THE GLOBAL BRANDING OF STELLA ARTOIS - Case Study Example

The Global Branding of Stella Artois Does it make sense for Interbrew to develop a global brand? From the case, it is clear that it would be right for Interbrew to consider developing a global brand. From the case, it is evident that the Belgium brewery will benefit a great deal by developing a global brand since such a move will not only enable the Interbrew increase its sales volume, but also minimize its many years of dependence on Canada and Belgian as its main markets. The case also shows the level of fragmentation of the global beer industry.

According to the case, the beer industry has only four major players, accounting for only 22% of the global beer trade (Beamish and Goerzen 107). This number is very low compared to other industries, such as tobacco, liquor, and soft drink industries. Therefore, it would be appropriate for Interbrew to take advantage of this opportunity by developing a global brand and expanding into markets that are unexplored by acquiring brewers in both growing and mature markets. Does Stella Artois appear to be the right choice as the company’s flagship brand?

Stella Artois is certainly the best flagship brand for the company. Firstly, it is clear from the case that the brand is doing exceptionally well in the global market. For instance, the global volume of Stella Artois rose by 97 percent between 1992 and 1999, which was remarkable considering the level of competition (Beamish and Goerzen 108). Stella Artois also serves as the best global flagship brand since it has established good reputation in the European market and beyond. According to the case, Stella Artois is seen as the “European premium lager,” which clearly demonstrates how well the beer has been received in the European market.

Therefore, as much as Stella Artois has suffered in one way or the other, it still serves as the right flagship brand for the company.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’s move to focus its strategies on cities as markets instead of countries has a number of advantages. Firstly, the strategy is beneficial to the company in the sense that it allowed Interbrew the opportunity to offer the right training to its staff.

Secondly, the strategy was advantageous since it ensured that Interbrew received wide media coverage. Thirdly, the strategy ensured that Interbrew gained more return on marketing and promotion investment. Additionally, the strategy appeared advantageous to the company since it enabled the company to gain more control over marketing and distribution (Beamish and Goerzen 114). Other advantages associated with the strategy include enhancing brand awareness in the cities. However, the strategy was also associated with a number of disadvantages, including limiting the brand exposure both nationally and globally, as well as limiting the product to a small segment of the population.

What would Interbrew have to do to succeed with Stella in the major urban market closest to where you live? Will these requirements vary much between major cities? If Stella Artois were to be introduced by Interbrew in the metropolitan where I currently live, I would certainly advise Interbrew to understand the Asian culture to succeed and introduce a brand that matches their cultural requirements. This is because the metropolitan area, where I live have a large percentage of the Asian customers for the beer.

Because Asians are more family-centered, it would also be appropriate that these aspects are incorporated in the promotion for the Asian population to welcome the beer. Additionally, Interbrew will also have to focus its marketing on social gatherings that tend to bring Asians together. Additionally, Interbrew will also have to consider hiring people of the Asian community as its sales executives in the region so that the community can relate to the beer and buy it. Work CitedBeamish, Paul W.

and Anthony Goerzen. The Global Branding Of Stella Artois. Cases in International Marketing, (2006): 106-125.