Overview 1.Company profile 2.Company History. 3.Heineken As a global brand 4.Situation analysis 5.Problem identification 6.SWOT Analysis 7.Research
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
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
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.
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
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
Sales worldwide In 1993 REGION HEINEKEN 1993 TOTAL 1993 BEER SALES % SALES % EUROPE 71 38 AMERICA 13 38 ASIA 8 19 AFRICA 6 5
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
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
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.
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.
Project Comet:1991 Was initiated in 1991 to to enhance Heinekens 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
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
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
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.
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
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/Centrala. Fragmented standard beer Europe, Australia-local brewers a. segmentation b. consumer sophistication Southeast Asia, South America, Greece/Portugal b. High local a. Qualityconsumer loyalty improvements b. Introduction of premium segment
Marketing objective in selected market Confirmation Restoration Enrichment Building Italy USA Netherlands Japan Hong Kong Brazil Argentina Germany