- 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
- 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
Case Overview
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
Alternatives
1. Focus on Belgium market and improving presence
2. Improve the current developing global market
- Penetrate south America and
Asia
- Central & Eastern Europe
3. Improve the current existing marketing
- Mexico, UK, USA/Canada,
- Netherlands, Belgium, France
Solution
- Focus on developing & growth markets
- Belgium presence
- Reposition Stella as
Belgium heritage
beer
- Talk about history,
generation to
generation
- Pouring the
perfect beer
Reasons
- 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
3 Year Plan
- Market opportunities
- New market in Asia,
America, and Central
Europe
- Current 4 global players own only 22% of global market
- Opportunities to expand
market share
- Reposition in Belgium
- Increase market share
- Secure position as
dominant and maintain
image
- 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
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
Promotional Plan
- Maintain positioning
- One Global Advertisements = Global Image
- Regional Advertisements to penetrate into specific markets
Problem Statement
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
Why Stella should go Global
- 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
Toronto vs. other urban cities
Should Stella take the local market approach or country wide approach to marketing
Role of internet in developing global brand
Advantages
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
- 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
Multinational Brands
Analysis
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