Amanda Jackson

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• Amanda Jackson
• Austin Teeter
• Josh Adams
• Alessandra De Faria
• Ed Delgado

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Presentation Outline

• Company Background
• History
• Company Overview
• Industry analysis
• Article Summary
• Marketing Implications

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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

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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.

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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.

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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

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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

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

• 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
  ?vd2zf7JN_frY

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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 agencyinstead 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.

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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.

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Global Appeal

• Heineken found it important to establish the
  connection with Bonds 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.

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Marketing Implication

• Are Heinekens current company
• strategies effective?

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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

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Couldve, Wouldve, Shouldve

• 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

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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

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Questions???