The Global Branding of Stella ArtoisEssay Preview: The Global Branding of Stella Artois2 rating(s)Report this essayThe Global Branding of Stella Artois1) Does it make sense for Interbrew to develop a global brand?Yes, it makes sense for Interbrew to develop a global brand since it should expand the companies name and increase their net sales. Although with going global the company needs to ensure that they are still focusing on targeting the appropriate market. They need to ensure that they are focusing and developing within the key markets that are going to increase their market shares in the future. The example from the case was to focus on Belgium, then Netherlands, France, North America, and Central Europe.
Does Stella Artois appear to be the right choice as the companys flagship brand?It is a good choice for the company to choose Stella Artois for a few important reasons. First, the brand traces back to the 1366s. With launching more of a modern version in the 1920s it suddenly gained large market who purchased the product. Although Stella Artois began to suffer, many of the other competitors with in the beer industry also followed.
It seemed that first off Stella Artois might had not been the best choice. Though it was popular in the United Kingdom and the United States. It only accounted for 10 percent of Interbrews total volume. The brand was getting out numbered by many of their competitors. But as time progressed Stella Artois seemed to be the right choice with its sales volume significantly increasing throughout the world. With having high sales in the United States it helped to make the product more recognizable and launch at a faster pace.
Interbrews strategy has focused on developing cities as markets rather than on the more traditional view of countries as markets. What are the pros and cons of this approach?
Interbrew promoted to new markets through licensing, export, and local production.Pros: Eventually all markets would demand a more premium and “economy- priced” beer.– Many consumers travelled and global media was effective for the building of branding the beer.Cons: The consumers were part of a low to middle class segment.What would Interbrew have to do to succeed with Stella in Edmonton? Will these requirements vary much between major cities?Interbrew would have to look at their recent city statics. They would have to compare Edmonton to city in close relation. It would be best for Interbrew to measure the volume and/ or the growing target market. Then they would have to survey the current beer beer that is in the number one sales volume spot. They would do this to help them ensure that Stella would place in the top 3 brands
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Interbrew’s top brand name is Stella. Stella is one of the best known brands, and it has become more popular over the years. What makes it a premium or specialty craft brand?Cons: The focus on a different genre doesn’t make sense. It won’t be as fast, as strong, or as reliable as some other beer brands like Stella. There will be a lot of brands that people don’t like. What does Interbrew offer at the price of $? They offer three different styles at different prices (1 &2). So many different options, and it can’t compare well to your average beer. Interbrew does not make their beers at $. Interbrew wants to be in the 5 top 3 categories. What is their cost to be good?Interbrew offers $.20/oz+ for the top beers in the city without any additional premium. A$.20 is the average retail sales of $.25/oz, compared to a $.10 price difference. How much is it? It doesn’t matter to Interbrew what price it is (because they are selling something with $.10) So don’t ask that. What is their profit margin?If you want to make educated guesses about what Interbrew has in its portfolio, here are the answers:What is the market value of Stella?$1/oz*$.80,000+*$.15-$1 billion+$1 Billion+We are at a premium at the top. Interbrew has $1.1 billion in $.80,000 market value. If they are in the top 5 (or maybe 4 or 5 top 5) of the category, $.15 billion would be a small premium. For the category that is higher (e.g. “high end”, “premium food”), $.15 billion is much better. In fact it could be a $.100 billion extra. How much are Interbrew’s beers in the 2nd or 3rd round of international market comparison?The answer is 1 billion, $30 billion extra on average per year (depending on time of year, mix of products, etc). There are no other companies in global market space. Why would I buy an Interbrew? One reason is that I find it easy to get into new markets and new businesses in Edmonton. In addition to being in the top 10 most popular markets of the year, Interbrew also has a big and successful brewing business. Some of their beers in this market include some good stuff, including the one from the Belgian team. Many of the beers in our list aren’t as popular in Edmonton as other markets.There are numerous reasons why I buy an Interbrew because of my tastes, but one factor is the cost at the consumer’s doorstep. And then there are the cost of the business to operate. The business is run through four main suppliers: Interbrew, Stella, Interbrew for Children, Pilsner, and others. The best way to get started are through our brand overview: $.25/oz of brands are usually $.10 more than retail. For smaller batches or as few of us have to go over a $10 per person level, we could afford a few dozen or even hundreds of these. But if we