• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Global Branding and Communication Case: The Global Branding of Stella Artois

Extracts from this document...


Name: Anuj Lahoti Student Id: 1348839 MKIB 903 Global Branding and Communication Case: The Global Branding of Stella Artois Submitted: Professor Giana M. Eckhardt Dated: 19th October 19, 2009 Introduction Interbrew traces its roots to Brewery called Den Hoorn which was located in a small town outside Brussels since 1336. It was purchased by Sebastiaan Artois in 1717 and brewery changed its name to Artois. After its merger with another Belgian brewery called Piedboeuf in 1987, the company was named Interbrew. It entered the rapid growth stage after 1990 by acquiring or merging with different breweries all around the world and now established it as one of the largest beer companies in the world. Beer Market World beer market was growing at an annual rate of one or two percent with total consumption reaching around 1.3 billion hls. The market was divided in two growth and mature markets. Mature market like North America and Western Europe was virtually stagnant and some market like New Zealand started to decline in 1990s. Whereas in Eastern Europe, Asia, Central and South America average consumption was around 30 lpc and was increasing at a good rate which provided opportunities to expand their horizons. The world beer industry was relatively fragmented by four major players accounting for 22% of world market. ...read more.


It was important because all the main competitor of Interbrew had a global brand (e.g. Heineken, corona, Fosters, Budweiser). Market segment for global brand was small but had potential to grow because Many consumers became increasingly attracted to the sophistication of premium and supper premium beers. Market trends supported the strategy of introducing a Global Brand as many consumers were seeking more variety and others were seeking lower prices.Second trend was the internationalization of the beer business as consumers travel around the world consuming global media. Global Brand will create synergies in advertising and sponsoring and reduce cost. Stella Artois as Global brand for Interbrew The company had two choices Labatt Blue and Stella Artois, company choose Stella Artois to represent it globally was a good decision taken by the company. The decision made sense as Stella was the oldest and most broadly available brand in the company's portfolio. It achieved great success in UK, different parts of Europe, Australia and New Zealand where it was priced at a premium. Its sales increased from 3.4 million hls in 1992 to 6.7 million hls in 1999. In 1999 total Stella Artois volume accounted for 10% of sales for Interbrew portfolio which included large number of local brand, especially those in Mexico with very high volume. ...read more.


It helped them to solidify the base for sustained long term growth. This plan had some more advantages as the cities chosen had right concentration of affluent customers this provided scale for marketing and sales as well as getting attention from wholesaler and retailers. These places will become a highly visible success stories which will enhance the brand image of the product. This approach demanded that marketing efforts and funding to support had to be centrally stewarded and local tailored to reflect unique local environment. Conclusion Interbrew made the right decision in launching a global brand. With its unrivalled strong portfolio of premium brands they already had a quite strong position in the growing premium beer segment. The company noticed that internationalization and global media offered the chance to position a brand global and receive higher margins even in the declining Mature Markets. The approach of a differentiated marketing strategy has to be seen more critical. The focused target group can be easily identified but the marketing efforts include financial risk. Marketing expenditures were doubled with that campaign. In the beginning it certainly interests the costumers but there is also the risk of over-whelming them and loose them in the end. In a situation of an economical crisis fewer costumers will favor high priced products and prefer a more bottom-grounded product or even choose the total opposite, an economy-priced beer. ?? ?? ?? ?? Name: Anuj Lahoti Id: 1348839 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Business Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Business Studies essays

  1. Marketing. In my project, I am going to be looking at how Nestls Smarties ...

    People are more likely to buy one of these products instead of a less well-known product. The packaging for Smarties is instantly recognisable for its unique tube design, its bright colours and its bubble writing. This takes up the more than half of the packaging the rest of the packaging gives us information.

  2. Difference in working culture of Malaysia & Singapore

    shoulder to make him turn around because that too will extinguish the flame on his shoulder. (This is not restricted to the Seventh Lunar Month). Get the lucky numbers While people are making the offerings, they often ask for lucky numbers believing that the dead have great powers, such as

  1. Free essay

    Marketing Case Study. From many various factors for segmentation, we can choose two bases ...

    Production Concept means the company knows its own product better than anyone or any company. The company can produce lot of product and export own product to another company. Some company maybe don't have a good product same like this company.

  2. Advance Professional Development

    Training and Development is a key method to improve skills of employees, to improve the employees basic skills initially the pre job training is provided and to enhance the capabilities of employees on job training is provided also a series of skill development activities is carried out.

  1. Business plan for Laundry Toaster laundry dryer.

    Warm towels programs. 1. This feature enables you to heat up your towels or robe - perfect for getting up in the morning or stepping out of the shower 1. LED display. 2. Dry Clothes Gently 1. The drying cabinet is particularly kind to sensitive fabrics like silk lingerie

  2. Should easyJet further penetrate the market for air travel between the UK and Greece? ...

    from independent sources A degree of risk associated with the company?s unwillingness to provide confidential data Ensure data availability in advance Introduction EasyJet plc. Was " first in February 1994 serving domestic routes in the UK. It has been a product of the deregulation in the airline industry and Sir S.

  1. Ford Company Analysis - corporate structure and financial analysis

    These communications are of course confidential or anonymous. They will be reviewed and addressed by Ford's Compliance Office with the help of Human Resources, the General Auditor's Office and Executive Operations. The status of all the outstanding communications addressed will on a quarterly basis be reported to the directors, the Audit Committee or the Nominating and Governance Committee, as appropriate.

  2. Business Plan - EDGE is a video production company that aims to create self-promotional ...

    will continue to expand our studies over the course of the year. In addition, we both intend to take the Higher Level IB Business and Management course next year, and intend to major in business at a strong academic university.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work