Marketing Case Summary- The Global Branding of Stella Artois

Marketing Case Summary- The Global Branding of Stella Artois
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Introduction, Statement and Assessment
Problem/opportunity
In the case study, Interbrew is the 4th biggest brewer in the world and used different global branding strategies to grow, and now the management wants the Stella Artois brand to expand globally, and this is premium beer (Beamish & Goerzen, 2012). A product-market strategy is necessary to grow by targeting a specific market and growing profitably (Kerin & Peterson, 2017). The beer industry is fragmented and is increasingly consolidated, and the problem is the global branding strategy for premium beer.
Problem/opportunity
Interbrew brews beer and sells to the local Belgian market and the international market, with the mature market in North America and Western Europe, while the growth market is in Russia, Eastern Europe, Latin America, China, and Asia. Interbrew grew through acquisitions in the 1990s where volumes increased. There has been growth in the premium and specialty beers such as Stella Artois, which provides an opportunity to increase sales (Beamish & Goerzen, 2012).
Competitive environment There were four major players in the beer industry accounting for 22% of the total volume, and this shows the industry is segmented, and Interbrew wants to expand beyond the traditional markets of Canada and Belgium (Beamish & Goerzen, 2012). Heineken and Carlsberg were the two major players, and Stella Artois had a large proportion of sales from the international market (Beamish & Goerzen, 2012).
Strategic outcomes
The company's brand strategy focuses on the brands, markets, and operations where there is an increase in shareholder value. Interbrew's strategic growth focused on acquisitions, and there is more focus on expanding the portfolio premium and specialty beers.
Strategic and Situation Analysis
SWOT
Strengths
Interbrew is one of the major brewers by volume and has a diversified product portfolio to meet the needs of diverse consumers. Stella Artois has shown potentially strong growth outside the traditional markets.
The company's net profit improved in 1998 and was 7.7 billion Belgian Francs (BEF), a 43.7% rise from the FY 1997 (Beamish & Goerzen, 2012). Improvement in financial performance enables Interbrew to increase shareholders' returns, investments, and supports growth and expansion.
Weaknesses
In some of the mature markets, there was excess capacity, and the company's breweries were shutting down as a result (Beamish & Goerzen, 2012).
While single suppliers are preferred in strategic sourcing, it affects the supply chain if one or more of ...