Heineken Campaign Book 2012

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Heineken Campaign Plans Book
Erica Avesian
Kendal Broderick
Alex Lipnik
Ankit Mehta
Cristina Thomson
Victoria Tsay
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Table of Contents:
 Introduction/Overview………………………………………………………... pg. 3
 Situation Analysis……………………………………………………………..… pg. 4
 Consumer Insights………………………………………………………………. pg.17
 Problems & Opportunities…………………………………………………… pg. 22
 Product Positioning .………………………………………………………….... pg. 24
 Objectives .…………………………………………………………………………… pg. 26
 Budget………………………………………………………………………………… pg.27
 Marketing Communications Strategy…………………………………... pg. 31
o Advertising Strategy ………………………………………………..…. pg. 31
o Sales Promotion …………………………………………………………..pg.37
o Other MarComms ………………………………………………………... pg. 39
o Evaluation …………………………………………………………………... pg. 42
 Reference List …………………………………………………………………….....pg. 45
 Appendix .……………………………………………………………………………... pg. 47
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Introduction/ Overview
Started in Amsterdam in 1864, Heineken has grown to be the world’s most premium
international beer brand. Offering over 200 varieties of beer and operating in five
geographic areas, Heineken stands as the world’s third largest brewer. Despite its success,
sales have been hindered by multiple factors including continual innovation from domestic
and craft beers in addition to tightened budgets among audiences due to recent economic
hardships.
At the same time, an opportunity for growth exists among the fastest growing beer
segment, drinkers ages 21-34. As customers in this age group are still experimenting and
are yet to develop loyalty to any particular brand, Heineken could utilize this segment as an
opportunity to build brand loyalty. From our primary research, we discovered members of
this age group are very willing to try Heineken, but are held back by its high price relative
to competitor beers. If Heineken took the opportunity to build brand loyalty within
audiences ages 21-34 by building a youthful campaign, drinkers are likely to spend the
extra money for the premium brand that is Heineken.
Heineken will keep its focus as a classy and high-end brand by associating itself with
a transformed lifestyle and the slogan, “You Never Thought It Could Get This Good.” By
resonating with the aspirations of young professionals and highlighting the beer’s use for
special occasions, Heineken will capitalize on the opportunity to increase sales among a
younger audience and improve its brand image in general.
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Situation Analysis
In order to assess the market positioning as well as develop a creative strategy, we
must first evaluate the internal and external analysis using a situation analysis. There are
five distinct components, which are below.
Company Analysis
Heineken is one of the leading brewers worldwide with a large international
presence. The company is prominent with over 200 varieties of beer along with its
ownership of 140 breweries and distributors in over 70 countries. The headquarters of
Heineken is located in Amsterdam. The company operates and distributes in five main
geographical areas. These include Western Europe, Central and Eastern Europe, Africa and
the Middle East, The Americas and the Asia Pacific region. Its largest segment is in Western
Europe, followed by a large presence in Central and Eastern Europe. Heineken has market
leadership in the UK, France, Italy, the Netherlands, Greece, Austria, Slovakia, Bulgaria, and
FYR Macedonia. Additionally, the company has the second largest market share in Belgium,
Finland, Ireland, Portugal, Spain, Switzerland, Poland, Romania, Croatia, Hungary, and
Mexico. Heineken produces numerous products that are of high interest to consumers
(MarketLine Business Information Center, 2011, pg. 4).
Sales trends
The following information was extracted from the annual report (OneSource Global
Business Browser, 2012). All numbers are in USD (mil).
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The data above shows the sales trends for Heineken from 2006 to 2010. The
demand for Heineken is strong as it has a large market share in many countries. The
demand for Heineken also appears to be increasing because sales, operating income, and
net income have increased from 2009 to 2010. In addition, in the past five recorded years,
the demand for Heineken has most recently been at an all time high since sales, operating
income, and net income are all the greatest in 2010.
Various factors have hindered the company from increasing sales further. First,
Heineken developed a large amount of debt at the end of 2010. The net debt totaled
$10,517 million and could have been due to various factors including litigations and low
performance in European regions. This setback will increase interest expenses and affect
future general company endeavors. Also, Heineken has underfunded employee postretirement benefits. Heineken provides retirement benefits, but significantly
underestimated the funds required by $1322.7 million. This debt and gap in funds will set
back Heineken in future company decisions (MarketLine Business Information Center,
2011, pgs. 21-22).
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Traditionally, consumers have preferred imported beers for their flavor and foreign
appeal. From 2004 – 2009, imported beer sales increased almost 13%. However, continual
innovation from domestic brands such as increased variety, limited edition brews, and
promotion of local breweries has lessened that mindset. During 2007-2008, imported sales
decreased by 5.4%, the first drop in almost 20 years, suggesting that tightened budgets
have made affordability a high concern and have weakened the appeal of imported beer
(Mintel, 2009).
Environmental trends
Heineken has threats from outside that are affecting the success of its products. One
issue is that there is a declining demand for beer in Europe. The European market shrunk
by 2.4% in value and declined by 4.6% in volume in 2009. This impacts Heineken because
Europe is the highest market of their beer (MarketLine Business Information Center, 2011,
pg. 23).
In addition, there is an increase in advertising regulations for alcoholic drinks.
Advertisements are thought to encourage binge drinking and, as a result, regulations are
increasing. The EU is mainly cracking down on advertising, which is an obstacle for
Heineken as this is its largest market. By not being able to advertise as much, their brand
recognition among consumers is likely to decrease (MarketLine Business Information
Center, 2011, pg. 24).
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Also, the ongoing issue of the health effects of beer is a concern to many. There is a
current cultural trend of people switching to healthier substitutes. As a result, beer is losing
consumers to one of its competitors: wine. The regular imported beer segment still
controls the US imported beer market with an 89.4% market share. However, sales of
imported light beer have increased by 44.7% during the 2004-2007 timeframe. Thirty-two
percent of that growth came from a low-carb craze in 2006. All of these factors are
decreasing the potential consumers of Heineken (MarketLine Business Information Center,
2011, pg. 24).
Heineken has many skills and resources that have enabled it to continue to stay on
top of the market. One strength of Heineken is that it has a strong and diverse brand
portfolio. With over 200 brands, Heineken positions itself as reaching a variety of different
consumers. Likewise, Heineken locates its breweries all over the world and distributes its
products to a large, diverse network. This allows the company to have efficient global
supply chain management. Heineken is also effective in changing the brand to align with
changes in consumer tastes and preferences. The company is focused on innovation in both
the product itself and in the way in which the product is marketed. By doing this, Heineken
is able to stay ahead of competition and increase brand loyalty among consumers. Lastly,
Heineken has introduced a Total Cost Management program (TCM) to prioritize the
expense management as well as increased cash flow with strategic planning. These saving
initiatives have helped to further increase the profits for 2010 (MarketLine Business
Information Center, 2011, pgs. 19-21).
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Heineken is able to further stand out from the competition by being associated with
sports events that attract a higher SES crowd such as the Rugby World Cup and the UEFA
Champion’s League. These associations have enabled Heineken to increase its visibility and
popularity among target consumers. Also, Heineken develops many partnerships and
acquisitions to advance its products. One recent partnership was with UBI in order to
enhance Heineken’s presence in the Indian beer market. This partnership contributed to a
recent increase in growth in the alcoholic beverage industry in Asia. A recent acquisition
was of FEMSA Cerveza’s Mexican and Brazilian operations in order to further grow the
Heineken platform. These attributes of Heineken allow it to continue to prosper and grow
as an industry leader(MarketLine Business Information Center, 2011, pgs. 22-23).
Consumer Analysis
Heineken, the world’s third largest brewer, controlled 8.7% of the global beer
volume share market in 2011, a 3.1% growth in global beer volume from 2010. According
to 2010 population projections from the United States Census Bureau, there are nearly 102
million beer drinkers in the United States. Of the 46% of adults aged 21 and up who
consume alcoholic beverages, 60% of men and only 34% of women consume beer. Among
beer drinkers of all age groups, 21-24 year olds consume the highest volume of beer (49%).
Fifty-three percent of 25-34 year olds consume beer, the highest percentage of any age
demographic among beer drinkers. Domestic beer (Budweiser, Miller, etc.) is preferred by
44% of beer drinkers whereas imported beer (Heineken, Corona, etc.) is preferred by 24%
of beer drinkers ages 21 and up (Mintel, 2009). Among all adults ages 21 and up who drink
imported beer, 39% drink Heineken. Forty-two percent of men and 34% of women who
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drink imported beer drink Heineken. Based on household income, the highest percentage
of consumption of Heineken is for income brackets of $25,000-49,900 and $50,000-74,900.
In both brackets, 41% of adults who consume imported beer drink Heineken.
Based on adults ages 21 and up who consume imported beer, 35% of white, 69% of
black, 59% of Asian, and 34% of Hispanic beer drinkers consume Heineken. Hispanics
account for 13.8% of individuals ages 21 and up and have the highest incidence of buying
imported beer based on origin (primarily Mexico). Although Hispanics enjoy imported
beer, some products including microbrews have little consumer base among Spanish-only
or Spanish dominant households. In addition, this racial group has been hit hard by
unemployment and thus a large percentage has switched to less expensive brands. Whites
are also a large demographic who drink beer; however, they are more interested in wine
and spirits than any other racial group. Asians consume the least amount of beer; however,
they are most likely to drink high-end imports due to high levels of brand consciousness.
Blacks prefer spirits (45%) over beer (38%) and are most interested in wines, ice beer, and
malt liquor (Mintel, 2011).
Based on age, the highest consumption of Heineken is among 21-24 year olds
(49%), followed by 35-44 year olds (40%) and 65+ years old (40%). Forty-five to fifty-five
year olds reported the lowest consumption of Heineken at 35%. Beer consumers tend to be
loyal to brands; 78% know which brand they will purchase before reaching the store. This
is especially true for consumers ages 55-64; however, young drinkers ages 21-24 (75%)
are most likely to experiment and prefer a wide selection while shopping for beer.
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Although since this young demographic has not reached a high-income level, they are most
likely to wait for sales promotions (42%) before purchasing beer (Mintel, 2009).
Based on regional consumption, imported beer is most popular in the Northeastern
United States (28% of consumers), followed closely by the West (26%) and South (25%),
with the Midwest coming in last (17%). Northeastern consumers are the wealthiest and
most image conscious—41% consume the same beer brands as their friends and 18% buy
into the trend of organic beer. Consumers in the Midwest are a large beer demographic;
however, many are loyal to and prefer to purchase domestic products instead of imported
products due to taste and price (Mintel, 2011).
Market Analysis
In the US, younger consumers are more likely to drink beer than those over 50,
specifically those in age brackets from 25-34 (22.8%) and 35-44 (23.2%). Due to the
recession, college students and young professionals (ages 21-34) likely saved money by
switching from wine to beer products. While older consumers (ages 35-54) also switched
to drinking beer, they were likely to cut spending altogether due to tight budgets. People
from households that earn less than $25,000 are most likely to think imported beer is too
costly and have switched to less expensive brands due to the challenging economy. In
contrast, imported beer is most popular for special occasions among consumers ages 35-44
within the $75,000 – 99,900 income bracket and among individuals who work full-time or
are self employed (Mintel, 2009).
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Over the next five years, the younger market segment will continue to be the largest
market segment, while older consumers will favor other beverages. Despite the slightly
higher number of women than men in the US population, men are the primary consumers
of beer: 58% of beer drinkers are men compared to 42% of women. This may be due to the
fact that most beer ads have been historically aimed at men. Recently, women beer
drinkers have increased over the past five years (until 2012) and are expected to
continually increase until 2017 due to the variety and marketability of beers that appeal to
female demographics. Corona (another imported beer) is the only beer enjoyed by more
women than men. Coronaads are aimed at both sexes by including scenes depicting beach
romances and party themes. In comparison, Heineken is enjoyed by 39% of men versus
27% women (Mintel, 2011).
According to a Mindset Media psychographic study, Heineken drinkers are “selfassured people [who] believe they are exceptional, get low scores on modesty and high
scores on self-esteem. They love their brand badges (a role the distinctive green glass
bottle may play) and this group is attracted to luxury products in general. They are
energetic and dynamic and enjoy being the center of attention and in the middle of the
action.”
Compared to Budweiser, Bud Light, Blue Moon, Corona, Michelob Ultra, and craft
beer drinkers, Heineken drinkers are 58% more likely to have American Express cards,
45% more likely to be early adopters of new mobile phones, and 29% more likely to drive
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sports cars.
The Heineken drinker is very active, social, and conscious of what he or she eats and
drinks. They enjoy beer and do not want to gain weight from their beer consumption. The
Heineken drinker seeks exclusivity and is willing to pay a higher price for a premium
product. They want to feel unique and special and are therefore highly responsive to high
levels of service and personalization. The Heineken drinker also wants to be distinguished
from his or her peers and will use brand associations to do so. The Heineken drinker tends
to be a part of new trends and has a strong desire to “stay ahead of the pack.”
Product Analysis
The Heineken product is currently in the mature stage of its product life cycle. This
is evident from several factors, including sales trends, market competition, product
changes, and advertising techniques. For example, current sales trends continue to
increase; however, they are doing so at slower pace than they had previously.
Market competition is intense in the beer industry. Many competitors already exist
for Heineken (see competitive analysis for more). Competitors are at a juncture where they
are focused on increasing the frequency of purchases per customer, promoting switching
from competitor products, and encouraging non-users to become customers rather than
seeking recognition for the product itself.
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Many product changes have occurred that indicate Heineken is in a mature stage.
The product has seen countless modifications take place and several features added in
order to differentiate the product from the competition that has been introduced into the
market. For example, elements of the bottle have been refined over the years to provide
functional improvements. There have also been price fluctuations made in response to the
expanding market, specifically focused at changes in price made by specific products.
Lastly, as previously mentioned, Heineken has looked to find new distribution channels and
other ways of getting their product into stores and onto the shelves.
Heineken’s advertising techniques are also indicative of its mature stage, and are
perhaps the most significant aspect. Since brand awareness has already been achieved,
advertising expenditures have been reduced for Heineken in recent years. Despite this fact,
and due to growing similarity among products in the category, marketing activities are still
vitally important. Heineken has chosen to emphasize product improvements and
differentiation. They seek to make use of these differences to provide themselves with a
competitive advantage in the marketplace. In an industry with so much competition, and
even more resemblance between products, this part of the campaign becomes very crucial.
It is necessary to find and reveal ways in which the Heineken product is superior to its
competitors. Distinguishing the brand within the beer market will work towards making
Heineken a more successful brand.
In the United States, there are many Heineken products that are currently available
on the market. In terms of bottled beer, there is the traditional Heineken Lager as well as
Heineken Light. There is also the special, limited edition STR Bottle that glows under black
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light. Additional products include the Heineken DraughtKeg and the accompanying
BeerTender that helps keep it cold (sold separately).
As implied on their website, the current marketing approach for Heineken uses the
slogan “open your world” and presents drinkers in eccentric situations. Their website
explains their advertising campaign by saying, “Come on a legendary date through hidden
back alleys and flaming kitchens. Be enchanted by magicians, chased by dragons and
stirred up by a mesmerizing band”. The fact that Heineken is talking about going on dates
and even naming the campaign “The Date” speaks to the idea that they are focusing their
efforts on a younger audience, especially those in the serious dating phase of their life.
Competitive Analysis
The brewing industry is highly competitive. As beer has evolved into a mature
category, the industry has experienced an increase in mergers & acquisitions, global
strategy, and product differentiation. The consolidation of the brewing industry is evident,
as the market share of the top five firms has increased from 19% to 87% in fifty years
(Mintel, 2009). The M&A strategies for brewers have been focused on reducing supply
chain expenses and creating an international brand across the globe. High capital asset
requirement costs, economies of scale, and advertising costs create high barriers to entry.
Many competitors exit the brewing industry net negative.
Imports should consider increasing variety in order to compete with domestic
beers. Imports can also rebound if domestic prices continue to increase, especially among
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craft beer prices. Even though craft beers are an alternative, they have become very pricey
even compared to imports. Craft beer has the highest average price per case compared to
imports, increasing on average from $28.22 per case in January 2006 to $32.67 per case in
September 2009 (Mintel, 2009). At this rate, imported beers could be seen as a more
affordable luxury if they can hold their pricing and increase flavor variety marketing
efforts.
Brewers compete in a product differentiation environment. There are various
product innovations throughout the beer brewing companies such as Budweiser Select
(low-carb beer) and Heineken’s mini-keg. Different beer companies use various beer styles
to meet consumer preferences. Beer styles include color, flavor, strength, ingredients,
production methods, recipe, history, or origin of the beer.
In the brewing industry, there is an attempt made at creating a brand and building
brand loyalty. Heineken’s legacy status makes its loyalty strategy more fruitful, as the
brand has existed for over 120 years. Overall, Heineken’s success as the #2 import beer can
be attributed to its strategy, growing externally from the Netherlands to strengthen the
position of the company in developing markets as well as maximizing potential for profit in
high-growth markets. From the latter we can see Heineken is not a low-cost beer provider
like Corona.
To reiterate, Heineken is the #2 imported beer in the US behind Grupo Modelo’s
Corona, which took over as the #1 spot after 65 years of Heineken dominance. Heineken
chose to invest in US market expansion and released a light beer in 2006, Heineken
Premium Light. While some of its toughest competitors market to popular American sports
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and the party culture, Heineken purposefully stays out of events like NASCAR and similar
low-income, low-education crowd segments. Rather, they focus on educated individuals by
positioning themselves into the luxury light beer segment.
Heineken has had aggressive marketing campaigns that differ in each market. It has
all the essential strengths that a brewery company should have to be a global brand, and it
is consumed by people across the globe. Though it has a global presence, Heineken’s image
and identity perception varies worldwide. In the Netherlands, it is the mainstream brand
and a market leader. In the US and Hong Kong, it is perceived as a beer for special
occasions. In Latin America, it is viewed as just one among many European imported beers.
This separation of image and identity perception is a weakness. Heineken does not have a
consistent brand image. The brand needs to be revived with a uniform identity if they are
to experience higher growth.
As we look into the brewing market, the following is a list of Heineken’s competitors
(see Appendix H for rankings by sales):
o Top Competitors: Anheuser-Busch InBev, Grupo Modelo
o All Competitors: Allied Domecq, Anheuser-Busch, Asahi Breweries, Bavaria S.A.,
AmBev, Boston Beer, Carlsberg, Cervecerías Unidas, Constellation Brands,
Diageo ,FEMSA, Foster's, Gambrinus, InBev, Kirin Brewery Company, Lion
Nathan, Mendocino Brewing, Miller Brewing, Grupo Modelo, Molson Coors,
Grolsch, SABMiller, San Miguel, Scottish & Newcastle, Taiwan Tobacco & Wine
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Consumer Insights (Appendix A and B)
In order to acquire information about the Heineken consumer, both a survey and a
focus group were conducted. The online survey consisted of general questions about
alcohol consumption and preferences. The questions asked in the survey can be found in
appendix A. In total, 44 participants took the survey. Of the participants 18 (40.9%) were
male and 26 (59.1%) were female. The average age of a survey participant was 21. The
results showed that 79.5% of respondents regularly consume alcohol. The findings also
exhibited that 82.5% consume beer, but 59.4% say hard liquor (spirits) is their preferred
type of alcohol. Of the participants, 65.9% consume alcohol 1-2 days in an average week
and 27.9% consume 1-2 beers in an average week. When examining the environment in
which people consume alcohol, it was found that 90.5% typically consume alcohol at a
party and 78.6% generally consume alcohol at a friend’s house. When asked what
influences consumers to buy certain brands of alcohol, 85.4% responded with taste and
82.9% responded with price.The survey suggests that the majority of college students
drink a few times a week and that hard liquor (spirits) is the drink of choice. Beer is still
consumed, but in less frequency. To reiterate what was found from the quantitative data,
college students frequently drink alcohol at parties and are most influenced by taste and
price.
In addition to an online survey, a focus group was conducted on March 6, 2012 at
7:00pm. The focus group consisted of eight participants, four males and four females.
Participants ranged in age from 21-23 years old. Notes from the focus group can be found
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in appendix B. The focus group began with an open discussion and questions revolving
around the central theme of alcoholic beverages with a focus on beer. Questions were
raised to generate group discussion and to gain insight into consumers’ thoughts about
different alcoholic beverages. Following the open discussion, there was a blind beer tasting
in which participants drank three unknown beers and described how each beer made them
feel as well as guessed which brand of beer they thought each one was. The three beers
used were Heineken, Stella Artois, and Negro Modelo. After the blind beer tasting, there
was a follow-up open discussion with questions specifically about the Heineken brand.
The focus group made apparent many interesting characteristics of the target
consumers. In the first general discussion regarding alcohol consumption, people had
different stances. It once again appeared that among a group of college students, favorite
alcoholic drinks are hard liquor (spirits) such as Smirnoff or Absolut. On the other hand, a
few males did say their favorite drink is beer such as Natural Ice. The quality of beer
seemed to vary based on drinking situation. Males mainly described that they will drink
cheap beers for drinking games such as beer pong but prefer more expensive beers at a bar
or when trying to impress girls. Notable images or logos of beers that the focus group
recalled were Coors Light’s silver bullet, the Corona crown, and the Heineken star and
green bottle.
Conversation regarding beer-drinking habits drew many similarities among the
participants. All members in the focus group agreed that they were open to trying new
brands of beer. Although open to new options, none said they would blindly buy the first
beer they see in a store. Other factors go into their purchase decisions. It was found that
advertisements, quality or taste, and what friends drink are the biggest influences on beer
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consumption. Many participants agreed that they would drink a bad tasting beer, but the
reasoning was only for drinking games or because of price. The consensus was also that
nobody would drink beer alone. Participants said the ideal drinking situation is a social
setting such as a party or a friend’s house.
During the open discussion, various beer advertisements were discussed. The focus
group recalled three main advertisements that have previously been on television. They
remembered the Dos Equis most interesting man in the world commercial, the Corona
advertisements on the beach, and the Miller Lite ads that make fun of men for being girly.
When asked what their ideal ad would include, males and females differed. Males felt that
light beers turned them away, including the Miller Lite girly commercials. Females felt that
beer commercials were too focused on attractive women, and said they would rather see
attractive men in advertisements. Some focus group members said that they enjoyed
advertisements with humor and more information about the products. Others agreed that
classy ads, such as those currently used by Heineken, resonate well with them.
After the general beer discussion, the blind beer taste test took place. The
interesting part of the test was that no one in the focus group was able to accurately name
any of the three beers. Despite participants mentioning earlier that taste was a big
influence in the type of beer they bought, none actually could match taste to beer brand
name. This implies that other factors such as advertising, price, and brand image may
influence these consumers more than the taste of a beer.
Although no participant accurately knew the third beer tasted was Heineken, they
gave information on how the beer they tasted made them feel. Some stated that the beer
tasted like cheese or a cider. It was also mentioned that the taste was sweet and had a clean
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finish. One participant stated that he thought he would drink this beer in a classier setting,
such as at a candle lit steak dinner. Others felt the beer was not a popular name brand
based on the taste. As participants did not know the brand of beer they were drinking, the
information discussed gave insight on participants’ underlying feelings associated with the
taste of Heineken beer.
Finally, the last aspect of the focus group was a group discussion about the brand
Heineken. Words that came to mind immediately when hearing the brand Heineken were
German, Holland, green bottle, green font, red star, and mini kegs. Heineken commercials
were viewed as simple, making the product look like a “premium” beer. The product was
described as “fresher” than other beers and “not like all the others”. Participants stated
that they don’t frequently drink Heineken at parties, but would enjoy the option to drink
the product at parties. It seemed that price played a large role in why Heineken was not
being consumed at college parties.When discussing the target market for Heineken, the
focus group came to an agreement of adults ages 20-40. The average drinker of Heineken
was described as a wealthy male in his 30s. This imagination involved the man wearing a
classy suit and being noticeably sophisticated.
One of the main points observed from the focus group was that the male
participants were much more vocal and interested in beer than the female participants.
Males seemed to have more of a preference between certain beers compared to others.
Females, on the other hand, often stated that they didn’t drink beer, only drank beer if it
was bought for them, or didn’t know much about beer. It was evident from the research
that males were more supportive of beer drinking and women were not primarily
purchasing beer. For this reason, it was determined that the campaign should focus mainly
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on men. In addition, an important piece of feedback from consumers was that Heineken
was supportive of complementing high-end dinners and formal events. The data received
from both the online survey and focus group were influential in determining the marketing
and communication goals of the Heineken campaign.
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Problems and Opportunities (SWOT)
Strengths

Breweries located in a variety of
Weaknesses

locations making for efficient supply
chain management




estimated and actual costs for pension

Taste of beer is not distinct to warrant
high price in comparison to regional
international expansion growth strategy
beers
Grow strength of customer loyalty for
Threats

Tightening budget of young adults from
fastest growing beer drinking segment
economic downturn & high
ages 21-34
unemployment
Increase variety of beer types to

compete with diverse domestic beer

Poor financial planning ($1.3B) gap in
Leadership and demonstrated success in
Opportunity

interest expenses
Strong branding for niche market of
higher SES customer
High debt to equity ratio creating high
Increase in beer variety and innovation
from domestic beer producers
products

Greater local and craft beer promotion
Align brand image on an international

Declining demand for beer in Europe
level to be a high SES beer in every

Greater advertising regulation on
country
alcoholic drinks, leading to branding
challenges
Heineken is an international company in a mature industry with a similar situation
as its competitors. The SWOT Analysis provides a holistic understanding of the strengths,
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weaknesses, opportunities, and threats of the company. After the SWOT analysis, it is our
goal to capitalize on the strengths and opportunities and minimize the weaknesses and
threats.
Heineken’s efficient supply chain strategy that consists of setting up breweries and
distributors unique to each of its five geographic regions creates sustainable costefficiencies. The likelihood of Heineken’s market changing in the next fifty years is unlikely,
yet their experience in managing multiple locations would prove to be supportive if
another target location is proposed. Since Heineken has been around for over 100 years,
the strong brand name that has been carried through the generations makes Heineken a
legacy and household name. In addition, Heineken has an opportunity to capture brand
loyalty for the fastest growing beer segment (ages 21-34). By increasing the variety of beer
as well as leveraging the strong branding, Heineken can increase sales.
However, there are weaknesses and threats that may prohibit Heineken from doing
this. The poor management team at the corporate level was unable to predict the financial
forecast in terms of pension. In the future, this could cause the company toincur greater
surprises in their budget. Another large threat is the external economy. The recession in
2007-2008 created a tightening of budgets for young adults. If this is the target audience
for the company, either sales or justifiable spending will have to be created to incentivize
the customer to purchase a premium beer brand.
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Product Positioning
Based on the results of our focus group, Heineken is perceived as a high-end and
premium beer based on its price. Members of the focus group agreed that Heineken would
not be used at a typical college party for entertainment such as Natural Ice. Along with
being a premium brand; however, is the perception that Heineken is an “older” beer, with
images of a man in his mid-30s as the typical Heineken drinker. Because market research
suggests that the fastest growing beer drinking segment is between ages 21 – 34, Heineken
will expand its positioning from an older beer and increase its focus to a youthful but still
highly successful target audience. Heineken will position itself against competitors Corona
24
and Stella Artois by appealing to the younger audience while highlighting the promise of its
iconic image of a classy and professional Heineken drinker.
Heineken will maintain its high-end image by emphasizing the quality that
accompanies its high price. Additionally, Heineken will position itself as a cultural symbol
by focusing on the experience and lifestyle that comes with drinking the brand. Heineken
will use its current image and relate it to younger audiences by stressing how consumption
of Heineken beer transforms the customer and catapults him into a successful and enviable
lifestyle. Heineken will position itself as a cool yet quality brand by associating itself with
special occasions, such as movie premieres and after parties.
25
Objectives
Marketing Objective:
Increase sales of Heineken nationally by 10% in one year in males ages 21-28.
Communications Objective:
Alter brand positioning of Heineken in one year to be the number one ranked popularly
perceived beer for special occasions among males ages 21-28.
26
Budget
The past Heineken budget from 2011 was a total of $44,193,200. This amount was
divided among various media as shown below:
2011 Budget: $44,193,200
2011 Spending
Percentage of Budget
Network TV
$ 6,013,900
13.61%
Cable TV
$ 25,924,500
58.66%
Syndication Dollars
$ 37,600
.085%
Spot TV
$ 287,000
.65%
Magazines
$ 8,439,400
19.1%
National Newspapers
$ 142,900
.33%
Newspaper
$ 46,700
.11%
National Spot Radio
$ 922,500
2.09%
US International Display
$ 356,500
.81%
Outdoor
$ 1,929,400
4.37%
TOTAL
$ 44,193,200
100%
Source: (AdSpender, 2012)
The budget for our campaign in 2013 is a total of $48,612,520. This budget was
determined based on a percentage of sales strategy. Since our objective is to increase sales
by 10%, the budget was increased by 10% from previous data. These funds will be
allocated across television, magazines, Internet, sales promotions, and public relations.
Based on the success of sales in 2011, the three prominent advertising methods of network
TV, cable TV, and magazines will be maintained. The budget for each of these were adjusted
27
slightly in order to make room for new strategies in Internet, sales promotions, and public
relations. The budget for 2013 is allocated as follows:
2013 Budget: $48,612,520
2012 Spending
Percentage of Budget
Network TV
$7,279,876
14.97%
Cable TV
$22.200,000
45.67%
Magazines
$8,313,555
17.1%
Internet – Social Media
$4,375,000
9%
Sales Promotions
$1,097,089
2.26%
Public Relations
$5,347,000
11%
The advertising strategy of the campaign focuses on television commercials and
magazine print ads. The majority of the funding is going towards cable television based on
previous success. In addition, we chose this media because in the focus group participants
described watching television more than any other media. The cable networks we have
decided to air our commercial on are Comedy Central, ESPN, and AMC. More specifically,
we have chosen to show the commercials on these networks during The Daily Show,
SportsCenter, and Mad Men. These networks and television shows were chosen in order to
reach our target audience of males ages 21-28. The commercials will be run on a
continuous schedule throughout the year to reach as many consumers as possible. The
costs for cable television are:
28
Cable TV
Cost
The Daily Show – Comedy Central
$10,000 x 500 commercials = $5,000,000
SportsCenter - ESPN
$27,000 x 600 commercials = $16,200,000
Mad Men - AMC
$10,000 x 100 commercials = $1,000,000
Total:
$22,200,000
Source:(Geskey, 2010)
In accordance with television being a popular medium to reach the target audience,
our commercial will also be aired on network television. The networks that seemed to
reach the target audience best were ABC during Modern Family and NBC during The Office.
These commercials will also be run continuously over the year to reach a wide number of
consumers. Here is the breakdown for the cost of network TV commercials:
Network TV
Cost
Modern Family – ABC
$249,388 x 17 commercials = $4,239,596
The Office – NBC
$178,840 x 17 commercials = $3,040,280
TOTAL:
$7,279,876
Source:(Steinberg, 2011)
In order to supplement the commercial advertisements, magazine print ads will be
run in GQ and Sports Illustrated because these appear to be magazines that resonate with
our target audience. The one page print ads will run in a pulsing manner throughout the
year. The ads will run on a low level of continuous advertisement during the year with
heavy advertising between November and February. These months will have emphasized
advertising to promote the public relations event of an academy awards after-party. The
budget for the magazine ads is as follows:
29
Magazines
Cost
GQ
$161,437 x 15 one page ads = $2,421,555
Sports Illustrated
$392,800 x 15 one page ads = $5,892,000
Total:
$8,313,555
Sources:Brands/Media Kits | Condé Nast and Sports Illustrated Media Kit for Advertisers:
Sports Illustrated
In addition, new strategies have been developed to increase sales. With the rise of
social media, we are allocating $4,375,000 of the budget to enhance social media efforts on
Facebook, Twitter, and the Heineken website. We have also created sales promotions,
requiring about $1,000,000 to increase sales growth. Lastly, we are developing public
relations events to promote Heineken, which will require approximately $5,000,0000.
30
Marketing Communication Strategy
Advertising Strategy
Creative Objectives:
There are two main objectives for the creative campaign: to change the perception
of Heineken among males ages 21-28 (particularly young professionals) and to increase
recognition and recall of the Heineken brand/image. It was discovered in the situation
analysis that the ages determined for our target market were among the highest consumers
of beer (both 21-25 and 24-35). Moreover, during the focus group that was conducted,
none of the participants named Heineken as a type of beer they generally consume and
very few people were able to remember anything about the Heineken brand/image. Since
the members of the focus group were all within the age range of the target market for this
creative campaign, the objectives put an emphasis on addressing these problems and
concerns.
Creative Strategy (Appendix F and G)
People in the selected target market need to be persuaded to purchase Heineken.
The Heineken beer is generally seen as a premium product (as seen under the consumer
analysis portion of the situation analysis), and the intended target market of males ages 2128 are often less likely to consume it because of the high price point. People in this age
range are often just beginning their careers, and are generating disposable income of their
own for the first time. Thus, the slogan that will be used for the creative portion of the
campaign is “You Never Thought it could Get This Good”. This slogan, by being targeted at
31
young professionals, plays off the notion that these individuals finally have their own
money to spend, and convinces consumers that drinking Heineken will help make their life
“This Good”.
There will be two types of advertisements used to promote the creative campaign: a
30-second television spot and a print ad. The television advertisement begins with a male
sitting in average clothing in a messy college house. He proceeds to open a Heineken and,
as he drinks the beer, his clothing and the scenery behind him begin to change. The
commercial ends with the guy in a significantly nicer house, outfitted in dressier clothing.
When he puts the empty bottle down, he lets out an “Ahhh” to signify how refreshing the
beer tasted. The screen then fades to black and the slogan “You Never Thought it could Get
This Good” appears on the screen underneath the Heineken logo. This scene emphasizes
how Heineken can help young professionals transform into classy males who are able to
live the good life. The commercial shows the progression from an average lifestyle to a
more sophisticated, professional lifestyle with Heineken as the central focus and
transformative factor.The still frames of the television advertisement can be found in
appendix F.
There will also be a print advertisement. The print ad will feature the same male
that was used for the television advertisement, and the same scenario will occur. However,
the print advertisement will utilize still images to portray the before and after. The
following phrase will be printed above the before picture: “He used to be an average beer
drinker”. In order to stay consistent with our transformative quality of Heineken, the
following phrase will be printed under the after picture: “Now he drinks Heineken”. The
slogan “You Never Thought it could Get This Good” and the Heineken logo will be shown
32
amidst a black backdrop on the bottom of the page. The design for the print advertisement
can be found in appendix G.
Using the same situation and actor for both the television and print advertisements
will help integrate our advertising efforts and help the Heineken brand become more
recognizable and recalled more often by consumers.
Media Strategy
Media Objectives:

To reach 60% of males ages 21 to 28 in one year.

To reach 80% of males ages 21 to 28 during the 4 months leading up to the
Academy Awards.
Target Audience:
Our primary target audience is males ages 21 to 28 living in urban settings such as
New York, L.A and Chicago. They are recent college graduates and newly independent
young professionals who just began their careers ranging from finance to sports
management. They have their own disposable incomes and can now afford higher end
products. They enjoy watching sports, going to the bar for drinks after work, and working
out on the weekends. They make a point to visit their favorite local bars in order to
maintain their social circles within their now busy schedules. This target audience is highly
professional and independent; they enjoy the good things in life and like to have a good
time. They are currently medium users of beer and have the potential to become loyal to
Heineken if it is seen as a higher end, fun brand that their friends like to drink.
Media Classes:
33
We are choosing television, magazines, and the Internet because our target audience
is young and tech-savvy and they use these mediums the most compared to others. For
television, we plan to advertise on the following cable and network channels: Comedy
Central’s The Daily Show, ESPN’s SportsCenter, AMC’s Mad Men, ABC’s Modern Family, and
NBC’s The Office. We are choosing these shows because males 21 to 28 are likely to watch
these programs and we want to hit them while they are watching their favorite shows. We
are choosing television because of its ability to show movement and change, which is a vital
component of our creative. Television allows us to show a progression that expresses how
life is before and after the consumption of Heineken. For magazines, we plan to advertise in
GQ and Sports Illustrated. Once again, this will help us to ideally reach our target audience.
We feel that savvy, young male professionals read these magazines. We are choosing
magazines because of their ability to show images and text. Our print ad utilizes still shots
that are consistent with the images seen in the television commercial in order to maintain
integration and allow our audience to connect across different media. For the Internet, we
are focusing on social media sites such as Facebook and Twitter as well as the Heineken
website.
Media Mix:
We are using an assorted media mix in order to reach as wide of an audience as
possible and also to increase the number of exposures per person in our target audience.
We are putting the most emphasis on cable television because the allocation of last year’s
budget proves successful and it focused mostly on cable television. Based on our focus
group, young adult males recall most beer advertisements from television (appendix B).
34
Since we are trying to increase popularity and sales among our target audience, we feel that
using different forms of media with a focus on television will be most successful.
Media Timing:
The timing schedule for the television commercials will be continuous. This is a
method in which there will be regular advertising with no gaps in coverage. We have
chosen this because we would like to increase sales over an entire year. There is no period
in the sales year that is more important than any other and we would like coverage to be
constant. In addition, by advertising on different channels throughout a given year we have
a larger chance to reach our target audience. The timing schedule we have chosen for the
magazine advertising is pulsing. This method will have low level of continuous advertising
with periods of heavy emphasis. A pulsing schedule was chosen over a continuous schedule
because we wanted to allocate less of our budget here based on previous data. Also, we
wanted to heavily advertise in magazines between November and February to align with a
public relations campaign for an academy awards after-party. For the Internet, we are also
using a pulsing timing method. For similar reasons as magazines, we want to have low
continuous advertising during the year with heavy emphasis on the period around the
academy awards after-party.
Media Tactics:
The campaign focuses heavily on television commercials as well as one-page print
ads in magazines in order to reach our target audience of males ages 21-28. We chose to
mainly use television advertisements because our focus group mentioned they recalled
advertisements most from this medium. Our target audience also described that television
was the medium they used most frequently. We decided to also strongly incorporate
35
magazine print ads based on the past success of Heineken ads. We feel that the similarities
between our television and magazines ads will generate recognition among consumers.
In addition, we plan on having our campaign allocated nationwide throughout the
United States. Since Heineken is a brand that people drink in all geographic regions of the
United States, we have chosen to advertise nationwide in order to reach as many people in
our target audience of males ages 21-28.
36
Sales Promotions
Heineken’s sales growth has been turbulent over the past few years. With a 4.4%, 3.6%, and 36.6% sales growth in years 2010, 2009, and 2008, respectively, it is important
to incentivize customers to purchase Heineken to meet our sales growth of 10%.
Concurrently, the target demographic of ages 21-28 have lower disposable incomes than
those who Heineken has previously targeted. In order to hedge against a failure of the 2128 age demographic to purchase a premium product, sales promotions are necessary.
It is important to note that a sales promotion for Heineken can hurt the reputation
of a premium product. This is why a sales promotion should not be mainstream and widely
communicated with mass audiences and the traditional Heineken customer, but rather
with messages that do not deteriorate the quality of the product.
In order to do this, we have established a business-to-business sales promotion. A
local business or venue can apply for a 50% discount in Heineken bulk orders if they agree
to exclusively serve Heineken at their event as the only premium light beer. In order to
execute this sales promotion, local business or venues would apply two months in advance
stating the type of event, who is attending, and an illustration of the aesthetics, feel, and
ambiance of the event. In two weeks, the event will either be approved or disapproved, and
the hosts will then be eligible to purchase bulk amounts (over $2,000) of Heineken at a
35% discount in exchange for letting Heineken be the exclusive premium light beer that is
served.
The applications will be evaluated based on the type of event. If it is a classy event
that fits the “As good as it gets” slogan with a targeted audience of 21-28 male
demographic, then it will most likely be approved. In addition, if an RSVP list (with contact
37
information) is provided for Heineken before the event begins, a 5% rebate will be given
for the total order purchase. This promotion mark-off does not include logistics.
This directly helps us achieve our communications objective, as we are targeting
young males who are attending a special event. It also will not deteriorate the premium
class of the branding, as the sale is only illustrated to the businesses, not the consumers.
We would expect that after enjoying Heineken at a special event, the consumers will
purchase Heineken at their local stores for other occasions. The promotion will be
communicated through our logistics services and established network of bars, clubs,
businesses, and venues.
38
Other Marcomms
Event: The Academy Awards After-Party (Appendix E)
In order to stay in line with our slogan, “You never thought it could get this could,”
we will be hosting a Heineken sponsored Academy Awards after-party. Our reason for
choosing the Academy Awards is because of the high-class appeal, celebrity involvement,
and luxury element of this awards show. We want the popularity of the Academy Awards to
transcend to the Heineken brand. We feel that by associating our brand with the Academy
Awards and the celebrity lifestyle in general, our target consumers will discover drinking
Heineken as an easy way to connect with famous people, and thus will purchase more,
helping to reach our marketing objective of increasing sales. There will be free samples of
Heineken offered at the after-party. Guests will arrive and enter the party by walking on a
green carpet. Heineken promotion girls and guys dressed in swanky formal attire will be
holding Heineken bottles on silver platters. We are hoping to carry on the luxurious “good
life” vibe from the Academy Awards to our after-party. A sample press release for the
Academy Awards After- Party can be referenced in appendix E.
Social Media Photo Contest (Appendix C)
In order to get our target audience involved, we will be launching a social media
photo contest on November 1. Participants who enter the contest must upload photos of
themselves showing us how life “got this good” for them after drinking Heineken. The
photos must show at least one person and a bottle of Heineken. The top three photos with
the most “likes” on Facebook will be invited to the Heineken Academy Awards after-party.
39
We want to bring ordinary citizens to the event in order for them to live like a celebrity for
a night, emphasizing our slogan: “you never thought it could get this could.”
Event: Bar Promotion
For a PR event, Heineken will make use of technology and social networking to
create events at bars throughout the country. Heineken will use Twitter and Facebook to
advertise the promotional events at popular bars in college towns and other major cities.
The event will consist of three “Heineken girls” dressed in green dresses with a red star.
One person will carry an iPad around to customers at the bar and ask if they’d like to take a
quick survey to determine if they “fit” the Heineken lifestyle brand. There will only be a few
short questions and the customer will ultimately find that they embody the Heineken
lifestyle. Upon completion of the survey, another Heineken girl will distribute free
Heineken cans or bottles to those who have completed the survey. If people tweet at
Heineken or post on the Facebook wall saying they’ll be coming to the bar to meet up with
the Heineken girls, they too will receive a free Heineken or a savings coupon if they
purchase Heineken at a store.
Website Update (Appendix D)
Although the Heineken website is already interactive, we have decided to make a
few modifications to make it even more interactive. The first thing we are going to add to
the website is a map of the US which would allow visitors to Heineken's website to "check
in" where they're drinking Heineken. A red star would be placed on the map and the map
would update approximately every 6 hours. There would also be a link from the Twitter
feed for people to Tweet their location at Heineken and be added to the map. This would
40
allow users of Heineken's website to be interactive and see that they're connected to other
Heineken drinkers throughout the United States.
41
Evaluation
Sales:
To evaluate the effect of the campaigns plan, Heineken will use post-testing to
measure sales. Heineken will compare monthly sales during the duration of the campaign
to each corresponding month from the previous year. Additionally, Heineken will compare
the monthly sales information after it has been separated into age groups to see if sales
increase, remain constant, or decrease for our target group of males ages 21-28. The
consumer information of age and gender may be found by looking through loyalty
programs of local businesses or check-ins on the new interactive website.
Advertising:
To evaluate the effectiveness of the creative campaign, we will implement concept
testing, concurrent testing, and post-testing. To begin, the concept testing will be
performed at the beginning of the campaign. The intent of this testing will be to explore
reactions to the use of the chosen slogan. In order to get these reactions, interviews will be
conducted with greater attention on the people within the target market (males ages 2128).
The concurrent testing will be performed during the campaign. This testing will
focus on awareness and attitude/perception of the brand. With the use of surveys,
recognition and recall of the new Heineken advertisements will be assessed. This
information can help make the necessary adjustments to the campaign.
42
Finally, the post-testing will be performed at the end of the campaign. Since the
ultimate objective is to increase sales, this testing will be measured in terms of Heineken
beer sales.
Sales Promotion:
The trade promotion’s evaluation will be determined by the incremental increase of
sales from the promotion. Specifically, we will see how much increase in sales Heineken is
receiving from vendors, event service companies, and bars who are hosting special events
that Heineken is featured in. In addition, we will also want to measure softer metrics, such
as how many applications we receive, quality of applications, press from the events that
Heineken sponsors, as well as feedback from our retail customers. From this 50% sale for
orders over $2,000, we will expect an increase in sales (notwithstanding the price) that
totals 10%. In order to measure this, we will promote to all regions in the United States and
withhold one control group from receiving any communications about the promotion.
From this, we will compare the lift in sales from the region with the promotion and the
region without the promotion and use this metric to compare sales. It is important that net
income from this promotion is not a priority, but rather the simple increase in sales. We are
willing to have a substantial sales budget because we want to target customers at high-end
events.
Other MarComms:
In order to evaluate the efforts of the Academy Awards after-party and the social
media photo contest we will measure media coverage generated at the event, attendance at
43
the event, participation in the social media photo contest, number of likes for the photos
submitted, and changes in attitudes and behaviors after the contest and after-party which
will be measured through surveys.
In order to evaluate the bar promotion event, we will measure the number of people
who complete the iPad survey at the bar as well as the number of people who receive
coupons. It will also be beneficial for us to count the number of Facebook "likes" as well as
replies and “re-tweets” to our Twitter posts regarding the bar promotion event. If certain
bar promotion events are more successful than other events, it will be important for us to
figure out what made certain events more successful than the others. If bar patrons provide
their email addresses when completing the iPad surveys, we could contact them with a
survey about their experience at the Heineken bar promotion event as another evaluative
method.
To evaluate the website update, we will conduct two separate focus groups - one
before the website update and another focus group after the website update. This will
allow us to determine how people respond to our new website update and make any
corrections necessary based on consumer input.
44
Reference List
AdSpender. (2012.). AdSpender. Retrieved March 26, 2012, from
adspender.kantarmediana.com/ADSPENDER/Pages/Home.aspx?.pl=ADHome
Brands/Media Kits | Condé Nast. (n.d.). Condé Nast - Provocative, Influential, Award-winning
Content. Retrieved March 27, 2012, from http://www.condenast.com/brands
Geskey, R. D. (2010). 2011 thumbnail media planner: fast media facts &costs..S.l.:
Createspace.
One Source Global Business Browser. (2012). Company Summary for Heineken N.V.
Retrieved from
http://globalbb.onesource.com.proxy.lib.umich.edu/web/Reports/ReportMain.aspx
?KeyI D=89029&Process=CP&FtrID=UNIFIEDSUMMARY
MarketLine Business Information Center. (2011). Heineken N.V. company profile. Retrieved
from
http://advantage.marketline.com.proxy.lib.umich.edu/Product?pid=0080AE660079-4D14-844B-68A81144A04E
Mintel. (2009, December).Imported Beer – US. Retrieved from
http://academic.mintel.com.proxy.lib.umich.edu/sinatra/oxygen_academic/search_
results/show&/display/id=418761.
Mintel. (2011, November).Beer: The Consumer – US. Retrieved from
http://academic.mintel.com.proxy.lib.umich.edu/sinatra/oxygen_academic/
search_results/show&/display/id=553330/display/id=602287#hit1
45
Sports Illustrated Media Kit for Advertisers: Sports Illustrated. (n.d.). Sports Illustrated
Media Kit for Advertisers. Retrieved March 26, 2012, from
http://simediakit.com/property-single.xhtml?property_id=34&propnav=ratecard
Steinberg, B. (2011, September 24). 'American Idol,' NFL Duke it out for Priciest TV Spot.
AdAge Mediaworks. Retrieved March 26, 2012, from
adage.com/article/mediaworks/chart-american-idol-nfl-duke-priciest-tvspot/230547/?utm_source=mediaworks&utm_medium=newsletter&utm_campaign
=adag e#sun
46
Appendix
Appendix A - Survey
Survey



44 respondents (18 male and 26 female)
Average age is 21
Questions:
o Do you regularly consume alcohol?
 Yes
 No
o If you answered “yes” to #1, do you consume beer?
 Yes
 No
o How many days do you consume alcohol in an average week?
 0
 1-2
 3-4
 5-6
 7
o How many beers do you consume in an average week?
 0
 1-2
 3-4
 5-6
 7+
o What is your preferred type of alcohol?
 Beer
 Wine
 Hard liquor (spirits)
o In what type of environment do you typically consume alcohol? (Circle all
that apply)
 At home
 At a bar or restaurant
 At a friend’s house
 At a party
 Other
o What influences you to buy certain brands of alcohol? (Circle all that apply)
 Advertisements
 Friends
 Convenience
 Price
 Taste
 Quality
 Loyalty
47
o What is your gender?
 Male
 Female
o Are you over 21?
 Yes
 No
o What college do you currently attend? __________________
o What year are you? (Circle one)
 Freshman
Sophomore
Junior
Senior
year
Fifth
Appendix B – Focus Group
Focus Group
 Conducted 3/ 6/12 at 7pm
 Participants: 4 males, 4 females (ages 21-23)
1. Male, TE, 21
a. Favorite brand of alcohol is Natty Ice because has been drinking for a long
time
b. Buys certain brands because of advertising, price quality, what friends drink
c. Mainly watches television over other media - mainly cable
d. Likes expensive beer
e. Open to trying new brands of beer
f. Can’t tell right away if likes a beer, need to sip it awhile before you can tell if
you like it or not
g. Notable ad is Dos Equis most interesting man in the world commercial
h. Prefers to drink beer in a party or social setting, not alone
i. Notable Logos are silver bullet, Corona crown, Heineken in green bottle or
keg can
j. Doesn’t like light beer
k. Advertisements such as Miller Lite – girly and turns guys away
l. Likes classier ads, such as Heineken and Dos Equis
m. Doesn’t go into store and buy first beer he sees – searches for kind he likes
n. Has loyalty to Natty Ice because reminds him of “good times” in college
o. Beer Tasting
i. Beer #1 – Negro Modelo:
1. Darker beer, not too strong
2. Thinks: Dos Equis Amber
3. Seems like a nice beer
ii. Beer #2 – Stella Artois
1. Tastes lighter
2. European
3. Reminds of tailgates
iii. Beer #3 - Heineken:
1. Tastes like cider
48
2. Can’t name brand
p. Heineken
i. German, green bottle
ii. Red start
iii. Different way of advertising than American beers
iv. Makes you want to buy the beer, more classy, fresher than other
commercials
v. Recalls ad of two people running with keg
vi. Would like if Heineken replaced Natty at college parties
vii. Typical Heineken drinker: richer, classier, 30s, guy, European,
wearing suit
2. Male, ED 21
a. Buys certain brands because of advertising, price quality, what friends drink
b. Drinks what is on special or friend buys it for you, then get what you want
c. Drinks beer depending on purpose. Will drink cheap beer for beer pong and
expensive beer for something nicer
d. Open to trying new brands of beer
e. Recalls advertisements from television most
f. Would drink a bad tasting beer
g. Notable ads are Corona beach ads and Dos Equis most interesting man in the
world commercial
h. Ideal setting to consume beer is in aparment with as many friends as possible
there
i. Doesn’t like light beer
j. Likes ads that have more information
k. Doesn’t go into store and buy first beer he sees – searches for kind he likes
l. Beer Tasting
i. Beer #1 – Negro Modelo:
1. Dark side
2. Makes him feel good
3. Smells and tasted like a nice beer
4. Wouldn’t be able to chug it
ii. Beer #2 – Stella Artois:
1. Reminds of Mexico
2. Kind of sour
3. More for a party or social gathering
iii. Beer #3 – Heineken
1. A little sweet
2. Clean finish
m. Heineken
i. Red start with green and white background
ii. Holland, green
iii. Ads make it look like a premium beer
iv. Commercials are usually really simple, black background, simplistic
v. Would like if Heineken replaced Natty at college parties
49
vi. Typical Heineken drinker: richer, classier, 30s, guy, European,
wearing suit
vii. Smaller beers: no one would want to buy the smaller bottles
3. Female SS, age 21:
a. Favorite alcohol - Smirnoff because it’s cheap vodka
b. Not influenced by what’s on sale but still open to trying new beer
c. Most likely to drink beer in a party setting
d. First beer brand that comes to mind - Bud light
e. Likes classier ads opposed to others
f. For taste test, no idea what kind of beer and no specific recollection while
tasting beer (in general, not a lot of brand association or taste recognition for
girls)
4. Female RL, age 21
a. Prefers Smirnoff, price is a determining factor for purchase
b. Likes Bud Light Lime in terms of beer, says because it doesn’t taste like beer
(again, price was also a factor)
c. Would be willing to try new beers
d. Usually drinks in a party setting
e. Has no loyalty to any brand
f. Ads – said she “obviously” knew Dos Equis
g. Beer Tasting
i. Beer #1 – Negro Modelo: no comment
ii. Beer #2 – Stella Artois: imagined it for a social gathering (such as a
party)
iii. Beer #3 - Heineken: said she was “not a fan”:
5. Male SK, age 22:
a. Likes Ann Arbor Brewing company for their local variety
b. Mentioned many reasons for buying a certain type of alcohol: price,
something friends are drinking, trying new kinds, whatever is on special
c. Associates Budweiser with the Crown and Heineken with the Green bottle
d. Agrees that cable television is what he watches most
e. Would not buy the small beer bottle of Heineken
f. Ads – knew Dos Equis (mentioned the Most Interesting Man campaign),
Corona (the Beach ones), and Blue Moon
g. Beer Tasting
i. Beer #1 – Negro Modelo: Said it was on the dark side and that it was
“a nice beer” and had “a nice taste”
ii. Beer #2 – Stella Artois: Said it was “definitely lighter” than the first
beer
iii. Beer #3 - Heineken: Said it “finishes clean”
h. Heineken
i. Holland, Green bottle, Green font, Red star (mentioned the logo
twice), Mini keg
ii. Thought commercials are “simple”. Makes it look like a “premium”
beer
iii. Said it was “fresher” and “not like all others”
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iv. Doesn’t think it is for parties, but would like to drink it at parties (said
“of course”)
v. Thought target market is 20-40 year olds
vi. Said the average drinker for it he would imagine to be in their 30’s,
male, wealthy, wearing a suit
6. Male RS , age 21:
a. Favorite brand of alcohol is Stoli because this is what he has drank the
longest
b. Favorite brand of beer is Bell’s because he supports Michigan and this is a
Michigan brew
c. Buys certain brands because of price, quality (can tell the difference between
American light beer and. heavy European beer)
d. Buys cheep beer for beer pong and drinking games, but buys nicer beer if
enjoying beer with friends or if impressing girls
e. Open to trying new beers
f. Can tell right away if he likes a beer
g. Will drink bad beer if trying to get drunk or if playing a drinking game
h. Notable beer ads are the “whazaaa advertisement” – Dos Equis, Corona
advertisements, and Miller light ad = favorite
i. Ideal setting to consume beer is a party or social setting
j. Notable logos are Corona and Heineken in green can
k. Drinks bell’s because of advertising – home oriented, will try any beer
associated with Michigan (home). Also tries beers with artistic case
l. Likes advertisements with humor
m. Will not pick a beer for convenience
n. Won’t buy a beer without looking at name
o. Beer Tasting
i. Beer #1 – Negro Modelo
1. Amber , dark side, fantastic feeling,
2. Can’t play drinking games with this beer
3. Guess: Dos Equis
ii. Beer #2 – Stella Artois
1. Light, European, reminds of social party
2. Beer is good for playing drinking games
3. Guess: Heineken
iii. Beer #3 - Heineken
1. Tastes good, cider taste, not worst one, drink at dinner with a
steak – candle lit dinner
2. When we revealed the brands: thought 2 and 3 were close to
Heineken, couldn’t tell difference
p. Heineken
i. German, Green
ii. Make little kegs- thinks great – gets all the time
iii. Ads: commercials are really simple – black background – simplistic.
Ads make you want to buy beer
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iv. Logo: red star in green
v. Thinks target market is 20-40 year olds
vi. Never sees Heineken at college parties, would drink it there if people
could afford it instead of Natty Light
vii. Thinks main Heineken drinker: European
7. Female MD, age 21:
a. Favorite brand of alcohol isStoli because this is what she has drank the
longest
b. Influenced to buy certain brands based on price, and drinks what other
friends drink
c. Notable beer ad is Blue moon. This is her favorite commercial
d. She doesn’t buy beer, takes beer from people’s hands at the bar
e. Advertising styles: Against ads with women in bikinis – Corona
f. She doesn’t know beers off the top of her head
g. Knows Heineken is a factory in Amsterdam and a brand of beer
8. Female LK, age 23:
a. Favorite brand of alcohol is Absolute - goes down easy, good flavors
b. If someone else is paying, she will drink whatever they buy
c. Doesn’t buy what is on sale at Meijer. Doesn’t like cheap beer
d. Open to trying new beers, will try new beer if free
e. Notable beer ad is the “whazaa” advertisement – Dos Equis
f. Her ideal setting to consume beer is in party setting
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Appendix C – Social Media Photo Contest
“You never thought it could get this good.”
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Appendix D – website update
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Appendix E – press release for the Academy Awards After-Party
Heineken hosts Academy Awards after-party, engages consumers with
social media photo contest
Ann Arbor, MI.-April, 2012-Heineken is proud to announce our upcoming Academy Awards
after-party and social media photo contest, designed to align Heineken with luxury and “the
good life” that celebrities live. This event and contest have been launched to connect
citizens with Heineken-drinking celebrities and encourage them to purchase and consume
more Heineken.
Heineken prides itself with providing a high-end beer for young professionals who like to
have a good time. “We’re way more than ordinary,” says Calvin Reed, brand manager of
Heineken, “drink our beer and you’ll see that it can get this good.”
The Academy Awards is the perfect event to associate with the Heineken brand because of
its high-end appeal. The after-party will commence immediately after the awards show and
will take place at Starlight and Vines on Hollywood Blvd.
Citizens interested in entering the contest are asked to upload a photo showing how life
“got this good” for them after they drank Heineken. Photos must include at least one person
and a bottle of Heineken. The top three photos with the most “likes” on Facebook will be
invited to the Heineken Academy Awards after-party.
You never thought it could get this good. -Heineken
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Appendix F – Television Advertisement
Still Frame # 1
Still Frame # 2
Still Frame # 3
Still Frame # 4
Still Frame # 5
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Appendix G – Print Advertisement
He used to be an average
beer drinker…
… now he drinks Heineken
“You never thought it could get this
good.”
Design for Print Advertisement
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Appendix H –Beer Rankings by Sales
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