Marketing Management I Case Study Review

Heineken N.V., Gillette, Mountain Dew

Group Members: Abhishek Gupta PGP/16/123

Kanika Vanvari
Ruchir Mehrotra Vismay Buch

PGP/16/145
PGP/16/162 PGP/16/179

Saumya Khetarpal PGP/16/163

Table of Contents
Heineken
Introduction and Problem Statement Analysis Conclusions

Gillette
Introduction and Problem Statement Analysis Conclusions

Mountain Dew
Introduction and Problem Statement Analysis Conclusions

Heineken
Introduction and Problem Statement
Founded in 1863, Heineken N.V. was the second biggest beer brewer in the world by 1993 In 1993, Heinekens beer sales (5.6 billion litres) accounted for 82% of its ANG 9,049 MM sales revenue (ANG 7,420 MM) Project Comet was launched in 1991 to identify the core brand values of Heineken that would project it as a leading premium beer Project Mosa, introduced in late 1993, used focus groups to determine key expressions of taste and friendship related with Heineken

Problem Statement: Analyze whether the conclusions from both projects mutually consistent Determine key attributes and brand image of Heineken to be communicated through advertisements

Heineken
Analysis Table 12, Exhibit 12
Geography Netherlands Rest of Europe America Asia/Australasia Africa Heineken 1993 Sales % % Change vs. 1992 -1.6 5.3 23.7 -1.5 Total 1993 Beer Sales % 38 38 19 5

24
47 13 8 6

Africa is in the embryonic stage, and needs to target by promoting advantages of beer Beer started out as a preventive against diseases and to kill germs Heineken should focus on converting their minority equity stakes into majority equity stakes or wholly owned subsidiaries This would give them more control over their operations in these markets

Heineken
Analysis Exhibit 3
Parameter Main brand usage Trial/awareness ratio Netherlands 17 92 France 14 89 Greece 44 99 Ireland 25 91 Italy 7 86 Spain 5 66 UK 11 90 Germany -

Regular/total usage ratio

Monthly brand penetration Market share position Advertising share of voice position Per capita beer consumption

46
60 1 1 90

40
48 2 2 41

54
79 1 4 40

42
57 2 5 123

28
53 3 4 24

25
63 7 6 71

41
60 7 6 103

144

Heineken is the top spender on advertisements in Netherlands, which helps maintain its high market share; Greece is a key market for Heineken, but its per capita beer consumption is low Italy and Spain are not key markets for Heineken, as they have high price competition

Heineken
Brand Image
Key core values identified through Project Comet and their portrayal in Heineken advertisements are consistent with the findings of Project Mosa Brand Value
Taste

Communication
Golden color, sparkling texture, refreshing coolness, genuine enjoyment Show smaller groups, close friends as content and relaxed

Project Mosa
Heinekens Purest Taste ad was perceived positively and taste experience is considered a key indicator of quality When true friends get together ad generated a positive feedback in almost all geographies

Friendship

Other core values mutually consistent in both project results are Quality (Premiumness) and Tradition Premium quality beer image portray that a Heineken customer has distinct taste and a unique preference

Portray its beer to be superior in taste, and preferred over other forms of liquor, such as, champagne

Heineken
Global Brand and Competitive Advantage
To build a global brand, characteristics that need to be standardized are:
Tradition 131-year old

Bottle Packaging
Premium Quality Taste unique strain of yeast since 1886 Portray a lively environment Intimate relationship with each customer (from advertisement)

Other characteristics that need to be modified by market:

Customize to local customers, culture, and language

Gillette
Introduction and Problem Statement
Gillettes Personal Care Division (PCD) was responsible for its toiletries and cosmetic products, including hair care, skin care, and deodorants/ antiperspirants (AP) in the US PCD employed a planning and control system to develop the marketing strategies for its products

In 1983, it used this system to re-introduce Right Guard, its deodorant brand for males. However, it was deemed as a failure
In 1985, PCD launched the White Rain shampoo and conditioner. Although the system was not followed, it was a success in the market

Problem Statement: Suggest potential changes to PCDs planning and control system Improvise the marketing strategies of Right Guard and White Rain to increase their market share

Gillette
Analysis Sales Figures
Forecasted Situation for Right Guard 1983 1984 1985 Combined Cost of goods sold 19.9 22.9 26.8 Sales 69.6 82.1 94 Cost of goods sold as percentage 29% 28% 29% Direct Marketing Contribution 22.8 27.6 36.3 86.7 Actual Sales Figure for Right Guard Actual Sales 72.3 70.1 COGS (@ 29%) 20.7 19.6 Marketing Expense 26.4 21.4 Direct Marketing Contribution 25.2 29.1

68.2 19.4 20.3 28.5

82.8

Actual sales figures are not very bad Reached target of 95.5%

The planning and control strategy worked well despite of bad economic conditions

Gillette
Strategy Competitions
S.No. Product Positioning
Males (Later targets 1224 year old)

Situation

Strategy Chosen

Brand Awareness
Very High (66% unaided and 100% aided awareness among males) Low (People didnt know about it until they saw it on the shelves)

Right Guard

Conventional Build Strategy (Followed (Focus on through the Market Planning & Share) Control system) Entry-level with Low Price High Risk (Shortcuts taken through the planning and control system)

White Rain

Price-Value Brand

Although, the market share of White Rain was only 3%, it had a perception of being relatively more successful as the company had lower expectations from it The reason for this may be attributed to the low success of Right Guard which created an inertial effect

Gillette
Observations
Profit driven company It decided to reduce its advertising costs to increase its short-term profits, which would later help in getting more budget to promote Right Guard Each product manager had his/her own performance metrics to evaluate a products performance Its current planning and controlling system relies mainly on past data to estimate market share This is flawed as for a new product there is no past data to estimate Politics is evident and is used to skip important processes and red tapes, like the use of Bill Ryans name to push White Rain

Gillette
Proposed Solutions
Gillette should develop a system suitable for designing the launch of a new product Uniform performance indicators for each of the product managers Politics is evident and is used to skip important processes and red tapes Bill Ryans name was used repeatedly to push White Rain

Mountain Dew
Analysis
Popularity of Dew Dudes
Dew Dudes were present in all of its advertisements Actors were altered depending on the geography

Criteria for Evaluation of Advertisements

Product is integrated properly in the ad Extension of previous ad equity Novelty Understandable (Over exposure to extremes) Entertainment

Analysis
Geography Brand Benefit/ Tangibles Intangibles Resonance with Target Market Simplicity Novelty Understandable Product Integration Campaign Extension Cheetah 1 8 6 Mock Opera 1 4 Show stopper 1 5 4

6
7 8 7 8

2
6 3 4 4

1
5 6 6 3

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