Heineken N.V. - Global Branding and Advertising
The Heineken N.V. brand has been around since 1863 and is a worldwide beer brand. The basis of information for this case comes from Heineken’s 1993 statistics. For instance, of the 120 billion liters of beer sold in the world in 1993, Heineken accounted for 5.6 billion which is 4.6% of total beer sold. This case looks at two of Heineken’s research projects (Project Comet, and Project Mosa) that define and explore the 5 components of Heineken’s brand image: Taste, Premiumness, Tradition, Winning Spirit, and Friendship. They also explore the most appealing images of Heineken’s expressions of taste and friendship with regards to brand image. Project Comet is a research project that provides the companies definition and guidelines to producing a Heineken promotional commercial. Also note that Heineken’s television commercials account for 90% of its advertising campaigns. Project Mosa is a research project that focused on gathering information through focus groups around the world to determine key attributes of the brand as well as identifying the negative aspects of the brand.
The key issues in this case are: the need to determine the mutual consistency of the two research projects and the need to evaluate the worthiness of standardizing Heineken’s brand image and advertising worldwide.
Questions
1. What are Heineken’s strengths and weakness? Is Heineken a global brand?
Heineken like most companies have their strong and weak points. For any company a neutral statistic should also be viewed as a weakness considering there is room to grow and the challenge to change the consumer’s opinion of that weakness.
Heineken’s weaknesses thus far are as follows (analysis of research project results):
· Most countries that sell Heineken feel that the brand vision is poor
· There are many neutral opinions across the nations for Heineken’s characteristics of the beer including: 100% malt, smooth taste, and pure taste.
· Consumers feel that the beer could be more available in more bars and more countries.
· Pricing could be improved in various countries like Italy and the Netherlands.
· Improvements on its aftertaste is also another area of weakness
Heinekens strengths are:
· Over quality of their products
· The taste experience, and balanced taste of the products
· Foam and drinkability of the product
· Heineken’s advertising and packaging are good strengths as well
The definition of a global brand is a brand that has worldwide recognition for its product(s). Heineken we know for sure is supplied to countries like Brazil, Japan, North America, and as well as Europe. So although the brand may not have its products in every country, the definition doesn’t state that as a requirement, so Heineken is most definitely a global brand
2. Evaluate the research. What has been learned?
From the research collected, some key points that were discovered were that consumers feel that the vision of Heineken is very poor. Consumers feel that the brand expressions of promoting Heineken as a ‘True Friends’ and/or the ability to ‘Always count on Heineken’ are excellent ideas to convey to consumers. Since these two expressions are only prototypes, Heineken should implement these re-branding images immediately and start the process of regaining consumer loyalty. Simply put, consumers love the taste of the beer, they love the commercials and the packing that Heineken comes in. A few iffy spots are the pricing, aftertaste, and water quality in the production stage. In some countries the pricing is thought to be good and in other countries it is thought to be too pricey. Heineken needs to evaluate more in depth the pricing of its products in all countries and look for areas where the pricing could be increased and decreased to increase profit and beer sales to a maximum. Heineken should implement a research and development team to test aftertaste differences, and see if it is possible to alter and create a better after taste without changing the initial taste of the beer because consumers already love the taste. As well as to see if there is any difference in taste based the quality of water being used in the manufacturing of the beer.
The last though I have about Heineken is whether or not Heineken should be portrayed and priced as a premium beer. This is an area that needs more study because there needs to more results in determining where there are more standard beer drinkers or more premium beer drinkers. Premium beers just seem to have less occasions that would be fit for a premium beer versus a standard priced beer. But I have no research to back up my thoughts and that’s why research should be conducted because it may prove more profitable to re-image the brand of Heineken as a standard beer and a lower price.
3. How can the Heineken brand be developed through marketing communications?
Since 90% of Heineken’s form of advertising is through the use of television commercials, Heineken should now implement its two new brand strategies of these slogans: ‘Heineken. When true friends get together’ and ‘Wherever you are, you can always count on Heineken’ in their television ads. These strategies should also be integrated into its other forms of advertising and communications like newspaper ads, magazine ads. billboards, radio, and on the internet. A key ingredient to developing the brand could also be through in-store promotions and portraying this new strategy on the packaging.
4. What should be the role of Heineken’s headquarters in shaping the marketing of the brand worldwide?
Heineken’s headquarters role should be to constantly evaluate all of its markets in every country and provide more marketing support in markets that have more potential or are declining and to maintain its marketing positioning in the markets that are consuming the product well. Heineken’s head quarters should also not give licensees the ability to produce its own marketing for Heineken as Heineken should be advertised equally through all of the markets. Heineken can do this by obtaining marketing fees from its licensees. There should also be some control over the licensees other brands that it produces because a brewery that produces other brands as well as Heineken must be produced and marketed with the same level of respect and quality that Heineken instills in its own breweries.
The key issues in this case are: the need to determine the mutual consistency of the two research projects and the need to evaluate the worthiness of standardizing Heineken’s brand image and advertising worldwide.
Questions
1. What are Heineken’s strengths and weakness? Is Heineken a global brand?
Heineken like most companies have their strong and weak points. For any company a neutral statistic should also be viewed as a weakness considering there is room to grow and the challenge to change the consumer’s opinion of that weakness.
Heineken’s weaknesses thus far are as follows (analysis of research project results):
· Most countries that sell Heineken feel that the brand vision is poor
· There are many neutral opinions across the nations for Heineken’s characteristics of the beer including: 100% malt, smooth taste, and pure taste.
· Consumers feel that the beer could be more available in more bars and more countries.
· Pricing could be improved in various countries like Italy and the Netherlands.
· Improvements on its aftertaste is also another area of weakness
Heinekens strengths are:
· Over quality of their products
· The taste experience, and balanced taste of the products
· Foam and drinkability of the product
· Heineken’s advertising and packaging are good strengths as well
The definition of a global brand is a brand that has worldwide recognition for its product(s). Heineken we know for sure is supplied to countries like Brazil, Japan, North America, and as well as Europe. So although the brand may not have its products in every country, the definition doesn’t state that as a requirement, so Heineken is most definitely a global brand
2. Evaluate the research. What has been learned?
From the research collected, some key points that were discovered were that consumers feel that the vision of Heineken is very poor. Consumers feel that the brand expressions of promoting Heineken as a ‘True Friends’ and/or the ability to ‘Always count on Heineken’ are excellent ideas to convey to consumers. Since these two expressions are only prototypes, Heineken should implement these re-branding images immediately and start the process of regaining consumer loyalty. Simply put, consumers love the taste of the beer, they love the commercials and the packing that Heineken comes in. A few iffy spots are the pricing, aftertaste, and water quality in the production stage. In some countries the pricing is thought to be good and in other countries it is thought to be too pricey. Heineken needs to evaluate more in depth the pricing of its products in all countries and look for areas where the pricing could be increased and decreased to increase profit and beer sales to a maximum. Heineken should implement a research and development team to test aftertaste differences, and see if it is possible to alter and create a better after taste without changing the initial taste of the beer because consumers already love the taste. As well as to see if there is any difference in taste based the quality of water being used in the manufacturing of the beer.
The last though I have about Heineken is whether or not Heineken should be portrayed and priced as a premium beer. This is an area that needs more study because there needs to more results in determining where there are more standard beer drinkers or more premium beer drinkers. Premium beers just seem to have less occasions that would be fit for a premium beer versus a standard priced beer. But I have no research to back up my thoughts and that’s why research should be conducted because it may prove more profitable to re-image the brand of Heineken as a standard beer and a lower price.
3. How can the Heineken brand be developed through marketing communications?
Since 90% of Heineken’s form of advertising is through the use of television commercials, Heineken should now implement its two new brand strategies of these slogans: ‘Heineken. When true friends get together’ and ‘Wherever you are, you can always count on Heineken’ in their television ads. These strategies should also be integrated into its other forms of advertising and communications like newspaper ads, magazine ads. billboards, radio, and on the internet. A key ingredient to developing the brand could also be through in-store promotions and portraying this new strategy on the packaging.
4. What should be the role of Heineken’s headquarters in shaping the marketing of the brand worldwide?
Heineken’s headquarters role should be to constantly evaluate all of its markets in every country and provide more marketing support in markets that have more potential or are declining and to maintain its marketing positioning in the markets that are consuming the product well. Heineken’s head quarters should also not give licensees the ability to produce its own marketing for Heineken as Heineken should be advertised equally through all of the markets. Heineken can do this by obtaining marketing fees from its licensees. There should also be some control over the licensees other brands that it produces because a brewery that produces other brands as well as Heineken must be produced and marketed with the same level of respect and quality that Heineken instills in its own breweries.