HEINEKEN N.V. – GLOBAL BRANDING AND ADVERTISING

BRAND MANAGEMENT

Strengths:

1) It is the world’s leading premier Beer

2) It is known for its good taste, rich tradition and History

3) It is acknowledged as lighter beer of superior quality

4) The packaging is attractive

5) It is the leader in Netherland market

6) It is the number one imported beer in US market

7) It has the ability to advertise that are state of the art

Weakness:

1) Its brand image is not being consistently projected in Brands communication

2) Brand loyalty is needed in Eastern Europe since people keep switching brands

3) It has lack of global presence in bottling business. IN the majority beer consuming market, Germany and US it’s imported and not bottled

4) It has lack of presence in Latin America and is viewed as just one of the many imported European beers

5) It is perceived premium brand image in some markets, which resulted in decline of sales volume across all the market

Heineken is a global brand which has its presence in Netherlands, Rest of Europe, America, Asia/Australasia and Africa and has its sales of about 24%, 47%, 13%, 8 % and 6% respectively.

According to the research done via focus group responses w.r.t Indications of beer taste, few things have been measured.

Manufacturing

Ingredients

In Netherlands, Italy and USA, Ingredients has been an unimportant or negative indicator of quality. Reason behind this is because the beer is only imported rather than manufactured.

Water Quality

In Italy and US, water quality has been an unimportant or negative indicator of quality. The overall quality is neutral for the average of 8 countries.

Scale of Plant

In Italy, the scale of plant has been an unimportant or negative indicator of quality. The overall quality is positive for the average of 8 countries.

Product

Taste experience

All the 8 countries had positive review regarding the quality of taste (experience).

Balanced taste

All the 8 countries had positive review regarding the quality of taste (balanced).

Aftertaste

In Netherlands and Germany, Aftertaste factor has been an unimportant or negative indicator of quality. The overall quality is neutral for the average of 8 countries.

Freshness

In Germany and Italy, the quality of Freshness has been an unimportant or negative indicator of quality. The overall quality is neutral for the average of 8 countries.

Foam

In Italy, foam factor has been neutral indicator of quality. The overall quality is positive for the average of 8 countries.

Drinkability

In Italy and USA, Drinkability factor has been an unimportant or negative indicator of quality. The overall quality is positive for the average of 8 countries.

Day after

In Italy and USA, Day After factor has been an unimportant or negative indicator of quality. The overall quality is neutral for the average of 8 countries.

Marketing

Price

In Italy and Netherlands, Price factor has been an unimportant or negative indicator of quality. The overall quality is neutral for the average of 8 countries.

Advertising

In Germany, Advertising factor has been an unimportant or negative indicator of quality. The overall quality is positive for the average of 8 countries.

Packaging

In Netherlands, Packaging factor has been an unimportant or negative indicator of quality. The overall quality is positive for the average of 8 countries.

Brand Communication

The challenge for Heineken is that being a global brand it has to have a communication strategy that retains its uniformity so as to make sure that a single message is conveyed yet it has to take into account the local culture and nuances of different markets. Heineken brand can be developed by building on the five core brand values like taste, premiumness, tradition, winning spirit and friendship. To differentiate themselves from the competitors, all the five core brand values were needed in their brand communication; where taste and premiumness were regarded as the price of entry.

Taste

Actors should be genuinely enjoying with no gulps drinking and the slogan used should be competitive not comparative.

Premiumness

It should be at the level of excellence expected of a premium brand. It could also be presented as part of the brand promise.

Tradition

It should be the preferred brand of people who believed in true values and whose brand choices reflected their personal value set.

Winning Spirit

Tone of voice is important in conveying this value “because winners are confident and relaxed, take a quiet pride in everything they do and do not shout.”

Friendship

The group should be few people who clearly enjoy their relationship. It should show people as themselves, content, relaxed with each other and confident.

All the advertising must be consistent with these guidelines.

The role of the Heineken’s headquarters should communicate the fundamental brand values, to remember and acknowledge local differences. The key is to find the right balance between central guidelines that the entire organization "lives" by and the content of the brand at a local level. It's only when they will understand and properly manage the relationship between the global brand and the local consumer that they will have a strong global brand. The communication thus has to be different while maintaining a central core that is uniform.

Heineken along with other countries should concentrate on African market. The reason behind this is the embryonic stage of development. Here the local brewers are fragmented and there is a high local consumer loyalty. The reach and frequency should be higher to increase the brand awareness.