Heineken Campaign Plans Book Erica Avesian Kendal Broderick Alex Lipnik Ankit Mehta Cristina Thomson Victoria Tsay 1 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 2 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. 3 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). 4 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). 5 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). 6 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). 7 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 8 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. 9 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). 10 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 11 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. 12 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 13 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 14 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 15 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 16 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 17 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 18 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 19 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 20 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. 21 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, 22 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. 23 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” 50 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 51 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 52 Appendix C – Social Media Photo Contest “You never thought it could get this good.” 53 Appendix D – website update 54 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 55 Appendix F – Television Advertisement Still Frame # 1 Still Frame # 2 Still Frame # 3 Still Frame # 4 Still Frame # 5 56 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 57 Appendix H –Beer Rankings by Sales 58