Heineken Case

Q.1) What are Heineken Strengths and Weaknesses? Is Heineken a global brand?

Ans. Strengths: Lighter beer, premium brand, different test (i.e. special test), old/traditional brand, attractive packaging, high quality & superior taste beer, large advertised beer worldwide mostly the form of television commercials, easy availability of brand,

Weaknesses: Production facility is not available worldwide, television commercials advertisement are focused on large markets, less focus on integrated marketing campaign, less control over Licensee's marketing of Heineken brand, less focus on emerging market of Asia & Africa, brand image established for special occasion beer rather than daily consumption beer in some country, no bottling plant in USA

Yes, Heineken is a global brand - Due presence in most of the countries of Europe, US, Australia, Asia, Africa

Q.2) Evaluate the research, what has been learnt?

Ans. Heineken is the traditional, superior quality & taste beer and has been observed different image from market to market. Strength of Heineken beer shows that it is renowned and famous global brand. Case says that brand perception of Heineken beer is different across the countries. In US & Hong Kong market Heineken was seen as special occasion beer rather than daily consumption beer where as in Latin America Heineken was just viewed as European imported beer. And in all market Heineken was viewed as a lighter beer of superior quality presented in attractive packaging. Heineken's project Comet & Mosa tries to construct Heineken's global brand identity. Project Comet concluded that brand good taste is built by five core brand values: taste, premiumness, tradition, winning sprit, friendship. Whereas project Mosa concluded that premium beer associates with taste and friendship. Consumer has strong thrust on Heineken beer and can count Heineken as a friend. Global branding strategy is necessary to perceive strong Heineken value in all market through project Comet & Mosa. Heineken needs to make balance between global mixing and national market coverage (case says that there is decrease in sales figures in Netherlands, Rest of Europe and in Africa).

Q.3) How can the Heineken brand be developed through marketing communication?

Ans. Case says that per capita beer consumption in each country is different accordingly Heineken's marketing communication strategy should vary from country to country. In embryonic market (in Eastern Europe & Africa) Heineken should put all their advertising efforts to capture this market. Local brand awareness should be created in this market by conducting advertise campaign in local language. In growing market (in Italy Spain Japan) Heineken should focus on both the aspects, advertisement efforts and price competition & margin. In mature market Heineken should focus on Product segmentation by introducing low alcohol beers, flavored beers, dry beers etc. Heineken should pursue sponsorship strategy for the sports events to build brand equity and brand position in the market.

Q.4) What should be the role of Heineken's headquarters in shaping the marketing of the brand worldwide?

Ans. Heineken's headquarters should have strong control over advertising policy, guidelines & operations in all markets. Along with global promotion campaign across the globe the headquarters should also focus on local advertising and provide ways to reach at each and every level of local market. Headquarter should have full control over local marketing offices and should critically review the progress of these local offices.

Q.5) How can Heineken move beyond being the premium beer for special moments to more of a mainstream positioning that will build volume?

Ans. Heineken should focus on their brand