Case Study: Global Branding of Stella Artois

The Global Branding of Stella Artois

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

Yes, it makes sense for Interbrew to develop a global brand since it should expand the companies name and increase their net sales. Although with going global the company needs to ensure that they are still focusing on targeting the appropriate market. They need to ensure that they are focusing and developing within the key markets that are going to increase their market shares in the future. The example from the case was to focus on Belgium, then Netherlands, France, North America, and Central Europe.

2) Does Stella Artois appear to be the right choice as the company's flagship brand?

It is a good choice for the company to choose Stella Artois for a few important reasons. First, the brand traces back to the 1366's. With launching more of a modern version in the 1920's it suddenly gained large market who purchased the product. Although Stella Artois began to suffer, many of the other competitors with in the beer industry also followed.

It seemed that first off Stella Artois might had not been the best choice. Though it was popular in the United Kingdom and the United States. It only accounted for 10 percent of Interbrew's total volume. The brand was getting out numbered by many of their competitors. But as time progressed Stella Artois seemed to be the right choice with its sales volume significantly increasing throughout the world. With having high sales in the United States it helped to make the product more recognizable and launch at a faster pace.

3) Interbrew's 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?