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 Stella's global branding strategy.
Stella Artois appears to be the right choice as the company's 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.
Interbrew's development strategies on specific cities reflect several advantages. It allows Interbrew to closely train bars staff and retailers and educate them...
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