Group 2 Abhinav Gupta Abhinav Mathur Abhishek Rana Deepanshu Relan Mayank Tyagi

Content
Case Overview Heineken Marketing Strategy Marketing Communication Development Guidelines Approach Marketing Concepts and Theory Recommendations

Background
Heineken Holding N.V. heads the Heineken group One of the worlds leading consumer and corporate brands for over 145 years Located in the Netherlands Shares are listed on the Euronext in Amsterdam Brand portfolio contains more than 200 international premium beers and ciders 125 breweries in more than 70 different countries

Beer Industry Evolution Map

Industry Dynamics
Sales volume decreased with -/- 1.5% in The Americas and -/-3.1% in Western Europe (Maturing markets ?) Sales volumes in emerging markets are increasing

Global Strategy
Premium segment leadership by acquiring strong brands Economies of scale that create distribution networks for both the local beers and Heineken.

1. Acquisition of leading local premium beers

2. Penetration of emerging market

3. Access to local distribution networks

Heineken Geographic Spread

12
10 8 6 4 2 0

Europe American Asia/Australa sia Africa

Total 1993 Beer Sales

Netherlands Asia/Australasia Rest of Europe Africa America

5% 19% 38%

38%

Brand Equity
Beer industry characterized by strong brand preferences & loyalties Heineken has a strong brand equity

Brand Values
Taste

Friendship

Premiumness

Winning Spirit

Tradition

Developed a distinct image and reputation as leading premium beer.

Challenges
Declining Sales ---Need to add % data Lack of consistency in brand image globally. Local sales take precedence over global brand communication Lack of coherence in brand strategy to harness its own capabilities and competencies Brand Perception is different across different Countries

Critical Challenge

Solutions

In 1993, focus groups were commissioned in 8 countries. To Understand: 1. What male drinkers meant by taste and friendship in relation to premium beer drinking 2. Which expression of taste and friendship could be used in advertising

In 1993, focus groups were commissioned in 8 countries. To Understand: 1. What male drinkers meant by taste and friendship in relation to premium beer drinking 2. Which expression of taste and friendship could be used in advertising

Solutions

Solutions

Preferred Global Brand Personality

Vox Pop Global Diversity

Advertisement Evaluation
Heineken unable (or unwilling) to communicate its brand in a single consistent fashion around the world All three advertisements have different tag lines Two of the advertisements (lights out and premature pour) appear consistent with the brand image strategy as they show fashionable people enjoying Heineken in comfortable, upscale surroundings. The Italian advertisement (PartyWala), however, appears to be totally inconsistent with the core values of the brand. The beer is being consumed by the masses, the beverage is slurped and not savored, apparently becoming an essential part of social participation, rather than focusing on the self-esteem of the user. This is the positioning Heineken identified for standard beers.

Brand Identity??
Brands are the combination of factors that gives one particular product or service its identity and thereby differentiating it from its competitors Brands are the essence of products, the only component that cannot be outsourced to others, and includes a complex bundle of images, promises and experiences that communicates a belief about the benefits of a particular product offered from a particular company Fundamental role of brands for consumers is to save them effort and time in making choices in standard beers

This is where Heineken is faltering!

Global Brand Development

Embryonic Market: Push Strategy
Growing Market: Both Push and Pull Strategy Mature Markets: Pull Strategy

Recommendations(1/2)
Integrated marketing communication
Consistent and coordinated messages in their commercials Communicate all the five core values of enjoyment, natural, affiliation , sexuality, and occasion for product usage An upscale surroundings such as pool party or a pub could be considered

Innovations across liquid, packaging and format that will serve to further endorse international leadership credentials because innovation is the lifeblood of brand domain

Recommendations(2/2)
Develop Brand Equity High impact and high profile sports and music events Association with movies targeting relevant demographic profile Build affinity between brand and customers by sponsoring international rugby tournaments, and world soccer tournament such as Champions League, the UEFA Europa League etc. Music Shows Presence and credibility; draw crowds in venues around the world and get recognition. International awards in contemporary music

Marketing Concepts
Role of branding and the importance of developing a brand image for a product Developing an effective and consistent global brand strategy can be more difficult that expected Brands are important to producers because they allow the holders of a premium brand to charge more for their services Brands are important to consumers as they guarantee quality, are a signal of consistency and assist consumers by making it easier to purchase products

Refreshes the points other beers cannot reach