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Group 7

Consumption of alcohol is injurious to health

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.

Good taste, rich tradition and History

Acknowledge as lighter beer of superior quality.

Successful premium brand image globally

Majority stakes in its existing and prospective partners

Significant advertising expenditure at its disposal

Attractive Packaging

Weaknesses
Lack of global presence in bottling business

Lack of control over production and marketing with the licensees

Brand image was not consistent around the world

- appropriate for special occasions (US,HK)


- Another European Beer (Latin America)

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

Integrate varied preferences across countries


Manufacturing - ingredients Product Taste experience, balanced taste, freshness, after taste, foam, drinkability, day after Marketing price, advertising, packaging

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

Beer Market Evolution


Regions
Africa

Stage of development Embryonic

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

SE Asia,S. America, Greece Italy,Spain,Japan

Started growing

Growing

N&C Europe,Australia USA

Full growth

Consumer Sophistication Market segmentation Brand/segment

Fully matured