Download - Heineken NV: Branding and Global Advertising
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P r e s e n t
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Heineken NV:
Global Branding &Advertising
MM6016
Branding and Marketing Communication
29111311 Haidir Afesina
29111363 Wirania Swasty
29111384 Chairunnisa Mirhelina
29111387 F X Kresna Paska
29111398 Aqsa Adhiperwira
29111400 Fajar Liem
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7/23/2019 Heineken NV: Branding and Global Advertising
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Prepared & Presented by:
Case SynopsisEnd of 1993, Heineken had 24% volume share
Declined sales, needed some revitalization
perceived as premium brand, lighter beer of
superior quality in attractive packaging
Minor viewed as as just another European beer and at
special occasions
the most heavily advertised premium brand
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Company Facts In 1863, FOUNDED in AMSTERDAM by Gerard Adriaan
Heineken
In 1889, LARGEST SELLING BEERS in the NETHERLANDS
In 1993, SECOND inVOLUMEbehind Anheuser-Busch
In 1968, ACQUIRED local beer e.g. Amstel, Buckler,
Managed DIVERSED PORTFOLIO of BEERbrands
Operates in more than 70 countries
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International Presence
In 1937, first LICENSE to a foreign brewer
In mid 1940`s, LOSING CONTROL
over advertising & pricing In 1980`s, gain MAJORITY EQUITY STAKES
In 1993, #1 IMPORTEDbeer in USA,
In Germany, LOST to national brands
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Industry Analysis(Porter 5 forces)
Threat of new
Entrants
Threat of
Substitutes
Supplier
PowerBuyer Power
Rivalry
Competition
Wine
Spirits
Soft Drinks
Healthy Drinks
Price Sensitivity
Product Undifferentiated
Lots of supplier (raw
material)
Low switching cost
Local Beer & craft beer
Lots of big & famous competitor
Customer loyalty of product competitor
Cost reduction
Low price
Acquisition & Join
venture
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Beer Market Evolution
Differs slightly from standard product life cycle different segments occupy different space
Introduction Growth Maturity Decline
Dema
nd
(units/year)
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The Forces Profitability
Impact
Market Why?
(P=Price, C= Cost)
MediumThreat ofEntry
Dynamic Attractive P C /PC
Supplier Power Unattractive C
Buyer Power Unattractive PC
Substitutes Unattractive PC
Medium Rivalry Dynamic Attractive P C /PC
PROFIT = Price - Cost
Beer market is matured, the revenue is flat
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Pro
jectCom
et
to enhancecompetitiveadvantage:
consistently
projecting thebrand as theworld`s leading
premium beer
brand image as
good taste
ProjectMo
sa
To understand: What male beer
drinkers meant bytaste andfriendship
Whichexpressions usedin advertising
The brand`s good taste image would be built on 5 Core brand values:
Taste Premiumness Tradition Winning Spirit Friendship
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What areHeineken`s
strengths andweaknesses?
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Strengths
Uniqueness ofTASTE, rich and tradition since 1886
World`s SECOND LARGESTbeer manufactured. FAST GROWTH in Asia 23% over 1992 sales
Established PREMIUM BRAND IMAGE Lighter beer, superior quality, attractive packaging across all markets
Strong and DIVERSE BRAND PORTFOLIO
Large scale of brewery and DISTRIBUTION NETWORK
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Weaknesses
WEAK PRESENCE in top beer consuming countries
Inconsistent BRAND IMAGE
DECLINE market share in Europe & Africa LOW BRAND LOYALTY
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Is Heineken aglobal brand?
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1. YES, Heineken is a Global Brand
Operates in more than 70 countries with 170 brands
Market Leader
Strong and diverse brand portfolio
Definition:
the brand name of a product that has worldwide recognition. A global brand has the advantage
of economies of scale in terms of production, recognition, and packaging.
http://www.qfinance.com/dictionary/global-brand)
http://www.qfinance.com/dictionary/global-brandhttp://www.qfinance.com/dictionary/global-brandhttp://www.qfinance.com/dictionary/global-brandhttp://www.qfinance.com/dictionary/global-brandhttp://www.qfinance.com/dictionary/global-brandhttp://www.qfinance.com/dictionary/global-brand -
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Evaluate theresearch.
What has beenlearned?
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the Research Evaluation
Project Comet
global brand identitythe good tasteimage
Project Mosa (exhibit 4&5) expressions of taste (head) and friendship (heart) draw consumer reactions to promote the brand based
on the responses of the focus group.
per capita consumption, consumer preferences and behaviours
change depending upon the country.
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Taste, Premiumness and Quality as the minimum standard Needed to successfully position the brand globally.
Friendship as brand personality
enjoyed between close friends in smaller group not mass quantities.
Occasions compete more with fine wines than with regular beers.
Lessons learned
1. Leverage associations to promote premium
2. Each country requires different marketing mix from the other
3. challenge to move the special occasions image to more
mainstream beer selected to those seeking for premium
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How can HeinekenBrand be developed
through marketingcommunications?
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integrated to deliver a consistentmessage and achieve the strategic
positioning to young adults;
1. Deliver the differentiation or value added of Heineken quality
2. Create a strong associations to established the brand image
3. Communicate all the five core values in every advertisement
4. Sponsor numerous sports and youth events at local, regional
and national
5. Collaborate with customers for the advertisement
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TV Campaign
(different tagline)
Concert Mob
European TV campaign, 1999
Tagline Heineken. Sounds Good
Inconsistent w/ brand value
Lights Out
Asian TV campaign, 2000
Tagline It could only be Heineken
consistent
Premature Pour
American TV campaign, 2000 Tagline Its all about the beer
consistent
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What should be the roleof Heineken`sheadquarters in shaping
the marketing of thebrand worldwide?
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Consistently maintain and controlby
1. Define a strategy positioning of Heineken image
2. Control & evaluate to ensure that Heineken perception isstandardized around the world
3. Marketing distribution activities:50% trade, 25% consumer promo, 25% ads
1. Create a brand development team that focus on long term
brand strategy2. Create brand building team that focus on short term strategy