stella artois presentation
TRANSCRIPT
Prajay PatelSunil MageshSagar Parikh
HOW MANY OF YOU
DO NOT Drink Beer?
Opening Discussion
Which One?
Why ?
Ordre du jour/ Agenda• Company Background• Key Issues
– SWOT• Marketing Dimensions• Strategic analysis
– SWOT– Porter’s 5 Forces– Strategic Filters
• Competitive Landscape• Recommendations & Future
OutlookTotal Slides: 50
1366 Den Hoorn brewery begins brewing
1987 Creation of InterBrew• Merger of Artois and Piedboeuf breweries in Belgium
(Increasing international pressure in the brewery sector (BCG, 1989)
1920 Stella Artois introduced in Belgium as a “Festive Beer”
1991 First foreign acquisition• Hungary: Borsodi brewery
(Decreasing consumption in the Belgian market )
1995 Entered North America• Canada: Labatt Brewing Co.
1999 Opened up the Russian market • Joint-venture with Sun InterBrew
2000 Initial Public Offering
Established InBev in the U.K.• Acquisition of Whitbread and Bass
InterBrew’s Background
2001 Entered Germany• Beck & Co. and Diebels acquisitions
2002 Built a beachhead in China• Acquired stakes in KK and Zhujiang breweries
2003 Strengthening positions in China (Lion Group breweries) and Germany (Spaten)
2004 Combining InterBrew with AmBev to establish InBev
2006 InBev acquires Fujian Sedrin Brewery in China, becoming one of the largest brewers in China.
2008 Combination with Anheuser Busch , creating AB-Inbev
InterBrew’s Background
Inter Brew’s corporate strategy
Bran
dsM
arkets
Operations
Global presence of Inter Brew (Before)
Global presence of Inter Brew (After)
Questions clés/Key Issues
• Global Game
• Declining domestic and mature markets
• Need for a “Flagship” global brand
• Positioning Stella Artois as a sophisticated lager beer
S WO T
• Growing Market trend of premium beer
• Capital Resources• Heritage of beers.
• Declining domestic market
• Absence of globally recognized brand
• Increase brand recognition
• Few global player • To enter into premium
segment• Acquisitions and Merger
• Unconsolidated Beer industry
• Loyalty towards local beer
• Increasing preference for wine/spirits
PAST
Questions clés/Key Issues• Global Game– Untapped world beer market before 90’s.
Beer Spirits Pop Tabacco
0102030405060708090
100
Top 4Potential
Total Market
Top 4PotentialTotal Market
Questions clés/Key Issues
• Untapped world beer market… – Why ?
• Large initial capital outlay
• Markets with unstable economies
• Local tastes differed
Questions clés/Key Issues
• Global Game
• Declining domestic and mature markets
• Need for a “Flagship” global brand
• Positioning Stella Artois as a sophisticated lager beer
Questions clés/Key Issues
• Declining domestic and mature markets– Mature Markets
N.A. W. E.U. Aus N.Z. Czech0
20406080
100120140160180
LPC
LPC
Questions clés/Key Issues
• Declining domestic and mature markets– Growth Markets
E. E.U
S.Americ
a
C.America
H.K.China
Taiwan
05
101520253035404550
LPC
LPC
• Reasons behind declining domestic and mature markets– Inconsistent sales and marketing support– Tight social policy – Emergence of wine culture
Questions clés/Key Issues
Questions clés/Key Issues
• Global Game
• Declining domestic and mature markets
• Need for a “Flagship” global brand
• Positioning Stella Artois as a sophisticated lager beer
Questions clés/Key Issues
• Need for a “Flagship” global brand…– Why?• Increase in market share• Opportunity to get into niche / premium segment• Availability of the product internationally • Creation of a global brand image
Choosing the right Global BrandInter Brew’s Dilemma
Choosing the right Global Brand
% Sales as of 1990
CanadianUSAUKOther
Choosing the right Global Brand
% Sales as of 1990
BelgiumOtherUKFranceItalyCroatiaHungaryRomaniaAUS / NZSweden
Questions clés/Key Issues
• Global Game
• Declining domestic and mature markets
• Need for a “Flagship” global brand
• Positioning Stella Artois as a sophisticated lager beer
Stella’s Point of Difference
Questions clés/Key IssuesPositioning Stellaas a premium lager beer.
Ordinary Beer
Positioning Stella Artois
• Global Game
• Declining domestic and mature markets
• Need for a “Flagship” global brand
• Positioning Stella Artois as a sophisticated lager beer
Questions clés/Key Issues
S WO T
• Strong brand portfolio leads to revenue growth
• Large scale of operations increases Competitiveness
• Diversified operations reduce risk
• Shift from decentralised to centralized management.
• Weak performance of W. Eu market leads to loss of market share
• Focus towards Jupiler in Belgium.
• Deleveraging program to repay debts
• Establishment of a new office to enhance operational focus
• Booming beer industry in China• Positive outlook for Global Spirit
market
• Increased labour costs likely to effect margins
• Sluggish beer consumption in the US and W. EU
• Stringent advertising regulations in many countries
2002
Key dimensions of marketing
• Product Marketing• Brand Marketing• Supply Chain • Management style• Segment Marketing
Competetive Rivalry
Heinieken, Foster`s, Budweiser, Carlsberg
Supp
lier`
s Po
wer
Redu
ced
supp
ly b
ase
mea
ns h
ighe
r de
pend
ence
Potential EntrantsHigh ratio of fixed vs. variable costs
Buyer’s Power
Loyalty to Local brands
Threat of SubstitutesWines/Spirits
The 4 Strategic Filters
1. Market should have long-term volume potential
2. Break even should be achieved within 3 years3. Committed local partner for quality and
distribution4. Determination that Success in chosen market
will lead to leverage in local & regional market
Key Dimensions of Marketing
• Product Marketing• Brand Marketing• Supply Chain • Management style• Segment Marketing
Global presence of Inter Brew (After)
Competitive LandscapePositioning of a Flagship Brand
10%
20%
Cost
per
bott
le
Competition VS Stella Artois
Market Penetration Strategy
• “SEEDING” approach.
Premium Beer Perception
• Concentrated only on the Top 20 Cities.– Belgian Beer Cafés
• New York• Auckland• China• Hong Kong• London
What did this achieve?
Backup Link
Anheuser-BuschHeineken
Miller
Fosters
Kirin
Coors
Brahma
Groupe BSN
SAB
Carlsberg
InterBrew
1992
Brewer Rank Volume (Mhl)
1
9
234
5
678
10
17
0 50 100 150
InBev
Anheuser-Busch
SABMiller
Heineken
Carlsberg
BBH
Modelo
Scottish & Newcastle
2005
Brewer Rank
1
8
2
4
5
6
7
0 50 100 150Volume (Mhl)
3
200
InBev’s Strong Track Record of Growth
250
9
10
Tsingtao
Molson Coors
Source: AbInbev Impact / internal data
Future Outlook
• Belgium in the next 3 years• Expectations from Stella in the coming years• Global success measurements• Role of internet• Sponsorship and promotion: 1? Or many?
Future Outlook
• Belgium in the next 3 years– Re-position Stella Artois as a BELGIAN heritage
beer.– Ad campaigns involving an old man passing on the
craft/art of pouring a Stella to his grand-son and re-igniting the aura behind Stella
– Try and compete against alternatives of beer such as Wine/Spirits in a creative way.
Future Outlook
• Expectations from Stella in the coming years– Growth in Asian cities.• Organic growth.
– Maintain position as premium brand– Enter new markets through the Belgian Beer Café
concept.
Future Outlook
• Global success measurements– Volumes sold – Geographical reach– Global Brand awareness – Efficiencies in breweries to enhance margins.
Future Outlook• Role of internet
– Fan Following– Members area
• Members only area– Social Media– Website– Smartphone App
Backup Link
Backup Link
La Société Stella Artois
Future Outlook
• Sponsorship and promotion
– One Global advertisements?• Why?
– Many regional advertisements?• Why?
And Finally
Drink Responsibly