Marketing Lessons from the Late Van Munching Jr.

SMITH BRAIN TRUST — Though it was Leo Van Munching Sr. who introduced Heineken to the United States, it was his son who brought the company’s marketing strategy into the modern age. “While his father felt that Heineken was a serious brand for serious beer drinkers, Van Munching Jr. encouraged a more fun, humorous take on the brand that attempted to appeal to a younger generation, while never losing Heineken's focus on quality,” says marketing professor William Rand at the University of Maryland’s Robert H. Smith School of Business.

Business leader, Navy veteran and Smith School benefactor Leo Van Munching Jr. ’50 died on Feb. 14, 2016, at his home in Darien, Conn. He was 89. Van Munching Hall, home to the Smith School and the School of Public Policy, bears his name.

Rand says the younger Van Munching helped navigate Heineken through a period of increased competition in the United States. “Heineken withstood an increasing number of competitors in the import market from all directions, including Kronenbourg (France), Corona (Mexico), Beck's (Germany), Molson (Canada) and Foster's (Australia),” says Rand, director of the school’s Center for Complexity in Business. “Van Munching fended off these challengers by using advertising that focused on the quality of the brand, and managed to maintain Heineken as the top imported brand in the U.S. until he left the company in early ’90s.”

Smith School marketing professor Mary Harms helps students appreciate Van Munching Jr.’s innovation during study abroad visits to Amsterdam each spring. Among other sites, her students visit the Heineken Experience, the company’s museum. “It’s important for students to better understand what was involved to make it possible for someone like Leo Van Munching Jr. to contribute to the university to create this building,” she says. 

Harms cites the younger Van Munching’s vision for a low-calorie beer, Amstel Light, which sold well in the United States. “This teachable moment shows the students the importance of segmentation and creating products to satisfy the needs of a particular target audience that often leads to growth in sales,” she says.

Harms says the elder Van Munching also showed savvy when he brought Heineken to the United States immediately after Prohibition ended. “It was the first European beer imported to the United States, so he had first mover advantage,” Harms says. “He was able to capitalize on his swift entry into the market as a result of recognizing a strategic window of opportunity.”