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1. Case Name:
Global branding And
advertising

2. Overview
1.Company profile
2.Company History.
3.Heineken As a global brand
4.Situation analysis
5.Problem identification
6.SWOT Analysis
7.Research

3. Company Profile
Traded as Euronext: HEIA
Industry Beverage
Headquarters Amsterdam, Netherlands
Area served Worldwide
Key people Jean-François van Boxmeer
(Chairman/CEO)
René Hooft Graafland (CFO)
Products Heineken brands
Revenue €17.123 billion (2011)
Profit €1.430 billion (2011)
Total assets €27.127 billion (2011)
Total equity €10.092 billion (2011)
Employees 64,252 (2011)
Website www.heinekeninternational.co
m

4. Company History
 Founded in Amsterdam in 1863 by Gerard Adriaan
Heineken
 Yeast developed in 1886
 Won gold medal in Paris and Diplome d’Honneur
 Won Diplome de GRAND PRIX in 1889
 One of the largest selling beer brand in Netherland IN 1893
 In 1914 Henry Pierre, Gerard Heineken’s only son took over
the company’s leadership
 Brewing its beer overseas under the name “Tiger” in 1932
 In 1935 ,Heineken acquired a brewery in Java in the Dutch
East Indies, in Leopoldville in the Belgian Congo as well as
two breweries in Egypt

5. Important mile stone
 1863-1874- Heineken purchased Haystack and opened a new brewery at
Amsterdam’s outskirt and started ‘beer culture’ in cafes.
 1874-1886- Doctor H. Elion cultivate the Heineken A-yeast. It is the first
Dutch brewery to use ice and cooling systems in the brewing process.
 1886-1914- At the World’s Fair in 1900,Heineken built five-star
trademark which is applied on green bottle.
 1914-1940- Heineken’s son took over the company and stimulates the
introduction of modern technology and started bottling themselves in
1929. Starts production outside.
 1968-1972- Introduction of Amstel in Amsterdam known for
sophisticated designing and brewing of dark beers.

6. Important mile stone
 1980-1989-Advertisement in Time and Newsweek. Introduced Heineken
gadgets. In 1983 Murphy was taken over and acquired a stake in Spanish El
Aguila. Enters in China with Shanghai Mila Brewery
 1989-2002- Enters in the east. Acquired Hungarian Komarom brewery and
partners with Zywiec brewery in Poland. Enters in Vietnam, Cambodia and
Thailand with green logo. Strengthen position in Europe
 2002-2010-acquired Brau-Beteiligungs in Austria. Position is strong in China
and Russia through acquisition. Joined hands with FEMSA in Mexico and
more acquisition in Russia and Germany. Portable Draughtkeg in France and
USA in May,2005

7. A Global Brand
 One of the world leading brand > 140years
 Heineken contributed more than 70% towards sale of Beer
in Europe.
 Increase in market share in America, Asia and Africa, as
compared to sales in 1992
 Licensing Agreements and equity stake holdings across the
globe
 Rated number one imported beer in America

8. Heineken Global presence
• Europe: 5 • Europe: 3
• America: 4 • America: 0
• Asia: 2 • Asia: 0
• Africa: 4 • Africa: 0
Majority Wholly
Equity Owned
Stakes
Minority
Equity Licensees
Stakes
• Europe: 0 • Europe: 2
• America: 10 • America: 2
• Asia: 8 • Asia: 2
• Africa: 10 • Africa: 2

9. Sales worldwide In 1993
REGION HEINEKEN 1993 TOTAL 1993 BEER
SALES % SALES %
EUROPE 71 38
AMERICA 13 38
ASIA 8 19
AFRICA 6 5

10. Case Situation analysis
 At the end of 1993, Heineken had a 24% volume share in the
Netherlands, far ahead of its main competitor “Grolsch”, but
the sales volume was declining and brand image needed
revitalization.
 In foreign markets, such as the United States and Hong
Kong, Heineken had always been marketed as a premium
brand, and had managed to create a distinct image for itself
 The image was sometimes, however, narrowly drawn,
leading to a general perception that Heineken was
appropriate only for special occasions
 Being a global brand, Heineken had different marketing
objectives for each country

11. Case Situation analysis
 Across European countries, Heineken had very strong brand
awareness
 In Latin America, Heineken was viewed as just one amongst
the many European Beer imports
 However, across all markets Heineken was perceived as a
lighter beer of superior quality, in attractive packaging.
 Heineken was the most heavily advertised premium brand
in Europe and worldwide, with more than 90% of the
advertising taking place in the form of TV Commercials

12. Problem Identification
 Heineken needed to work out its global brand
image and advertising efforts too, needed to be
integrated on a global scale.
 Conflict in clarifying brand identity of Heineken.
Regional managers often developed their own
commercials citing unique competitive conditions.
Standardization was thus non-existent, and
required.

13. Research
 Heineken faced the problem that its brand was
not being consistently projected in the brand’s
communication
 Project Mosa and Project Comet were
commissioned to clarify Heineken’s brand
identity and the implication for television
advertising.

14. Project Comet:1991
 Was initiated in 1991 to to enhance Heineken's competitive
advantage by projecting Heineken as “World’s leading premier
beer”
 Project team identified “good taste” as the desired brand
image of Heineken
Five factors are as core brand values of Heineken

15. Project Mosa:1993
This project consisted of focus groups conducted in 8
countries to:-
 To understand what male beer drinkers meant
by taste and friendship in relation to premium beer
drinking
 To analyse which expression of taste and
friendship should be used by the brand in
advertising

16. Project Mosa:1993 Continued
 Expression used
Taste Friendship
Brand vision Trust
Quality Sports
Customer
reactions to
Brewing
Heineken True friends
skills
advertisement
claims along Count on
both these cues Tradition Heineken as
were elicited a friend
and suitability
ratings were Availability Respect
calculated

17. Indicators of taste

18. Standard Vs Premium beer

19. Standard Vs Premium beer
• Brand expressions like “true friends” and “always
count on Heineken” connect well with customers
• Customers like the taste of beer and attractive
packaging
• Pricing ,water quality and after taste are issues in
some countries.

20. SWOT Analysis
S W O T
TRENGTHS EAKNESSES PPORTUNITIES HREATS
• Light beer of superior • No influence on the licensees
quality one of the World • Opportunity to grow in • Brewing industry
leading Premium brand for the brand countries like India becoming
.Known for its good taste, • No production base in USA where consumption is increasingly
rich tradition and History. and Germany increasing very fast with global. These local
• Heinekens brand image is the increase of companies are
• attractive packaging population threat for
not being consistently Heineken.
• Have majority stakes in its projected in Brands • Africa still embryonic in
existing and prospective communication. the beer market, Eastern • Growing price
partners to ensure tighter
• Declining of the sales volume Europe… competition in
control in production and Europe, due to
marketing. overcapacity and
• Lack of presence in Latin slow population
• Market leader in America. Viewed as just one growth.
Netherlands with 25% in
of many imported European
1993 • Variation in
beers in Latin America. market on the
• Diversification with basis of per capita
acquisitions (Amstel, • Lack of worldwide consumption,
Buckler, etc.) consumer
marketing and advertising
preferences and
• License campaign behaviours and
• Heavily advertised premium • Lack of global branding: competition mix
brand in Europe and image of the brand was
Worldwide (TV • Negative health
different in different attributes
commercials)
countries associated with

21. Market evaluation for selected countries
Growing stage Mature
Take-off stage
stage
Embryonic
stage Italy, Spain, Japan-
North/Central
Europe, Australia-
a. high volume focus a. segmentation,
b. price competition b. consumer
sophistication
Eastern Europe-
a. shifts in consumer
taste
b. development of North/Central
a. Fragmented standard beer Europe, Australia-
local brewers a. segmentation
b. consumer
sophistication
Southeast Asia,
South America,
Greece/Portugal
b. High local
a. Quality
consumer loyalty
improvements
b. Introduction of
premium segment

22. Marketing objective in selected market
Confirmation Restoration
Enrichment
Building Italy
USA Netherlands
Japan
Hong Kong
Brazil
Argentina
Germany

23. Thank You