When you have built the reputation and credibility of your brand over a 147-year period, how do you ensure its reputation does not crumble in 36 hours?
I asked myself this question when Budweiser, a brand established in 1876, and one that prides itself and best known as the ‘King of Beers’ was told that Qataris have taken a decision that alcohol will not be sold in their stadiums, during the FIFA World Cup 2022 tournament.
Budweiser and FIFA have been technically “married” for almost 36 years, and have enjoyed the thrills of their union for all those years, until Qatar interfered. Well so to speak.
Several publications reported that the entire debacle has apparently cost Budweiser 47.4 million US Dollars, in losses.
We are taking into consideration the money, time, preparations, negotiations, planning and all forms of resources, invested on brand campaigns towards the world cup.
So, what do you do when you are in AB InBev’s shoes? How do you rescue such a brand with a formidable legacy and reclaim your glory?
Firstly, before we can answer this question, let’s briefly look into the relationship that is between Budweiser and FIFA, so as to understand why it was important for Budweiser to take the kind of brand decisions it took.
A Historical Relationship
The relationship between the pair can be traced back to 1986, in Mexico. For the Qatar World Cup Soccer tournament, Budweiser paid $75 Million to FIFA, as sponsorship and according to Front Office Sports, that cash injection would rise to $112 Million in 2026 (Christian Smith, The Drinks Business, 2022).
Being in a relationship for such a long time builds trust, loyalty and credibility. Over the years, this “tale of soulmates” as Maik Dünnbier calls it, has been marred with scandal after scandal, corruption, human rights woes and executives lining up their pockets, while smiling all the way to the bank.
It truly is a lucrative relationship, one must say. Year after year and tournament after tournament, it appears that FIFA has been doing the “dirty” work for the alcohol industry, Budweiser in this case, to change laws that protect the health and well-being of consumers, to target children and youth with marketing and to ensure that football gets associated with using alcohol, (Maik Dünnbier, Movendi International, 2015). The relationship is deeper than we can think, and Budweiser as a brand carries far more value as a FIFA financier. There are many ethical and moral issues I can raise about this relationship, but in this article, I am more interested on how AB InBev rescued its brand from global humiliation.
Pivotal Thoughts
In simple terms, pivot means “the central point”. In business though, especially in marketing circles were this term is making the rounds, it means to completely change the way one does things. 36 hours before kick-off, AB InBev, owner of more than 400 alcohol brands had to pivot to rescue Budweiser’s credibility and reputation.
When it appeared that Qatar’s moral and religious stance of ‘no alcohol was to be sold inside stadiums’, was not going to change, the company had to think on its feet and find a way to use the world cup to its benefit.
They acknowledged the magnanimous situation they were facing with a Tweet, “well, this is awkward”, which was later deleted in no time. It is not clear for how long the Tweet was up for, but its impact was enough to cause a stir in the media world and cast doubt among fans.
Pivoting can be tricky, because the first messages communicated during a brand crisis can spiral things downhill, or the opposite can actually happen. Some experts think that the Tweet, though negative, immediately humanized the brand, which could have brought sympathy from the brand consumers. After deletinåg the Tweet, they went on to execute with skill and speed, a strategy that would ensure that their marketing goals are still achieved.
Coming face-to-face with the politics
There are times when the politics of the day will get in the way of a well-planned marketing strategy. Mr. van der Noll, who has led all Budweiser’s brand activities in the past four tournaments, told The Wall Street Journal that for all the World Cups they go into all kinds of contingencies, prepare for all kinds of scenarios.
But a few days before kick-starting the event, to be told to remove their Budweiser from the stadiums, honestly, that was not really something they were prepared for.
Contingencies were there, but contingencies that had to do with the politics that are based on moral and religious grounds, required forward thinking and Budweiser was not ready to deal with certain eventualities.
As you pivot, you must have another strategy in the drawer that you could quickly implement, should the original strategy fail or seem to be failing, especially when you are doing business in foreign and rather hostile environments. Such a strategic move must be informed by dynamics known and familiar to the locals.
Pivoting may also require that you study the entire terrain, and enlist the help of experts that could advise the company on the culture, where the brand is doing business.
Qatar is a Muslim country, which suggests that brand experts that understand the politics, culture, ethos, religion and lifestyle of the local people must have been enlisted to advise on procedures and scenarios, that the brand could have missed. If they were enlisted, then they missed an important aspect which is the thinking of Qataris.
Such thinking can only be found among locals by local experts. These don’t have to be your high value consultants, but people on the ground who mingle in mosques, markets and community gatherings. Your locals are also your best consultants in this case.
Watching several television interviews, it became clear that Muslims are people who respect rules, uphold family values and international relations among each other.
Qatar is a Middle Eastern country, which meant that the world cup would predominantly be attended by Muslims, who live in the Middle Eastern territories. In a world where diversity and multilateralism is encouraged, Muslims are more committed to their own identity. Strategically placing people on the ground who can pick up certain tinges in the culture, which includes daily dialogues, can provide invaluable intel to a brand such as Budweiser.
Bring Home the Bud campaign
What do you do with so much beer? Do you throw it into the sea or spill it in the desert? Tim Calkins, a marketing professor at Northwestern University’s Kellogg School of Management, once said that “beer is integral to sporting events.”
AB InBev’s pivot tactics were legendary in this case, and The Wall Street Journal also alluded to how they took advantage of the media attention that was already on the issue. They decided to award the winning country with all that beer, which gave birth to the #BringHometheBud” campaign strategy.
The strategy was announced through a Tweet captioned “Winning Country gets the Buds.” In Brazil, there were parties in all cities, including Messi’s hometown and Budweiser was the free drink of choice in Argentina, when it won the tournament.
Before the tournament, in August, Budweiser had already started with campaigns to promote it in about 70 countries. This has been hailed as the brand’s farthest reach in the 147 years of its existence.
Similar to other countries, in Nigeria the brand held its Budweiser BudX Music Concerts, where it unveiled its FIFA World Cup consumer promotion. It hosted a draw and two lucky fans won tickets to attend an all-expenses paid trip to Qatar, for the tournament.
The brand partnered with Lionel Messi, Neymar Jr., and Raheem Sterling, as brand ambassadors to get the global hype going. Budweiser’s Global Vice President of Marketing, Todd Allen, commented on their company website why the relationship with these soccer icons, was important for the brand.
“As sponsor of the FIFA World Cup for more than 30 years, we wanted to capture the infectious global energy of football fans everywhere, to encourage people to find the conviction to go for greatness, no matter what the journey to get there might look like. Determination to overcome challenges in the name of achieving greatness, is an inspiration to us and to fans around the world. We hope our new campaign reminds fans that no matter what stands in your way, the world is yours to take.”
Allan’s statement was soon to be tested, as Budweiser faced its journey towards greatness.
To keep the number one spot required making serious, quick and costly moves and this is when #BringHometheBud was birthed.
We could say that this strategy saved the King. When you are building a brand, you can take lessons from 147-year-old brands that have made costly mistakes now and then.
I am curious to sit with Mr van der Noll, one day and find out his state of mind when this was happening and how he felt when the first whistle was blown in the very first FIFA tournament, held in an Arab nation?
Sibusisomfeka@yahoo.com
