Background Information

Questions on the assignment pertain to the scenario, related content identified above,

i$.$e$.,$ topic PPTs$/$lecture videos.

Scenario $$ adapted from case discussion on Anheuser$-$Busch InBev $($ABI$)$ and

MillerCoors $($MC$).$

Combined ABI and MC$,$ LLC controlled about $63$ percent of the U$.$S$.$ beer market in $2019,$

down from $78$ percent in $2009($Source: Beer Marketer$$s Insights, $2020).$ Most of the

beer distributed by these two companies is sold through independent beer distributors

who, in turn, sell the beer to retailers, restaurants and bars. ABI made several strategic

acquisitions in the past which involved small competitors including craft beer

manufacturers. These acquisitions, while expanding the company$$s reach, also added to

its operating costs prompting ABI to embark on a cost$-$cutting program.

One key cost focus for ABI is distributor margins. ABI$$s distributors historically received

about $$1\mathrm{.}00$ for each case of beer distributed to retail channel members compared to

$$0\mathrm{.}85$ paid by MC$,$ LLC to its distributors. By eliminating that $15-$cent difference in

margin, ABI estimates it could save about $$200$ million per year. But ABI$$s distributors,

many of whom had decades$-$old relationships with the brewer, are unlikely to be happy

with the new payment structure as it would directly impact their own profitability.

Task$-$I: You are the marketing manager for ABI.

You are responsible for managing all communication with the channel members

including beer distributors, retailers, etc. As part of your role, you are to develop an

email $($minimum $1-$page$)$ which is to be sent to the distributors informing them of ABI$$s

decision to reduce their margin per case $($see scenario above$).$ The email is to be

targeted at senior$-$level directors at various distributors. These directors are responsible

for managing the relationship with ABI. $(50$ points$)$

Answer Format: Must mimic an actual email and not a physical paper$-$based letter.

MUST HAVE ELEMENTS FOR THE EMAIL:

$1.$ Subject line: A compelling$/$creative header $($the goal is to cut through the email

fatigue many recipients already face from getting a plethora of emails from

marketers$)$

$2.$ Email Body: Mix of text which is informative and persuasive $($the objective is to

help the targeted recipient understand the what, when, how, and why behind

ABI$$s decision$).$

$3.$ Email Body: Instills a sense of relationship assurance, conveys empathy, and a

mechanism for the recipient to connect with ABI, if they so desire.

Answer Format: Given that this will be used on your website, please use a format which

is easy to read$/$navigate yet does not come across as dull. Please keep in mind the

context when developing your questions and answers.