The Global Branding Of Stella Artois
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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. As the world beer industry which was divided among four leading brewing companies accounted for only 22% of the global volume, this reflected a great opportunities easing the global expansion of Stella Artois. In mature markets, Interbrew maintained its existing market shares and improved efficiencies in production, distribution and marketing to exploit a growing potential towards upscale, premiums, and even specialty products. In growth markets the company consolidated and expanded new markets through acquisition in central Europe, Asia and South America to cope with the declining of domestic markets (Belgium) primarily due to its image of old-fashioned beer. Many consumers became increasingly attracted to the sophistication of premium and specialty beers as a result of Stellas global branding strategy.
Stella Artois appears to be the right choice as the companys flagship brand primarily because the global volume evolution of the brand seemed quite promising. Stella Artois raised its volume of 97% from 1992 to 1999. The consumers quest for an increasingly sophisticated premium and specialty beer at an affordable cost allowed Interbrew to widely distribute Stella Artois across markets in four different continents. Furthermore, Stella Artois gained its reputation as a “European premium lager” beer which enjoyed a high “corporate valuation and price earnings (P/E) multiple” (Beamish, 284). On the other hand, the foreign sounding of “Stella Artois” may dissuade potential consumers because of hard pronunciation, or customers perceptions of the home country of the product.
Interbrews development strategies on specific cities reflect several advantages. It allows Interbrew to closely train bars staff and retailers and educate them about the special brewing tradition, quality and culture of distributed premium beers such as Stella in order to create stronger advocates then acquire consumers brand loyalty. Better served marketing strategies and local promotions are facilitated through branded glassware and bar supplies to strengthen the influence of brand perceptions on consumers. The need of customers is better framed then responded to with personalized attentions.
A city-by-city based marketing strategies entail some limitations. The recruitment and dispatch of Interbrew employees