree Study, 2005

Page 7: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Sequence Example 1 Example 2

Occasion…Defines Amount and Scope of Product(s) Needed /

Desired

Personal refreshment only; one occasion;

limited means

Casual home party with contemporary adult

friends; one occasion

Category(ies) Beer Liquor and Beer

Brand(s) / Price Segment(s)

Busch Light; Value Segment

Good beer variety and need to pick up other stuff

for party

Grocery Chain X near friend’s house

Class of Trade / Shopping Experience

C-store; just need beer; easy in & out Tequila (Jose Cuervo),

Vodka (Smirnoff), Premium Light (Bud Light)

and Micro (Fat Tire)Store C-Store Chain X, on my

way home

Sales / Deals Large single, canMaybe, if any other

occasion-appropriate brands are on sale

Package size & containerWould willingly switch brands for a better deal

750 ml of Liquor; Multi-pk bottles of beer (pack sizes

depend on # of people)

Alcohol Beverage Shopper Decision Process(General Sequence of Shoppers’ Conscious Decisions)Alcohol Beverage Shopper Decision Process(General Sequence of Shoppers’ Conscious Decisions)

THE DECISION TREE, DESCRIBED ON THE FOLLOWING SLIDES,

REPRESENTS HOW THESE SEGMENT / BRAND

DECISIONS ARE MADE

THE DECISION TREE, DESCRIBED ON THE FOLLOWING SLIDES,

REPRESENTS HOW THESE SEGMENT / BRAND

DECISIONS ARE MADE

Page 8: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Shopper Decision Tree - Segments and Brands(What’s In Each Segment)

Shopper Decision Tree - Segments and Brands(What’s In Each Segment)

B E E RB E E RWineWine Hard LiquorHard Liquor

Amstel LightAspen Edge

Michelob Ultraetc. Premium/

Above Premium

SABMiller Lite Bud Light

Coors Lightetc.

BudweiserCoors

Ice HouseMGDetc.

Bacardi SilverMike’s Hard Lemon

Smirnoff IceTequiza

Zimaetc.

Red HookSam AdamsShiner Bock

Sierra NevadaFat Tire

Local Microetc.

FABFAB

Super-LightSuper-Light

Mich FamilyRolling Rock

etc.

PremiumRegular

PremiumRegular

MexicanEuropean AustralianCanadian

Traditional Beer

DomesticSpecialtyDomesticSpecialty

ImportsImports

Colt 45King Cobra

Mickey’setc.

Value

LightLight RegularRegular

High Alcoho

l

High Alcoho

lNatural Ice

Bud IceOther Ice

etc.

Busch LightKeystone Light

etc.

BuschKeystone

Miller High LifeMil Best/ Old Mil

PBRSchlitz

etc.

MaltMalt

TiltSparks

Natty Upetc.

Energy / High

Alcohol

Energy / High

Alcohol

TraditionalValuePremium

LightPremium

Light

Craft/MicroCraft/Micro

Source: A-B In-Store Decision Tree Study, 2005

Page 9: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Shopper Decision Tree - Demographic Skews(Who’s Buying Each Segment)

Shopper Decision Tree - Demographic Skews(Who’s Buying Each Segment)

B E E RB E E RWineWine Hard LiquorHard Liquor

Premium/Above Premium

Same as Total Beer

Same as Total Beer

Younger (21-27)Female

MaleAnglo

Higher Income

FABFAB

Super-LightSuper-Light

AngloHigher Income

PremiumRegular

PremiumRegular

Traditional Beer

DomesticSpecialtyDomesticSpecialty

ImportsImports

MaleAfrican -American

Lower Income

Value

LightLight RegularRegular

High Alcoho

l

High Alcoho

lYounger (21-27)Lower Income

Male

OlderAnglo

OlderMale

Lower Income

MaltMalt

Younger (21-27)

Energy / High

Alcohol

Energy / High

Alcohol

TraditionalValuePremium

LightPremium

Light

Craft/MicroCraft/Micro

Mexican: Younger (21-27), Latino, Higher Income

European, Australian, & Canadian: Male, Higher Income

Female, OlderHigher Income

Older and Younger (21-27)

All Adults 21+$51K Avg. Income

62% Male / 38% Female66% Anglo, 11% Black, 23% Latino

Female, OlderHigher Income

Source: A-B In-Store Decision Tree Study, 2005

Page 10: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Shopper Decision Tree - Purchase Motivations(What Shoppers Desire When They Buy Each Segment)

Shopper Decision Tree - Purchase Motivations(What Shoppers Desire When They Buy Each Segment)

B E E RB E E RWineWine Hard LiquorHard Liquor

•Very Light Taste•Very Low Calorie

•Non-”Beer-y”•Low Carb Premium/

Above Premium

•Light Taste•Fewer Calories

•Brand Loyalty•Full Taste

•Traditional Alcohol Content

•For Particular Occasion

•More Impulse•Unique Style &

Flavor•Low Concern for

Calories

•Style•Not “Mass Produced”•Something

Different•No Calorie or Carb Concern

FABFAB

Super-LightSuper-Light

•Want Recognized Brand Name but Less Brand Loyal•Domestic but Special / Different•Little Calorie Concern

PremiumRegular

PremiumRegular

Traditional Beer

DomesticSpecialtyDomesticSpecialty

ImportsImports

•Brand Loyalty•Higher Alc

Content•Smaller Pack

Size

Value

LightLight RegularRegular

High Alcoho

l

High Alcoho

l•Faster paced consumption experience

•Brand Loyalty•Don’t seek “new

or different”•Household

Replenishment

•Brand Loyalty•Household

Replenishment

MaltMalt

Energy / High

Alcohol

Energy / High

Alcohol

TraditionalValuePremium

LightPremium

Light

Craft/MicroCraft/Micro

•Mexican: Brand Loyalty, Bottles, Lighter Style, Imported

•European, Australian, & Canadian: Style, Imported, Less Brand Loyal

•Faster paced consumption experience

•Aspirational•Intimate Socializing

•Sophistication

•Fashion & Style•“Take Things Up A Notch”

•New flavors, recipes

•Most Popular Alcohol Beverage•Unpretentious

•Casual

Source: A-B In-Store Decision Tree Study, 2005

Page 11: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Shopper Decision Tree - Channel Skews(Where Segment’s Shoppers Skew)

Shopper Decision Tree - Channel Skews(Where Segment’s Shoppers Skew)

B E E RB E E RWineWine Hard LiquorHard Liquor

Grocery and Clubs

Premium/Above Premium

All Channels

C-StoresGrocery

Grocery Clubs

FABFAB

Super-LightSuper-Light

Grocery

PremiumRegular

PremiumRegular

Traditional Beer

DomesticSpecialtyDomesticSpecialty

ImportsImports

C-Stores

Value

LightLight RegularRegular

High Alcoho

l

High Alcoho

lC-Stores

GroceryMass Merch

C-Stores

MaltMalt

TBD

Energy / High

Alcohol

Energy / High

Alcohol

TraditionalValuePremium

LightPremium

Light

Craft/MicroCraft/Micro

Mexican: Grocery

European, Australian, & Canadian: Grocery

Grocery, Clubs, Wine Stores Grocery, Liquor Stores

Source: A-B In-Store Decision Tree Study, 2005

Page 12: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Shopper Decision Tree - Importance of Price/DealShopper Decision Tree - Importance of Price/Deal

B E E RB E E RWineWine Hard LiquorHard Liquor

Premium/Above Premium

FABFAB

Super-LightSuper-Light

PremiumRegular

PremiumRegular

Traditional Beer

DomesticSpecialtyDomesticSpecialty

ImportsImports

Value

LightLight RegularRegular

High Alcoho

l

High Alcoho

l

MaltMalt

Energy / High

Alcohol

Energy / High

Alcohol

TraditionalValuePremium

LightPremium

Light

Craft/MicroCraft/Micro

Price Importance Index: n/a

Price Importance Index: 69

Price Importance Index: 202

Price Importance Index: 163

Price Importance Index: 135

Price Importance

Index: n/a

Price Importance Index: 60

Price Importance Index:

Mexican: 73

Euro/Aus/Can 74

Price Importance Index: 69

Price Importance Index: 87

Price Importance Index: 104

Price Importance Index: 65

The “Price Importance Index” represents the relative importance of price/deal to each segment’s buyers. It was calculated by averaging the importance ratings of “on sale” and

“less expensive than other beers” among each segment’s buyers and indexing these versus the average importance of these attributes among the total sample.

Color Key: Low Average High

Source: A-B In-Store Decision Tree Study, 2005

Page 13: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Decision Tree ApplicationsDecision Tree ApplicationsFeature Ad Strategy ImplicationsAssortment Strategy ImplicationsSpace and Flow Implications

Page 14: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Price SensitivityMALT

LIQUOR

VALUELIGHT

VALUEREGULAR

PREMIUMLIGHT

LoyaltyTo Segment

PREMIUMREGULAR

SUPER LIGHT

IMPORTS

DOMESTICSPECIALTY

FABsMICROS

High Segment LoyaltyHigh Price Sensitivity• Feature often to:

Grow/maintain shopper loyaltyCreate/maintain status as “beer

destination”• Carry wide assortment

High Segment LoyaltyLow Price Sensitivity• Don’t need to feature as often• Carry wider assortment for higher

share segments• Carry narrower assortment for lower

share segments

Low Segment LoyaltyLow Price Sensitivity• Feature occasionally to:

Generate incremental volumePromote trade-upCreate variety perception

Low Segment LoyaltyHigh Price Sensitivity• EDLP• Narrow Assortment

12%+ $ share 6-10% $ share 2-5% $ share <2% $ share

Assortment and Feature Strategy GuideAssortment and Feature Strategy Guide

Page 15: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Shopper Decision Tree ImplicationsFeature Ad Strategies

Shopper Decision Tree ImplicationsFeature Ad Strategies

• To drive traffic and increase or maintain shopper loyalty, feature activity should focus on higher share, more loyal, and more price sensitive branches of the decision tree.*

In most channels, Premium Lights and Value brands should receive the most regular feature ad activity.

Rotate promotions of brands within “branches” of tree, according to their relative fair share, to appeal to particular brand buyers within each branch.

• To drive incremental volume and encourage trade-up, feature lower share, less loyal and less price sensitive branches less frequently.

In most channels, Imports, Micros, Domestic Specialties, and FABs should receive proportionally less feature activity.

Use these segments tactically, considering your account’s beer category strategy and shopper base.

* see appendix for shares by branch

Page 16: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

• Consider a “Super Lights” section... If chain or cluster of stores is frequented by female, older, higher

income shoppers. At Club stores (where this segment skews highest due to female/high

income shopper base).

• Consider a separate Energy/High Alcohol section… At C-Stores (where this segment is likely to skew high due to 21-27

male shoppers), or if chain or cluster of stores is frequented by 21-27 males.

If these new products are introduced and gain momentum at your chain.

Use appropriate signage or section marker to draw attention to it.

• When new items are introduced, items in lowest share branches of tree should be scrutinized for de-listing to create space for new item(s).

CDT should be used only as a starting point in these decisions. Work with RSM group to make fact-based add / retain / delete

decisions.

Shopper Decision Tree ImplicationsAssortment / Distribution Opportunities

Shopper Decision Tree ImplicationsAssortment / Distribution Opportunities

Page 17: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Shopper Decision Tree ImplicationsSpace and Merchandising Flow Strategies

Shopper Decision Tree ImplicationsSpace and Merchandising Flow Strategies

• Don’t rely exclusively on CDT for shelf set / flow decisions. Use your knowledge of the category and your customer’s business

to make the right fact-based recommendations. Enlist the help of your Category Manager, Category Space

Managers, and Shopper Insights teams to help make decisions.

• In general, place highest share branches of the decision tree near the center of the section.

Draw shoppers into section and expose them to maximum “real estate” in the aisle.

• Size of tree “branches” in terms of share should be considered in determining relative number of facings for each branch.

• Consider using permanent signage or fixtures to designate sections according to major branches of the CDT.

Page 18: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

APPENDIXAPPENDIX

DECISION TREES BY CHANNELGrocery

ConvenienceMass Merch

ClubDrug

SHARES BY CHANNELCase Volume Shares

Dollar Shares

SEGMENT SWITCHINGShare of Requirements by Segment

“Second Choice” Segments

BACKGROUND AND METHODOLOGY

Page 19: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Decision Trees by ChannelDecision Trees by ChannelGroceryC-StoresMass MerchClubsDrug Stores

Page 20: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Beer Shopper Decision Tree: GroceryBeer Shopper Decision Tree: Grocery

= dominant path(s)

= secondary path(s)

Source: A-B In-Store Decision Tree Study, 2005

Based on Shoppers,

not Volume!B E E R100%

B E E R100%

FAB3%

FAB3%

Super-Light6%

Super-Light6%

PremiumRegular

14%

PremiumRegular

14%

Traditional Beer94%

DomesticSpecialty 5%

DomesticSpecialty 5%

Imports16%

Imports16%

Light6%

Light6%

Regular9%

Regular9%

High Alcoho

l<1%

High Alcoho

l<1%

Malt1%

Malt1%

Energy / High Alcohol

<1%

Energy / High Alcohol

<1%

TraditionalValue16%

Premium Light32%

Premium Light32%

Craft/Micro 7%

Craft/Micro 7%

Premium/Above Premium

77%

Value17%

Page 21: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Beer Shopper Decision Tree: C-StoresBeer Shopper Decision Tree: C-Stores

= dominant path(s)

= secondary path(s)

Source: A-B In-Store Decision Tree Study, 2005

Based on Shoppers,

not Volume!B E E R100%

B E E R100%

FAB4%

FAB4%

Super-Light2%

Super-Light2%

PremiumRegular

27%

PremiumRegular

27%

Traditional Beer98%

DomesticSpecialty 2%

DomesticSpecialty 2%

Light3%

Light3%

Regular13%

Regular13%

High Alcoho

l2%

High Alcoho

l2%

Malt12%Malt12%

Energy / High Alcohol

<1%

Energy / High Alcohol

<1%

TraditionalValue16%

Premium Light25%

Premium Light25%

Craft/Micro <1%

Craft/Micro <1%

Premium/Above Premium

69%

Value29%

Imports12%

Page 22: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Beer Shopper Decision Tree: Mass MerchBeer Shopper Decision Tree: Mass Merch

= dominant path(s)

= secondary path(s)

Source: A-B In-Store Decision Tree Study, 2005

Based on Shoppers,

not Volume!B E E R100%

B E E R100%

FAB4%

FAB4%

Super-Light6%

Super-Light6%

PremiumRegular

14%

PremiumRegular

14%

Traditional Beer94%

DomesticSpecialty 3%

DomesticSpecialty 3%

Imports12%

Imports12%

Light13%

Light13%

Regular11%

Regular11%

High Alcoho

l<1%

High Alcoho

l<1%

Malt<1%Malt<1%

Energy / High Alcohol

<1%

Energy / High Alcohol

<1%

TraditionalValue24%

Premium Light35%

Premium Light35%

Craft/Micro 2%

Craft/Micro 2%

Premium/Above Premium

70%

Value24%

Page 23: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Beer Shopper Decision Tree: Club StoresBeer Shopper Decision Tree: Club Stores

= dominant path(s)

= secondary path(s)

Source: A-B In-Store Decision Tree Study, 2005

Based on Shoppers,

not Volume!B E E R100%

B E E R100%

FAB1%

FAB1%

Super-Light11%

Super-Light11%

PremiumRegular

17%

PremiumRegular

17%

Traditional Beer89%

DomesticSpecialty 1%

DomesticSpecialty 1%

Imports15%

Imports15%

Light4%

Light4%

Regular<1%

Regular<1%

High Alcoho

l1%

High Alcoho

l1%

Malt<1%Malt<1%

Energy / High Alcohol

<1%

Energy / High Alcohol

<1%

TraditionalValue

4%

Premium Light46%

Premium Light46%

Craft/Micro 4%

Craft/Micro 4%

Premium/Above Premium

84%

Value5%

Note: Skews higher in Clubs than in any other channel (due

to high in come female shopper base)

Page 24: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Beer Shopper Decision Tree: Drug StoresBeer Shopper Decision Tree: Drug Stores

= dominant path(s)

= secondary path(s)

Source: A-B In-Store Decision Tree Study, 2005

Based on Shoppers,

not Volume!B E E R100%

B E E R100%

FAB2%

FAB2%

Super-Light2%

Super-Light2%

PremiumRegular

25%

PremiumRegular

25%

Traditional Beer98%

DomesticSpecialty 2%

DomesticSpecialty 2%

Imports15%

Imports15%

Light8%

Light8%

Regular18%

Regular18%

High Alcoho

l2%

High Alcoho

l2%

Malt<1%Malt<1%

Energy / High Alcohol

<1%

Energy / High Alcohol

<1%

TraditionalValue26%

Premium Light25%

Premium Light25%

Craft/Micro <1%

Craft/Micro <1%

Premium/Above Premium

69%

Value29%

Page 25: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Shares by ChannelShares by ChannelCase and Dollar Shares

GroceryC-StoresDrug Stores

Page 26: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Case Shares: Grocery Case Shares: Grocery

Source: InfoScan 12 mos ending 10/05

• To drive incremental volume and profit, feature lower share branches, but less frequently. Micros, Domestic Specialties, FABs, Value brands, and “Super Lights” should receive proportionally less feature activity than Premiums and Imports. Use these segments tactically, considering your account’s beer category strategy and shopper base.

B E E R100%

B E E R100%

FAB2%

FAB2%

Super-Light4%

Super-Light4%

PremiumRegular

14%

PremiumRegular

14%

Traditional Beer95%

DomesticSpecialty 4%

DomesticSpecialty 4%

Imports13%

Imports13%

Light12%

Light12%

Regular10%

Regular10%

High Alcoho

l3%

High Alcoho

l3%

Malt1%

Malt1%

Energy / High Alcohol

<1%

Energy / High Alcohol

<1%

TraditionalValue22%

Premium Light33%

Premium Light33%

Craft/Micro 3%

Craft/Micro 3%

Premium/Above Premium

69%

Value26%

• To drive traffic and maintain shopper loyalty, feature activity should focus on higher share branches of the decision tree. So Premium Lights, Premium Regulars, and Imports should receive the majority of Grocery feature ad activity. To drive traffic and maintain loyalty, rotate promotions of brands within “branches” according to fair share; but only need to feature one at a time per “branch”.

Page 27: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Dollar Shares: Grocery Dollar Shares: Grocery

Source: InfoScan 12 mos ending 10/05

• To drive incremental volume and profit, feature lower share branches, but less frequently. Micros, Domestic Specialties, FABs, Value brands, and “Super Lights” should receive proportionally less feature activity than Premiums and Imports. Use these segments tactically, considering your account’s beer category strategy and shopper base.

B E E R100%

B E E R100%

FAB4%

FAB4%

Super-Light5%

Super-Light5%

PremiumRegular

13%

PremiumRegular

13%

Traditional Beer94%

DomesticSpecialty 4%

DomesticSpecialty 4%

Imports19%

Imports19%

Light8%

Light8%

Regular7%

Regular7%

High Alcoho

l2%

High Alcoho

l2%

Malt1%

Malt1%

Energy / High Alcohol

1%

Energy / High Alcohol

1%

TraditionalValue15%

Premium Light31%

Premium Light31%

Craft/Micro 5%

Craft/Micro 5%

Premium/Above Premium

76%

Value18%

• To drive traffic and maintain shopper loyalty, feature activity should focus on higher share branches of the decision tree. So Premium Lights, Premium Regulars, and Imports should receive the majority of Grocery feature ad activity. To drive traffic and maintain loyalty, rotate promotions of brands within “branches” according to fair share; but only need to feature one at a time per “branch”.

Page 28: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Case Shares: C-Stores Case Shares: C-Stores

Source: InfoScan 12 mos ending 10/05

B E E R100%

B E E R100%

FAB2%

FAB2%

Super-Light2%

Super-Light2%

PremiumRegular

18%

PremiumRegular

18%

Traditional Beer97%

DomesticSpecialty 2%

DomesticSpecialty 2%

Imports7%

Imports7%

Light13%

Light13%

Regular11%

Regular11%

High Alcoho

l4%

High Alcoho

l4%

Malt4%

Malt4%

Energy / High Alcohol

<1%

Energy / High Alcohol

<1%

TraditionalValue24%

Premium Light36%

Premium Light36%

Craft/Micro 1%

Craft/Micro 1%

Premium/Above Premium

65%

Value32%

• To drive incremental volume and profit, feature lower share branches, but less frequently. Micros, Imports, Domestic Specialties, FABs, and “Super Lights” should receive proportionally less C-Store promotional activity than Premiums. Use these segments tactically, considering your account’s beer category strategy and shopper base.

• To drive traffic and maintain shopper loyalty, promotional activity should focus on higher share branches of the decision tree. So Premium Lights, Premium Regulars, and traditional Value brands should receive the majority of C-Store promotional activity. To drive traffic and maintain loyalty, rotate promotions of brands within “branches” according to fair share; but only need to feature one at a time per “branch”.

Page 29: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Dollar Shares: C-Stores Dollar Shares: C-Stores

Source: InfoScan 12 mos ending 10/05

B E E R100%

B E E R100%

FAB3%

FAB3%

Super-Light3%

Super-Light3%

PremiumRegular

18%

PremiumRegular

18%

Traditional Beer97%

DomesticSpecialty 1%

DomesticSpecialty 1%

Imports10%

Imports10%

Light10%

Light10%

Regular8%

Regular8%

High Alcoho

l3%

High Alcoho

l3%

Malt3%

Malt3%

Energy / High Alcohol

<1%

Energy / High Alcohol

<1%

TraditionalValue18%

Premium Light38%

Premium Light38%

Craft/Micro 1%

Craft/Micro 1%

Premium/Above Premium

73%

Value24%

• To drive incremental volume and profit, feature lower share branches, but less frequently. Micros, Imports, Domestic Specialties, FABs, and “Super Lights” should receive proportionally less C-Store promotional activity than Premiums. Use these segments tactically, considering your account’s beer category strategy and shopper base.

• To drive traffic and maintain shopper loyalty, promotional activity should focus on higher share branches of the decision tree. So Premium Lights, Premium Regulars, and traditional Value brands should receive the majority of C-Store promotional activity. To drive traffic and maintain loyalty, rotate promotions of brands within “branches” according to fair share; but only need to feature one at a time per “branch”.

Page 30: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Case Shares: Drug Case Shares: Drug

Source: InfoScan 12 mos ending 10/05

• To drive incremental volume and profit, feature lower share branches, but less frequently. Imports, “Super Lights”, Domestic Specialties, FABs, Value brands, and Value Regulars should receive proportionally less feature activity than Premium Regulars and Value Lights. Use these segments tactically, considering your account’s beer category strategy and shopper base.

B E E R100%

B E E R100%

FAB1%

FAB1%

Super-Light3%

Super-Light3%

PremiumRegular

16%

PremiumRegular

16%

Traditional Beer97%

DomesticSpecialty 2%

DomesticSpecialty 2%

Imports15%

Imports15%

Light15%

Light15%

Regular12%

Regular12%

High Alcoho

l4%

High Alcoho

l4%

Malt1%

Malt1%

Energy / High Alcohol

<1%

Energy / High Alcohol

<1%

TraditionalValue27%

Premium Light31%

Premium Light31%

Craft/Micro 1%

Craft/Micro 1%

Premium/Above Premium

65%

Value32%

• To drive traffic and maintain shopper loyalty, feature activity should focus on higher share branches of the decision tree. So Premium Lights, Premium Regulars, and Value Lights should receive the majority of feature ad activity in most Drug stores. To drive traffic and maintain loyalty, rotate promotions of brands within “branches” according to fair share; but only need to feature one at a time per “branch”.

Page 31: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Dollar Shares: Drug Dollar Shares: Drug

Source: InfoScan 12 mos ending 10/05

B E E R100%

B E E R100%

FAB2%

FAB2%

Super-Light3%

Super-Light3%

PremiumRegular

16%

PremiumRegular

16%

Traditional Beer97%

DomesticSpecialty 3%

DomesticSpecialty 3%

Imports19%

Imports19%

Light10%

Light10%

Regular9%

Regular9%

High Alcoho

l3%

High Alcoho

l3%

Malt1%

Malt1%

Energy / High Alcohol

<1%

Energy / High Alcohol

<1%

TraditionalValue19%

Premium Light31%

Premium Light31%

Craft/Micro 2%

Craft/Micro 2%

Premium/Above Premium

74%

Value23%

• To drive incremental volume and profit, feature lower share branches, but less frequently. Imports, “Super Lights”, Domestic Specialties, FABs, Value brands, and Value Regulars should receive proportionally less feature activity than Premiums and Value Lights. Use these segments tactically, considering your account’s beer category strategy and shopper base.

• To drive traffic and maintain shopper loyalty, feature activity should focus on higher share branches of the decision tree. So Premium Lights, Premium Regulars, and Value Lights should receive the majority of feature ad activity in most Drug stores. To drive traffic and maintain loyalty, rotate promotions of brands within “branches” according to fair share; but only need to feature one at a time per “branch”.

Page 32: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Loyalty and SwitchingLoyalty and SwitchingShare of Requirements by Segment“Second Choice” Segments

Page 33: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

WineWine Hard LiquorHard Liquor

Share of Requirements and Second ChoicesAmong “Most Often” Buyers of Segment

Share of Requirements and Second ChoicesAmong “Most Often” Buyers of Segment

How to read: Few buyers are 100% loyal to any one segment, but they do have “most often” preferences. For example, those who say their “most often” brand is a Premium Light brand, on average, give 83% of their beer volume to Premium Lights. When they are not buying Premium Lights, they are next most likely to buy either Premium Regulars or Imports.

Source: A-B Shopper Poll, 2005

B E E RB E E R

FAB70%FAB70%

Super-Light68%

Super-Light68%

PremiumRegular

71%

PremiumRegular

71%

Traditional Beer

DomesticSpecialty 69%

DomesticSpecialty 69%

Imports70%

Imports70%

Light80%

Light80%

Regular69%

Regular69%

High Alcoho

l65%

High Alcoho

l65%

Malt51%Malt51%

Energy / High Alcohol

na

Energy / High Alcohol

na

TraditionalValuePremium

Light83%

Premium Light83%

Craft/Micro 68%

Craft/Micro 68%

Premium/Above Premium

Value

Premium Lights

Imports ImportsPremium Lights

Premium Lights

Premium LightsMicros

Premium Regulars

Premium Regulars

Premium RegularsPremium Lights

Premium RegularImports

Page 34: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Wine23%Wine23%

Hard Liquor25%

Hard Liquor25%

Share of Requirements and Second ChoicesAmong Avg. Past Week Buyers of Segment Share of Requirements and Second ChoicesAmong Avg. Past Week Buyers of Segment

How to read: A typical past week buyer of Craft/Micro beer gives 48% of his beer volume to Craft/Micros. He is most likely to also have Premium Lights in his purchase mix.

Source: A-B Shopper Poll, 2005

B E E R52%

B E E R52%

FAB54%FAB54%

Super-Light63%

Super-Light63%

PremiumRegular

63%

PremiumRegular

63%

Traditional Beer

DomesticSpecialty 52%

DomesticSpecialty 52%

Imports53%

Imports53%

Light65%

Light65%

Regular59%

Regular59%

High Alcoho

l59%

High Alcoho

l59%

Malt48%Malt48%

Energy / High Alcohol

na

Energy / High Alcohol

na

TraditionalValuePremium

Light74%

Premium Light74%

Craft/Micro 48%

Craft/Micro 48%

Premium/Above Premium

Value

Premium Lights

Premium LightsPremium LightsPremium Lights

Premium Lights

Premium Lights

Premium Regulars

Premium RegularsPremium Lights

Premium LightsPremium Lights

Premium RegularImports

Page 35: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Decision Tree MethodologyDecision Tree Methodology

Page 36: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Comparison of Common CDT MethodologiesComparison of Common CDT Methodologies

A-B uses in-store intercepts where legal to construct the beer shopper decision tree because they reveal more accurate decision

factors at the point of purchase.

Page 37: Delivering a Shopper-Centric Beer Retail Environment: Shopper Decision Tree Anheuser-Busch Marketing Planning & Research National Retail Sales Jan 2005.

Anheuser-Busch CDT MethodologyAnheuser-Busch CDT Methodology

• Sample Composition ~2,000 in-store interviews with beer shoppers

Grocery, C-Store, Mass Merch, Club, and Drug channels represented

Survey collected attitudinal, behavioral, transactional, and demographic information

• Time Frame and Geography Interviews took place from Fall of 2004 – Summer of 2005

Geographic dispersion throughout major US markets (FL, AZ, OH, IL, TX, IN, MI, CA)

Source: A-B In-Store Decision Tree Study, 2005