Winter is coming...

As we have seen previously, in 2013 Heineken has become the 1^st beer group in France, overcoming its big rival Kronenbourg. This happened in a market where sales are slowly but surely going down. So we have seen that in order to boost their figures and conquer new customers, Heineken and Kronenbourg have embraced strategies aiming at young adults. With the launching of these products (Skoll, K by Kronenbourg, limited edition of Heineken bottles…), the 2 conglomerates have given to the consumers a refreshing image, especially Kronenbourg which had the image of an old-fashioned beer brand.

 

Nevertheless, they seem to choose 2 different ways in terms of marketing strategy. Indeed, in 2015, Heineken will be more than ever the sports beer. They are an official partner of the 2015 Rugby World Cup and they will also become official partner of the Major Soccer League, the US football league. They are betting on these events for their worldwide exposition but also because they have acquired a major experience when it comes to produce high quality promoting videos. What’s more, Heineken will still be partner of the Champion’s League and of the Rugby H-Cup. They seem to focus a lot on customers that are fond of sports events.

Concerning Kronenbourg, they are betting on 2 ways of conquering new market shares. Firstly, they will keep on advertising a lot their new products (Skoll and K by Kronenbourg) to give the brand a new impulse, some fresh air. This strategy is paying since Skoll has been very successfully launched and installed in the trendy beer market (5.6% of market shares 1 year after the launching). The other strategy will consist in promoting their high quality beer 1664. Since the volume of sales is decreasing, Kronenbourg wants to increase their margin by selling more trendy beers and quality beers. 

All in all, we can say that the “war” Heineken and Kronenbourg are fighting in France has just become. All indicates that they will keep on launching innovative, funny and aggressive advertising campaign. 

Sources: 
http://www.theheinekencompany.com/media/media-releases/press-releases/2014/10/1860908
http://www.brasseries-kronenbourg.com/media/communiques-dossiers-presse/produits-marques/actualites-2014/Documents/030314-Brasseries-Kronenbourg-reussit-le-lancement-de-skoll.pdf
http://france3-regions.francetvinfo.fr/alsace/2014/02/19/biere-la-guerre-des-chiffres-entre-kronenbourg-et-heineken-418621.html

Heineken and their progress to the "icon brand" status

From original street marketing events…

…to off-the-wall interviews,

Heineken has been building a global communication strategy for the past recent years.  The brand no longer relies on product advertising only but it has diversified its communication tools, and particularly its digital marketing tools, to build its identity, give the brand a unique voice and try to reach the status of icon brand.

In order to do so, Heineken has been designing new consistent video contents around creative and even fun subjects, addressing its special target. This target is mostly composed of young men from 20 to 35 years who have the characteristics of a generation Y that is more and more connected, active on social networks, and critics about his world and environment.

Heineken now develops content to enhance recognition and feeling of belonging to its identity, content mainly revolving around its recent (2013) slogan “open your world”. For instance, the brand developed webseries such as “Dropped” illustrating values such as courage, adventure spirit, surpassing oneself which are also values that young people share today whether it be about their travels or their need for fulfilment in their job and personal life. Often distrustful about advertising and suspicious about what brands can tell them, Heineken target’s generation is even more difficult to reach. The brand’s presence on special events that this target assists – which are mainly sports and technology events- also seems to be a good strategy. Heineken has been sponsoring until 2014 the European rugby cup which name was the H Cup (Heineken Cup). 

Heineken, as its competitors, also challenges its imagination creating humoristic content, aimed at creating buzz among its target customers so they can spread the brand’s speech and raise durable awareness around the brand’s name. This is the case for its webserie “The Candidate” presented above.

In terms of product communication, we could reproach the brand not to orient their communication strategy more on their products so they could have a call-to-action that would be more important but we can find this initiative on their product packs, that is to say, directly in store. Whether it be their basic permanent product range or their products for more segmented markets, the brand keeps up with its positioning which is offering a premium beer for premium customers. In order to always offer its customer a variety a product but with the same quality of beer, the brand plays on the bottle design, collaborating with talented artists and graphic designers. Some examples are below.

The 360° communication strategy of Heineken seems to pay dividends. Selected as Brand of the Year by the MIPTV in 2012, the brand’s leadership & commitment to creating content to develop a strong unique voice and to build a recognisable identity are now well known.

How do brands beers tackle the women market?

First of all; nothing more annoying for a woman to be well dressed to take out and finally to handle a bottle of beer which does not get married to her dress. That’s why, the brewer Carlsberg would like to convince the consumers with its beer Copenhagen.

Through his new beer, Carlsberg speaks directly to the “modern” consumer that’s to say people who like to be fashion. Indeed, according to Jeanette Elgaard Carlsson, spokeswoman of the brewer: “We noticed that consumers ‘large number, especially women, pay attention on the design of products when they choose drinks. It can arrive they are in a bar and they want that their drinks get married to their styles. In this case, they may not choose a beer if its design does not suit to them.” This beer is brewed with natural ingredient as malt. It is considered like light and fresh beer with only 4, 5% of alcohol. Moreover, in 2010, Carlsberg also launched fruity and low-fat Jacqueline, named Eve, who targets the women. This beer was developed in different tastes such as: litchi, grapefruit or passion. In the same way, Molson Coors has already developed a range of beers for women, as Kasteel Cru and Kasteel Cru Rosé.

However, according to the “Les Echos”, in Great Britain, Miller did not try to feminize the communication around Peroni, brand of Italian beer re launched in 2005; they positioned it as “top of the range” by playing completely the seduction of the made in Italy. It was a real failure as the Guiness Red or Carlsberg beer.

Finally, some feminist people are against this new way of marketing the beers. Indeed, according to the “happybeertime blog”, some women do not understand these new ads which only target the women people. It created a kind of stereotypes where there are so called special beers for women with a fruity taste and for men with a malt and bitter taste.

This infographic allows to understand the use of social media by the consumption of beer. 

Source : http://visual.ly/social-media-explained-beer

Skoll : the new beer brand of Kronenbourg Brewery with a Scandinavian name.

Kronenbourg Brewery officially named "Brasseries Kronenbourg", launched in March 2013 a new type of beer for young adults: Skoll. 

 Introduction to the market of « trend » beers. 

It took eighteen months of development for the R & D of the group to develop its taste. Skoll, with a vodka and citrus-flavored, enhance the segment of "trends and premium" beers. This market is currently occupied by Desperados (3.7% of the French market by volume) and Corona. Skoll targets the young people from 20 to 30 years old, the generation who likes the taste of vodka and have a high purchasing power. This last point is important because the Skoll’s pack of three bottles of 33 cl costs 3,95 euros, which is an important budget for beer.
"The "trends" segment, the more expensive on beer market, is increasing by 10% in volume by year. To engage in it, we needed a new brand" says Olivier Dubost, marketing vice-president of Brasseries Kronenbourg. A rich segment which wasn’t exploited by the company until now.

Inspired by a "Scandinavian" universe
This new beer has a Scandinavian DNA, opposed to the « hot » countries of Desperados and Corona. That's why Brasserie Kronenbourg chosen Skoll as the name of the beer, which means "Cheers!" in the Northern countries.
The visual aspect was entrusted to Square Black, a creative agency. They created an universe inspired by Nordic countries: an ice blue packaging, a Scandinavian writing and Viking's helmet for logo.
Brasseries Kronenbourg also innovated on the bottles. Glasses bottles are provided with a pull-of-cap system.  Cans have also a patch indicating the freshness, which turns blue when the beer reaches the good temperature, below 5 °.

An objective of 500 000 new consumers.
Exclusively reserved to the French market at the launch, Brasseries Kronenbourg has then chosen to distribute Skoll in all stores and supermarkets  plus a selection of less than 3 000 trendy bars. The objectives: " 500 000 new consumers for the first year and a two-digit growth for the following years ", indicates Olivier Dubost.

This launch is strategic and audacious for Brasseries Kronenbourg. Indeed, for Skoll, they will have to get from a strategy based on volumes (which is the case for most of their other brands) to a strategy based on values. 

New marketing and communication strategies that beer brands are using to target consumers.

One of the most important aspects on the beer market is the consumer behavior. "On the beer market, the underlying trend is the following one :"I drink less but I drink better", it happened in the beer market the same evolution as in the wine market." says Phillipe Collinet, Communication Director at Brasseries Kronenbourg. It is translated by a drop of the beer consumption of 30% (in volume) in 30 years. As a result, brands are engaged in a marketing war on more sophisticated and more expensive products. Beer brands became experts in trademark management, "premiumised" and on-line communication. 

Modernization of former products.

Among the last examples of this sophistication, all key players of the French beer market launched new versions of their famous products. Heineken commercialized Pelforth Radler, a low alcoholized lager beer and natural lemon juice-flavored. While Kronenbourg modernized its non-alcoholic beer: the Pure Malt, which is the current leader on non-alcoholic beer market (2 % of the global French beer market).

New premium beers and importance of the packaging

The « drink less but drink better » situation explains the new war between French brewers. On such saturated market, the only way to develop is being more innovative and offering more desirable products.

For that purpose, the brands launched « tendency » beers. This segment targets the young urban trendy adults between 20 and 30 years. Every brand has its own premium beer. 

Skoll - the Scandinavian of BK, Desperados - the beer with tequila-flavored of Heinekein, Corona - the Mexican beer the most sold around the world of AB-Inbev and Ground - the last one of Heineken. All these products have an only purpose: “premiumise” the market.

Then, brands are always giving products higher and higher of range and more and more expensive to the consumers, to improve the turnovers of the brewers whereas the consumption is decreasing. While a bottle of Heineken is sold 2.50 euros the liter, Desperados is 4.50 euros, and Skoll is 3.95 euros.

Innovation, high quality and packaging are therefore the most important marketing efforts focused on. Some examples:

	To celebrate its140 years, Heineken called on So Me to design his new bottle.
	In 2013, Kronenbourg bottles adopt a new dressing. A finer silhouette and blazon highlighted in the center of the bottle.
	Yet in 2013, Brasserie Kronenbourg launched a new brand named Skøll. Its target: 18-30 years.
	The Leffe Ruby, red berries-flavored, embodies the good health of the « special beer » segment, with an annual growth rate of its sales by 50% since 2008.

Online communication has become paramount

Since the Evin’s law, French brands of alcohol are allowed to carry advertising on the Internet. Since then, the beer brands have introduced much online campaign. The objectives are to encourage the popularity of the mark without encouraging too much to alcohol consumption.

Brands have used many possibilities of the Internet: creation of several flash websites, online games, utilization of social media to launch new products and develop consumers’ loyalty (Facebook, YouTube, blogs ...). These various campaigns are immersive, allow interactions with other consumers, and offer to invite friends. So, they are totally participative.

The beer brands understood the benefits that can bring online communication campaigns and use them to get consumers' attention and to transmit a positive image of the brand.

The marketing strategies of beer brands is considerably depending on the consumption habits of their consumers. Therefore, online communication, «trends » beers and modernization of former strong products are the main aspects of the last marketing investments on the beer market.