Bonding with Consumers Insights Huang Wei Marketing VP, APAC 1 - PowerPoint PPT Presentation

Bonding with Consumers – Insights Huang Wei Marketing VP, APAC 1

Personal Introduction 2

China beer market is very attractive YOUNG ADULTS in China: 5 th Nation 1.3 Billion eople ~627 Million Alcohol drinkers worldwide (population) 225 Million Young Adults (18y-29y) Beer has 90% PENETRATION 9 out of 10 people who consumed alcohol in the past 4 weeks, have consumed beer. among alcohol drinkers 70% SHARE OF THROAT is 7 out of 10 liters of alcoholic beverages are beer. beer (out of all alcohol) CAGR 28.9% 2012-2014 PREMIUM AND ABOVE industry Total market volume growth slowing 11% down, but value still increasing. -0.5% growing DOUBLE DIGITS Overall Premium Super Premium 2 GDPs account for most of the Relaxation and Bonding for volume; Serving up a Great Night demand in the beer category out for value Sources: United Nations; ABI Equity Tracker; ABI Category Tracker; ABI Data 3

Our consumers are changing YOUNG ADULTS BEYOND BEER DIGITAL PREMIUMIZATION 4 4

Our consumers are changing – the demand for premiumness BEYOND BEER PREMIUMIZATION YOUNG ADULTS DIGITAL International Brands are Perceived 1 Rapid Rise of Chinese Middle Class 2 as Premium 40% 49% Of beer drinkers Of beer drinkers say they are associate willing to try more ‘ international premium beer brand ’ with products premium 3 4 Lifestyle and Experiences Personalized/ Limited Edition Matter to Consumers Means Exclusivity Budweiser’s Vibe Run Event combines the fashion, healthy concept and EDM, offering consumers a whole new experience Budweiser World Cup package 5 Sources: McKinsey Quarterly; Mintel Report; Starcom MediaVest Group Report 5

Our consumers are changing – young adults are the future BEYOND BEER PREMIUMIZATION YOUNG ADULTS DIGITAL 6 6

Our consumers are changing – young adults are the future BEYOND BEER PREMIUMIZATION YOUNG ADULTS DIGITAL Much More Independent-Minded Passions and Experiences are 1 2 and Selective Social Currency Eager for new experience s. Early adopters of Raised with the support of devoted parents, the one new products, services and niche brands. child generation are much more globally-minded, informed and critically selective in their views and The ‘Like’ generation on social media enjoy consumption behavior. sharing and broadcasting , using it as social They are accustomed to choices, options and currency to share and impress. diversification. Social media allows them to amplify. Online/Offline Blurring, Helping 3 ‘Maximize Moments’ and Multi -Task Nike launched their “Lunar Runs.” Runners meet offline and stay connected online through Nike Wechat community and social networks. 7 Sources: ABI Global LDA Report 7

Our consumers are changing – passion for variety BEYOND BEER PREMIUMIZATION YOUNG ADULTS DIGITAL the Sweet Palate Eager to Explore more 1 2 Consumers want to explore new The sweet drinks are easier for female experiences, including new flavors, colors consumers, young consumers and non- and packaging drinkers to accept. One type of consumers is driving this trend, Sweet palate is an emerging trend and it represents 35% of beer volume among young consumers: • bottles and sweet mixers increase in # of alcoholic categories • Fresh fruit juices and sweetened consumed in past 12 months green teas Sources: ABI Category Tracker; Mintel Report; Seema Data; Starcom MediaVest Group Report 8 8

Our consumers are changing – the era of mobile/ content/ E-commerce YOUNG ADULTS BEYOND BEER DIGITAL PREMIUMIZATION 9 9

Our consumers are changing – the era of mobile/ content/ E-commerce YOUNG ADULTS BEYOND BEER DIGITAL PREMIUMIZATION Mobile already the China, the World’s No.1 1 2 Content is King 3 1 st Screen E-Commerce Market 60% of consumers do something related to the program they are viewing via a second screen In 2014 Alibaba’s Singles Day Sales hits a record of $9.3B 161 170 minutes minutes Laptop Smartphone In 2015 WeChat partnered with China’s 59 89 CCTV to give away $80M during the Spring minutes Festival Gala Program. Tencent reports minutes TV viewers shook their phones 11B Tablet times throughout the broadcast, to win the cash. 10 Sources: Millard Brown; emarketer; CNNIC; inmobi; GfK; emarketer; paymentweek.com; Reuters; Starcom MediaVest Group Report 10

Our consumers are changing – the era of mobile/ content/ E-commerce BEYOND BEER YOUNG ADULTS DIGITAL PREMIUMIZATION Budweiser strategic EDM content platform Harbin Strategic Cross-promotion with Ele.Me partnership with Tencent China’s biggest & fastest -growing O2O Ele.Me (Online to Offline) food delivery company Sources: ABI 11

Our portfolio addresses our consumers’ needs YOUNG ADULTS BEYOND BEER DIGITAL PREMIUMIZATION 12 12

Our portfolio addresses our consumers’ needs BEYOND BEER PREMIUMIZATION YOUNG ADULTS DIGITAL  International brands = premium image  More than a beer. It’s a brand of lifestyle  Not just sell beer but bring the experience  Aluminum bottle (limited edition) shows Serving a Great Night Out exclusivity Changing the Mood Food & Savoring 13 13

Our portfolio addresses our consumers’ needs BEYOND BEER PREMIUMIZATION YOUNG ADULTS DIGITAL Relaxation & Bonding  Use young adults’ language to talk about our brand  Digital is the key channel to find them 14 14

Our portfolio addresses our consumers’ needs BEYOND BEER PREMIUMIZATION YOUNG ADULTS DIGITAL  More choices  More flavors  More fun  More experiences Serving a Great Night Out Relaxation & Bonding 15 15

Our portfolio addresses our consumers’ needs YOUNG ADULTS BEYOND BEER DIGITAL PREMIUMIZATION  Mobile can’t be missed out  Design right content on right touch point  Ride on the trend of E-commerce for home consumption Bring the Home the Best 16 16

Our portfolio addresses our consumers’ needs YOUNG ADULTS BEYOND BEER DIGITAL PREMIUMIZATION Serving a Great Relaxation & Bonding Night Out Serving a Great Night Out Changing the Mood Bring the Home the Relaxation & Bonding Best Food & Savoring 17 17