2002 in Retrospect Heineken The Heineken brand achieved sustained growth last year, with sales rising from 22.4 million hi to 22.9 million hi (+2.5%). Most of the growth in sales was generated in the United States, Poland and Thailand. The growth of the Heineken brand largely reflects our efforts to enhance brand value and secure a higher level of consumer preference while improving availability, both via the acquisition of beverage wholesalers, such as in France, Italy and Slovakia, and via cooperation with new distribution partners, such as in China and Portugal. The development and refinement of ourcentral market ing information systems has enabled us to optimise the quality and international consistency of our marketing activities and tailor them more closely to individual mar kets and specific target groups within those markets. An important new vehicle for gathering detailed market information is our global 'Beacon' project, through which Heineken engages in dialogue with young adults on their aspirations, motivation and preferences. The findings are used as the basis for marketing projects in which substan tive input by and active involvement of this target group play an important part. This research also helps us to take regional and local cultures into account in our marketing projects and marketing communication. Updating our packaging and tailoring it to consumers' needs is a constant priority. Several new can designs were introduced lastyearand a new aluminium bottle was launched in France. Marketing communication Further advances were made in facilitating the exchange of expertise and information between our operating companies in the area of advertising campaigns and other brand management tools by expanding and making more intensive use of our intranet portal and organising brand workshops in local markets. Operating companies in smaller countries or emerging markets are increasingly using campaigns developed centrally or elsewhere. Adapting a uniform concept for optimum deployment in local markets benefits the quality and consistency of our advertising campaigns. Sponsorship and on-line activities, which provide excel lent opportunities for responding to the needs and wishes of specific target groups, accounted for a growing propor tion of ourtotal marketing communication effort. Although the mix of marketing communication-related activities may differ widely from one market to another, it is essential in all cases that the activities are related and mutually supportive. Heineken focuses its sponsorship activities chiefly on music, film and selected sporting events, mainly tennis and rugby. As in 2001, music sponsorship again accounted for most of the growth in our sponsorship expenditure, because music is an ideal medium through which to share Heineken's brand values with our target groups. Our music-related activities were amalgamated last year to create a new website, www.heinekenmusic.com, to provide a global music platform which enhances the inter activity and effectiveness of our music-related marketing communication. Thirst, a series of dance events featuring both world-class and local DJs, was staged in many countries around the world, to which numerous related activities were linked, both online and via retail outlets. TheThirst concept and its execution, including a DJ com petition, were based partly on the findings of our new 'Beacon' project. Brand awareness was boosted by our sponsorship of several annual European music festivals, including Green Energy in Ireland, Jammin' in Italy and the FIB festival in Spain. A number of successful activities were organised in the United States by Heineken Music Initiative Inc., which was formed last year to support young talent. The Green Room Sessions concert series in Singapore won several international awards. Our involvement in and expenditure on film sponsorship also increased, to support the Heineken brand's interna tional stature. The films we sponsored included Hollywood productions such as 'The Bourne Identity' and the new James Bond film, 'Die Another Day'. The principal sporting events we sponsored last year were the Australian Open, US Open and Masters Cup tennis competitions and the Heineken Rugby Cup, a competition for top European clubs. As in 2001, we also sponsored many local events to reinforce our local identity. Amstel While the mainstream beer segment, in which Amstel is positioned, contracted in several important European markets, in many others, especially outside Europe, Amstel recorded growing sales. Amstel's total sales volume remained stable at 10.8 million hi. Amstel was not immune to the effects of the declining mainstream beer market. The wet weather and sharply REPORT OF THE EXECUTIVE BOARD 13

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