Situation Analysis: Heineken N.V

Executive Summary

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