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Present

MM6016 Branding and Marketing Communication

Heineken NV:
Global Branding & Advertising

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Haidir Afesina Wirania Swasty Chairunnisa Mirhelina F X Kresna Paska Aqsa Adhiperwira Fajar Liem

Prepared & Presented by:

Case Synopsis
End 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, Heineken In 1889, LARGEST SELLING BEERS in the NETHERLANDS In 1993, SECOND inVOLUME behind Anheuser-Busch In 1968, ACQUIRED local

FOUNDED in AMSTERDAM

by Gerard Adriaan

beer

e.g. Amstel, Buckler,

Managed DIVERSED PORTFOLIO of


Operates in more than 70 countries

BEER brands

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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 IMPORTED beer in USA, In Germany, LOST to national brands

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Industry Analysis
(Porter 5 forces)
Threat of new Entrants

Local Beer & craft beer Lots of big & famous competitor Customer loyalty of product competitor

Supplier Power Lots of supplier (raw material) Low switching cost

Rivalry Competition Cost reduction Low price Acquisition & Join venture

Buyer Power
Price Sensitivity Product Undifferentiated

Threat of Substitutes
Wine Spirits Soft Drinks Healthy Drinks

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Beer Market Evolution


Introduction Growth Maturity

Decline

Demand (units/year)
Differs slightly from standard product life cycle different segments occupy different space

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PROFIT = Price - Cost The Forces MediumThreat of Entry Profitability Impact Dynamic Market Attractive Why? (P=Price, C= Cost) P C / P C

Supplier Power Buyer Power Substitutes


Medium Rivalry


Dynamic

Unattractive Unattractive Unattractive


Attractive

C P C P C
P C / P C

Beer market is matured, the revenue is flat

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Project Comet

to enhance competitive advantage:


consistently projecting the brand as the world`s leading premium beer brand image as good taste

Project Mosa

To understand:
What male beer drinkers meant by taste and friendship Which expressions used in 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 are Heineken`s strengths and weaknesses?

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Strengths
Uniqueness of TASTE, rich and tradition since 1886 World`s SECOND LARGEST beer 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 a global 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 the research. What has been learned?

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the Research Evaluation


Project Comet global brand identity the good taste image

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

Friendship as brand personality


Occasions

enjoyed between close friends in smaller group not mass quantities.

compete more with fine wines than with regular beers.

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 Heineken Brand be developed through marketing communications?

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integrated to deliver a consistent message and achieve the strategic positioning to young adults;
1. 2. 3. 4. Deliver the differentiation or value added of Heineken quality Create a strong associations to established the brand image Communicate all the five core values in every advertisement 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 role of Heineken`s headquarters in shaping the marketing of the brand worldwide?

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Consistently maintain and control by


1. Define a strategy positioning of Heineken image 2. Control & evaluate to ensure that Heineken perception is standardized 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 strategy 2. Create brand building team that focus on short term strategy

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