Heineken Global Branding and Advertising

Topics: Brand, Marketing, Brand management Pages: 13 (4594 words) Published: June 25, 2010
MARKETING MANAGEMENT

Heineken N.V.: Global Branding and Advertising -

INDEX 1.
 EXECUTIVE SUMMARY...................................................................................... 2
 2.
 SITUATION ANALYSIS ...................................................................................... 2
 2.1
 The Company Profile 2.2
 The Heineken Brand 3.
 SWOT ANALYSIS................................................................................................ 7
 3.1 Strengths 3.2
 3.3
 Opportunities Weaknesses 7
 8
 8
 9
 2
 4


3.4
 Threats 4.
 THE HEADQUARTER’S ROLE IN SHAPING THE GLOBAL BRAND............... 9
 5.
 RECOMMENDED MARKETING STRATEGY ................................................... 11
 6.
 REFERENCES ................................................................................................... 12


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1.

EXECUTIVE SUMMARY

The case study of Global Branding and Advertising at Heineken N.V. describes the findings and recommendations of two research projects, which were commissioned by Heineken in the mid 1990ies in order to clarify brand identity. Project Comet found that the brand image was not consistently being projected and therefore the Heineken brand was perceived differently across various different nations. The project recommended to internationally aligning the brand’s premium taste image using five core brand values: Taste, premiumness, tradition, winning spirit and friendship. Project Mosa was designed to elicit consumer reactions in order to clarify the consumers’ perception of the core values premium taste and friendship. The indicators of premium beer taste differed among the different cultures, while there was substantial agreement across national markets on the social occasions that would call for a premium beer over a standard beer. The results of both research projects should guide Heineken’s advertising efforts in the future to create a more consistent brand identity. 2. SITUATION ANALYSIS

More than two decades ago, Harvard Business School professor Theodore Levitt provocatively declared in a 1983 HBR article, "The Globalization of Markets" that a global market for uniform products and services had emerged. He argued that corporations should exploit the "economics of simplicity" and grow by selling standardized products all over the world. To grasp how consumers perceive global brands, companies should think about the issue in cultural terms. The forces that Levitt described didn't produce a homogeneous world market; they produced a global culture. The rise of a global culture doesn't mean that consumers share the same tastes or values. Rather, people in different nations, often with conflicting viewpoints, participate in a shared conversation, drawing upon shared symbols. One of the key symbols in that conversation is the global brand. Like entertainment stars, sports celebrities, and politicians, global brands have become a lingua franca for consumers all over the world. People may love or hate transnational companies but they can't ignore them (Holt et al, 2004). Heineken is perceived differently in different markets. In the Netherlands, Heineken is the market leader and therefore viewed as a mainstream brand. Outside the Netherlands, however Heineken had consistently been marketed as a premium brand. In the United States and Hong Kong Heineken was seen as appropriate for special occasions or when making a social statement. In other markets, such as Latin America, Heineken was viewed as one among many European imported beers.

2.1

THE COMPANY PROFILE

The Heineken story began more than 140 years ago in 1864 when Gerard Adriaan Heineken acquired a small brewery in the heart of Amsterdam. After 13 years of prohibition, in 1933, Heineken set foot on American soil and in 1937 the first Heineken beer was brewed outside the Netherlands, in the Dutch East Indies. Over the ensuing 60 years, growth and acquisitions substantially expanded the company. Four...

References: • Bulik B. WHAT YOUR TASTE IN BREW SAYS ABOUT YOU. Advertising Age. November 2, 2009;80(37):12. • Chi-Fai C, Holbert N. Marketing Home and Away: Perceptions of Managers in Headquarters and Subsidiaries. Journal of World Business. Summer2001 2001;36(2):205 • DATAMONITOR: Heineken N.V. Heineken N.V. SWOT Analysis. April 2009;:1-9. • Heineken USA focuses on its on-premise strategy. Beverage Industry. March 2009;100(3):10. • Hewett K, Roth M, Roth K. Conditions influencing headquarters and foreign subsidiary roles in marketing activities and their effects on performance. Journal of International Business Studies. November 2003;34(6):567-585
• Holt D.B., Quelch J.A., Taylor E.L., How Global Brands Compete, Harvard Business Review, September 2004: 68 – 75 • Jay R. Heineken holds agency meetings over $40m global ad business. Marketing Week (01419285). July 24, 2008;31(30):2. • Kotler P., Keller K.L., Brady M., Goodman M., Hansen T., (ed.), Marketing Management, Pearson Education Limited, 2009. • Mikhailitchenko A, Javalgi R, Mikhailitchenko G, Laroche M. Cross-cultural advertising communication: Visual imagery, brand familiarity, and brand recall. Journal of Business Research. October 2009;62(10):931-93 • NEW CAMPAIGNS THE WORLD. Campaign (UK). January 30, 2009;(4):31 • Polonsky M, Colin J. Global branding and strategic CSR: an overview of three types of complexity. International Marketing Review. June 2009;26(3):327-347. • TOP BEER MARKETERS. Advertising Age. December 28, 2009;80(43):13. • Webster F E, The changing Role of Marketing in the Corporation, Journal of Marketing, Vol.56 October 1992: 1 – 17
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