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Situation Analysis

At the end of 1993, Heineken had a 24% volume share in the


Netherlands, far ahead of its main competitor Grolsch, but the sales
volume was declining and brand image needed revitalization.
In foreign markets, such as the United States and Hong Kong, Heineken
had always been marketed as a premium brand, and had managed to
create a distinct image for itself
The image was sometimes, however, narrowly drawn, leading to a
general perception that Heineken was appropriate only for special
occasions
Across European countries, Heineken had very strong brand awareness
In Latin America, Heineken was viewed as just one amongst the many
European Beer imports
However, across all markets Heineken was perceived as a lighter beer of
superior quality, in attractive packaging
Heineken was the most heavily advertised premium brand in Europe and
worldwide, with more than 90% of the advertising taking place in the
form of TV Commercials

Problem Identification
Heineken needed to work out its
global brand image and advertising
efforts too, needed to be integrated
on a global scale
Regional managers often developed
their own commercials citing unique
competitive
conditions.
Standardization
was
thus
nonexistent, and required

Strength & weakness


Strengths

Weakness

Worlds leading premier Beer.

Lack of global presence in bottling business.


In the major beer-consuming
market,
Germany and US its imported and not
bottled.
Lack of presence in Latin America. Viewed
as just one of many imported European
beers in Latin America.
Perceived premium brand image in some
markets, which
resulted in decline of sales volume across all
the market.

Known for its good taste, rich tradition and


History.
Acknowledge as lighter beer of superior
quality.
Packaging is attractive and one of the best
in business.
Leader in Netherland market.

Heinekens brand image is not being


consistently
projected in Brands communication.

Number One imported beer in US Market.


Successful premium brand image globally Brand loyalty needs to be build on, in
(US, Hong
Eastern Europe people keep on switching
Kong etc).
brands.
Have majority stakes in its existing and
prospective partners to ensure tighter

control in production and marketing.


Significant advertising expenditure at its

disposal. It also

Project Comet

Was initiated in 1991 to enhance Heinekens competitive


advantage through advertisement projections as the worlds
leading premium beer
The project team had identified good taste as the desired brand
image of Heineken
The project identified the following five factors as core brand
values:
Taste
Premiumness
Tradition
Winning Spirit
Friendship
The first two were recognized merely as points of parity, and
hence were necessary, but didnt provide any significant advantage
Differentiation was to be achieved through the communication of
the remaining three values
Impactful advertisements, incorporating leading edge technology
and calculated risks, were recommended

THANK YOU

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