Stella Artois Case Analysis

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STELLA ARTOIS CASE ANALYSIS 4

StellaArtois Case Analysis

StellaArtois Case Analysis

StellaArtois had developed a niche that ensured that it developed a givenform of customer loyalty. Thisisbecause it marketed itself as a premium brand that ismostly drankby well-to-do people in the United Kingdom (Brand Strategy, 2008).The management set the price of the beer quite high while statingthat the price was, `reassuringly expensive.’Thismeantthat the price that was necessary for the brand as among others, thehigh and mighty in society would feel comfortable drinking the beersince they believed that they enjoyed some given form of exclusivity.Thisiswhere a given product isreservedfor a given class of people (Pride&ampFerrell, 2013).The only way that a company isable toensure that the product that it offers to the market onlyserves a given group of people is through making it less affordablefor other people with average financial capability. The companywould, therefore, be in a good position to enjoy the continued salesthat aremadeas a result of selling the product to this specific group of people.In the same measure, because the prices that aresetare exorbitantly high, the company is bound to make lots of salesfrom the situation as a result (Brand Strategy, 2008). Another way inwhich the Stella Artois beer maker showed the kind of market that itserves was through the sports sponsorships that it had. The companywas actively involved in the sponsorship of tennis tournaments, agame that isassociatedwith people from the up-markets.

Withthe aim of ensuring that the company continued to enhance sales, themanagement engaged in a hefty discount program. Although the salesmade,at first,seemed promising, the brand, however,ended up losing the trust that it had developed in the up-market. Thebrand had run its advertisement campaign on a scale that it was apremium product that would beenjoyedby only the elite (Brand Strategy, 2008). By making the product wellaffordable for a lot of people, the people of higherclass dropped the prestige that they had associated the brandwith.They now had to switch to other brands that seemed to be consistentwith the advertisement that they do carry. The case of Stella Artoisis a clear indication of the importance that lies in firms ensuringthat they stick to carrying out the information that they providepeople during advertisements. In one aspect, this shows that thecompany reallydoes respect the people enough to continue providing to them whatthey were after when it did attract them in the first place.

Themeasures taken by Stella Artois to reverse the situation seemedeffective and provided a higher chance of making the wealthy peoplefall in love with the brand again. Through including the productsthat are used to make the beer in the marketing venture, thisstrategy helped to make the people feel that they were dealing with abrand that prides itself in the in dealing with products that theyhad great pride in (Doyle,2008).The wealthy were now more able to associate with the product and in agood position to continue buying the products made by Stella Artois.The fact that the company also went ahead to buy Anheuser-Busch wasquite a smart move. Anheuser-Busch is an American rival that most ofits customers would have runto.By buying it, this ensured that it still retained the customers,although through another brand.

References

BrandStrategy (2008). Case study- Stella Artois: Catch a falling star.

Doyle,P. (2008).&nbspValue-basedmarketing: Marketing strategies for corporate growth and shareholdervalue.Chichester, England: John Wiley &amp Sons.

Pride,W. M., &amp Ferrell, O. C. (2013).&nbspFoundationsof marketing.Australia: South-Western, Cengage Learning.