Bud.TV: Logging Troubles

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Case Details:

Case Code : MKTG170
Case Length : 16 Pages
Period : 2005-07
Pub Date : 2007
Teaching Note :Not Available
Organization : Anheuser-Busch Companies Inc., Bud.TV
Industry : Dotcom, Internet Portal
Countries : US

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction Contd...

In the first month, however, Bud.TV did not attract the expected number of visitors. The sluggish response was attributed to the age verification system, which carried out a real-time age check and allowed registration only after confirmation of the age. Anheuser-Busch opined that it was too early to write off the venture.

According to Tony Ponturo (Ponturo), Vice President, Global Media and Sports Marketing, Anheuser-Busch, "We're not judging ourselves now, We're saying: 'Let's judge ourselves in February 2008 when the site has taken root."9 Analysts, however, were of the opinion that Bud.TV had scaled up expectations and that the consumers were disappointed with what they finally saw.

They were also of the view that Bud.TV needed to scrap the age verification process, which was proving to be a major deterrent to genuine visitors. According to Pete Blackshaw, Chief Marketing Officer, Nielsen BuzzMetrics10, "It's (Bud.TV) generated very little discussion, even relative to other things they do like Bud ads. It is not penetrating at the level you'd expect." 11

Background Note

The origins of Anheuser-Busch can be traced back to the Bavarian Brewery, established in 1852 by George Schneider, a Bavarian immigrant, at St. Louis. In 1860, Eberhard Anheuser (Eberhard) acquired the brewery and named it E. Anheuser & Company. Adolphus Busch (Adolphus), Eberhard's son-in-law, who was well versed in the art of brewing, joined the company in 1864. By 1865, the brewery was producing around 4,000 barrels of beer per year. In 1872, the company started using the Eagle Trademark (Refer to Exhibit I for the Eagle Trademark)...

Excerpts >>

9] Gavin O'Malley, "Bud.TV Sputters after Launch: Experts Assess Why," http://pubilcations.mediapost.com, March 16, 2007.

10] Neilsen BuzzMetrics is a global standard to measure consumer generated media. The clients of the company include Canon, Ford, General Motors, Microsoft, Nokia, Sony, and P&G.

11] Jeremy Mullman, "Traffic Plummets at Struggling Bud.TV," http://adage.com, April 12, 2007.


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