Analysis of Marketing Communication Issues at Heineken N.V: A Report

This report examines the marketing communication strategies of Heineken N.V., a global brewery, focusing on the challenges the company faces in advertising and branding its products. The report provides an overview of the situation, identifies organizational issues, and lists critical factors affecting Heineken's marketing efforts. It explores alternative solutions, including market research, new strategy formulation, and product restructuring, evaluating their advantages and disadvantages. The report culminates in a final recommendation, emphasizing the importance of market research, improved promotion strategies, competitive pricing, and enhanced product quality and flavor offerings. The analysis also incorporates IMC theories and principles to provide a comprehensive understanding of the issues and potential solutions, concluding with recommendations to improve advertising, branding, and overall marketing communication effectiveness.

DECISIONS AND ISSUES
IN INTEGRATED
MARKETING
COMMUNICATION

Table of Contents
INTRODUCTION...........................................................................................................................3
1) Overview of situation .............................................................................................................3
2) Organizational issues at Heineken N.V .................................................................................3
3) List of critical factors..............................................................................................................4
4) Alternative solutions including advantages and disadvantages..............................................4
5) Final recommendation to problem. ........................................................................................6
6) IMC theories and principles....................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The Marketing Communication refers to the means adopted by the companies to convey
messages about the products and the brands they sell, either directly or indirectly to the
customers with the intention to persuade them to purchase. Heineken N.V is the company which
manufactures beers. The products of the company are premium. The company is facing main
issue related to advertising and branding. The report will describe overview of situation of
company, main problem which the organization are facing. Further, study will describe critical
factors. Alternative solutions to the problem. And study will give one final recommendation to
the problem.
1) Overview of situation
Heineken N.V is a well known, renowned brewery and have essential strength to be a
global brand. The Heineken has been marked as a premium brand in US and Hong Kong market.
The company got medal at 1898 in Paris world fare and 1893 won the largest selling beer in the
Netherlands. The organizational is facing main issues in advertising. They are unable to
communicate to consumers about the taste, premiumness of the beer. The company is
manufacturing the new flavour in beer whose advertising is not up to the mark. This can hamper
the goodwill of firm. (Kerin & Hartley, (2015). With international marketing and
communication organisation is facing several challenges in achieving its key segment of
marketing objectives. By solving the discussed case issue Heineken aims at achieving following
objectives:
 To improve the advertisement strategies so that promotion can be made more impactful .
 To create a strong brand image by promoting products and services globally
 To increase the number of new customers as well as loyalty of existing customers by
building strong brand image.
2. Problem statement and type and level of analysis
Problem statement: How Heineken can improve their advertisement strategy so that local as
well as global market can be easily targeted and profits can be increased.
Problem type:
Heineken has been dealing with specific problem issues in its advertisement and
promotional strategies. The promotional strategies of the organisation have been unsuccessful in

creating strong image amount its targeted customers. This marketing issue has been influencing
the number of sales as well as success of new products.
Level of analysis: Level 3, Discipline issues
Issues at Heineken are the advertising issue which affect the brand value of company.
(Kerin & Hartley, (2015). The issue is categorised as discipline issue and is of marketing type
which influences the various marketing functions and purpose of the organisation. The problem
is specified as the discipline issue because it does not represents the difficulties faced by entire
industry but instead it affects a particular operational area or discipline of the company.
Heineken has a weak pricing strategy, as price vary in different countries which affects the
financial culture of firm. Heineken should build powerful ICM strategies and provide a 'platform'
that is flexible enough to handle the branding for local market players. It should have both
centralized and decentralized organizational structure to boost a global brand and to support local
marketing managers in setting and implementing ICM strategies tailored to each local market
(Karjaluoto, Ulkuniemi & Mustonen, (2015).
Marketing Communication: marketing communication of Heineken is weak as branding and
promotions are not done as per the market demands. They target a very narrow age group which
is the main reason of the decline of market strategy. Global branding and advertisement is very
weak as they do not have a stable strategic approach.
Weak marketing practice: marketing strategy of Heineken is very much poor as they do not
promote the brand through social media and through various sponsorships which generates more
customer base(Keller, (2016).
3) List of critical factors
Critical
Factors
Reasons and solution Ranking
Advertising Heineken N.V can advertise its product
with the help of social media platforms
such as Facebook etc(Keller, (2016).
As the sales of the company is less so
advertisement helps in expanding the
sales. The advertisement should be
1

made in such a way that it attracts
customers.
Challenges in
traditions
and practice
Heineken advertisement that shows the
tag line sometimes lighter is better was
highly disliked by the consumers. They
thought that this advertisement was
quiet racist. Heineken must ensure that
advertisement are done for the purpose
and not for just making money.
3
Challenges in
taste
premiumness
and
friendship.
The Heineken N.V is facing various
issues. Taste of beer is super
inoffensive lager with a more stronger
and bitterer taste. This is an issue as the
taste of the beer is not clearly
elaborated in advertisement. So
company need to focus on this, they
must make sure that the exact flavour
of beer is known to consumers.
(Petersen, Kushwaha & Kumar,
(2015).
2
Critical factors are ranked from scale of 1-3 where 1 is the most significant and 3 is the least
significant .
4) Alternative solutions including advantages and disadvantages.
S.N. Solution Advantages Disadvantages
1 Market research It will give a clear picture of why
Heineken is considered as
overpriced product &
management can take action on it.
Market research if not done
properly can have uneven
consequences which may go
worst for Heineken. Also

conducting market research
involves lots of
cost(Karjaluoto, Ulkuniemi &
Mustonen, (2015).
2 Formulating new
strategy
It will provide management of
Heineken with new direction and
advantage could be taken by
formulating new pricing strategy.
Providing management with
new direction can lead to two
ways positive and negative.
3 Restructuring pricing It can be beneficial for Heineken
as new customers who will find
the price affordable will start
enjoying Heineken.
It can land Heineken in
situation where old customers
can shift to a substitute
product considering
Heineken as inferior product.
4 Adapting new market
practices
It can be profitable for
Heineken(Karjaluoto, Ulkuniemi
& Mustonen, (2015).
It can be a disaster and
Heineken can loose existing
customers.
5 Conduct market
research
It can provide Heineken with new
facts and figures which can be
analyzed for better market
understanding.
It is expensive.
6 Strengthen existing
marketing strategies.
Heineken does not have to frame
new marketing strategy but can
strengthen existing one by making
changes in it(Valos & et.al.,
(2016).
Can be of no use.
7 Developing new
product
It can become popular among
existing customers and can grab
It can make earlier product
ineffective and there are also

attention of new customers as well
as customers will have more
options with them.
chances of failure.
8 Work on existing
product
It can be done by improving
flavours of existing product or
changing packaging of product
and can have positive impact on
minds of customers(Finne &
Grönroos, (2017).
It could be ineffective and can
also burden Heineken with
unnecessary expenses of
altering existing products
cost.
9 Conduct market
research for product
quality and flavours
It can provide Heineken with
better idea of what people are
expecting from a beer brand and
what kind of flavour they prefer.
It can be expensive and
profitability from market
research is only a probable
event(Decisions and Issues in
Integrated Marketing
Communication, 2019).
5) Final recommendation to problem
As the Heineken N.V is facing problem that their products are not able to satisfy the
needs and wants of people. So to solve this problem company should do proper market research,
that what is requirements of market, what new flavours they can produce, are the buyers are
satisfied or not (Batra & Keller, (2016). The company should focus on promotion activities that
how well they are promoting their drinks and by which mediem the company is doing marketing
activities. The price charged is high, so Heineken N.V should charge reasonable prices so that it
can attract more customers. Consumers are complaining of quality so Heineken N.V should
focus on quality. Price charge for a product must justify the quality. More flavours should be
introduced by company as there are not many flavours available. Heineken N.V should see that
what flavours other competitors are offering and introduce new flavours which are not available
in market(Finne & Grönroos, (2017). Thus in conclusion it is recommended that organisation
must adopt advertisement issues which clearly justify and promotes its product quality and
commitment towards customer satisfaction. It will help Heineken to overcome its issues.

6) IMC theories and principles
Integrated marketing communication is a simple concept that ensures that the information
is communicate on proper time. Any change in the information regarding the products of the
company can be communicate with the help of integrated marketing communication theory. IMC
makes message more consistent and more credible. Heineken N.V uses IMC strategy for
marketing and promotional activities(Petersen, Kushwaha & Kumar, (2015). The theory will
help to address the traditional aspects associated with the advertisement and promotion of the
products.
CONCLUSION
From the above study it can be concluded that there are various issues at Heineken N.V.
That is weak marketing policy and market communication. As there should be an effective
communication in the organisation. Further the report will details the critical factors such as
advertising and brand promotion. As advertisement impacts in increasing the sale of the
Heineken N.V . The report also give the final recommendations to the problem which assist in
improving the behaviour of company.

REFERENCES
Books and Journals:
Batra, R., & Keller, K. L. (2016). Integrating marketing communications: New findings, new
lessons, and new ideas. Journal of Marketing. 80(6). 122-145.
Finne, Å., & Grönroos, C. (2017). Communication-in-use: customer-integrated marketing
communication. European Journal of Marketing. 51(3).445-463.
Karjaluoto, H., Ulkuniemi, P., & Mustonen, N. (2015). The role of digital channels in industrial
marketing communications. Journal of Business & Industrial Marketing.
Keller, K. L. (2016). Unlocking the power of integrated marketing communications: how
integrated is your IMC program?. Journal of Advertising,.45(3).286-301.
Kerin, R., & Hartley, S. (2015). Marketing: the core. McGraw-Hill.
Petersen, J. A., Kushwaha, T., & Kumar, V. (2015). Marketing communication strategies and
consumer financial decision making: The role of national culture. Journal of
Marketing. 79(1). 44-63.
Valos, M. J. & et.al., (2016). Exploring the integration of social media within integrated
marketing communication frameworks: Perspectives of services marketers. Marketing
Intelligence & Planning. 34(1). 19-40.
Online:
Decisions and Issues in Integrated Marketing Communication.2019. [Online] Available Through
<https://link.springer.com/chapter/10.1007/978-3-642-38091-4_1>