Heineken's Strategy: Adapting to Trends in the Global Beer Market

This case study examines Heineken's strategic response to evolving trends in the global beer market, particularly the rise of non-alcoholic and low-alcoholic beverages. It identifies opportunities and challenges faced by Heineken NV when entering the NALAB market, including the risk of brand dilution and competitor actions. The analysis focuses on the effectiveness of Heineken's integrated marketing campaign, its investment of €2.5 million, and its strategy to leverage flagship brand values while addressing brand extension challenges. The study highlights the company's 'Open Your World' campaign and its focus on responsible drinking, concluding that the integrated approach was successful in establishing Heineken as a category leader while managing brand identity during this transition. Desklib provides access to similar case studies and solved assignments for students.

Student ameN
Course ameN
niversity ameU N
14th uly-J -2018

1. Discuss the changing trends in the global beer market that provided the conte t forx
understanding eineken s et Value s V shift in marketing strategyH ’ N ’ (N )
Since the year the consumption of non alcoholic beer and low alcohol beers have been2013, -
witnessing huge boom in the market his boom has been on the back of rising awareness. T
among consumers about the harmful effects of alcohol1 his is also because of the fact that. T
government has carried out several health programmes and has also asked industry to
promote alternatives to the products served in the alcohol industry hese are the set of. T
challenging trends which most of the beer manufacturers in the industry are facing and
eineken is also troubled with these emerging trends his is not the case only in this regionH . T ,
but it was also one of the most visible trends across the world he challenge was most. T
visible in the young generation and this is when the market for non alcoholic beer started-
rising sharply owever for such companies there was another challenge. H , 2 he nature and. T
image of non alcoholic beer and low alcoholic beer was such that competitors wanted it to- -
be intact ence any beer company who supports the growth of this segment will be. H
considered weak and competitor might change the brand advantage of the company.
1 hose S eiman A owengart solating strategy effectiveness of brands in an emergingG , H , L O. I
market A choice modeling approach ournal of rand Management Mar: . J B . 2017
1;24(2):161-77
2 almatier R Sridhar S Marketing strategy ased on fi rst principles and data analyticsP W, . : B .
Macmillan nternational igher ducation ebI H E ; 2017 F 23

2. dentify the opportunities and challenges faced by eineken s V upon its move intoI H ’ N
the non alcoholic and low alcoholic beer market segments A A s- - (N L B ).
ne of the major opportunities it opens up for eineken s V is the entry into a very strongO H ’ N
growing segment with major brand value attached his opens up complete new space in. T the
business which will allow the organisations to grow by leap and bounds his new segment is. T
growing very strongly and hence any move towards it can change the future dynamics of the
country3 n the year they launched a zero alcohol variant of their beer in the market. I 2017, .
he opportunities very pretty clear in this segment however the biggest challenge is the factT ,
that the nature and image of non alcoholic beer and low alcoholic beer was such that- -
competitors wanted it to be intact ence any beer company who supports the growth of this. H
segment he brand image could be hurt and impacted when the product is launched as. T
competitor will try to dilute it in the market o counter this strong new marketing campaign is. T
required and a strong budgetary support will be needed to ti e over the whole situation4.
3. Analyse the effectiveness with which eineken V leveraged its fl agship brand values inH N
entering the A A market and how it addressed the challenges of the variousN L B ,
brand e tensions already e isting within its current brand portfoliox x .
3 Mathur A Chhibber o study the critical success factors of Retailtainment marketing, N. T .
Chanakya nternational ournal of usiness Research DecI J B . 2016 1;2(2):34-7
4 Adegbesan A Mitchell ahler uidelines for effective strategy in African markets, W, W B. G :
essons and e tensions from SMS publications Strategic Management ournalL x . J . 2016
Dec;37(13):E63-71

eineken had a very strong and elaborative strategy to ti e up with the challenges and deliverH
the desired results for the company he fi rst decision from the company was to invest euro. T
million for integrated marketing campaign which will cover all aspects such as branding2.5 ,
positioning and placement of the product t will also cover all form of media to reach out to. I
customer and create and build upon the brand identity so that outcome is positive he. T
ambition of the company is to become a category leader in this segment and hence all
integrated effort went in to development of the category and also managing the brand identity
during this transition period he integrated marketing campaign and brand e tension strategy. T x
need to work together in synchronization to deliver the right outcome against the
requirement of the brand he systems can t work in isolation as otherwise the already. T ’
present player will destroy the brand entry of eineken and in the alcoholic beer segmentH
the brand will also be hurt because the real head on challenge is taking place in that
segment5 he risk involved here was the fact whether the company s strategy of open to. T ’ “
all had a good design around it and will be it be paying off for the company he company’ - . T
also worked with suppliers and vendors so that human factors could be collaborated and
they can be identified as a responsible brand in the business he company also by these set of. T
campaign addressed the risk of e cess alcohol consumption he objective and strategy of thex . T
company focussed on the motto of responsible drinking he April campaign of pen. T , 2017, ‘O
our orld was highly successful and paid off for the company in the long runY W ’ 6.
5 Steenkamp lobal brand strategy orld wise marketing in the age of brandingJB. G : W - .
Springer an; 2017 J 3
6 Steenkamp he uture of lobal rands n lobal rand Strategy ppJB. T F G B . I G B 2017 ( . 291-
algrave Macmillan ondon296). P , L

References:
hose S eiman A owengart solating strategy effectiveness of brands in an emergingG , H , L O. I
market A choice modeling approach ournal of rand Management Mar: . J B . 2017 1;24(2):161-
77
almatier R Sridhar S Marketing strategy ased on fi rst principles and data analyticsP W, . : B .
Macmillan nternational igher ducation ebI H E ; 2017 F 23
Mathur A Chhibber o study the critical success factors of Retailtainment marketing, N. T .
Chanakya nternational ournal of usiness Research DecI J B . 2016 1;2(2):34-7
Adegbesan A Mitchell ahler uidelines for effective strategy in African markets, W, W B. G :
essons and e tensions from SMS publications Strategic Management ournalL x . J . 2016
Dec;37(13):E63-71
Steenkamp lobal brand strategy orld wise marketing in the age of branding SpringerJB. G : W - . ;
an2017 J 3
Steenkamp he uture of lobal rands n lobal rand Strategy ppJB. T F G B . I G B 2017 ( . 291-296).
algrave Macmillan ondonP , L