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Submitted to:
Miss Kanika Jhamb

Submitted by:
Name: Divyansh Negi
Class: RA17B1
Roll.No: 23

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Contents:
1. Brief introduction about Heineken Company.

2. Brief introduction about case.

3. Case analysis

4. Problems

5. SWOT analysis

6. Global Development

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Introduction:
Heineken International founded in 1873. It is available in a 4.3% alcohol by volume, in
countries such as Ireland. It is the flagship product of the company and is made of purified
water, malted barley, hops, and yeast. In 1886 H. Elion finished the development of the
Heineken A-yeast. This is the yeast that is still used for the beer. The beer is force carbonated.
It is popular in the United States, Europe and Middle Eastern countries.

About the case:

The case study is about Global Branding and Advertising at Heineken N.V. It describes the
findings and recommendations of two research projects, which were started by Heineken in
the mid 1990 in order to clarify brand identity. Project Comet found that the brand image was
not consistently being projected and therefore the Heineken brand was perceived differently
across various different nations. The project recommended to internationally aligning the
brand’s premium taste image using five core brand values: Taste, premiumness, tradition,
winning spirit and friendship. Project Mosa was designed to draw out consumer reactions in
order to clarify the consumers’ perception of the core values premium taste and friendship.
The indicators of premium beer taste differed among the different cultures, while there was
solid need across national markets on the social occasions that would call for a premium beer
over a standard beer. The results of both research projects should guide Heineken’s
advertising efforts in the future to create a more consistent brand identity.

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Analysis

Heineken N.V is a well-know, renowned brewery with essential strengths to be a global

brand. However, brand perception is different across the countries. Though Heineken had
consistently been marketed as a premium brand, in the US and Hong Kong market, but a
distinct image was established for special occasion rather than for daily consumption while in
Latin America, Heineken is viewed as a European imported beer among others. While project
Comet and Mosa try hard to establish, gauge Heineken's global brand identity and
communication, the real test lies for Heineken to sustain its market lead & reputation in its
neighbouring European Union which far is the largest contributor to its sales. Project Comet
proves that the brand’s good taste image is built on 5 core brand values: taste, premiumness,
tradition, winning spirit and friendship. Project Mosa finds that premium beer tightly relates
friendships and important relations which are built based on enjoyable, joyful, personal,
luxury social conditions such as meeting people, fancy meals, long taste, elegant parties,
intimate moments and places etc. The friendship value would be presented in several social
conditions through “true friends” and “consumers can count Heineken as a friend”
expressions. The taste would be built on 5 brand values: taste experience, balanced taste,
foam, advertising and packaging. The taste expressions can be presented in quality and
tradition values but should not be presented in brand vision because the research result shows
the negative perception in brand vision.

Problems in the case:

A global brand is needed to provide relevant meaning i.e what is the actual meaning of their
brand is and experience to people across multiple societies. To do so, the brand strategy needs
to be invent that takes accounts of brand's own capabilities and competencies, the strategies of
competing brands, and the outlook of consumers experience in their respective societies. The
challenge for an international brand is to inspire but at the same time remain personally
relevant, attached to the target group’s personal cultures and origins. As consumer needs and
tastes vary, Heineken must decide how much to match marketing strategy to local needs using
a variance of standardized marketing mix & adapted marketing mix, owing to the strong
brand preferences & loyalties that exist among the beer drinkers. Also, Heineken need to
prioritize between global integration vs. national responsiveness evident from decreasing sales
in Holland, Rest of Europe, and Africa.

SWOT Analysis
Strength:

• The taste of Heineken beer is unique because of the yeast that is used to make Heineken
beer and developed in 18th century.
• Heineken is the world’s second largest beer manufacturer. They produce 5.6 billion
ltrs of beer each year. This gives them the good economic point to expand their
market capitalisation.

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• They have solid control over the market share in Europe and America with 38% where
as they are growing very fast in Asia and Australia.
• In some markets like USA and Hong Kong the Heineken brand is seen as a premium
brand and has successfully established a brand image.
• They have wholly owned subsidiaries in Netherlands, France and Ireland whereas they
held majority stake in 15 other breweries all over the world i.e they have global
presence.
• Across all markets the brand was acknowledged as a lighter beer or superior quality
presented in attractive packaging.
• The company with mergers and acquisitions obtained through distribution line
efficiencies which was a market strategy to reach deeper inside to the untouched
markets.

Weakness:
 No production base in some area
 Inconsistent brand image with brand communication
 TV commercials are just broadcast in larger markets
 Efforts necessary for brand to give a new life and face
 Lack of integrated marketing campaign
 Lack of worldwide advertising campaign

Opportunities:

Heineken has made acquisitions in emerging markets such as India, Asia and Latin America.
These are the markets where Heineken has the greatest potential for growth, and where its
greatest opportunities lay down.

Threats:

Heineken's major threat is Anheuser-Busch InBev (the world's largest brewer). Small,
regional brewers in various markets may pose a minor threat as well. Anheuser-Busch InBev
poses a threat in the emerging markets, where it is also investing.

Global development
Heineken N.V use different type of IMC strategy in different markets such as in undeveloped
markets pushing strategy is suitable, in growing markets both pushing and pulling strategies
are agreeable and in mature markets pulling strategy is the best.
Global positioning target can be achieved through marketing communication. However,
within the marketing mix, there will always be a requirement for locally driven campaigns
and people support. By connecting to ‘local situations’, consumer will develop a greater
emotional tie to the company. To implement that, Heineken can invite a group of local people
between 20 and 30 years of age to think with the company about new concepts and
commercials.
The company website will be designed at www.heineken.com and should have a
link/separate section to each country market with content in local language. The product label
to be used internationally. National advertising should play a prominent role in promoting
Heineken brand.

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Heineken brand search organization with hot movies targeting to demographic profile to
establish the brand position in crowded marketplaces. The company should sponsor numerous
sports events at local and regional level to help international, premium positioning and
awareness, enforce brand equity, drive volume and recruit new consumers to the brand. An
important marketing and recruitment platform for the brand is music is also there. Heineken
can build presence and dependability draw crowds in venues around the world and get
recognition through music show, international awards in contemporary music. Also, Heineken
should coordinate its marketing strategy and advertisement campaign with local in order to
use unified brand positioning worldwide.

Marketing Management