With this in mind there is great potential if Interbrew were to establish a global brand that could reach outside its borders to a larger consumer base. On the flip side, global marketing leaves out potential markets that would support the product only if it was altered or marketed differently.
It is evident from the case analysis that global competition will only increase as the top three beer providers rely on their brands to further force a fragmented market Beamish, Goerzen, Labatt was introduced to France, Belgium and Italy but sales were very minimal which suggests that Labatt was not being accepted by markets outside its home market in North America.
This can achieve a better resource allocation and economies of scale in marketing and distribution and accelerates the globalization program. Having a globally recognized beer that is produced in this growing field would be very profitable.
This strategy is used by many companies such as Marlboro where they market a variety of different cigarettes to different markets. Using an international marketing strategy means the company has to adapt its marketing strategy to fit each individual market which increases prices dramatically.
Carlsberg and Heineken brands for example were already global at that time. Balancing these threats is the potentially high growth markets of Asia and throughout the Asia-Pacific region, combined with the potential of moving into wine and low calorie and health-conscious beers as well Beamish, Goerzen, Accordingly, the following matrix Table 1 scores each of the selected new markets based on the following criteria with equal weights; Premium beer market growth, Stella Artois current market share, degree of competition on the top premium brands, local brand loyalty, existing of an established distribution network, and the homogeneity with other key potential markets.
Focusing advertisings and beer sales here would produce far more financial benefits. On the flip side, global marketing leaves out potential markets that would support the product only if it was altered or marketed differently.
From to Stella increased its sales volume from 3. In each city introduction, a teaser campaign before the official launch, email lists can be easily gathered from that specific city to build awareness among beer lovers in their inbox, in addition to send periodic electronic newsletters and updates to build an open communication channel and loyalty.
By shifting attention to a single brand across the world it would cut down on advertising and manufacturing costs and increase profits.
This not only saved money but gave Stella Artois a recognizable face that one would be familiar with in all markets. Marketing Week22 22The pros also include a better control and management of local distributers and wholesalers networks, as well as providing an intangible local-friendly touch that ties the brand image to the very own local norms, images, places, and habits.
As the industry continues to consolidate and the competition becomes fiercer not just for customers, but for channel partners as well, Interbrew must choose a pre-emptive strategy to retain its global market share strategy.
The Belgium market shows a decline in sales justified by a perception among Belgium consumer for Stella Artois to be an old-fashioned brand. Since Stella Artois is a premium beer it would be beneficial to realize that the majority of premium beer drinkers are located primarily in the northern part of the city.
This strategy is used by many companies such as Marlboro where they market a variety of different cigarettes to different markets. Since Interbrew is an enterprise which is not starting its internationalization from scratch in this case and already has a strong existence in a number of developed and emerging markets with different market development and penetration strategies ranges from wholly owned subsidiaries, joint ventures, alliances and licensing,8 the company needed to leverage its internationalization learning experience into building one of the top global premium beer brands choosing between two potential candidates; Labatt Blue and Stella Artois.
The potential high growth markets of Central and Eastern Europe along with South America have the greatest potential for growth according to the case Beamish, Goerzen, yet are difficult to successfully create and run operations in according to investor analysis of the beer industry during this time period Marinov, Marinova, Table 2 below illustrates Stella Artois product lifecycle in different target countries.
In other markets around the world Stella was also experiencing an increase in sales volume. Stella Artois should be at the growth stage in many of the key global premium beer markets with sustainable performance in its old markets.
By the end of the s, the internet became a new global marketing tool. For instance, menthol cigarettes while popular to some are frowned upon by others.
Interbrew really has no choice form a global growth and continued competitive positioning standpoint but create a globalized brand. Another key to success would be to perhaps open a pub like Stella did in Manhattan in Buckhead which is a high end drinking area.
Supposing the two brands are two separate organizations at different stages in their internationalization process, Labatt would be at the experimental envelopment stage according to the stage theory which depends on the percentage of exports sales to total sales although with more export volume and less number of export countrieswhile Stella Artois is at the committed involvement stage.
For example; it is difficult to put the whole Spanish and French population into one segment, but it is a lot easier and more effective to put Barcelona and Niece premium beer consumer into one segment. Although the international beer markets are fragmented there have been many analysts that have suggested that this is due to change so that beer companies could achieve economies of scale like tobacco, soft drink, and spirits companies have done.
For Interbrew, this translates into a more recognized, globally powerful brand at the corporate level by choosing a global beer brand to promote. As for the relationship between Stella Artois degree of internationalization and return on assets ratio, the company seams starting to pass the suggested point in curve by research where performance starts to rise again with more internationalization See Exhibit 1.
Finally, a cities approach can help establishing a learning experience from the entry to a single city to avoid mistakes and enhance planning for the whole country penetration without affecting the overall brand image across the country and risking an expensive market exit or kill.
Beamish and Anthony Goerzen in the year about Interbrew. The troubling performance of the company in Belgium and the difficulty in making their Canadian beers successful also has the potential to derail their long-term growth as well Negrusa, Cosma, Dumbrava, The strategy of sequentially targeting specific cities instead of countries has many pros such as consolidating marketing and advertising expenses targeting local and direct marketing channels of small geographical areas.
Recommendations Interbrew should look at Stella Artois globalization plan in terms of three main systematic stages; the first stage which is before this analysis where the brand is mature and sustaining profitability in a small number of global premium key markets.
The Global Branding Of Stella Artois 1. It makes sense for Interbrew, a simple Belgium brewery to develop a global brand in order to increase volumes, to maximize sales revenues and to lessen its dependence on Belgium and Canada, its two primary markets. The global Branding of Stella artois Case analysis Introduction Interbrew was the third largest brewing company which owned a lot of well-known named beers.
Interbrew`s history took a place in 14th century, when Den Hoorn Brewery was founded in Leuven. The global Branding of Stella artois Case analysis Introduction Interbrew was the third largest brewing company which owned a lot of well-known named beers.
Interbrew`s history took a place in 14th century, when Den Hoorn Brewery was founded in Leuven. Keywords: Interbrew, Stella Artois, Global Branding, Brand Management, Brand Internationalization, Brand Globalization, New Market Development, Internet Brand Building, Beer, Brewing, Belgium Beer, Case Analysis GLOBAL BRANDING OF STELLA ARTOIS CASE ANALYSIS 3 Global Branding of Stella Artois Case Analysis International Management.
Stella Artois appears to be the right choice as the company's flagship brand primarily because the global volume evolution of the brand seemed quite promising.
Stella Artois raised its. Excerpt from Case Study: Global Branding of Stella Artois Interbrew's centuries of experience in brewing, beer distribution and sales are all exemplified throughout their global dominance of worldwide beer consumption as presented in the case The Global Branding of Stella Artois (Beamish, Goerzen, ).Global branding stella artois brewing company