The Global Branding of Stella Artois Essay

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The Global Branding of Stella Artois*

Synopsis

Interbrew had developed into the world's fourth largest brewer by acquiring and managing a large portfolio of national and regional beer brands in markets around the world. More recently, senior management had decided to develop one of their premium beers, Stella Artois, as a global brand. This case examines the early stages of Interbrew's global branding strategy and tactics, enabling students to consider these concepts in the context of a fragmented but consolidating industry.

Discussion Questions

1. Does it make sense for Interbrew to develop a global brand?

Table 1 – Pros and Cons of Global Brands

The case for a global brand The case against a global brand
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Interbrew's strategy has focused on developing urban centers as markets rather than the more traditional view of countries as markets – what are the pros and cons of this approach?

Table 3—Cities versus Countries as Markets
Advantages of focusing on cities Risks of focusing on cities
Promotional spending is more efficient in densely populated areas Large numbers of people are not considered despite the fact that people outside the major urban centers may make up the majority of the national population
• large national sales would be slower in coming

Fashion trendsetters tend to live in urban centers Economies of scale in a particular country may be more difficult to achieve
Easier to focus on the target market
Distribution is simpler

3b. What would Interbrew have to do to succeed with Stella in the major urban market closest to where you live? Will these requirements vary very much between major cities?

The objective of this question is to engage students at a more personal,

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