Heineken N.

V: Global Branding and Advertising

This is my favorate case about global branding and advertising.

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 to build brand equity through relevant associations with
high-impact, high-profile sports and music events, films. Heineken brand should seek association
with hot movies targeting to relevant demographic profile to establish the brand position in
crowded marketplaces. The company should sponsor numerous sports events at local and
regional level to help support international, premium positioning and awareness, enforce brand
equity, drive volume and recruit new consumers to the brand. An important marketing and
recruitment platform for the brand is music. Heineken can build presence and credibility; draw
crowds in venues around the world and get recognition through music show, international awards
in contemporary music. On top of all that, Heineken should coordinate its marketing strategy and
advertisement campaign with local in order to use unified brand positioning worldwide.

Role and structure: Heineken’s headquarters should take the combination approach of
centralization and decentralization to leveraging global marketing. The headquarters should
develop specific guidelines that determine the face of the brand worldwide with fundamental
values (positioning, name and logo) and have the most control over advertising policy,
guidelines, and operations in all markets. Instead of trying to push a fixed global promotion
campaign across the globe, the headquarters marketing truly added value for local marketers by
providing a 'platform' that is flexible enough to travel. Local marketers will be challenged to
develop locally relevant translations of the program recognizing the importance of inspiring
marketing at a local level. The key is to find the right balance between central guidelines that the
entire organization follows and the content of the brand at a local level. Headquarters should
work closely with local and sets advertising and promotional objectives, assesses all creative
themes and executions and approves media selection decisions. On the other hand, local
advertising managers submit advertising plans and budgets for their markets, which are viewed
by the headquarters. This will allow for consistency in Heineken’s international advertising yet
permits local input and adaptation of the promotion program. Heineken should also set up best
practices system and transfer knowledge from one country to another so that the wheel doesn't
need to be reinvented; and headquarters marketing forces can play an important advisory role for
local colleagues.

Appendix-1: Strength and Weakness of Heineken

Strengths
 Beer of highest quality (superior
quality)
 Special Taste
 Original formula
 Traditions
 Brands availability
 Premium brand
 Lighter Beer
 Attractive packaging
 Most heavily advertised Premium
beer in Europe and Worldwide
and use TV commercials heavily
Weaknesses
 No production base in some area
 Inconsistent brand image with
brand communication
 TV commercials are just aired in
larger markets
 Efforts necessary for brand
revitalization
 Lack of integrated marketing
campaign
 Lack of worldwide advertising
campaign

Appendix-2: Detailed recommendation to achieve the global brand

 Introduce a number of innovations across liquid, packaging and format that will serve to
further endorse international leadership credentials because innovation is the lifeblood of
brand domain.
 Heineken has a strong brand tradition. In order to flourish its brand reputation across
the world, convince the consumers that the brand is some way superior.
 Develop a relationship with customers, build affinity between brand and customers by
sponsoring international rugby tournaments, and world soccer tournament such as -( the
Champions Leagues, the UEFA Champions League, world's premier club) where target
audience of men from all over the world gather in one place.
 Building the brand recognition for long-term to differentiate the brand Heineken and be
sure to add value to the product in order to get the brand loyalty. (For example, Heineken
 can maintain its good quality or create benefits for society and culture, and provide an
emotion to its consumers.

Figure- Brand Environment