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: GLOBAL BRANDING AND ADVERTISING
(CASE STUDY ANALYSIS)
SUBMITTED TO: Prof. Ram Mohan Pisharodi SUBMITTED BY: TEAM NO- 1 Section-B (Marketing) NANDITA SINHA ROY SARVANAN V R NARENDRA SHARMA NISHCHINT VIPUL KOTADIA KAPIL RAINA 08PG 099 08PG 123 08PG 100 08PG 037 08PG 284 08PG 231
Ochota®. local and specialty beers around the globe. Often. spirits and soft drinks. ALLIANCE BUSINESS SCHOOL. We also fully acknowledge the role that we have to play in society. 2009 [INTERNATIONAL MARKETING] Company Profile Heineken is one of the world‟s great brewers and is committed to remaining strong and independent. it is the consumers and their changing needs that is at the heart of our efforts. Zywiec®. Cruzcampo®. Our famous brands include Amstel®.April 6. mature markets. regional. communication and packaging. while the popularity of our beers is growing daily in emerging beer markets such as Russia. In all of these areas. Murphy‟s® and Star®. We have the widest presence of all international brewers. Heineken brews great beers and builds great brands. Social responsibility and sustainability underpin everything we do. We are committed to growth and have embraced innovation as a key component of our strategy in the areas of production. Europe‟s third-largest selling beer. We will continue expanding initiatives to combat alcohol abuse and misuse and work hard to reach the highest environmental standards in the industry. affiliates and strategic partnerships and alliances. We are the largest brewer and distributor in Europe. thanks to our global network of distributors and 115 breweries in more than 65 countries. Birra Moretti®. marketing. our wholesalers also distribute wine. At Heineken we aim to be a leading brewer in each of the markets in which we operate and to have the world‟s best brand portfolio. China and Latin America. Our global coverage is achieved through a combination of wholly-owned companies. Our brands are well established in profitable. Tiger®. we have more than 170 international. Our international export operations ship beer to large and profitable markets worldwide. In addition to the Heineken brand.BANGALORE Page 2 . The brand that bears the founder‟s name – Heineken – is available in almost every country on the planet and is the world‟s most valuable international premium beer brand. licence agreements.
Our principal brands are Heineken® and Amstel®. Global Operations Heineken beer is available in more than 170 countries. On January 4. Employees In 2007. ALLIANCE BUSINESS SCHOOL. 1873 the board of directors of Heineken's Bierbrouwerij Maatschappij NV decided to build a brewery in Rotterdam as well. All Heineken products imported into the U. eventually closed its gates in the 1970's because a brand-new brewery had been built at Zoeterwoude. 2009 [INTERNATIONAL MARKETING] History of the Company The history of Heineken starts on December 16. A large part of the brewery made way for houses. regional.April 6. With more than 110 breweries in over 50 countries and export activities all over the world.9 million hectoliters. Heineken Special Dark.004 170 brands Heineken‟s leading brand portfolio includes more than 170 international premium. marketing and packaging. local and specialty beers.S. According to our 2001 annual report. Within a few years Gerard Adriaan increased sales so much that construction of a new brewery was necessary. Amstel Light and Buckler into the U. are brewed in Holland. a new brewery was built.BANGALORE Page 3 . we sold 22. The Rotterdam brewery. 1863 when Gerard Adriaan Heineken bought the De Hooiberg Brewery (The Haystack) in Amsterdam. This brewery. But the brew house and part of the storage cellars were converted into the Heineken Reception Center where more than a hundred thousand visitors a year from all parts of the world are given a guided tour. The company's product portfolio consists of over 80 brands although Heineken USA only imports Heineken Lager.8 million hectoliters of Amstel in that year.S. The brewery currently has an annual capacity of eleven million hectoliters.4 million hectoliters of Heineken and 10. Heineken is the most international brewery group in the world. the average number of employees employed was 54. It remained in operation until 1988 when it was eventually closed because of logistics obstacles (the steady spread of the city meant that the brewery was located in the center of Amsterdam). mid-way between Rotterdam and Amsterdam. We continually seek to reinforce our brands through innovations in production. ensuring the Group's second place in the world rankings. too. On the outskirts of Amsterdam. The purchase of De Hooiberg was the birth of the firm of Heineken & Co. In 1999 the total beer volume of the Heineken Group amounted to 90. Europe's most advanced started production in 1975.
2009 [INTERNATIONAL MARKETING] 139. They have wholly owned subsidiaries in Netherlands. ALLIANCE BUSINESS SCHOOL. They have substantial market share in Europe and America with 38% where as they are growing very fast (rate of growth 23% over 1992 sales) in Asia and Australia. This gives them economies of scale and a platform for further expansion of their market capitalization.BANGALORE Page 4 . France and Ireland whereas they held majority stake in 15 other breweries all over the world. In some markets like USA and Hong Kong the Heineken brand is perceived as a premium brand and has successfully established a brand image. They produce 5.2 million hectoliters. What are Heineken’s strength and weaknesses? Is Heineken a global brand? Strengths: The taste of Heineken beer is unique. The yeast that is used to make Heineken beer till today was developed in 1886. Across all markets the brand was acknowledged as a lighter beer or superior quality presented in attractive packaging The company has through mergers and acquisitions obtained distribution line efficiencies which in would add to the market reach of the Heineken and would give it a much deeper penetration to the untouched markets. We own more than 119 breweries in more than 65 countries brewing a Group beer volume of 139.6 billion ltrs of beer each year. This gave them a global presence.April 6. Q1. So the taste and uniqueness of it has been there for a hundred years. Second only to Anheuser-Busch who produce 10 billion ltrs.2 million hl The Heineken brand is available in almost every country on the planet. Heineken is the world‟s second largest beer manufacturer.
winning spirit. Project Mosa confirms that „taste appeals to the head‟ and „expressions of friendship appeal to the heart‟ and identified how the expressions of taste and friendship could be used by the Heineken brand in advertising. but should include sponsorship of various public events including sporting events and concerts.April 6. While in other countries like Latin America the brand was viewed as just another imported European beer. Evaluate the research. Friendship expressions will be portrayed through True friends and the Taste expressions through the Quality of the product. surely Heineken is a global brand having its presence in and around 170 countries and this means that the brand has possibly gone much beyond to be recognized as a global brand. Heineken must inspire international confidence while maintaining local appeal. 2009 [INTERNATIONAL MARKETING] Weaknesses: The local Heineken brand managers had the resources to develop own commercials which were not always aligned to the Heineken brand image that the managers at headquarters wanted to project. Heineken is losing market share in Europe (drop in sales 1. What has been learned? What did you learn? What could have been done better? The research projects namely Project Comet and Project Mosa were commissioned to clarify Heineken‟s brand identity and t he implications for television advertising. Project Comet identifies taste. Yes. Heineken must maintain a consistent branding strategy with central control from headquarters and build brand equity by utilizing market research to design advertising specific to local markets. Consumer tastes for beer vary across the globe in markets that have strong brand preferences and are in diverse stages of development.5%. premium brand image. In some countries the brand image of Heineken was too narrow such that the brand was seen appropriate for special occasions only. The company has limited its reach to the European and the Western countries and there still lies a scope for scaling up in countries like India where the beer is just imported and thus making it impossible to penetrate deep down. This difference in brand image across global markets is hurting Heineken. Q2. Advertising should not be limited to traditional media markets. and friendship as the brand‟s core brand values. In Africa also the brand was losing market share @ 1. Is Heineken a global brand? Heineken is a global brand in the. The team detailed how each of the core brand values should be portrayed in Heineken brand commercials.6% compared to 1992 ratings). tradition. Heineken should keep packaging and branding ALLIANCE BUSINESS SCHOOL. In Netherlands it was viewed as a mainstream brand.BANGALORE Page 5 . The findings from the research carried out are as follows.
and it should be significantly referring to the personalization of the masses representing the target population of a particular country. Instead of giving the authority to the regional managers for developing of the advertisements. Heineken still has not penetrated India and the beer that is available is through imports. This consistent reminder of the Heineken brand will remind consumers of Heineken‟s universal appeal. How can the Heineken brand be developed through marketing communication? The Heineken brand can be developed through the distinctive characteristics of the marketing communication mix: • multiple forms of marketing communications are needed to communicated the value benefits of a product or market offering to larger and larger numbers of actual and potential consumers the value benefits of a product or marketing offering is communicated to the target market through three modes: marketing communication mix. establishing the brand image. do as the Romans do” that signifies that the communication mix should be different from country to country. Q3. It should keep learning from what had happened to other brands that entered into foreign markets and did not do well and they should learn from their failures. They should go into like “When in Rome. personal marketing forms of communication creating strong associations and responses in the consumer‟s mind: creating awareness of the brand. The things that could have been one better would surely be that the company must look into their global Integrated Marketing Communication Mix which would help Heineken develop into a global brand which would have a hegemonic dominance over the competing brands. mass marketing forms of communication (non-personal). 2009 [INTERNATIONAL MARKETING] consistent while varying advertising. Framfab etc. the Heineken Management could have outsourced the Marketing Communication Mix to some of the leading Advertising Agencies like O&M.BANGALORE Page 6 . The learning for the research are that the company must not only focus on the developed markets or the markets that are into saturation level and it should focus on the markets that are in the embryonic stage and also on the developing markets and one of them being India. and creating strong consumer-brand connect • • ALLIANCE BUSINESS SCHOOL. not in terms of revenue but in terms of market capitalization. It has also been found out that the company does not have a fixed group that looks into the Marketing Communication Mix and that is the major reason that the company is suffering. while acting as the official stamp of a quality beer. implanting „top of the mind‟ brand judgments and feelings .April 6.
In 2008 the festival had acts by Linkin Park. Lead the negotiation of major new sponsorships. family values. romance.about the products and brand for sale in the market segment The message should be implanted in the minds of the consumer to create brand equity by establishing the brand as a value-creator in the memory of the market and creating for itself a brand image. Italy featuring international and Italian rock acts. What should be the role of Heineken’s headquarters in shaping the marketing of the brand worldwide? The Headquarters should presumably perform the following significant functions in order to market the brand worldwide: Define and establish a strategic roadmap for Brand Experiences.BANGALORE Page 7 . friendship. Collaborate with Brand teams to negotiate relevant Added-Value resources (print) to support Brand Experience strategy Responsible for Brand Experience Implementation and ensuring (International) best practices are being adhered to Identify and manage Brand Experience agency resources against the development of agreed to activities. persuading . happiness. trust. This would create a deeper penetration for the Heineken brand in the minds of the consumers and also increase the share of mind and share of heart for the brand thus adding onto the brand equity. Extensive use of events and experiences to create novel brand interaction with consumers: Heineken organizes Heineken Jammin' Festival which is a large live rock festival in Venice. new brand experience platforms and partnership agreements Manage the integration of media buys into overall Brand Experience Strategy. humour. 2009 [INTERNATIONAL MARKETING] • by designing a marketing communication strategy that delivers a consistent message that aims at informing.April 6.This helps in creating a novel interaction with the customers thus building on the brand image of Heineken as sports frenzy. Sex Pistols. youth centric and a brand that dwells friendship. Implement a plan for short term and long-term improvements. aspirational lifestyles and testimonial by celebrities. This can be accomplished in the following manner: 1. Extensive use of print and TV ads featuring. ALLIANCE BUSINESS SCHOOL. and reminding consumers –directly or indirectly. Q4. Vasco Rossi and the Police and also the brand organizes the Heineken Cup for the UEFA Championship and also has an ATP Tennis TournamentThe Heineken Open which is played in New Zealand. 2.
platform launch. Media and Experiential activity. media relations. Proactively work with regional marketing and sales to help drive and support the successful sell-in and execution of Brand Experiences to distributors and retail. advertising. distributors and the trade. i. Develop the Public Relations Strategy as it relates to support of all Heineken Brand Advertising. Track the pre-approved Brand Experience budget.April 6. etc. new product launches.BANGALORE Page 8 .e. Manage the PR Agency against the agreed to PR strategy. and investor relations. Collaborate with company-wide PR Director who manages the company‟s overall strategic public relations programs. Work with the merchandising and logistics team to manage the development of brand experience merchandise and point of sale support material ensuring active input from regional marketing and channel management. ALLIANCE BUSINESS SCHOOL. internal communications.e. 2009 [INTERNATIONAL MARKETING] Conduct post-evaluation of all Brand Experiences to ensure continuous learning and improvement. Work with communications manager to manage the development and execution of an internal communication plan for employees. i. major event sponsorships.
2009 [INTERNATIONAL MARKETING] GLOBAL BRAND DEVELOPMENT ALLIANCE BUSINESS SCHOOL.April 6.BANGALORE Page 9 .
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