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How to organize a reliable and uniform Brand Health Measurement System in Africa Middle East Region

Sjoerd Koornstra
Gert Jan de Nooij,

Within the Heineken Company several operating companies (Opco’s) over the world had their own responsibility for monitoring brand health. In 2005 The Heineken Brand Dashboard was introduced. This is a worldwide measurement, storage and reporting system of all the essential Key Performance Indicators of the Heineken Brand. This system had to be extended to monitor the main local brands from a regional view as well the complete portfolio per market. .

 

Background

Within the Heineken Company a Brand Dashboard was developed to monitor the Heineken brand worldwide. The Heineken brand is the crown jewel of the Heineken Company and is marketed in more than 170 markets. This Dashboard is also applicable to local brands. In the Africa Middle East Region these local brands contribute to more than 80% of the volume. The local brands are operating in different types of markets. The more stable political situation in combination with economic growth has led to structural beer market growth. This implies that the marketing activities had to be intensified due to growth as well as to strengthen the position of the local brands. Some local brands are present in more markets. The regional Marketing team was striving to harmonize the positioning of these brands and create economies of scale. This has led to the wish of structural insight in the brand performance and to develop a regional Brand health measurement system.

The Heineken Organization

The organization is divided in 5 regions: Western Europe, Central Eastern Europe, Americas, Asia Pacific and Africa Middle East. In Africa Middle East the company is has operations in 20 countries. In other markets the company is active via export or joint ventures. In many markets with operations the company has a number one position.

Brand Health Measurement Objectives

In 2004 a key project team started to develop a Heineken Brand Dashboard. The main reasons to develop this were:

• No transparent insight in the performance of the Heineken brand • Pressure for more insight in commercial effectiveness
• Current focus on bottom line rather than where the profit is coming from or on future earning power

• Lack of a universal equity measurement system

• Focus on organic growth implies a more systematic goal-oriented organisation. This means that KPI’s (key performance indicators) are indispensable for target-setting and to monitor the progress • Lack of benchmarking the performance of Heineken between markets

A project team was installed to secure that the Heineken Brand Dashboard is operational within a year (December 2004). The assignment was also to create this in cooperation with and commitment of the markets.

The objectives of the Heineken Brand Dashboard (HBD) project are: • to create a more systematic goal-oriented organization, needed to focus on organic growth • to create a universal equity and overall business measurement system • to create transparent insight in the performance of the Heineken brand • to enable benchmarking the performance of Heineken between markets • to provide more insight in commercial effectiveness

The dashboard should be operational for the Heineken brand, but should also be easily applicable for other international as well as local brands. This means that the selected KPI’s should on one side cover the specific Heineken marketing elements (coming from positioning and brand architecture). On the other side the KPI’s should also be uniform and generic in order that these can be relevant for other brands as well.

The additional objectives of brand health measurement for Africa Middle East are: • to benchmark the performance of the regional brands in order to develop regional marketing activities • to optimize the composition of the portfolio of brands

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