3. Many of life's failures are men who did not realize how close they were to success when they gave up. - Thomas Edison
4.
5.
6. Introduction The Heineken family entered the beer business in 1864, when Gerard Adriaan Heineken bought a brewery in the heart of Amsterdam. Over the past 140 years, four generations of the Heineken family have built and expanded the brand and the company in Europe and around the world. It is thanks to the leadership of Gerard, Henry and Alfred Heineken that Heineken is one of the world’s leading brewing groups. Today Charlene de Carvalho-Heineken is delegate member of the Board of directors of Heineken Holding N.V.
7. Introduction At the end of 2007, Heineken has expanded to a number of 119 brewers in more than 65 countries all over the world with a number of 50,004 employee in the year of 2007. (Heineken N.V., 2008).
18. Marketing Mix: Product Keegan and Schlegelmilch define a product as a collection of physical, psychological and symbolic attributes that collectively yield satisfaction, or benefits, to a buyer or user. When we interpolate the above definition into Heineken, we see that all three parts mentioned above, i.e. Physical, Psychological and Symbolic apply to Heineken products.
19.
20. Products Heineken Pilsener This is Heineken’s regular beer which is the same as the original Heineken started with. Its mildly bitter taste, fresh, fruity aroma, bright color and exceptional clarity are obtained using only the purest water, hops and barley malt. Alcohol: 5% vol.
21. Products Heineken Premium light Heineken’s Premium Light is a beer brewed by Heineken mostly for the US market. It was introduced in 2005 and took them 10 years of market research, and was chosen from twenty options. The introduction of this beer was a big step for Heineken. Alcohol: 3.3% vol.
22. Products Heineken Tarwebok/Special Dark (USA) Traditionally brewed and drunk in autumn, this aromatic, strong beer has a full-bodied, spicy taste derived from unique malts made with roasted spring barley and wheat. It is available only in Netherlands and in US under the name Special Dark
23. Products Heineken Oud Bruin One of the most traditional Dutch beer types, ‘Old Brown’ derives its rich, dark color and taste from its dark malt and hops. Natural sugar gives it a mildly sweet, caramel taste. It is available only in the Netherlands.
24. Products: Draught BeerTender A joint venture between Heineken and the electronic company Krupps resulted in the BeerTender which is a beer tapping system for use at home. It uses small lightweight 4-5 Lt. kegs. It is a closed system meaning that only available beer is from Heineken itself. It was first introduced in Netherlands in 2004 and found its was to eight other countries by 2008. In 2007 there were already 300,000 BeerTenders sold.
26. Products: Draught DraughtKeg Another similar product that is developed and engineered is the DraughtKeg. It is a 5 Lt keg that has the entire tapping system built into it. The keg is portable, disposable, 100% recyclable and is manufactured in lightweight steel. It was first introduced in France in 2005. In 2007, it was available in 90 countries and sold more than 10 million units.
36. Physical: Styling & Packaging Styling and packaging is critical and very important for Heineken. They also emphasize this by saying the following in their annual report of 2007: “ Packaging is a key element in Heineken’s marketing and innovation strategy. New pack types create new consumption moments, build excitement around our brands, improved margins and higher volumes.” In this way, Heineken moves beyond from selling just beer to selling experiences by augmenting their product. We will see some examples of the creativity and innovation of Heineken when it comes to packaging.
37. Physical: Styling & Packaging Beer is typically served in two main types of packaging, bottles and cans.
38. Physical: Styling & Packaging Paco Bottle In 2004 Heineken introduced the Paco bottle which is made out of striking green aluminum to reinforce the brand’s premium positioning. With the Paco bottle, Heineken was the first beer brand to win Frontier’s Star Product of the Year award in 2005. “ Heineken has succeeded in creating a brand new high value subcategory without cannibalizing from existing sales. The product, placement and price are all well adjusted to the travel retail environment. Paco creates a premium perception in a category that has never been perceived as premium.” [Pittilla, 2005]
39. Physical: Styling & Packaging DraughtKeg The DraughtKeg mentioned earlier caused a disruption in the beer market. Its unique functionality, offering real draft beer from a keg that is scaled down for convenience, improves the customer experience. What makes this so special is that it is done by a revolutionary packaging instead of a new flavor or a new style of brewing.
40. Physical: Styling & Packaging DraughtKeg It took 15 years to develop and an investment of $15million in a new production line. It results in 12-14 beers and costs only slightly more than a regular 12-pack. Because Heineken is a premium brand, this light increase in price will not bother the consumers since they get a better and fresher taste from the DraughtKeg. Since the margins on low-end beer are too slim to support this type of delivery system, Heineken has managed to use its creative packaging abilities to disrupt the commodity beer market.
41. Physical: Styling & Packaging Heineken WOBO In 1963, the then chairman , Alfred Heineken visited the Caribbean and noticed beaches littered with beer bottles and a shortage of building materials. This gave him the idea to use the beer bottle for another purpose then just hold beer and came up with the Heineken WOBO (World Bottle). The specially designed bottle was meant function like normal ‘brick and mortar’ construction. However, only 100,000 bottles were produced and now they have become a treasured collector’s item.
42.
43.
44.
45. Psychological: A positive lifestyle - Enjoy Heineken responsibly In 2004, Heineken became the first alcohol company in the world to link a responsibility message on bottles, cans and secondary packaging with a dedicated alcohol education website. This website, www.enjoyheinekenresponsibly.com , holds information on Heineken’s alcohol policy and provides information on the effects of alcohol and guidelines for responsible drinking. It also can redirect visitors to organizations dedicated to the subject.
46. Psychological: A positive lifestyle - Heineken Alcohol Policy Statement Heineken formed an alcohol policy statement, Heineken Alcohol Policy Statement (HAPS), that contains eight ruling principles shown below (Heineken Alcohol Policy, 2008). 1. Responsible consumption of beer is consistent with the maintenance of a balanced and positive lifestyle for most adults who choose to drink 2. The informed individual is responsible for his/her own behaviour 3. Heineken is committed to raising awareness regarding responsible consumption 4. We demand responsible behaviour of all employees in our family of companies around the world
47. Psychological: A positive lifestyle - Heineken Alcohol Policy Statement 5. Heineken companies are charged with ensuring that their commercial activities meet legal requirements and do not encourage irresponsible consumption 6. We want to help prevent abuse and misuse through dialogue and action 7. Implementation of the Heineken Alcohol Policy is mandatory in all Heineken companies 8. We will report on our actions related to our Heineken Alcohol Policy
48. Psychological: A positive lifestyle - Heineken Alcohol Policy Statement
60. Brand Image Heineken is a group which owns a worldwide portfolio of over 170 beer brands, mainly pale lager, though some other beer styles are produced. As of 2006, Heineken owns over 130 breweries in more than 65 countries and employs approximately 57,557 people. The global beer market is expanding steadily, despite a decline in the traditional markets of West Europe and North America to approximately 1.5 billion hectoliters in 2005 from 1.4 billion hectoliters in 2002.
61. Brand Image “ Heineken. Meet you There” Heineken USA as leading importer of beer into the US, including the flagship Heineken beer. Alaska distributors is a wholesaler of malt beverages in Washington and Alaska. Heineken did not approve a proposed transfer of distribution rights to another wholesaler, and later terminated the existing wholesaler and appointed a new wholesaler, Alaska Distributors. The market area for the distributor was North of Seattle, Washington.
62. Brand Image Heineken total beer volume was made up- Heineken brand 18.7%, Amstel 9.1% and other beer brands 72.2%.
63. Filip Wouters VP Marketing Heineken Heineken USA Brand Image Heineken is an iconic brand that represents heritage, premiumness, innovation and quality around the world and is the gold standard for imports in U.S
64. Positioning Heineken is the world’s most valuable International premium beer brand. Heineken hopes to consolidate its position within the high growth Romanian beer and mineral water market by acquiring Transylvania-based brewer Bere Mures for an as yet undisclosed fee. As of 2007, Heineken owns over 119 breweries in more than 65 countries and employs approximately 54,004 people.
66. Brand Strategy Building a winning brand portfolio centered around Heineken. Their brand strategy is to build a strong portfolio that combines the power of local and international brands and which has Heineken at its center. The consistent growth of Heineken requires solid creative brand management, which they always coordinate centrally. For the Heineken & Amstel brands, they develop and maintain central guidelines and standards for brand style, brand value and brand development.
67. Brand Strategy Heineken applies the following global brand strategy: “Our brand strategy is to build a strong portfolio that combines the power of local and international brands and which has Heineken at its center. (Heineken N.V 2005)
69. Heineken Brand Dashboard Heineken introduce a standard for measuring brand performance. Heineken brand Dashboard is a new system for measuring and reporting all essential keys performance indicators on sales, marketing and finance relating to the Heineken brand. This tools will make it easier to diagnose brand health issues and to have a consistent vies of the most successful growth drivers for the Heineken brand across the business.
70. Other Brand The Company’s other brands with some international distribution are Amstel which sold 630 million liters, Buckler, a nonalcoholic beer, which sold 90 million liter and Murphy’s Stout, recently acquired. As a result of acquisitions, Heineken also oversaw the brewing of many local and regional beer brands marked by its subsidiaries, such as Bir Bintang, the leading Indonesian brand.