Group 2Abhinav Gupta

Abhinav MathurAbhishek Rana

Deepanshu RelanMayank Tyagi

Global Branding and Advertising

Analysis

Case OverviewHeineken Marketing StrategyMarketing Communication Development

GuidelinesApproach

Marketing Concepts and TheoryRecommendations

Content

Heineken Holding N.V. heads the Heineken group

One of the world’s 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

Background

Beer Industry – Evolution Map

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

Industry Dynamics

Wholly O

wned Subsid

iaries

Minority E

quity St

akes

02468

1012

EuropeAmericanAsia/Aus-tralasiaAfrica

Heineken – Geographic Spread

38%

38%

19%

5%

Total 1993 Beer SalesNetherlands Rest of Europe AmericaAsia/Australasia Africa

Brand Equity

Heineken has a strong brand equity

Taste

Premiumness

TraditionWinning Spirit

Friendship

Brand Values

Beer industry characterized by strong brand preferences & loyalties

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

StandardizeHeinken’s Brand Image Worldwide

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 COMET

Preferred Global Brand Personality

Vox Pop – Global Diversity

C:\Users\user\Documents\Heineken - Premat

C:\Users\user\Documents\heineken commerci

C:\Users\user\Documents\Heineken_lights_o

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

• 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(1/2)

• 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

Recommendations(2/2)

• 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

Marketing Concepts

“Refreshes the points other beers cannot reach””