Heineken N.

V, a long with tradition, superior quality and taste, has been perceived differently

from market to market. With the finding of common perceived values of Heineken brand

across all markets through Project Comet and Mosa, the company should pursue a global

branding strategy. To do so, Heineken should build compelling ICM strategies and provide a

'platform' that is flexible enough to handle the branding for local marketers. It should have

both centralization and decentralization marketing organizational structure to promote

successfully a global brand and to support local marketing managers in setting and

implementing ICM strategies tailored to each local market.

Situation Analysis: Heineken N.V is a well-know, renowned brewery with essential

strengths (Appendix-1) to be a global brand. However, at this moment, brand perception is

different across the countries. Though Heineken had consistently been marketed as a

premium brand, in the US and Hong Kong market, a distinct image was established for

special occasion rather than for daily consumption while in Latin America, Heineken is

viewed as a European imported beer among others. While project Comet and Mosa strive to

establish, gauge Heineken's global brand identity and communication, the real test lies for

Heineken to sustain its market lead & reputation in its neighboring European Union which by

far is the largest contributor to its sales. Project Comet proves that the brand’s good taste

image is built on 5 core brand values: taste, premiumness, tradition, winning spirit and

friendship. Project Mosa finds that premium beer tightly relates friendships and important

relations which are built based on enjoyable, joyful, personal, luxury social conditions such

as meeting people, fancy meals, savoring, elegant parties, intimate moments and places etc

(Exhibit 7). The friendship value would be presented in several social conditions through

“true friends” and “consumers can count on Heineken as a friend” expressions. The taste

would be built on 5 brand values: taste experience, balanced taste, foam, advertising and

packaging (Exhibit 6). The taste expressions can be presented in quality and tradition values
but should not be presented in brand vision because the research result shows the negative

perception in brand vision.

Important Issues: A global brand is needed to provide relevant meaning and experience to

people across multiple societies. To do so, the brand strategy needs to be devised that takes

accounts of brand's own capabilities and competencies, the strategies of competing brands,

and the outlook of consumers experience in their respective societies. The challenge for an

international brand is to inspire but at the same time remain personally relevant, attached to

the target group’s personal cultures and origins. As consumer needs and tastes vary,

Heineken must decide how much to adapt marketing strategy to local needs using a variance

of standardized marketing mix & adapted marketing mix, owing to the strong brand

preferences & loyalties that exist among the beer drinkers. Also, Heineken need to prioritize

between global integration vs. national responsiveness evident from decreasing sales in

Holland, Rest of Europe, and Africa (data in page 1).

Global Brand Development: Since stage of beer market development in each country is

different, different IMC strategy should be used. In embryonic markets (Africa, Eastern

Europe) pushing strategy is suitable. In growing markets (Italy, Spain, Japan) both pushing

and pulling strategies are agreeable. In mature markets (North and Central Europe, Australia,

USA) pulling strategy is the best. Global positioning target can be achieved through creative

marketing communication. Heineken should develop a number of high-profile, quality

television campaigns with universal appeal, featuring high profile, contemporary celebrities.

However, within the marketing mix, there will always be a requirement for locally driven

campaigns and support. By connecting to ‘local situations’, consumer will develop a greater

emotional tie to the company. To implement that, Heineken can invite a group of local people

between 20 and 30 years of age to think with the company about new concepts and
commercials. We suggest that the company should develop universal tagline for each

Heineken advertising campaign. The company website will be designed at

www.heineken.com and should have a link/separate section to each country market with

content in local language. The product label to be used internationally. National advertising

should play a prominent role in promoting Heineken brand. Sponsorship strategy for the

Heineken should be strengthened to build brand equity through relevant associations with

high-impact, high-profile sports and music events, films. Heineken brand should seek

association with hot movies targeting to relevant demographic profile to establish the brand

position in crowded marketplaces. The company should sponsor numerous sports events at

local and regional level to help support international, premium positioning and awareness,

enforce brand equity, drive volume and recruit new consumers to the brand. An important

marketing and recruitment platform for the brand is music. Heineken can build presence and

credibility; draw crowds in venues around the world and get recognition through music show,

international awards in contemporary music. On top of all that, Heineken should coordinate

its marketing strategy and advertisement campaign with local in order to use unified brand

positioning worldwide.

Role and structure: Heineken’s headquarters should take the combination approach of

centralization and decentralization to leveraging global marketing. The headquarters should

develop specific guidelines that determine the face of the brand worldwide with fundamental

values (positioning, name and logo) and have the most control over advertising policy,

guidelines, and operations in all markets. Instead of trying to push a fixed global promotion

campaign across the globe, the headquarters marketing truly added value for local marketers

by providing a 'platform' that is flexible enough to travel. Local marketers will be challenged

to develop locally relevant translations of the program recognizing the importance of

inspiring marketing at a local level. The key is to find the right balance between central
guidelines that the entire organization follows and the content of the brand at a local level.

Headquarters should work closely with local and sets advertising and promotional objectives,

assesses all creative themes and executions and approves media selection decisions. On the

other hand, local advertising managers submit advertising plans and budgets for their

markets, which are viewed by the headquarters. This will allow for consistency in Heineken’s

international advertising yet permits local input and adaptation of the promotion program.

Heineken should also set up best practices system and transfer knowledge from one country

to another so that the wheel doesn't need to be reinvented; and headquarters marketing forces

can play an important advisory role for local colleagues.

Appendix-1: Strength and Weakness of Heineken

Strengths Weaknesses

• Beer of highest quality (superior • No production base in some area

quality) • Inconsistent brand image with

• Special Taste brand communication

• Original formula • TV commercials are just aired in

• Traditions larger markets

• Brands availability • Efforts necessary for brand

• Premium brand revitalization

• Lighter Beer • Lack of integrated marketing

• Attractive packaging campaign

• Lack of worldwide advertising

campaign
 • Most heavily advertised Premium

beer in Europe and Worldwide

and use TV commercials heavily

Appendix-2: Detailed recommendation to achieve the global brand

• Introduce a number of innovations across liquid, packaging and format that will serve

to further endorse international leadership credentials because innovation is the

lifeblood of brand domain.

• Heineken has a strong brand tradition. In order to flourish its brand reputation

across the world, convince the consumers that the brand is some way superior.

• Develop a relationship with customers, build affinity between brand and customers

by sponsoring international rugby tournaments, and world soccer tournament such as -

( the Champions Leagues, the UEFA Champions League, world's premier club) where

target audience of men from all over the world gather in one place.

• Building the brand recognition for long-term to differentiate the brand Heineken and

be sure to add value to the product in order to get the brand loyalty. (For example,

Heineken can maintain its good quality or create benefits for society and culture, and

provide an emotion to its consumers.