The Global Branding of Stella Artois
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
Interbrew wants to be perceived by investment community as a global player in the consolidating beer industry
stock market analysts expect serious players to have large intangible assets such as international marketing expertise and an internationally recognized brand
Some industries have globalized (e.g., computers, soft drinks) but the brewing industry is still quite fragmented
Interbrew would not capture value by leading the globalization effort, but would benefit by responding to this trend in a timely and effective way
May capture share of "global" consumers
consumer choices may be converging across countries
there is a sizeable and growing segment of people that are affluent and well-traveled to whom a global brand is very appealing Traditional Interbrew management style has been decentralized with local managers empowered to develop local/regional brands
a global brand requires centralized control, a change in both management style and organizational structures that have been very successful in the past
not only marketing but also production would have to be integrated
Spill-over effects between countries
* popularity of brands in one country (e.g the U.S.) may spill over to neighboring
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
Interbrew wants to be perceived by investment community as a global player in the consolidating beer industry
stock market analysts expect serious players to have large intangible assets such as international marketing expertise and an internationally recognized brand
Some industries have globalized (e.g., computers, soft drinks) but the brewing industry is still quite fragmented
Interbrew would not capture value by leading the globalization effort, but would benefit by responding to this trend in a timely and effective way
May capture share of "global" consumers
consumer choices may be converging across countries
there is a sizeable and growing segment of people that are affluent and well-traveled to whom a global brand is very appealing Traditional Interbrew management style has been decentralized with local managers empowered to develop local/regional brands
a global brand requires centralized control, a change in both management style and organizational structures that have been very successful in the past
not only marketing but also production would have to be integrated
Spill-over effects between countries
* popularity of brands in one country (e.g the U.S.) may spill over to neighboring