Heineken N.V.: Global Branding and Advertising
1. Each student will read the case(s) ahead of time before attending to the class. 2. Your group will be assigned to one or several questions in class. 3. After a thorough group discussion, your group will outline/summarize your answers into a PPT file and drop it onto the Blackboard’s drop-box. 4. Your group will present and lead the discussion of the question(s) assigned to you. Although the group in charge will be the major discussants for the assigned question(s), it is highly recommended to have the rest of the class involved and participated in the discussion. Questions:
1. What are Heineken’s strengths and weaknesses? Is Heineken a global brand? Why or why not? Every successful company has its strength and weaknesses. After reading the case “Heineken N. V.: Global Branding and Advertising” it is clear that the company has more strengths than weaknesses. Heineken got its reputation by producing a light beer that has a great quality. In 1886, special yeast was developed that till today is used in Heineken’s beer production. The company is very proud that till today it uses its own designed recipes that for years has been improved and modified to give an unforgettable experience for customers for centuries. Heineken’s beers are package in very eye catching package that appeals to the customer in many different stores. Across the markets all over the world Heineken’s beer is acknowledged as a unique beer with special taste, that everybody wants to enjoy. The company is the second biggest beer manufacture across the globe. The first position is reserved for Anheuser-Bush that produces ten billion liters yearly. Just in 1993 sales of Heineken brand reached 1.52 billion liters per year growing up to 5.6 billion liters per year in 2010. Heineken has an impressive market share in U.S and Europe with the 38 percent presence. Looking at the data from 1992, Heineken’s growth rate was 23 percent. Asia and Australian are on Heineken’s rapidly growing consumption list. One of the biggest strength of Heineken is that they have a huge potential toward further expansion. Strength of Heineken is that it has majority stakes in fifteen breweries across the nations. Heineken also has owned subsidiaries in countries like Ireland, Netherlands. Heineken’s strength is its ability to penetrate new markets, even the tough one by variety of methods like mergers and acquisitions. Heineken’s big advantage is also the experience how to properly use media and advertising and how to design campaign that clearly target desired markets. Like any successful company, Heineken has its weaknesses. The major weakness has to do with export. Many countries like India, the only way to get Heineken is to export it. Other Western countries and also many countries in Europe need to export Heineken to satisfy needs of their customers. Also what is a major Heineken’s weakness is that in many countries the brand is associated with special occasions only, making it tougher for the company to sell its products. For instance in Latin America Heineken is only perceived as another foreign beer. Heineken has its own brand image, yet the disadvantage is seen analyzing actions of local brand managers who would design and execute their own ideas how to promote the beer. That mismatch with the core values and different message that is sent, is confusing current and prospective customers. The weakness is in the headquarters’ management, which communication is not sent vertically. Looking at the Heineken’s data from the case, it’s obvious that drop in sales 1.6 percent compared to 1992 rating is not good. The weakness for Heineken is associated with entering the courtiers where alcohol is not well perceived due to a cultural believes. To be able to grow Heineken needs to constantly acquire larger breweries, the problem is every year is harder to find a proper size of the potential brewery, because all of...
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