Question

What is the pricing strategy of AB InBev. company?

Answer 1

Anheuser-Busch InBev (AB InBev) has managed to differentiate itself from its competition by executing business and operating strategies that reinforce each other. AB InBev’s goal-focused and growth-oriented culture established AB InBev as the cost efficient player in the market with the strongest existing distribution network. AB InBev’s focus on cost reductions has allowed AB InBev to invest the most money into marketing to maintain a strong connection to its customers through increased brand awareness. AB InBev has taken a rapid path to global expansion, and the company’s “Dream, People, Culture” framework in conjunction with aggressive cost-cutting techniques has enabled the quick, successful integration of new acquisitions. AB InBev’s focus on continuous improvement has allowed the company leveraged its global size and scale to keep prices increasingly competitive in its local markets.

Capturing value – AB InBev’s presence in multiple foreign markets increases customer’s willingness-to-pay by leveraging the brand equity of various global brands to its advantage. An example is the sale of the Stella Artois beverage, a beer with European origins, in Brazil. Even though the beer is currently produced in Brazil, it sell for a premium price in the Brazilian market. AB InBev capitalizes on the Brazilians’ perception of Stella Artois as a premium product with European origins.

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