Case study of The Global Branding of Stella Artois

Global Branding of Stella Artois Case Analysis

International Management – Assignment 1

Candidate: Emad AbouElgheit

ISM - International School of Management

Doctor of Philosophy (Ph.D.)

Presented to: Professor Peter Horn

16 June 2015

Word Count: 447

Abstract

The paper analyses the case study conducted by Professors Paul W. Beamish and Anthony Goerzen in the year 2000 about Interbrew. The Belgium brewer initiated in the year 1998 a brand globalization plan for its Stella Artois, one of the oldest premium beer brands.1 After adjusting the globalization plan to focus only on key markets defined as cities instead of countries and centralizing global branding programs and marketing budget, the paper aims to analyze potential effectiveness of such change, and draws the main lines for the next three years marketing strategies and budget aspiring to continue the internationalization of Stella Artois brand including core global programs and localization support. The paper sets expectations from Stella Artois brand internationalization program to the bottom line and defines measures to the success of the globalization program. The paper finally highlights the role of the internet in building the global brand. As Interbrew identified Stella Artois as its flagship brand to penetrate and develop more global markets allocating extensive investments to the global program, analysis and implications for the ne xt step in building the brand become vital for the company’s future prosperity and sustainment of its competitive edge.

Keywords: Interbrew, Stella Artois, Global Branding, Brand Management, Brand Internationalization, Brand Globalization, New Market Development, Internet Brand Building,

Beer, Brewing, Belgium Beer, Case Analysis

Global Branding of Stella Artois Case Analysis

International Management – Assignment 1

Introduction

The Belgium brewer was classified in the year 2000 as one of the top ten global brewers according to the percentage of international sales. The company sold around 87 percent of its total production to a limited number of markets outside Belgium in 1999, yet its global market share from the top ten beer markets reached only 3.6 percent in the year 1998 which indicates a strong room for future growth. Interbrew saw a minimal but expected to grow demand for premium and sophisticated beers and international brands among global consumers.2 An argument that is supported by a research conducted in the United Kingdom in 1999 that anticipated a growing demand and willingness to pay a premium for specialty beer.3 Beer consumers were no different than the increasing number of global consumers who claimed more and more standardized products and services coming from closed needs and wants worldwide as a part of the globalization trend. Interbrew wasn’t the only brewer trying to leverage a key global brad. Carlsberg and Heineken brands for example were already global at that time.4 The idea was also approached by the British Scottish & Newcastle5 and Guinness6 in 2000. Accordingly, Internrew was also driven by the desire to match its top competitor’s global strategy, given the fact that the global developed markets are already saturated and suffers a slow growth rate while emerging markets in Eastern Europe, Latin America, and Asia shows a more rapid growth and increasing demand.7 From an internal perspective, building a global brand should help organizations to optimize operations through coordination and integration of raw materials sourcing and production in global strategic locations, and globalizing marketing campaigns with