Amanda JacksonAmanda JacksonAustin TeeterAustin TeeterJosh AdamsJosh Adams

Alessandra De FariaAlessandra De FariaEd DelgadoEd Delgado

Presentation Outline

Company Background History Company Overview Industry analysis

Article Summary

Marketing Implications

History

Founded in 1863

Gerard Heineken bought a local brewery in Amsterdam that had been unsuccessful

Discovered the famous Heineken A-Yeast strain, that is still used today

The Company

• Respect...Quality...Enjoyment...Simply put, these are the Heineken values.

• The goal of Heineken is to grow the business in a sustainable and consistent manner, while constantly improving profitability. The four priorities for action include:

• To accelerate sustainable top-line growth. • To accelerate efficiency and cost reduction. • To speed up implementation: They commit to faster decision

making and execution. • To focus on those markets where they believe they can win.

The Company

Consider themselves as one of the worlds most international brewers

115 breweries in 65 countries

The main international brands are Heineken & Amstel. They also brew & sell more than 170 international premium, regional, local & specialty beers.

Industry

Barriers to entry vary upon location

Worldwide beer consumption is expected to grow by 3% annually

Most of the growth is in developing markets. Asia, Latin America, Central Eastern Europe, Africa Increases in income and moving away from hard liquor

are the suspected causes

Industry

Not much growth potential in the U.S. or Western Europe This can be attributed to strong competition from the big

three in the U.S. and the growing number of Microbreweries

The Craft beer trend has made it difficult for Heineken to increase sales

Article Summary

Casino Royale premiered in London Nov. 14, 2006, but the Heineken commercial tied to the new James Bond flick premiered-inadvertently-on YouTube weeks earlier. The commercial was the central element in a massive, 55 country market effort tied to Casino Royal. http://www.youtube.com/watch?v=d2zf7JN_frY

Heineken taps into 007 fever with a multilevel approach to marketing that links its famous beer to James Bond and Casino Royal.

Micro Marketing Heineken is taking advantage of its position as a global brand in an industry still

dominated by local brewers.

Heineken has not centralized its advertising with any one agency…instead they utilize dozens of local agencies. The Casino Royale/Bond tie-in allows the international marketer to spread their message while also appealing to local sensibilities.

What Happens Next? Local agencies are allowed to make Heinekens advertising communication relevant for

their own market in an entrepreneurial way.

Examples In South Korea, Heineken creative folks cut a version of the spot to play on mobile phones,

taking advantage of the way Koreans use their 3G equipped handsets for multimedia. In Singapore, the local agency edited the commercial into a cliffhanger, withholding the

commercials ending for the first several weeks it appeared.

Global Appeal

Heineken found it important to establish the connection with Bond’s Image, which seems to have as much appeal in China as it does in New York.

Bond stands for sophistication, luxury, and excitement, qualities which fit very much with the upscale image of the beer.

After several years of slow growth, operating profit for the first half of 2006 rose 14% to $922 million on sales of $7.3 billion.

Marketing Implication

Are Heineken’s current company strategies effective?

Current Strategies

Adaptation– Heineken hasn't centralized its advertising with any one mega-agency – Heineken uses dozens of local agencies working according to themes and

templates determined by headquarters

Product Placement– In Casino Royale, product placements are subtle and Heineken's cameo in an

airport scene is easy to miss– More important than a few seconds of screen exposure is the connection to

Bond's image; qualities which fit very much with the upscale image of the beer

Regio-Centric– One Global Message… Local Agencies are responsible for creating relative

advertising and marketing plans for their markets

Could’ve, Would’ve, Should’ve

• Stricter Contracts– Limit the number of people available to finished products

• Change Strategies– Hire one mega-company with numerous international

offices to be solely responsible for marketing campaign

• Beat them to it– Sell their commercials to sites such as YouTube and

share profits off each hit

Resolution

• Stricter Contracts– Limits the availability to finished product– Increase accountability

• Beat them to it– Early releases on YouTube.com– Expand Target Market– Inexpensive– Get paid per hit

Questions???