Harvard Case Solution & Analysis

The Global branding of Stella Artois Case Study Solution

INTRODUCTION

Inter brew is a Belgium based beer producing company that started its operations in Belgium.Over the period of time, the beer industry grew about 80% which made the company to increase its operations within Belgium and after that to US.The company pursuing the global strategy entered in to different markets of Europe, USA,Asia and Africa. Currently Inter brew is gathering the maximum sales from the US, due to large consumption pattern and size of the market. Inter brew operates into international market through two brands namely Labatt Blue and Stela Artois, in which Stela Artois carries the traditional brand image of the beer deep rooted in the Belgium History while Labatt Blue carries a more vigorous brand image and sales in North America.

Since the market for beer consumption is increasing and that the company has to capitalize the opportunity, Inter brew is faced with the deadlock to carry the two brands on global scale in order to develop global strategy while on other hand establish a uniform standardized globalization in the market.However, in order to carry the brand forward, the management is seeking to analyze the position of each brand in global markets. Labett Blue has a global presence with strong penetration in US market,while on other hand, Stela Artois which is an ancient beer brand has strong brand recall, brand value, brand image and value proposition in different regions making it a more competent brand to be chosen for the global strategy.

Problem Statement

  • Since with the passing time, more and more players have entered the Beer markets, the profits are decreasing and shrinking due to intense competition and similar business strategies.
  • The change in customer behavior and consumption pattern is also a problem, since Stella Artois is considered as the additional brand, the new markets are reluctant to try the Stella, hence leading to low market share.
  • In addition, the change in social dynamics of the market for more high quality beer at low price is positing a challenge to the company’s market and positioning strategy.
  • Lastly, since the company has developed different market functions for different markets, it faces the challenge in developing a uniform global brand strategy and positioning.

Analysis

PEST Analysis

Political Factors

The political factors have great impact on the company’s position.Since the company operates in different regions, and countries, the tax rate policies and the currency rates directly effects the company’s profitability.Also, the change in foreign currencies rates Tariffs implementation and custom duties directly effects the company’s profitability.

Economic Factors

The company started its operation in 1996, soon after its successful 4 years of operations, the Europe an market and US faced the financial crisis in 2000.Though, this did not affect the consumption rate of the company yet it transformed the consumer buying and consumption pattern. The financial crisis raised the demand for high low priced beer.The shift in trend impacts the company’s strategy to develop a premium brand in global markets.In addition, the emerging economies are posting a great market opportunity where the demand is high with strong market potential. However, due to the economic factors like income and spending behaviors, the company needs to focus on economies of scale to capture these markets effectively....................

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