Heineken N.V Essay

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Heineken N.V.: Global Branding and Advertising – 416B Rebecca Nieuwhof - 110956 Issues: * Heineken executives believed that different countries were usually at different stages of market growth development. What marketing mix should Heineken implement at each stage of the product life-cycle to maximize growth? * Over 90% of Heineken’s advertising took the form of television commercials. Should Heineken consider using other advertising mediums? Which advertising methods would be most effective? Analysis: Heineken executives believed that the beer market in each country followed an evolutionary cycle and that, at any time, different countries were at different stages of market development. The life span of each stage of a product may vary from a few months to years. There are five stages of the product life-cycle: product development, introduction, growth, maturity, and decline. Below is a table outlining the optimal marketing mix at each stage of the product life-cycle excluding the product development stage: | Introduction | Growth | Maturity | Decline | Product | Offer a basic product | Offer new products or product | Diversify brand to offer new | Phase out weak product items | | | line extensions to encourage | products, this will work to | that are not selling well and | | | additional purchases | interest and retain customers | focus on the successful items | Price | Set price at cost-plus by | Use penetration pricing to | Set price to match or beat | Cut price in order to keep | | calculating cost of | encourage new customers to | competitors this will continue | part of the market share and also | | manufacturing and adding | switch to Heineken because | to attract consumers to | continue to provide consumers | | a small mark-up | of lower price | Heineken because of low price | a reason to choose Heineken

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