Case Study: The Global Branding of Stella Artois

Executive summary

1. Ask SEED Question

Initial Question

What are we trying to achieve?

We want to develop Stella Artois as a strong global brand serving as Interbrew’s global flagship brand.

“Why”

· Global brand will be a base trend in brew industry and the beer industry will be internationalized in the next decades.

Why?

· To achieve synergies in global advertising and economies of scale to serve converging global beer market.

Why?

· To leverage low operating costs as a key competitive advantage.

Why?

· To expand globally and become a main player in the global beer market.

Why?

· To achieve sustainable growth by serving the global market.

Why?

· To be aware as a strong global brand.

The SEED Question

How to develop Stella Artois as a true global brand? (New)

How can Interbrew increase the awareness of Stella Artois as a true global brand, managing it consistently across countries? (old)

Why is the SEED Question Important?

· The question is strategic because it is a part of Interbrew’s corporate strategy to achieve sustainable growth in the future.

· The question is explicit because it states exactly what kind of brand development we are pursuing.

· The question is executable because Interbrew’s marketing forces can execute an implementation strategy to answer this question.

· The question is direct because it is a direction to achieve the goal.

· While answering this question, we can truly solve the challenge at hand. By increasing brand awareness, we can have people around the globe know about the brand. By managing brand consistency, we can successfully develop the brand as a strong brand identically perceived across countries and regions in the world.

· While answering this question, we will become a champion. If we answer this question, we will successfully develop Stella Artois as a global brand that helps Interbrew achieve the corporate strategy and leverage current and future competitive advantages.

2. Mapping Ecosystem

In the map, we consider subsidiaries, franchises and joint-ventures have the same relationships with media, press, advertising agencies, distributors and Belgian café in local countries.

Key drivers:

- Strategic relationship with franchises and joint-ventures.

- Local laws and regulations.

- Strategic outsourcing partnership with suppliers.

3. Competitive Advantages

3.1. Current competitive advantage is operation efficiency. This competitive advantage reflects:

- Economies of scale

- Production efficiency

- Capacity utilization

- Strategic outsourcing and partnership with best suppliers

Interbrew can have lower operating costs than its competitors

3.2. Future source of competitive advantage is global brand

Global brand will help Interbrew differentiate itself from its competitor. By positioning Stelle Artois as a super-premium beer, the company can charge premium price.

The current and future competitive advantages will enable Interbrew make higher profits than its competitors.

4. Objectives

- Increase brand recognition among beer drinkers in the markets where Stella Artois was launched by 10% in the next year.

- Increase brand perception as ‘sophisticated brand’ among beer drinkers in the markets where Stella Artois was launched by 10% in the next year.

- Increase brand perception as ‘premium brand’ among beer drinkers in the markets where Stella Artois was launched by 10% in the next year.

- Increase brand perception as ‘authentic brand’ among beer drinkers in the markets where Stella Artois was launched by 10% in the next year.

5. Relevant Strategic Options

6. Brand Strategy

We recommend that the 2^nd strategy is the best for the companies because this strategy can help the company answer the most important question and achieve objectives while leveraging key drivers and competitive advantages.

Strategic Options

	1. Sophistication	2. Self-image	3. Individuality
Product	- Very high quality of the beer - Super premium beer	- Very high quality of the beer - Super premium beer	- Very high quality of the beer - Super premium beer
Support	- Noble tradition of European brewing - Feeling of self-esteem and sophistication	- Noble tradition of European brewing - Feeling of self-image, sophistication and identity	- Noble tradition of European brewing - Feeling of individuality, sophistication and selectivity
Positioning	Modern, sophisticated yet accessible drinking experience	Modern, sophisticated yet accessible drinking experience that reflects self-image and identity	Modern, sophisticated yet accessible drinking experience that reflects individuality and worth
Target	Males between 21 to 45 years of age, live in urban cities and are premium lager beer drinkers	Males and females between 21 to 45 years of age, live in urban cities and are premium lager beer drinkers	Males and females between 21 to 45 years of age, live in urban cities and are premium lager beer drinkers
Distribution	- Execution by local managers - Local distribution channel - Points of sales: department stores, retailers, sellers, bars, restaurants, hotels - Places: only potential markets (cities that pass 4 criterion screen)	- Execution by local managers - Local distribution channel - Points of sales: department stores, retailers, sellers, bars, restaurants, hotels - Places: only potential markets (cities that pass 4 criterion screen)	- Execution by local managers - Local distribution channel - Points of sales: department stores, retailers, sellers, bars, restaurants, hotels - Places: only potential markets (cities that pass 4 criterion screen)
Communication	- Execution by local managers - Prestigious outdoor advertising - Sponsorship to high-ends celebrity events - Selective TV commercials - Print ads on magazines and newspapers targeted to the targeted audience	- Execution by local managers - Prestigious outdoor advertising - Sponsorship to high-ends celebrity events - Selective TV commercials - Print ads on magazines and newspapers targeted to the targeted audience - Online advertising - POS, sales promotions - Packaging - PR	- Execution by local managers - Prestigious outdoor advertising - Sponsorship to high-ends celebrity events - Sponsorship to cinema events - Selective TV commercials - Print ads on magazines and newspapers targeted to the targeted audience - Online advertising - Advertising in cinema - POS, sales promotions - Packaging - PR
Legal	- Register the brand name in local countries or regions where the brand is sold - Get legal approvals for advertising campaigns, PR and other marketing activities	- Register the brand name in local countries or regions where the brand is sold Get legal approvals for advertising campaigns, PR and other marketing activities	- Register the brand name in local countries or regions where the brand is sold Get legal approvals for advertising campaigns, PR and other marketing activities
Map structure	- Centralized control over marketing programs by headquarters. - Have a single global ad campaign	- Both centralized and decentralized control over marketing programs. - The corporate marketing group at headquarters is in charge of identifying priority markets, developing core positioning and providing guidelines for local execution. The group decides what elements of marketing programs should be standardized and what should be customized to fit local culture and regulations. - Local marketing or sales managers are in charge of developing and executing advertising campaigns and measuring results. - The group and local managers work closely to balance global and local control	- Both centralized and decentralized control over marketing programs. - The corporate marketing group at headquarters is in charge of identifying priority markets, developing core positioning and providing guidelines for local execution. The group decides what elements of marketing programs should be standardized and what should be customized to fit local culture and regulations. - Local marketing or sales managers are in charge of developing and executing advertising campaigns and measuring results. - The group and local managers work closely to balance global and local control