Executive summary 2. Introduction The Heineken N. V. is a beer brewery founded in Amsterdam and is almost 150 years old. The case to be analyzed is from 1998 and has information for example of the sales of Heineken of 1993. The case refers to two research projects reviewed by the senior management at the Headquarters in Amsterdam. Project Comet which It has a big tradition. brand has been around since 1863 and is a worldwide beer brand. The case information basis of information for this case comes from Heineken’s 1993 statistics. For instance, of the 120 billion liters of beer sold in the world in 1993, Heineken accounted for 5. billion which is 4. 6% of total beer sold. This case looks at two of Heineken’s research projects (Project Comet, and Project Mosa) that define and explore the 5 components of Heineken’s brand image: Taste, Premiumness, Tradition, Winning Spirit, and Friendship. They also explore the most appealing images of Heineken’s expressions of taste and friendship with regards to brand image. Project Comet is a research project that provides the companies definition and guidelines to producing a Heineken promotional commercial. Also note that Heineken’s television commercials account for 90% of its advertising campaigns.
Project Mosa is a research project that focused on gathering information through focus groups around the world to determine key attributes of the brand as well as identifying the negative aspects of the brand. The key issues in this case are: the need to determine the mutual consistency of the two research projects and the need to evaluate the worthiness of standardizing Heineken’s brand image and advertising worldwide. 3. Heineken’s strengths and weaknesses Strengths: •Heineken uses until today a strain of yeast that was developed in 1886 and has an original formula.
Heineken preserved with it a special and unique taste for more than 100 years. •Producing 5. 6 billion litres of beer each year, Heineken is the second largest beer manufacturer in the world. Only Anheuser-Busch who produces 10 billion litres each year is larger. Herewith Heineken shows its economies of scale which are basis for further expansion of the market capitalization. •Heineken demonstrates a global presence by owning subsidiaries in Netherlands, France and Ireland. It has also majority equity stakes in 15 other breweries all over the world. An important strength of Heineken is that across all markets the brand is known as a lighter beer that offers a superior quality. •Another advantage of Heineken is the attractive packaging where the beer is presented. •The Heineken brand is perceived as a premium brand n some markets like in USA and in Hong Kong and has successfully established an evident brand image. • •Traditions: Heineken stands for tradition and values a long tradition. •Brands availability •Premium brand •Lighter Beer •Attractive packaging •Most heavily advertised Premium beer in Europe and Worldwide and use TV commercials heavily •One of the more
Weaknesses: •No production base in some area •Inconsistent brand image with brand communication •TV commercials are just aired in larger markets •Efforts necessary for brand revitalization •Lack of integrated marketing campaign •Lack of worldwide advertising campaign (http://www. timothyosborne. com/heineken-nv—global-branding-and-advertising. html) Heineken like most companies have their strong and weak points. For any company a neutral statistic should also be viewed as a weakness considering there is room to grow and the challenge to change the consumer’s opinion of that weakness.
Heineken’s weaknesses thus far are as follows (analysis of research project results): -Most countries that sell Heineken feel that the brand vision is poor -There are many neutral opinions across the nations for Heineken’s characteristics of the beer including: 100% malt, smooth taste, and pure taste. -Consumers feel that the beer could be more available in more bars and more countries. -Pricing could be improved in various countries like Italy and the Netherlands. -Improvements on its aftertaste is also another area of weakness Heinekens strengths are: Over quality of their products -The taste experience, and balanced taste of the products -Foam and drinkability of the product -Heineken’s advertising and packaging are good strengths as well The definition of a global brand is a brand that has worldwide recognition for its product(s). Heineken we know for sure is supplied to countries like Brazil, Japan, North America, and as well as Europe. So although the brand may not have its products in every country, the definition doesn’t state that as a requirement, so Heineken is most definitely a global brand. 4.
What should be the role of Heineken’s headquarters in shaping the marketing of the brand worldwide? Heineken’s headquarters role should be to constantly evaluate all of its markets in every country and provide more marketing support in markets that have more potential or are declining and to maintain its marketing positioning in the markets that are consuming the product well. Heineken’s head quarters should also not give licensees the ability to produce its own marketing for Heineken as Heineken should be advertised equally through all of the markets. Heineken can do this by obtaining marketing fees from its licensees.
There should also be some control over the licensees other brands that it produces because a brewery that produces other brands as well as Heineken must be produced and marketed with the same level of respect and quality that Heineken instills in its own breweries. (http://www. timothyosborne. com/heineken-nv—global-branding-and-advertising. html) 5. Currently Heineken is No. 3 in the world. Recommend a marketing strategy to becoming No. 2. •Introduce a number of innovations across liquid, packaging and format that will serve to further endorse international leadership credentials because innovation is the lifeblood of brand domain. Heineken has a strong brand tradition.
In order to flourish its brand reputation across the world, convince the consumers that the brand is some way superior. •Develop a relationship with customers, build affinity between brand and customers by sponsoring international rugby tournaments, and world soccer tournament such as -( the Champions Leagues, the UEFA Champions League, world’s premier club) where target audience of men from all over the world gather in one place. Building the brand recognition for long-term to differentiate the brand Heineken and be sure to add value to the product in order to get the brand loyalty. (For example, Heineken can maintain its good quality or create benefits for society and culture, and provide an emotion to its consumers. 6. Conclusion Appendices Annex 1: Annex 2: Bibliography