Preview

Heineken Success Story

Good Essays
Open Document
Open Document
3184 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Heineken Success Story
Success Story

Heineken Extends Brand Equity with First “Experience Store”
Background
Heineken is one of the world’s most recognized brewers, with 170 beer brands that generated revenue of US$13 billion in 2008. The 146-yearold Dutch company is famous for its pioneering advertising and innovative marketing, which go beyond beer by associating the Heineken brand with socializing and having fun. In the face of changing beverage consumption, advertising restrictions, and a blurring of its positioning among self-owned and competing beverage labels, Heineken’s marketers decided to use the company’s strong brand equity to expand into adjacent markets and provide consumers with new ways to interact with the brand. Through a series of workshops, demonstrations, and relationship-building activities, the Cisco® Internet Business Solutions Group (IBSG) provided support and guidance on how technology could help Heineken achieve this vision. A major component of Cisco IBSG’s engagement was working with Heineken on a new “brand experience store” in Amsterdam called “Heineken the City.” The store is part of an overall marketing/branding strategy that combines traditional and new media to create connection points between Heineken and its customers. In doing so, Heineken is sharpening its “fun-loving lifestyle” image while increasing customers’ brand preference and loyalty.

Executive Summary
CUSTOMER NAME

Heineken
INDUSTRY

Consumer Packaged Goods
ChAllENgES

• Changing patterns of beverage consumption and self-owned brands were eroding Heineken 's brand preference and customer loyalty • Needed to connect to a new, tech-savvy generation of consumers • P otential ban on traditional beer advertising necessitated new, technology-based marketing
SOlUTIONS

• ntegrated marketing strategy I combining traditional and new media • tate-of-the-art promotional store S showcasing technology as well as products • -commerce websites with perE sonalized



Links: s, MediaTone, MeetingPlace, MeetingPlace Chime Sound, MGX, Networkers, Networking Academy, Network Registrar, PCNow, PIX, PowerKEY, PowerPanels, PowerTV, PowerTV (Design), PowerVu, Prisma, ProConnect, ROSA, ScriptShare, SenderBase, SMARTnet, Spectrum Expert, StackWise, The Fastest Way to Increase Your Internet Quotient, TransPath, WebEx, and the WebEx logo are registered trademarks of Cisco Systems, Inc. and/or its affiliates in the United States and certain other countries. All other trademarks mentioned in this document or website are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. (0908R) KK/LW16109 1109

You May Also Find These Documents Helpful

  • Best Essays

    Upon entering into the alcoholic beverage industry in South Africa, Heineken encountered several key issues including legal concerns regarding a contract with SAB Miller, a struggling subsidiary, outdated infrastructure, fragmented retail landscape, ever-changing government laws and regulations, and limited access to a skilled work pool. Since Brandhouse, Heineken’s subsidiary, has been able to establish a local production facility, it has been able to grasp 12.8% of the South African beer market. Strategies and business practices attributing to their success are strategic joint ventures (most notably the DHN JV) with industry giants, re-evaluation and realignment of business practices and organizational goals, innovation, rapid response, and strong CSR practices. Heineken’s entry into South African through the Brandhouse joint venture provides a successful entrance example for adult beverage companies to consider when planning to access to the market. It is highly advised that entry is not done alone. The market is established and highly competitive, leaving little chance of new companies succeeding. Pooling resources is the best strategy in this situation.…

    • 3447 Words
    • 11 Pages
    Best Essays
  • Good Essays

    Keebler is one of the few packaged food brands that generates over $1 billion in annual sales. Brand recognition is key and essential for Keebler. Their product is consumed in some way in 75% of households within the United States. Additionally, over 96% of the households in the United States recognizes the Keebler name. Keebler’ execution strategy is to continue to invest in advertising and promoting the Keebler brand in order to take advantage of Product Segmentation and Keebler Brand Strength Across Product Segments. Keebler’s strength of its brand is its consumer identity across a wide variety of product segments. Keebler's strategy is to target product segments where it already has a strong position or that are not already dominated by a strong branded product (Keebler,…

    • 546 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Mountain Man Case Study

    • 1343 Words
    • 6 Pages

    Mountain Man Brewing Company was established as a family concern in 1925 in West Virginia by Guntar Prangle. The company brewed single-product beer, Mountain Man Lager, which won “best beer in West Virginia” and was elected as “America’s Championship Lager”. Mountain Man Lager featured quality, bitter favor and slightly higher-than-average alcohol content that uniquely contributed to the company’s brand equity. Mountain Man was a local market leader and distributed its lager in several states outside West Virginia. By 2005 Mountain Man was generating over $50 million in revenue with over 520,000 barrels of Mountain Man Lager sold. However, Mountain Man had been facing serious challenges. Its revenue was encountering a 2% yearly decrease in 2005 as it faced fierce competition. Light beer was sweeping the beer market and gained 50.4% of volume sales in market share in 2005. Thus, the objective of Mountain Man in this case study is to increase sales revenue by moving into the light beer market. Chris Prangel, son of the company’s owner, hoped to achieve three goals in his marketing campaign: 1.) To produce a light beer in the hope of attracting younger drinkers to the brand; 2.) To sustain the core brand equity of Mountain Man Lager; 3.) To maintain a steady share of its market segment by regaining the 2% annual loss.…

    • 1343 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    Applied Management Project

    • 13570 Words
    • 55 Pages

    References: 1. Marla R. Stafford and Ronald J. Faber, 2005, “Advertising, Promotion, and New Media”, (pg: 68- 78).…

    • 13570 Words
    • 55 Pages
    Powerful Essays
  • Satisfactory Essays

    heineken case

    • 665 Words
    • 2 Pages

    Heineken uses an international strategy that involves using cross-border deals to increase their distribution of over 250 beer brands in over 175 countries. The company has also acquired many different small brewers all over the world to add to their portfolio and increase access to new markets. Due to this strategy, Heineken currently operates over 125 breweries in over 70 countries and holds 10% of the global beer market. The company’s main entry mode into foreign markets involves foreign direct investment through acquisitions that give Heineken a great degree of ownership and control. They gain control of the whole brewery, so they expand by way of wholly owned subsidiaries. Heineken’s international acquisition strategy allows the company to increase market share and presence in their industry across the world, and do not have to worry about the added costs associated with creating new brands. It is difficult to pinpoint exactly what strategy for globalization Heineken has used, since they acquire these brands with already developed and successful products and allow them to stay as their own brands. I would describe Heineken’s strategy to be most similar to a transnational strategy. A transnational strategy is based on firms optimizing the trade-offs that go along with efficiency, local adaptation, and learning, where the pressures for local adaptation and lowering costs are high. A company using this strategy, seeks efficiency but as a means to achieve global competitiveness, as does Heineken.…

    • 665 Words
    • 2 Pages
    Satisfactory Essays
  • Best Essays

    [ 11 ]. Lynnette. (2005 Jun 3) Budweisers New Marketing Ideas. Retreived on September 20th,2011…

    • 4753 Words
    • 20 Pages
    Best Essays
  • Good Essays

    Second Cup Research

    • 708 Words
    • 3 Pages

    Our approach to this assignment was to visit Second Cup vendors and their competition, Starbucks. Upon speaking to the management at the Second Cup at York University, we were able to obtain promotional material, including a poster from a recent campaign for orange-flavoured beverages.…

    • 708 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    The Heineken brewery, founded in Amsterdam in 1863 by Gerard Adriaan Heineken, is one the largest brewers in the world. With sales throughout Europe, America, Asia, Australia and Africa, Heineken was second in volume of beer brewed behind only Anheuser-Busch in 1993. While Europe, particularly the Netherlands, provided the majority of its sales revenue, international expansion provided the majority of sales growth from 1992 to 1993. As the trend toward international expansion and the globalization of the brewing industry increased, the importance of effective advertising strategies and projecting an appropriate brand image became increasingly important.…

    • 2157 Words
    • 9 Pages
    Powerful Essays
  • Best Essays

    New Belgium Brewing

    • 3849 Words
    • 16 Pages

    New Belgium Brewing’s original marketing strategy focused on relational marketing using a “barstool to barstool” method of marketing and creating “brand stewards” in a grassroots effort to spread the word about New Belgium’s craft beers. As the company’s brand and leadership strategy matured, the marketing became proactive and focused by creating bicycle events, interesting take-away merchandise and a touring taste-testing vehicle. By forming personal relationships with their customer base, NBB organically gained market share. To remain competitive in the craft brew market and maintain its market share, NBB must explore creative and innovative marketing strategies to outperform its rivals.…

    • 3849 Words
    • 16 Pages
    Best Essays
  • Good Essays

    Heineken Case Study

    • 614 Words
    • 3 Pages

    The strategy that Heineken uses is that of differentiation. This strategy gains market share and competitive advantage by distinguishing their products from their competitors through excellent design. A U.S. wholesaler recently asked a group of marketing students to identify a group of beer bottles that had been stripped of their labels. The stubby green Heineken bottle was the only one among the group that showed an instant recognition. This strategy also focuses on high awareness, easy accessibility, and new products. Heineken spent a lot of money on the launch of Premium Light; the first time that brewer had created an extension of its flagship launch to attract younger customers. This new product was able to attract customers without taking away sales from the original brew. The decision to launch a new product came in part as a series of changes to raise its stature in the U.S. market and to respond to changes that are occurring in the growing global market. Awareness of the brand was needed since there has been an overall decline in the market due to tougher drunk-driving laws and a growing appreciation for wine.…

    • 614 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Mountain Man brand loyalty rate is higher than that of competitors (42% Budweiser and 36% for Bud light)…

    • 855 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Heineken Sierra Leone

    • 5502 Words
    • 23 Pages

    The vision of the brewery is “To be an exemplary company contributing to the sustainable development of Sierra Leone by creating more value to all stakeholders.” Beer & malts SLBL sells around 110.000 Hectolitres of drinks annually. Three types of drinks are produced: Star (lager), Guinness (stout) and Maltina (a…

    • 5502 Words
    • 23 Pages
    Good Essays
  • Powerful Essays

    Mountain Man

    • 2754 Words
    • 7 Pages

    With recent declining sales for Mountain Man Beer Company (MMBC), Chris Prangel is considering launching Mountain Man Light as a brand extension aligned with changes in beer drinkers’ preferences. He is seeking to maximize market coverage while minimizing brand overlap, and at the same time avoiding any brand equity damage, as MMBC’s core consumer segment is significantly different from the new targeted segment. Chris expects to negate declining sales of Mountain Man Lager and capture market share in the fast-growing light beer category, which accounted for 50.4% of all beer sales by volume in 2005 in the East Central Region (Exhibit 1). More specifically, Chris wants to capitalize on Mountain Man’s brand recognition in the region and capture a meaningful share of the local light beer market, a market in which MMBC currently has no presence. In addition, he is hoping a successful launch of Mountain Man Light in the local on-premise locations will boost the lagging sales of Mountain Man Lager.…

    • 2754 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Case 8 Battle Of The Beers

    • 1480 Words
    • 5 Pages

    This case is about the intense battle between beer rivals in the United States, particularly between Anheuser-Busch (A-B), the world’s largest brewer, and SABMiller, the world’s second largest brewer. It discusses about how the companies used advertising in their brand positioning in order to compete with each other and increase the sales.…

    • 1480 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Heineken Swot Analysis

    • 912 Words
    • 4 Pages

    Heineken needs to remain a global competitor that caters to different generation groups worldwide; create new products that complement consumer culture differences in the global market; build partnerships, mergers and acquisitions with new brewers/distributers in other countries to expand their consumer base and global footprint.…

    • 912 Words
    • 4 Pages
    Good Essays

Related Topics