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Stella Artois


Nina Abramova

on 6 November 2012

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Transcript of Stella Artois

Case Overview Problem Statement Interbrew
- 4th largest beer producer
- Stella, Labatts, Budweiser, Corona, Sol, Dos Equis and many other small beer companies
- Stella planning to launch as global brand, targeting 20 main cities: Moscow, Hong Kong and others
- Stella positioned as premium beer, sophisticated and traditional European style Create a global development plan for Stella Artois for the next 3 years and determine marketing plan. Why Interbrew should develop a global brand: - Brand recognition: market awareness and value
- History: uniqueness & history
- Improve operation
- Efficiency in production & distribution
- Economies of scale and cost advantage
- Brand value = price premium: advantage over market trends and threats
- Increase the ability to grow & expand in the future
- Increase in market share
- Opportunity to get into niche / premium segment
- Distribution already available
- Able to create global brand Global Presence of Interbrew - 1366 root traces
- Heritage and uniqueness
- Brand awareness and recognition especially in Europe
- Due to the history and tradition leads to becoming global brands
- Go to beverage social and business environment Why Stella should go Global Should Stella take the local market approach or country wide approach to marketing - More customized
- Cost effective
- Targeting is specialized towards target market
- More responsive towards target consumers
- Flexible
- Consolidated marketing
- Target local and direct marketing channels
- More accurate segmentation
- Better control off distributors & networks
- Help establish learning experience Advantages - Per unit cost more extensive
- Competitors may expand their market before us
- Increase distribution cost
- Increase marketing cost
- Difficulties in achieving countries economies of scale
- Delay globalization Disadvantages Toronto
- Recognizing the cultural and demographics
- Income and wealth distribution
- Presence and positioning in all retailers and vendors
- Premium positioning
- corporate and professional
- Presence in high class clubs, bars, financial districts Toronto vs. other urban cities Role of internet in developing global brand - 1-to-1 marketing
- Relationship based marketing
- Use internet to connect with a larger consumer group and portray value
- Lower cost media
- Target the right consumers
- Reduce time to transmit message
- Social media: invoke consumers
- Build fan groups & increase loyalty Other cities
- Tell the story, explain the history, culture – due to lack of presence
- Local events & festivals
- Sampling or sponsoring events Pros and Cons of mergers & acquisitions strategies PROS
- Allowed to become # 4 player in the world
- Increase product line (more variety) CONS
- Debt ratio increase there for interest rate increased
- May hurt quality
- Hurt consumer perception
- Cannibalization
- Risk of overstretching capital and having high risk due to market threats Analysis Strengths
- Dominant player
- International presence
- Brand recognition loyalty
- Strong financial performance compared to competitors
- Deep history
- Appeal across demographics and local communities
- Variety of brands
- Presence in all three market strategies: niche, cost advantage, differentiation Analysis Multinational Brands - Market opportunities
- New market in Asia,
America, and Central
- Current 4 global players own only 22% of global market
- Opportunities to expand
market share 1. Focus on Belgium market and improving presence
2. Improve the current developing global market
- Penetrate south America and
- Central & Eastern Europe
3. Improve the current existing marketing
- Mexico, UK, USA/Canada,
- Netherlands, Belgium, France Alternatives - Focus on developing & growth markets
- Belgium presence
- Reposition Stella as
Belgium heritage
- Talk about history,
generation to
- Pouring the
perfect beer Solution - Growth in Asian cities and central and eastern Europe
- Portray position off premium brand as there is a higher demand for quality premium beer
- Enter new markets through the Belgian Beer Café concept Reasons - Reposition in Belgium
- Increase market share
- Secure position as
dominant and maintain
- Reaching the sales target in selected markets
- Double the amount the cities Stella in entering
- Increase Stella sales Volume to 30% of Interbrew's sales
- Maintain efficiency to integrate supply chain and quality control 3 Year Plan Global success measurements
- Volumes sold
- Geographical reach
- Global Brand awareness
- Efficiencies in breweries to
enhance margins
- Market share capitalization
- Financial capital ratio
- Decrease supplier and buyer
bargaining power
- Competitive positioning 3 Year Plan - Maintain positioning
- One Global Advertisements = Global Image
- Regional Advertisements to penetrate into specific markets Promotional Plan
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