HEINEKEN N.V- Global Branding & Awareness

Essay by marsmannetje23 May 2004

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HEINEKEN N.V- Global Branding & Awareness

Problem Statement: As the consumer needs & tastes vary across the globe, Heineken must decide how much to adept their 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.

Recommendations: Heineken needs to evaluate its home replication, multi-domestic & national, global & transitional strategy to establish its scope of operations, resource deployment & distinctive competence across its strategic business units. They also need to prioritize between global integration vs. national responsiveness evident from decreasing sales in Holland & rest of Europe (refer chart 1). Also, Heineken's global branding strategy should account for the socio-cultural influences, attitudes & perception of its consumers in foreign markets.

Analysis: Heineken's position in the beer market is consolidated by its strong history, making it the number two beer brewer in the world, thus accounting for nearly 5% of the worlds production.

With a major global presence, Heineken's main market is Europe, accounting for 47% of its sales. Some of the other brands include Amstel, Buckler, Murphy's Stout & Bir Bintang, each of these being targeted at different levels across the world.

Heineken's premium quality & taste was attributed towards five core brand values: taste, premiumness, tradition, winning sprit & friendship. Heineken's "good taste" brand image advertising can be evaluated on the basis of desirability, exclusiveness & believability. These attributes can be measured on the basis of the evolving market structure, beginning at the embryonic stage (eg: Africa) and continuing to the declining stage (eg: USA), thereby creating a platform for laying down the market objectives. Also the relationship between the product-trial rate and the customer awareness level will remain to be the deciding factor on reach, frequency...