Situation Analysis : At the end of 1993, Heineken had a 24% volume share in the Netherlands, far ahead of its

s main competitor Grolsch, but the sales volume was declining and brand image needed revitalization. In foreign markets, such as the nited !tates and Hong "ong, Heineken had al#a$s %een marketed as a premium %rand, and had managed to create a distinct image for itself &he image #as sometimes, ho#ever, narro#l$ dra#n, leading to a general perception that Heineken #as appropriate onl$ for special occasions Across 'uropean countries, Heineken had ver$ strong %rand a#areness In (atin America, Heineken #as vie#ed as )ust one amongst the man$ 'uropean *eer imports Ho#ever, across all markets Heineken #as perceived as a lighter %eer of superior +ualit$, in attractive packaging Heineken #as the most heavil$ advertised premium %rand in 'urope and #orld#ide, #ith more than 9,% of the advertising taking place in the form of &- .ommercials Problem Identification: Heineken needed to #ork out its glo%al %rand image and advertising efforts too, needed to %e integrated on a glo%al scale /egional managers often developed their o#n commercials citing uni+ue competitive conditions0 !tandardi1ation #as thus non2e3istent, and re+uired0

Table A Strengths and Weakness of Heineken Strengths Worlds leading premier Beer. Weakness (ack of glo%al presence in %ottling %usiness0 In the ma)or %eer2consuming market, Germany and U its imported and not %ottled0 "no#n for its good taste, rich tradition and Histor$0 (ack of presence in (atin America0 -ie#ed as )ust one of man$ imported 'uropean %eers in (atin Ackno#ledge as lighter %eer of superior +ualit$0 4erceived America0 premium %rand image in some markets, #hich resulted in decline of sales volume across all the 4ackaging is attractive and one of the %est in (eader in Netherland market0 Heinekens %rand image is not %eing %usiness0 consistentl$ pro)ected in *rands communication0 Num%er 5ne imported %eer in ! 6arket0 *rand lo$alt$ needs to %e %uild on, in 'astern 'urope people keep on s#itching %rands0 !uccessful premium %rand image glo%all$ 7 !, Hong "ong etc80 Have ma)orit$ stakes in its e3isting and prospective partners to ensure tighter control in production and marketing0 !ignificant advertising e3penditure at its disposal0 It also has the a%ilit$ to come up #ith advertisements that are state of the art0

Project Comet 9as initiated in !""! to enhance #einekens competitive advantage through advertisement pro$ections as the worlds leading premium beer %he pro$ect team had identi&ied good taste as the desired brand image o& #eineken &he pro)ect identified the follo#ing five factors as core %rand values: o &aste o 4remiumness o &radition o 9inning !pirit o ;riendship &he first t#o #ere recogni1ed merel$ as oints of arity, and hence were necessary, but didnt provide any significant advantage !ifferentiation #as to %e achieved through the communication of the remaining three values Impactful advertisements, incorporating leading edge technolog$ and calculated risks, #ere recommended

Project "osa ;ocus groups #ere commissioned in eight countries to o nderstand #hat male %eer drinkers meant %$ taste and friendship in relation to premium %eer drinking o 9hich e3pressions of taste and friendship could %e used in advertising &he +ualities of %eer that appealed to the mind and ones that appealed to emotion #ere identified %$ running focus groups among 2122< $ear olds and 2=23> $ear olds0 &he cues emplo$ed for the focus groups #ere %ased upon 'taste and '&riendship .ustomer reactions to Heineken advertisement claims along %oth these cues #ere elicited and suita%ilit$ ratings #ere calculated

#egions Africa %astern %uro e S% Asia&S' America& (reece Italy&S ain&)a an * + C %uro e&Australia ,SA

Stage of de$elo ment 'm%r$onic &ake2off !tarted gro#ing Aro#ing ;ull gro#th ;ull$ matured

*eer 6arket had different development stages and Heineken at that time #as in different phases of development at same time0 In !A the market #as full$ matured #here as in Africa it #as in 'm%r$onic !tage0

"arket e$olution High local consumer lo$alt$ ;ragmented local %re#ers ?evelopment of standard %eer !hifts in consumer taste @ualit$ improvements Introducing premium %eer High volume focus 4rice .ompetition .onsumer !ophistication 6arket segmentation *randBsegment proliferation 4roduct ?ifferentiation

-uantitati$e Analysis (uantitative )nalysis o& #einekens Growth is hown in )ppendi*2A #ecommendations As Heineken follo#s a glo%al strateg$ of e3pansion, standardi1ation of marketing communications is a necessar$ step %he Beer industry was in a globalizing phase through the !""+s. ,merging markets carried a lot o& promise due

to population e3pansion and increasing per2capita %eer consumption 'ach countr$ #as in a separate stage of market evolution: 'm%r$onic, &ake 5ff, Aro#ing, 6ature or ?eclining #einekens strategy was to build market share in the emerging 7em%r$onic8 markets, to enrich and increase market share in the &ake2off and gro#ing markets0 At the same time, Heineken sought to maintain or restore market share in markets that #ere in the 6ature or ?eclining phase ?espite differing strategies across markets, a unif$ing marketing communications theme is necessar$ A glo%al %randing strateg$ #ill lo#er marketing costs, reali1e economies of scale in production and clarif$ the brands positioning in the minds o& customers endi./ A

Reference Year - 1993 9orld *eer 4roduction Heineken *eer 4roduction &otal !ales 1 %n (tr of Heineken 12, %n (tr >0C %n (tr <42,01= mn guilder 132>0,3 mn guilder

/egions Netherlands /est of 'urope America AsiaBAustralasia Africa

Inference:

!ales7%n ltr8 1034 20C3 ,0<3 ,04> ,034

!ales revenue7mn guilder8 1<=,0=4 334=<04< 9C40C2 >930C1 44>021

Aro#th in regions like Netherlands and 'urope is reduced and in AsiaBAustralasia has increased0