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Case Analysis: Heineken N.V.: Global Branding and Advertising

Case Analysis: Heineken N.V.: Global Branding and Advertising

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Published by mahtaabk
Indian Institute of Management Kozhikode

Marketing Management
Case Analysis: Heineken N.V.: Global Branding and Advertising
Submitted to: Prof. Rahul Kumar Sett

Submitted By: PGP/14/258 Alok Kumar PGP/14/280 Mahtaab Kajla PGP/14/303 Shruti Kabdal PGP/14/279 Lokesh Singh PGP/14/283 Naveen Vyas PGP/14/304 Sneha Ramteke

Situation Analysis :        At the end of 1993, Heineken had a 24% volume share in the Netherlands, far ahead of its main competitor “Grolsch”, but the sales volume was d
Indian Institute of Management Kozhikode

Marketing Management
Case Analysis: Heineken N.V.: Global Branding and Advertising
Submitted to: Prof. Rahul Kumar Sett

Submitted By: PGP/14/258 Alok Kumar PGP/14/280 Mahtaab Kajla PGP/14/303 Shruti Kabdal PGP/14/279 Lokesh Singh PGP/14/283 Naveen Vyas PGP/14/304 Sneha Ramteke

Situation Analysis :        At the end of 1993, Heineken had a 24% volume share in the Netherlands, far ahead of its main competitor “Grolsch”, but the sales volume was d

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Published by: mahtaabk on Mar 19, 2011
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02/23/2015

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Marketing Management
Case Analysis:
 
Heineken N.V.: Global Branding and Advertising
 
Indian Institute of ManagementKozhikodeSubmitted By:PGP/14/258 Alok Kumar PGP/14/279 Lokesh SinghPGP/14/280 Mahtaab Kajla PGP/14/283 Naveen VyasPGP/14/303 Shruti Kabdal PGP/14/304 Sneha Ramteke
Submitted to: Prof. Rahul Kumar Sett
 
 
1
Marketing Management | 29/07/2010 
Situation Analysis :
 
At the end of 1993, Heineken had a 24% volume share in the Netherlands, far ahead of its main competitor
“Grolsch”, but the sales volume was declining and brand image needed revitalization.
 
 
In foreign markets, such as the United States and Hong Kong, Heineken had always been marketed as a premiumbrand, and had managed to create a distinct image for itself 
 
The image was sometimes, however, narrowly drawn, leading to a general perception that Heineken wasappropriate only for special occasions
 
Across European countries, Heineken had very strong brand awareness
 
In Latin America, Heineken was viewed as just one amongst the many European Beer imports
 
However, across all markets Heineken was perceived as a lighter beer of superior quality, in attractive packaging
 
Heineken was the most heavily advertised premium brand in Europe and worldwide, with more than 90% of theadvertising taking place in the form of TV Commercials
Problem Identification:
 
Heineken needed to work out its global brand image and advertising efforts too, needed to be integrated on aglobal scale
 
Regional managers often developed their own commercials citing unique competitive conditions. Standardizationwas thus non-existent, and required.
Table A
– 
Strengths and Weakness of Heineken
 
Strengths Weakness
World‟s leading premier Beer.
Lack of global presence in bottling business. In the majorbeer-
consuming market, Germany and US it‟s imported
and not bottled.Known for its good taste, rich tradition and History. Lack of presence in Latin America. Viewed as just one of many imported European beers in Latin America
.
Acknowledge as lighter beer of superior quality. Perceived premium brand image in some markets, whichresulted in decline of sales volume across all the market.Packaging is attractive and one of the best in business.Leader in Netherland market. Heinekens brand image is not being consistentlyprojected in Brands communication.Number One imported beer in US Market. Brand loyalty needs to be build on, in Eastern Europepeople keep on switching brands.Successful premium brand image globally (US, HongKong etc).Have majority stakes in its existing and prospectivepartners to ensure tighter control in production andmarketing.Significant advertising expenditure at its disposal. It alsohas the ability to come up with advertisements that arestate of the art.
 
 
2
Marketing Management | 12/8/2010 
Project Comet
 
Was initiated
in 1991 to enhance Heineken‟s competitive advantage through advertisement projections as theworld‟s leading premium beer
 
 
The project team had identified “good taste” as the desired brand image of Heineken
 
 
The project identified the following five factors as core brand values:
o
 
Taste
o
 
Premiumness
o
 
Tradition
o
 
Winning Spirit
o
 
Friendship
 
The first two were recognized merely as
points of parity
, and hence were necessary, but didn‟t provide any
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
Project Mosa
 
Focus groups were commissioned in eight countries to
o
 
Understand what male beer drinkers meant by taste and friendship in relation to premium beer drinking
o
 
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 runningfocus groups among 21-27 year olds and 28-35 year olds. 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 ratingswere calculated
 
Regions Stage of development Market evolutionAfrica
Embryonic High local consumer loyaltyFragmented local brewers
Eastern Europe
Take-off Development of standard beerShifts in consumer taste
SE Asia,S. America, Greece
Started growing Quality improvementsIntroducing premium beer
Italy,Spain,Japan
Growing High volume focusPrice Competition
N & C Europe,Australia
Full growth Consumer SophisticationMarket segmentation
USA
Fully matured Brand/segment proliferationProduct Differentiation
Beer Market had different development stages and Heineken at that time was in different phases of development atsame time. In USA the market was fully matured where as in Africa it was in Embryonic Stage.

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