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
was appropriate 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 the advertising 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.
Strengths

The taste of Heineken beer is unique. The yeast that is used to make Heineken beer tilltoday was
developed in 1886. So the taste and uniqueness of it has been there for ahundred years.

Heineken is the world‟s second largest beer manufacturer. They produce 5.6 billion ltrsof beer each
year. Second only to Anheuser-Busch who produce 10 billion ltrs. This givesthem economies of scale and
a platform for further expansion of their marketcapitalization.

They have substantial market share in Europe and America with 38% where as they aregrowing very fast
(rate of growth 23% over 1992 sales) in Asia and Australia.

In some markets like USA and Hong Kong the Heineken brand is perceived as apremium brand and has
successfully established a brand image.

They have wholly owned subsidiaries in Netherlands, France and Ireland whereas theyheld majority
stake in 15 other breweries all over the world. This gave them a globalpresence.

Across all markets the brand was acknowledged as a lighter beer or superior qualitypresented in
attractive packaging

The company has through mergers and acquisitions obtained distribution line efficiencieswhich in would
add to the market reach of the Heineken and would give it a much deeperpenetration to the untouched
markets.

Weaknesses

The local Heineken brand managers had the resources to develop own commercialswhich were not
always aligned to the Heineken brand image that the managers atheadquarters wanted to project.

In some countries the brand image of Heineken was too narrow such that the brand wasseen
appropriate for special occasions only. While in other countries like Latin Americathe brand was viewed
as just another imported European beer. In Netherlands it wasviewed as a mainstream brand.

This difference in brand image across global markets is hurting Heineken. Heineken islosing market
share in Europe (drop in sales 1.6% compared to 1992 ratings). In Africaalso the brand was losing market
share @ 1.5%. Is Heineken a global brand? Heineken isa global brand in the.

The company has limited its reach to the European and the Western countries and therestill lies a scope
for scaling up in countries like India where the beer is just imported andthus making it impossible to
penetrate deep down

RESEARCH ANALYSIS

The research projects namely Project Comet and Project Mosa were commissioned to clarify Heineken‟s
brand identity and t he implications for television advertising. The findings from the research carried
out are as follows. Project Comet identifies taste,premium brand image , tradition, winning spirit, and
friendship as the brand‟s core brand values.

The team detailed how each of the core brand values should be portrayed in Heineken brand
commercials. 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. Friendship expressions will be portrayed through True friends and the
Taste expressions through the Quality of the product.Consumer tastes for beer vary across the globe in
markets that have strong brand preferences and are in diverse stages of development. 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.Advertising should not be
limited to traditional media markets, but should include sponsorship of various public events including
sporting events and concerts. Heineken must inspire international confidence while maintaining local
appeal. Heineken should keep packaging and branding consistent while varying advertising. This
consistent reminder of the Heineken brand will remind consumers of Heineken‟s universal appeal, while
acting as the official stamp of a quality beer.

The learning for the research are that the company must not only focus on the developed marketsor 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, Heineken still has not penetrated India
and the beer that is available is through imports. It has also been foundout that the company does not
have a fixed group that looks into the Marketing CommunicationMix and that is the major reason that
the company is suffering, not in terms of revenue but interms of market capitalization.The things that
could have been one better would surely be that the company must look into theirglobal Integrated
Marketing Communication Mix which would help Heineken develop into aglobal brand which would
have a hegemonic dominance over the competing brands. They should go into like “When in Rome, do
as the Romans do” that signifies that the communication mix should be different from country to
country, and it should be significantly referring to thepersonalization of the masses representing the
target population of a particular country. It shouldkeep learning from what had happened to other
brands that entered into foreign markets and didnot do well and they should learn from their
failures.Instead of giving the authority to the regional managers for developing of the advertisements,
theHeineken Management could have outsourced the Marketing Communication Mix to some of
theleading Advertising Agencies like O&M, Framfab etc

Development through marketing comm

The Heineken brand can be developed through the distinctive characteristics of the
marketingcommunication mix:

•multiple forms of marketing communications are needed to communicated the valuebenefits of a

product or market offering to larger and larger numbers of actual andpotential consumers
•the value benefits of a product or marketing offering is communicated to the targetmarket through
three modes: marketing communication mix, mass marketing forms of communication (non-personal),
personal marketing forms of communication

•creating strong associations and responses in the consumer‟s mind: creating awareness of the brand,
establishing the brand image, implanting „top of the mind‟ brand judgments and feelings , and creating
strong consumer-brand connect.

 by designing a marketing communication strategy that delivers a consistent message thataims at

informing, persuading , and reminding consumers directly or indirectly- aboutthe products and
brand for sale in the market segmentThe message should be implanted in the minds of the
consumer to create brand equity byestablishing the brand as a value-creator in the memory of the
market and creating for itself abrand image. This can be accomplished in the following manner:

Extensive use of events and experiences to create novel brandinteraction with consumers:

Heineken organizes Heineken Jammin' Festival

which is a large live rock festivalin Venice, Italy featuring international and Italian rock acts. In 2008 the
festival had actsby Linkin Park, Sex Pistols, Vasco Rossi and the Police and also the brand organizes
theHeineken Cup for the UEFA Championship and also has an ATP Tennis Tournament-The Heineken
Open which is played in New Zealand.This helps in creating a novelinteraction with the customers thus
building on the brand image of Heineken as sportsfrenzy, youth centric and a brand that dwells
friendship.

2. Extensive use of print and TV ads

featuring, humour, family values, friendship,trust, romance, happiness, aspirational lifestyles and
testimonial by celebrities. Thiswould create a deeper penetration for the Heineken brand in the minds of
the consumersand also increase the share of mind and share of heart for the brand thus adding onto
thebrand equity

HEADQUARTERS ROLE

The Headquarters should presumably perform the following significant functions in order tomarket the
brand worldwide:

Define and establish a strategic roadmap for Brand Experiences. Implement a plan forshort term and
long-term improvements.

Lead the negotiation of major new sponsorships, new brand experience platforms andpartnership
agreements

Manage the integration of media buys into overall Brand Experience Strategy.
Collaborate with Brand teams to negotiate relevant Added-Value resources (print) tosupport Brand
Experience strategy

Responsible for Brand Experience Implementation and ensuring (International) bestpractices are being
adhered to

Identify and manage Brand Experience agency resources against the development of agreed to
activities. Conduct post-evaluation of all Brand Experiences to ensure continuous learning
andimprovement.

Proactively work with regional marketing and sales to help drive and support thesuccessful sell-in and
execution of Brand Experiences to distributors and retail.

Develop the Public Relations Strategy as it relates to support of all Heineken BrandAdvertising, Media
and Experiential activity, i.e. new product launches, advertising,platform launch, major event
sponsorships, etc.

Manage the PR Agency against the agreed to PR strategy.

Collaborate with company-wide PR Director who manages the company‟s overall

strategic public relations programs, i.e. media relations, internal communications, andinvestor relations.

Work with the merchandising and logistics team to manage the development of brandexperience
merchandise and point of sale support material ensuring active input fromregional marketing and
channel management.

Work with communications manager to manage the development and execution of aninternal
communication plan for employees, distributors and the trade.

Track the pre-approved Brand Experience budget