MKT744 ASSESSMENT GLOBAL MARKETING AND SALES DEVELOPMENT SAMPLE
1. Introduction
Stella Artois is the lager brand that sweeps over Europe with the big Payne laser flagship, which is controversial but still a conic bottle of green glass. It has significantly captured the market in several bars and restaurants throughout the globe. Artoystela is comparatively a smaller brand that has its origin in Belgium and is considered to be the best-selling beer in Belgium it is also got to be the most successful brewery which is international but still ruling the market of the United Kingdom. In the year of 2009, this leader got the prize for the best beer worldwide in the world international leader award which is celebrated in the United Kingdom (Statista, 2022a). This beer has a brand awareness of 92% in the United Kingdom, meaning 92 people out of hundred people have heard of this beer(Statista, 2022b).
2. Allocated Company’s International outlook image and profile and the product/category selection
2.1. Overall image
Stella Artois is termed to be a pale lager of Europe which is brewed in Belgium Leuven. It has a lot of fine bubbles which form a bubble cloud and resembles something with a fair about of bitterness for stimulating the process of salivation. It has a distinct smell and taste just like typical beer which is a bit on the dryer side.
2.2.Number of major products/services:
There is a range of beers being sold by the company along with some lager. These are the beers that have high quality and have a taste of crisp hop malt along with a trace of significant bitterness in it
2.3. Competitive strategy, and its presence in different countries:
In the United Kingdom, the company is quite established and serves with a price that is moderate whereas in Canada the company tries to lower the price for capturing the market to engage in market penetration while extending the service to a wider category of the population. On the other hand, since the product is newly established in Australia it has a higher cost due to the premium quality it is offering the country moreover, the product is imported to Australia which also has an impact on the pricing range that is to be followed by the company.
Strategy is set in this way because there is less consumption of this laser in Australia and this has its impact on the company operation if the company sets up brewing set up country where the demand is not yet significant. While implementing the strategy of international marketing in Canada, the company lower the content of alcohol to 4.6% ((Stella Artois, 2022d). In response to a campaign for health drive by the brewers of Belgium. Hence the company had to modify its product in order to have a great over the market based on the trend of wellness and health in the country of Canada.
3. Brief Overview of the Marketing environment of C
anada and Australia
3.1. Canada and Australia: Macro Environment:
| Australia | Canada | |
| Political | The company requires to import the product to Australia which comes with a range of regulations and taxes regarding import laws (Stella Artois, 2022d). This is the reason the company has to pay some amount and that affects the price that the company takes from the products in Australia | Canada has regulations of health and well-being wages that compelled the company to decrease the alcohol content of the drink and that also affected the amount of consumption because this was one of the major United selling propositions of the product which made the product different from the others. |
| Economical | Due to the upcoming recession in Britain as predicted by the bank of England, it is expected that business of Stella will be hampered to an extent. | Canada, on the other hand, has a test for beer and the people in the country consider Stella to be a British deliquesce when an offer to them and they have a better reception of the product because it has been visible to them from quite sometimes (Statista, 2022a). Due to the recession, there is a tendency for a decrease in the affordable capacity of the people which will affect the consumption of premium beer. |
| Technological | There are a range of technology that is being used in Australia regarding promotion by Digital media and through eCommerce implementation which helps the company to have the operation in spite of not having any manufacturing unit for growing the product in Australia | Technology is one of the major aspects that is being considered by Canada while selling the product. There are stores which are providing interactive videos to take orders at to make the customer more aware of the product of Stella Artois |
| Social | In Australia, there are people who are interested in binge drinking and are very lively and excited which goes with the value and spirit of the product thus the company has a huge potential in establishing the market in Australia | The society of Canada is developing an understanding and awareness of health and welding which is a new tendency that is developing. In order to comply with that the company had to engage in modification of the product that is being offered by the company in order to comply with the regulations of the area. |
3.2.Microenvironment
3.2.1.Customers
The brand has a lot of excitement within it because of its association with risk-taking and high alcohol content. Quality product has the two main sources of excitement regarding the product which leads the product towards more popularity in spite of the inhibitions that is present against this lager (Stella Artois, 2022b). The brand is also associated with ruggedness because of its range of customers who have associated the drinking of this alcohol with aggression. This brand is portrayed in a masculine way to attract the masculine population who is named for binge drinking. However, with the process of discarding gender stereotypes and gender binaries, there is the attendance of women to enjoy this lager as well.
3.2.2. Competitor analysis
The range of computers of brands like Heineken also sells premium quality beer. Some other brands as well like Heineken Lager, Peroni Nastro Azzuro, Carlsberg Pilsner, and Harp Lager. They are the company that produces a similar premium beer that is similar in taste to Stella. Hence these are the companies that can stand as a thread against Stella Artois.
4. Market Entry Strategy
Stella Artois is named for drinking with high alcohol content and is associated with beans drinking practice causing inhibitions in the mind of the general population with a negative Outlook towards alcoholic beverages (Stella Artois, 2022a). However, the motive of the brand is to build sincerity through the establishment of several programs that enable safe drinking. There is high competence in the product due to the quality of bench drinking and high alcohol content in its seeking for the population of male and their association of the lager with aggression.
There is sophistication associated with the brand because of the quality of the lager it produces and its source in Belgium. This is also the reason why the price of this laser is on the higher end. It is to be considered that the brand contains a customer range who associate the drink with aggression and that results in lowering the sophistication of the brand. Hence the sophistication of the brand is moderate.
5. Segmentation
5.1. Demographic
The target market of the lager of Stella Artois is the affluent young male population of the United Kingdom of the current generation. This can be stated by reading the tagline associated with the product: “Stella for the fellas who take their lager strong”
(Stella Artois, 2022a). This laser has a taste that typically comes from drinks with strong content of alcohol to an extent of 5.2%. this is quite high compared to the other alternative leaders available in the market of the United Kingdom. What is has to be noted that the price associated with the beer remains on the higher side and serves the upper-class and middle-class income groups. The age group optic for this laser belongs to ages 25 years to 35 years (Statista, 2022b). The ingredients that are present in the beer come from natural sources. Hence for the sustainability of the product, it is supposed to be accepted by the population that is diverse. On the other hand, this beer contains an Aroma of floral hop. Hence beer can be termed as a laser which is of desire for a population that is wide in the United Kingdom than the targeted.
5.2.Geographic:
Geographic segmentation includes segmenting the target consumer based on their working or living area of them. There are several approaches that can be taken which includes making groups of customer based on the living country or small division based on geography from the region towards the city or right through the postal code of the areas. As lager is quite a sophisticated alcoholic beverage it is majorly consumed by the sophisticated urban population who are accustomed to luxury. Hence the geographic area targeted by the brand is the urban area as they are also the areas where people come up with a taste for a luxury alcoholic beverage like Belgium lager.
5.3. Psychographic :
Psychographic segmentation is a methodology of research used for studying customers in order to divide them into a range of groups using the characteristics of psychology which includes lifestyle personalities social status activities opinions interests and attitudes. It must be noted that the brand targets the higher income group for which the social status activities require to be of middle or higher income group within the society. On the other hand, it also must be noted that the drink is often characterised by the nature of aggressive behavior within the alcohol consumption because of its high content of alcohol which leads to the aggressive behaviour of the consumer.
5.4. Behavioural:
The behavioral attribute of this laser consumer is associated with drinking because of its primary and previous association with aggressive behaviour in its promotional practices as well. This has developed negative implications for the product because of its contribution to domestic violence as well and the aggressive bringing tendency getting associated with the drink is being tried to overcome by the company. Behavioral segmentation belongs to the mass with attendance of binge drinking and majorly the youth of the current time so associate drinking with ruggedness but still want it with of flavour of a luxury
5.5. Targeting
While segmentation of the product the demographic and psychographic segmentation of the market is approached by this company as it solves the population who prefers the beer to be sophisticated yet slightly stronger with balanced flavour and sweetness. Demographic segmentation of the product includes the person who is young at age and current generation leaving with a decent lifestyle being in the income slab of mid-range or high range because of the high affordance requirement of this product (Marketing Dive, 2022). Psychographically the product appeals to consumers who have a taste for sophisticated lagers yet want a high alcohol content in their alcoholic drinks while enjoying the concept of binge drinking.
5.6. Positioning
Hence, it can be stated that the brand can be posited as one with a high price yet high quality. While it appeals to a specific section of the high and middle-level of income group it must be noted that the quality provided by the company is quite sophisticated and premium with great taste in spite of being of high alcohol content.
5.7. Implementation of Strategy in Canada
While implementing the strategy of international marketing in Canada, the company lower the content of alcohol to 4.6% In response to a campaign for health drive by the brewers of Belgium. Hence the company had to modify its product in order to have a great over the market based on the trend of wellness and health in the country of Canada. In the international market, it is extremely important to concentrate on the requirement of the country in order to set the strategy for gaining success in the specific area of operation of the company as well as the consumption rate of the product or service.
5.8. Implementation of Strategy in Australia
Stella Artois is not yet brewed in Australia but there would be a tendency for brewing beer in Australia to increase its popularity. Strategy is set in this way because there is less consumption of this laser in Australia and this has its impact on the company operation if the company sets up brewing set up country where the demand is not yet significant. On the other hand, in order to capture the market, the company is brewing in other places but operating and expanding in Australia resulting in an increase in the brand value of the organisation.
6. Marketing Mix Decisions for both Canada and Australia
6.1. Product
Stella Artois is a laser that has its origin in Belgium and comes with a colour that is floral golden and an Aroma of hop with multi yet fruity well-balanced sweetness accompanied by bitterness. However, the texture of the product is crisp and hop but with a soft and smooth finish in spite of being dry. The product of the brand is a laser with a finish that is lingering but pale and the major uniqueness of the product lies in the fact of its high content of alcohol in it. The augmented product of the brand of laser is to be with higher content of alcohol but still a range of flavours. This will be able to provide an experience that is sophisticated providing a feeling which is much enhanced than drinking the beer with traditional flavour and taste. The product with potential in this category can be beer which comes from several flavour and this can also contain beverages that are non-alcoholic for the population who has a taste for the texture and smell of Belgium beer.
6.2. Price
The company of Stella Artois laser targets a consumer base that is larger though the price of this laser remains on the higher side than the average bears which are available in the market decreasing the customer base. However, the price offered with respect to quantity is much on the higher side for which the brand targets generally the population from the middle or higher level of income group. The product pricing strategy is quite sustainable because of the already established target consumer of the company which includes the group with habits of binge drinking but still wants to enjoy the taste of the alcohol as a premium product.
However, with the lowering of alcohol content in the beer, there has been a tendency of decreasing the price of the beer in countries like Australia in order to the theatre a wider range of audience to penetrate the market. Hence lowering the pricing strategy or selling the product at the optimum price is the penetration strategy of the product in the market of Canada. In a market of Canada product is quite popular and is capturing the market pretty fast. There is a chance for the organisation to excel in its functioning which will help the organisation to stand out as following the required market that is targeted by the company through this pricing policy.
It must also be noted that in Australia the product is not being manufactured and that requires a lot of prices to have set a market in Australia (Stella Artois, 2022e). Hence the price of the brand is a bit more in Australia but at this point, the product is engaging in good marketing procedures of the company to capture the market. With aggressive marketing through discounts and promotion in the market of Australia in spite of having a higher price range, the company is able to catch the attention of a number of the population in the market. In Australia, the product is readily available and this results in product penetration without taking the strategy of optimum price in order to cater to a large number of consumer
Overall Stella is a product quite in demand but regarding pricing strategy, there are different strategies followed by the company based on its requirement and the region in which it is operating. In the United Kingdom, the company is quite established and serves with a price that is moderate whereas in Canada the company tries to lower the price for capturing the market to engage in market penetration while extending the service to a wider category of the population (Jernigan and Ross, 2020.). On the other hand, since the product is newly established in Australia it has a higher cost due to the premium quality it offers the country moreover the product is imported to Australia which also has an impact on the pricing range that is to be followed by the company.
6.3. Place
Stella Artois used to be broad primarily in Belgium but now gets brewed in the United Kingdom as well. The company has also extended its service to Canada while engaging in international expansion and at the current time, the company is growing its product in Canada in order to lower the operation price. This is helping the company to decrease the price of manufacturing the product for waste the company is being able to sell the product at a lower price in Canada and capture the market vigorously. However the product is important in Australia because the company is newly operating in the country and setting up a manufacturing unit in Australia will require an increased demand in the area in order to sustain (Ansons, et al., 2020). The company is engaged in creating and importing services to Australia in order to increase the bright visibility and brand awareness within Australia after which the company will be able to operate with a manufacturing unit. However, the company operates mostly in the urban area by targeting the current-day youths because the premium quality of the beer is mostly wanted by this group itself. There are a few other countries where the company seems to operate and that includes countries in Europe like Ireland or Belgium.
6.4. Promotion
The brand is currently on a mission to re-establishing the brand as one of the most premium and popular lagers in the world through an international market penetration strategy. The strategy is to bring back the tradition of Belgium beer through innovative marketing pushing the foody culture by opening a chain including restaurants of its own brand. Stella is observed of being sold at a premium price from the beginning and was termed to be reassuringly expensive as it is called to be the third most valuable brand of beer throughout the world. It has 6 key markets and more than 80% of the volume of sales currently comes from them (Marketing Dive, 2022). It’s the brand engaging in seasonal promotion through digital media in the videos that are interactive by using technology and its rapid advancement of the current times (Atkinson et al., 2022). It is enabling users of the open table to receive special surprises on taking a reservation while participating in such activity within the restaurant introducing the consumer to a series of digital video which allows the consumers to share their opinion and the item that is featured within it (Stella Artois, 2022f). This initiative is clearly done in order to increase brand awareness and to increase the consumption of the beard in places where the company is not yet highly active or visible to the consumers.
Apart from that, the company is also engaged in a social media campaign in order to target the current time youth who are most active on social media. The contents of the advertisements are revolving around audio-visual content because of its greater capacity of it to take the attention of the viewers and to create an impression of the brand in the former stage itself. Moreover, the brand also acknowledges that trains are extremely important in promotion for which the company engages in the recent evolving trends which in social media in order to increase the requirement of reach of it in the market where the company is newly engaging.
7. Conclusion
Primarily the company was comfortable with distributing the product in the market around domestic one but currently, the company has taken up the strategy to increase its operation in the international market as well. Stella applies every element of the 4 P’s of marketing with its premium product and a premium price while offering promotional policies that are suitable in the required place based on the distribution of the market of the product throughout the globe. Companies also created a specific customer group and align the products as per their requirement. Hence the brand has a significant number of loyal consumers in its operation and process.
Reference List
Ansons, T., Murphy, C., Naert, S. and Strong, C., 2020. Brand rituals in a low-touch world. What’s Next for Brands, pp.2020-04.
Atkinson AM, Sumnall H, Meadows B. 2022 ‘We’re in this together: A content analysis of marketing by alcohol brands on Facebook and Instagram during the first UK Lockdown, 2020. International Journal of Drug Policy. 2021 Dec 1;98:103376.
Jernigan, D. and Ross, C.S., 2020. The alcohol marketing landscape: Alcohol industry size, structure, strategies, and public health responses. Journal of Studies on Alcohol and Drugs, Supplement, (s19), pp.13-25.
Marketing Dive, 2022. Stella Artois ferments seasonal promotion strategy with interactive digital videos, Marketing Dive. Available at:https://www.marketingdive.com/ex/mobilemarketer/cms/news/strategy/23105.html(Accessed: October 26, 2022).
Statista, 2022a. Heineken: Stella Artois brand awareness, usage, popularity, loyalty, and buzzamong beer drinkers in the UK in 2022. Statista. Available at:/ (Accessed: October 16, 2022).
Statista, 2022b. Heineken: Revenue worldwide 2021, Statista. Available at:https://www.statista.com/forecasts/1335371/stella-artois-beer-brand-profile-in-the-uk(Accessed: October 16, 2022).
Stella Artois, 2022a. 600 Years of Brewing Heritage – Raise a Chalice. Available at:https://www.stellaartois.com/en_us/ (Accessed: October 26, 2022).
Stella Artois, 2022b. Stella Flexible Happy Hour, STELLA FLEXIBLE HAPPY HOUR.Available at: https://www.stellaartois.com/en_us/happyhourrules/ (Accessed: October 26,2022).
Stella Artois, 2022c. THE STELLA SUBSTITUTESTHE STELLA SUBSTITUTES.Available at: https://www.stellaartois.com/en_us/initiatives/stella-substitutes/ (Accessed: October 26,2022).
Stella Artois, 2022d. Heartbeat .Available at: https://www.stellaartois.com/en_us/initiatives/heartbeats/ (Accessed: October 26,2022).
Stella Artois, 2022e. Your Table is Ready.Available at: https://www.stellaartois.com/en_us/initiatives/returntorestaurants/(Accessed: October 26,2022).
Stella Artois, 2022f. A NIGHT WORTH SAVORING FEATURING THE FLAVORS OF CHEF .Available at: https://www.stellaartois.com/en_us/initiatives/frites-artois/ (Accessed: October 26,2022).
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