Key challenge
Summer 2007
that is finely attuned to the Irish mindset, while at the same time projecting
Heineken's international and premium image.
"We're at a stage now where we micromanage the brand at every level,"
McNamara says. Every touch-point of exposure to the brand is portrayed to
the consumer in the most premium possible fashion - whether that's by
affiliating the logo with a small event, or by a comprehensive advertising
campaign. "We scrutinise what we do very closely. In some cases, that
might mean that we have to show restraint and say 'no' to an activity that
we might previously have been tempted to engage in."
Heineken Ireland's approach now is "to maintain and develop the brand's
premium position," he says. "It's important to take a long-term view.
Sometimes it might be better for the brand to resist short-term gains from
a volume point of view."
This long-term approach includes maintaining a level of pricing that reflects
Heineken's premium status, a key challenge in the off-trade. "For us at
Heineken Ireland, it's all about behaving in a premium way," says
McNamara. Consumers seldom associate cut-price bargains with a premium
brand, he adds.
accelerate. As Brian O'Reilly, Heineken Ireland's Key Account Manager for
Multiples and Groceries says, "newly prosperous Irish consumers place
increasing emphasis on their homes, frequently newly built. They're very
house-proud. They like to show off their new pads. And so more and more,
they like to entertain at home."
This trend is driving the shift of consumption from pub to home. Retailers
themselves are fuelling this by using competitive beer pricing to attract the
shopper. The on/off lager split is expected to be 50/50 within four years,
although this looked very unlikely only a few years ago. The trend
represents a sea change in the Irish beer market, and presents further new
challenges to the marketing and selling of beer brands.
This is echoed by Brian O'Reilly, whose position brings him into close
contact with the country's off-trade. "We've grown profit, we've grown
volume and we've grown market share," says O'Reilly. "And getting all three
right has been a fantastic feat. To do this, we did a lot of research into the
needs and interests of consumers and customers. Maintaining this record
and preserving the integrity and power of our brands will continue to be a
challenge."
The increased importance of the retail segment that took place in
continental Europe in the 1990s has now reached
Irish shores. The on-trade still represents the
largest share of the beer market but this has
already changed significantly and is set to
