Marketing Management – I Case Study Review

Heineken N.V., Gillette, Mountain Dew
Group Members: Abhishek Gupta PGP/16/123

Kanika Vanvari
Ruchir Mehrotra Vismay Buch

PGP/16/145
PGP/16/162 PGP/16/179

Saumya Khetarpal PGP/16/163

Table of Contents • Heineken – Introduction and Problem Statement – Analysis – Conclusions • Gillette – Introduction and Problem Statement – Analysis – Conclusions • Mountain Dew – Introduction and Problem Statement – Analysis – Conclusions .

used focus groups to determine key expressions of taste and friendship related with Heineken Problem Statement: • Analyze whether the conclusions from both projects mutually consistent • Determine key attributes and brand image of Heineken to be communicated through advertisements . Heineken’s beer sales (5.V. was the second biggest beer brewer in the world by 1993 • In 1993.Heineken Introduction and Problem Statement • Founded in 1863.6 billion litres) accounted for 82% of its ANG 9.420 MM) • Project Comet was launched in 1991 to identify the core brand values of Heineken that would project it as a leading premium beer • Project Mosa. Heineken N. introduced in late 1993.049 MM sales revenue (ANG 7.

5 Total 1993 Beer Sales % 38 38 19 5 24 47 13 8 6 Africa is in the embryonic stage.7 -1.6 5.Heineken Analysis – Table 1–2. 1992 -1. and needs to target by promoting advantages of beer • Beer started out as a preventive against diseases and to kill germs Heineken should focus on converting their minority equity stakes into majority equity stakes or wholly owned subsidiaries • This would give them more control over their operations in these markets  . Exhibit 1–2 Geography Netherlands Rest of Europe America Asia/Australasia Africa  Heineken 1993 Sales % % Change vs.3 23.

as they have high price competition . which helps maintain its high market share.Heineken Analysis – Exhibit 3 Parameter Main brand usage Trial/awareness ratio Netherlands 17 92 France 14 89 Greece 44 99 Ireland 25 91 Italy 7 86 Spain 5 66 UK 11 90 Germany - Regular/total usage ratio Monthly brand penetration Market share position Advertising share of voice position Per capita beer consumption • 46 60 1 1 90 40 48 2 2 41 54 79 1 4 40 42 57 2 5 123 28 53 3 4 24 25 63 7 6 71 41 60 7 6 103 144 • Heineken is the top spender on advertisements in Netherlands. Greece is a key market for Heineken. but its per capita beer consumption is low Italy and Spain are not key markets for Heineken.

refreshing coolness. genuine enjoyment Show smaller groups. such as. champagne . sparkling texture. and preferred over other forms of liquor.Heineken Brand Image • Key core values identified through Project Comet and their portrayal in Heineken advertisements are consistent with the findings of Project Mosa Brand Value Taste Communication Golden color. close friends as content and relaxed Project Mosa Heineken’s “Purest Taste” ad was perceived positively and taste experience is considered a key indicator of quality “When true friends get together” ad generated a positive feedback in almost all geographies Friendship • • Other core values mutually consistent in both project results are Quality (Premiumness) and Tradition Premium quality beer image – portray that a Heineken customer has distinct taste and a unique preference • Portray its beer to be superior in taste.

Heineken Global Brand and Competitive Advantage • To build a global brand. characteristics that need to be standardized are: • Tradition 131-year old • Bottle Packaging • Premium Quality • Taste – unique strain of yeast since 1886 • Portray a lively environment • Intimate relationship with each customer (from advertisement) • Other characteristics that need to be modified by market: • Customize to local customers. culture. and language .

it was a success in the market Problem Statement: • Suggest potential changes to PCDs planning and control system • Improvise the marketing strategies of Right Guard and White Rain to increase their market share . PCD launched the White Rain shampoo and conditioner. However. skin care.Gillette Introduction and Problem Statement • Gillette’s Personal Care Division (PCD) was responsible for its toiletries and cosmetic products. its deodorant brand for males. including hair care. Although the system was not followed. and deodorants/ antiperspirants (AP) in the US • PCD employed a planning and control system to develop the marketing strategies for its products • In 1983. it used this system to re-introduce Right Guard. it was deemed as a failure • In 1985.

2 29.5 82.8 • Actual sales figures are not very bad • Reached target of 95.3 86.Gillette Analysis – Sales Figures Forecasted Situation for Right Guard 1983 1984 1985 Combined Cost of goods sold 19.4 21.6 Marketing Expense 26.6 36.1 94 Cost of goods sold as percentage 29% 28% 29% Direct Marketing Contribution 22.3 28.2 19.7 Actual Sales Figure for Right Guard Actual Sales 72.6 82.4 20.8 Sales 69.3 70.7 19.1 68.9 26.5% • The planning and control strategy worked well despite of bad economic conditions .1 COGS (@ 29%) 20.8 27.4 Direct Marketing Contribution 25.9 22.

No. it had a perception of being relatively more successful as the company had lower expectations from it • The reason for this may be attributed to the low success of Right Guard which created an inertial effect . the market share of White Rain was only 3%. Product Positioning Males (Later targets 12–24 year old) Situation Strategy Chosen Brand Awareness Very High (66% unaided and 100% aided awareness among males) Low (People didn’t know about it until they saw it on the shelves) 1 Right Guard Conventional Build Strategy (Followed (Focus on through the Market Planning & Share) Control system) Entry-level with Low Price High Risk (Shortcuts taken through the planning and control system) 2 White Rain Price-Value Brand • Although.Gillette Strategy Competitions S.

Gillette Observations • Profit driven company – It decided to reduce its advertising costs to increase its short-term profits. which would later help in getting more budget to promote Right Guard • Each product manager had his/her own performance metrics to evaluate a product’s performance • Its current planning and controlling system relies mainly on past data to estimate market share – This is flawed as for a new product there is no past data to estimate • Politics is evident and is used to skip important processes and red tapes. like the use of Bill Ryan’s name to push White Rain .

Gillette Proposed Solutions • Gillette should develop a system suitable for designing the launch of a new product • Uniform performance indicators for each of the product managers • Politics is evident and is used to skip important processes and red tapes – Bill Ryan’s name was used repeatedly to push White Rain .

Mountain Dew Analysis • Popularity of Dew Dudes – Dew Dudes were present in all of its advertisements – Actors were altered depending on the geography • Criteria for Evaluation of Advertisements – – – – – Product is integrated properly in the ad Extension of previous ad equity Novelty Understandable (Over exposure to extremes) Entertainment .

Analysis Geography Brand Benefit/ Tangibles Intangibles Resonance with Target Market Simplicity Novelty Understandable Product Integration Campaign Extension Cheetah 1 8 6 Mock Opera 1 4 Show stopper 1 5 4 6 7 8 7 8 2 6 3 4 4 1 5 6 6 3 .

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