HBR-Case Presented By: Parnamoy Dutta Roll No.

: 13 PGDM (IB) SIMSR, Mumbai

 Founded

in Amsterdam in 1863 by Gerard Adriaan Heineken. In 1993 net sales of 9049 million guilders & a trading profit of 798 million guilders. Beer accounted for 82% of the sales. Other products were soft drinks, spirits and wine.

 First

license to foreign a foreign beer in 1937. By 1980s Heineken was looking for majority equity stakes in its existing & prospective partners to ensure greater control. Partners who did not have international ambitions were the main target of Heineken. It owned outright operations in the Netherlands, France & Ireland. It held majority interests in breweries in Greece, Hungary, Italy, Spain & Switzerland. It had licensed production in Norway & UK. It was imported in Germany & US.

 Early

1990s saw the industry becoming increasingly global. Emerging markets were distinguished by population expansion & increased per-capita income. Overcapacity & minimal population growth in Europe resulted in price wars, margin pressures & efforts to further segment the market to no or low alcohol flavored beers. Difference in per-capita beer consumption, consumer behavior & preferences, competitors in different markets.

 Sales

volume were declining & brand image needed some revitalization. Perceived for consumption at special occasions rather than daily consumption. In some markets it was just another imported beer.

Brand Image: Good Taste 5 Factors:

Focus groups to understand

Quality, Brewing skills, & Tradition showed a POPs were important but positive relation to did not provide any Taste. advantage. Heineken as a companion PODs needed to be showed a positive focused in the ads relation to Friendship. thereby giving the advantage.

Taste Premiumness Tradition Winning Spirit Friendship

POP

POD

what male beer drinkers meant by taste & friendship which expressions of taste & friendship can be used.

 Ads

should focus more on the aspect of winning spirit, friendship & tradition. A sample TV commercial plot:

A horse race in progress between which intermittently the tradition, hard work in making the beer is shown. On the finish intermittently the slow pouring shots of the golden sparkling beer is shown. After the finish the party the winners along with the other participants are shown to enjoy the beer in the backdrop of a Heineken beer bottle.