HEINEKEN N.V.: GLOBAL

BRANDING & ADVERTISING

HBR-CasePresented By:

Parnamoy DuttaRoll No.: 13

PGDM (IB)SIMSR, Mumbai

COMPANY BACKGROUND Founded in Amsterdam in 1863 by

Gerard Adriaan Heineken. In 1993 net sales of 9049 million

guilders & a trading profit of 798 million guilders.

Beer accounted for 82% of the sales. Other products were soft drinks, spirits and wine.

INTERNATIONAL PRESENCE First license to foreign a foreign beer in

1937. By 1980’s Heineken was looking for majority

equity stakes in its existing & prospective partners to ensure greater control.

Partners who did not have international ambitions were the main target of Heineken.

It owned outright operations in the Netherlands, France & Ireland. It held majority interests in breweries in Greece, Hungary, Italy, Spain & Switzerland. It had licensed production in Norway & UK. It was imported in Germany & US.

SITUATION ANALYSIS Early 1990’s saw the industry becoming

increasingly global. Emerging markets were distinguished by

population expansion & increased per-capita income.

Overcapacity & minimal population growth in Europe resulted in price wars, margin pressures & efforts to further segment the market to no or low alcohol flavored beers.

Difference in per-capita beer consumption, consumer behavior & preferences, competitors in different markets.

PROBLEM IDENTIFICATION Sales volume were declining & brand

image needed some revitalization. Perceived for consumption at special

occasions rather than daily consumption.

In some markets it was just another imported beer.

PROJECT COMET

Brand Image: Good Taste

5 Factors: Taste Premiumness Tradition Winning Spirit Friendship

POP’s were important but did not provide any advantage.

POD’s needed to be focused in the ads thereby giving the advantage.

Focus groups to understand what male beer drinkers

meant by taste & friendship

which expressions of taste & friendship can be used.

Quality, Brewing skills, & Tradition showed a positive relation to Taste.

Heineken as a companion showed a positive relation to Friendship.

PROJECT MOSA

POP

POD

RECOMMENDATIONS Ads should focus more on the aspect of

winning spirit, friendship & tradition. A sample TV commercial plot:

A horse race in progress between which intermittently the tradition, hard work in making the beer is shown.

On the finish intermittently the slow pouring shots of the golden sparkling beer is shown.

After the finish the party the winners along with the other participants are shown to enjoy the beer in the backdrop of a Heineken beer bottle.