heineken nv: branding and global advertising

7/23/2019 Heineken NV: Branding and Global Advertising

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P r e s e n t


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Heineken NV:

Global Branding &Advertising

MM6016

Branding and Marketing Communication

29111311 Haidir Afesina

29111363 Wirania Swasty

29111384 Chairunnisa Mirhelina

29111387 F X Kresna Paska

29111398 Aqsa Adhiperwira

29111400 Fajar Liem


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Prepared & Presented by:

Case SynopsisEnd of 1993, Heineken had 24% volume share

Declined sales, needed some revitalization

perceived as premium brand, lighter beer of

superior quality in attractive packaging

Minor viewed as as just another European beer and at

special occasions

the most heavily advertised premium brand


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Company Facts In 1863, FOUNDED in AMSTERDAM by Gerard Adriaan

Heineken

In 1889, LARGEST SELLING BEERS in the NETHERLANDS

In 1993, SECOND inVOLUMEbehind Anheuser-Busch

In 1968, ACQUIRED local beer e.g. Amstel, Buckler,

Managed DIVERSED PORTFOLIO of BEERbrands

Operates in more than 70 countries


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International Presence

In 1937, first LICENSE to a foreign brewer

In mid 1940`s, LOSING CONTROL

over advertising & pricing In 1980`s, gain MAJORITY EQUITY STAKES

In 1993, #1 IMPORTEDbeer in USA,

In Germany, LOST to national brands


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Industry Analysis(Porter 5 forces)

Threat of new

Entrants

Threat of

Substitutes

Supplier

PowerBuyer Power

Rivalry

Competition

Wine

Spirits

Soft Drinks

Healthy Drinks

Price Sensitivity

Product Undifferentiated

Lots of supplier (raw

material)

Low switching cost

Local Beer & craft beer

Lots of big & famous competitor

Customer loyalty of product competitor

Cost reduction

Low price

Acquisition & Join

venture


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Beer Market Evolution

Differs slightly from standard product life cycle different segments occupy different space

Introduction Growth Maturity Decline

Dema

nd

(units/year)


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The Forces Profitability

Impact

Market Why?

(P=Price, C= Cost)

MediumThreat ofEntry

Dynamic Attractive P C /PC

Supplier Power Unattractive C

Buyer Power Unattractive PC

Substitutes Unattractive PC

Medium Rivalry Dynamic Attractive P C /PC

PROFIT = Price - Cost

Beer market is matured, the revenue is flat


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Pro

jectCom

et

to enhancecompetitiveadvantage:

consistently

projecting thebrand as theworld`s leading

premium beer

brand image as

good taste

ProjectMo

sa

To understand: What male beer

drinkers meant bytaste andfriendship

Whichexpressions usedin advertising

The brand`s good taste image would be built on 5 Core brand values:

Taste Premiumness Tradition Winning Spirit Friendship


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What areHeineken`s

strengths andweaknesses?


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Strengths

Uniqueness ofTASTE, rich and tradition since 1886

World`s SECOND LARGESTbeer manufactured. FAST GROWTH in Asia 23% over 1992 sales

Established PREMIUM BRAND IMAGE Lighter beer, superior quality, attractive packaging across all markets

Strong and DIVERSE BRAND PORTFOLIO

Large scale of brewery and DISTRIBUTION NETWORK


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Weaknesses

WEAK PRESENCE in top beer consuming countries

Inconsistent BRAND IMAGE

DECLINE market share in Europe & Africa LOW BRAND LOYALTY


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Is Heineken aglobal brand?


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1. YES, Heineken is a Global Brand

Operates in more than 70 countries with 170 brands

Market Leader

Strong and diverse brand portfolio

Definition:

the brand name of a product that has worldwide recognition. A global brand has the advantage

of economies of scale in terms of production, recognition, and packaging.

http://www.qfinance.com/dictionary/global-brand)
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Evaluate theresearch.

What has beenlearned?


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the Research Evaluation

Project Comet

global brand identitythe good tasteimage

Project Mosa (exhibit 4&5) expressions of taste (head) and friendship (heart) draw consumer reactions to promote the brand based

on the responses of the focus group.

per capita consumption, consumer preferences and behaviours

change depending upon the country.


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Taste, Premiumness and Quality as the minimum standard Needed to successfully position the brand globally.

Friendship as brand personality

enjoyed between close friends in smaller group not mass quantities.

Occasions compete more with fine wines than with regular beers.

Lessons learned

1. Leverage associations to promote premium

2. Each country requires different marketing mix from the other

3. challenge to move the special occasions image to more

mainstream beer selected to those seeking for premium


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How can HeinekenBrand be developed

through marketingcommunications?


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integrated to deliver a consistentmessage and achieve the strategic

positioning to young adults;

1. Deliver the differentiation or value added of Heineken quality

2. Create a strong associations to established the brand image

3. Communicate all the five core values in every advertisement

4. Sponsor numerous sports and youth events at local, regional

and national

5. Collaborate with customers for the advertisement


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TV Campaign

(different tagline)

Concert Mob

European TV campaign, 1999

Tagline Heineken. Sounds Good

Inconsistent w/ brand value

Lights Out

Asian TV campaign, 2000

Tagline It could only be Heineken

consistent

Premature Pour

American TV campaign, 2000 Tagline Its all about the beer

consistent


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What should be the roleof Heineken`sheadquarters in shaping

the marketing of thebrand worldwide?


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Consistently maintain and controlby

1. Define a strategy positioning of Heineken image

2. Control & evaluate to ensure that Heineken perception isstandardized around the world

3. Marketing distribution activities:50% trade, 25% consumer promo, 25% ads

1. Create a brand development team that focus on long term

brand strategy2. Create brand building team that focus on short term strategy

heineken nv: branding and global advertising

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