Stella Artois
This case study presents a strong and nuanced presentation of one European beer brand that appears to have a strong level of self-awareness regarding its image, demographic and how to present itself to the public. One of the issues that Stella Artois appears to need work with is an overall level of brand consistency. Tim Lindsay, president of TBWA, an ad agency in the UK and Ireland, explained the problems that Stella Artois experience -- problems that it largely brought on itself. "Stella built its name on the 'reassuringly expensive' campaign. Unfortunately, it then discounted the product vigorously through both on and off trade, failing to deliver on the brand promise. 'This has led to ubiquity and by becoming a plentiful cheap, strong lager; it unwittingly became 'wifebeater' the beer of choice for angry men in white vests" (brandstrategy, 2008). This is a classic example of just how detrimental it can be when a brand abandons, even temporarily a marketing schema that has been effective for it. Brand identity is a crucial thing and to abandon that identity in any shape or form is akin to presenting the public with an altogether different product. Members of the public need to know that they can trust the brand fully and totally and rely on its ingredients and image. Even changing something like the price, without touching the contents or packaging is akin to a drastic re-imaging of the product, something which can rapidly alienate previously loyal customer.
By changing their price, it was almost as if...
season tickets for professional sports clubs are sold years in advance (Manchester United FC, Montreal Canadiens). This is the phenomenon of the brand 'religion', where the value of the brand becomes so high in the mind of the consumer that he/she will always stay loyal to it, regardless of fluctuating results or momentary crisis..." (Peterman, 2004). In fact, Stella Artois, in lowering their prices, demonstrated that they were comfortable with undermining the value of their own brand. If anything, if they were going to adjust their prices, they should have lowered them. "Consumers are prepared to pay a higher price for products and service offered as a brand also creates trust and confidence. Indeed, a strong brand presents a proof of competence for the customers. It suggests quality and bestows image and prestige to its buyers" (Pederman, 2004). Thus, by lowering their prices, Stella Artois showed consumers that they were less valuable and less prestigious and overall less desirable than their competing brands. And the results of such actions were nearly catastrophic: the brand was devalued so much that consumers developed a disparaging "nickname" for the brand, something that undermined the years of strategy and planning that the entire brand had worked so…
