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Stella Artois Case

Case #1 Global Marketing Mgmt

Brittany Hill

on 13 September 2011

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Transcript of Stella Artois Case

Success in Indianapolis Partner with high-end restsurants

Exclusive sports sponsorships

Geographically target

High-end catering City v. Country Pros Cons Funding multiple locations

Integration of multiple campaigns

Limit widespread opportunities

Reliance on local partners

Group buy in

Relationship between head office and local managers

Limits of organic growth Intensive screening for locations

Global brand development director

Central stewardship but local tailor

Risk mitigation

Success stories to leverage

Initial effort for Stella Artois was city by city so lessons can be learned

Concentrated efforts Global Ad Campaign What ensures success? Widespread Appeal

Consistent messaging

Portrays premium segment

Not culture specific

Aspirational concept

Does not undermine "gold standard positioning"

Continue leveraging local acquisitions Competitor Activity Sponsorship Idea Budweiser - World Cup

Heineken - James Bond movies

Beck's - independent artists sponsorship

Foster's - Formula 1, Association of Surfing Professionals Promotional Idea Wimbeldon (tennis)

2010: Men's single's final 11.1 million U.K. viewers

Aligns with "elite" image

Widespread global appeal

Celebrity endorsement Stella's Weakness Interbrew's Corporate Strategy Yu Hun Chen Heather Owens
Brittany Hill Sino Paul

The Global Branding of Stella Artois History of Interbrew Current Global Situation Improve margins through premium brands

Capacity utilization

Strategic sourcing

Increase market share in mature and growth markets Develop a Global Brand Penetrate more into Americas, Eastern Europe and Asia

Lessen the dependence on Belgium and Canada

Demand for premium and economy priced beers

Internationalization of beer business Labatt Blue vs. Stella Artois Multiple brands
(Labatt Blue, Labatt Blue Light, Labatt Ice)

Strongest in North American market

Present in 5 international markets

#3 import in United States

Growing in United States Single brand simplicity
(Stella Artois)

Strongest in UK market

Present in 16+ markets

Growing in all markets
(except home market Belgium) Home market decline in market share

Acknowledge but equivalent to Heineken

Utilize global strategy to maintain Aspirations for Belgium Assessing Opportunities Long-term value for Stella Artois Large/growing market with potential of 5%+ for premium marketing Attain attractive margins Committed local partner After 3 year start up period Provide the right quality of distribution and co-invest Leverage other Markets Success in chosen market assists success in other local and regional markets What internet should play in developing Stella Artois as a global brand? Characteristics of Internet as a Marketing Tool Reduce cost

Describe product in a rational and direct way

Connect with customer directly Internet vs. Traditional Media Internet will maximize its effect only after Stella Artois establish their brand image to customers successfully.

Internet can help reach target demographic of beer drinking, 25-35 year olds in premium segment.
Without borders

No compelling force Market strategy not focused on Belgium
Utilize global branding of young, hip and expensive to refute old and stogy brand image
Premium will always have a smaller portion of the market
Look for organic growth through reverse flow of global marketing campaign
Goal: 1.0 Belgian Beer Cafes and Belgian Beer Fests

Build hype around exclusivity of locations

Open globally into opportunity markets

Beer Fests in smaller markets

Ability to control success of establishments and ensure trained personnel Effect on Home Market Yes we can win without growth in Belgium

Out of top 10 brewers by international sales, 4 have less than 50% in foreign sales

Heineken is the top sales volume: 80% in foreign sales

Home market is negligible when building a global brand 1999 2004
Volume: 6.7M HLS 13.2M HLS
Profit Levels: 10%+ Heineken Same price, lower
profit margin
# of Markets: 5 of top 10 Pesence in all 10

Cities:With a global strategy, number of cities does not matter

Measuring Success: Presence in markets, use Heineken as aspirational, increased volume of sales. Conduct market research to increase brand awareness and perception of high quality and high price. Global Expectations Conclusions Launch Stella as a global brand

Execute global marketing promotions

Utilize internet/QR code

Understand Belgium market importance

Drive growth in international markets Questions?? Stella!!!
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