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Background
Heineken Holding N.V. heads the Heineken group One of the worlds leading consumer and corporate brands for over 145 years Located in the Netherlands Brand portfolio contains more than 200 international premium beers and ciders 125 breweries in more than 70 different countries
http://www.youtube.com/watch?v=57zo8O5pD Xc http://www.youtube.com/watch?v=MZtDqpdvy 7s
What are Heinekens strengths and weaknesses? Also evaluate the research approach and what are your learning(s) from the same.
Strengths
Worlds leading premier Beer.
Attractive Packaging
Weaknesses
Lack of global presence in bottling business
Project Comet
Initiated in 1991 To enhance Heinekens competitive advantage through advertisement projections as the worlds leading premium beer The project team had identified good taste as the desired brand image of Heineken
Five factors as core brand values Taste
Friendship
Premiumness
Winning Spirit
Tradition
Project Comet
Taste and Premiumness were PoPs (necessary but no significant advantage) Differentiation was to be achieved through the communication of the remaining three values Impactful advertisements, incorporating leading edge technology and calculated risks, were recommended
Five factors as core brand values Taste
Friendship
Premiumness
Winning Spirit
Tradition
Project Mosa
Focus groups were commissioned in eight countries to understand what male beer drinkers meant by taste and friendship in relation to premium beer drinking Which expressions of taste and friendship could be used in advertising The qualities of beer that appealed to the mind and ones that appealed to emotion were identified by running focus groups among 21-27 year olds and 28-35 year olds.
Project Mosa
The cues employed for the focus groups were based upon taste and friendship Customer reactions to Heineken advertisement claims along both these cues were elicited and suitability ratings were calculated
Q2
What should be the role of Heinekens HQs in shaping the marketing of the brand worldwide?
Brand was not consistently projected worldwide communication Local managers had resources to develop their own commercials as per individual market conditions IMC based on Project Comet results
Taste Premiumness Tradition Winning spirit Friendship
Base on locations, situations, casting, lighting, style and tone etc. (Exhibit 7)
Further
Project Mosa results
Taste appealed to the head Friendship appealed to the heart
Brand Architecture
Multiple brands in multiple countries Hybrid architecture mix of house of brands and branded house Marketing Communication in each country based on the traits/characteristics Exhibits 6,7,8 and 9 provide cues to individual market traits
Recommendations
As Heineken follows a global strategy of expansion, standardization of marketing communications is a necessary step The Beer industry was in a globalizing phase through the 1990s. Emerging markets carried a lot of promise due to population expansion and increasing per-capita beer consumption Each country was in a separate stage of market evolution: Embryonic, Take Off, Growing, Mature or Declining
Recommendations
Despite differing strategies across markets, a unifying marketing communications theme is necessary A global branding strategy will lower marketing costs, realize economies of scale in production and clarify the brands positioning in the minds of customers
Market evolution
High local consumer loyalty Fragmented local brewers Development of standard beer Shifts in consumer taste Quality improvements Introducing premium beer High volume focus Price Competition
Eastern Europe
Take-off
Started growing
Growing
Full growth
Fully matured