Stella

Assignment 4: Stella Artois

1.

Yes I believe that it makes sense for Interbrew to develop a global brand. I believe that this would be best for the company because they face a mature and dominant position in the declining Belgian domestic market. Interbrew wants to be perceived by investment community as a global player in the beer industry. Interbrew would not gain value by leading the globalization effort but would benefit by responding to this trend in an effective way and doing it at the right time. They would also have the opportunity to capture a share of global consumers. They would have more time to focus on its core resources as a global brand. The company may capture greater share of value created by specializing on a component of their values. It would also make sense to go global because of the recent decline of some of their products declining in the Belgian market and to try going global in order to attract more customers.

2.

I believe that it would make sense to have Stella Artois as the flagship brand for Interbrew. I think this would be the best choice for the company based on the success that Stella has had in the United States. The demand for premium brands is expanding markets such as the United States and Stella has a weak and declining market position in its home market Belgium. No other Interbrew brand has proven that they would succeed in the global market like Stella has. There is also a good amount of market growth opportunities for premium brands such as Stella in developing countries. Another advantage of having Stella as the company’s flagship brand is that Stella’s high quality image may enhance the overall perception of Interbrew as a company.

3.

Promotional spending is more efficient in densely populated areas and large numbers of people are not considered despite the fact that people outside the major urban areas may make up the majority of the population as whole. Interbrew promoted to new markets through licensing,...