HEINEKEN BEER

BY THOMAS,VARUN AND ROB

Possible Company for
Heineken to take over
 Growth Strategy
• Product/Market development, they do it both
but definitely do not use penetration.
• Global growth – Focusing on Asian market
( India and China)
• Backward Integration- By having there own
glass company
• Strategic partnership – To increase market
share and distribution channels
• Related diversification in drinking industry
 Merger Partner
• Carlsberg

• Already have strategic partnership

• Same quality standards
• Heineken and carlsberg are no 3 &4
in the world this make them second
or first biggest brewery in world
 BCG Matrix

Stars Question Marks

Amstel light UB Brewery
Newcastle Brown Ale Tsingtao
JILZ

Dogs
Cash Cows
Heineken
Amstel
Strong Bow
BCG strategies per quadrant
• Question marks- Brand awareness in
different markets, attract niches
• Stars - Distribution, build brand
loyalty and promotion
• Cash Cows – Market development,
for maturity market
• Dogs
• Market Attractiveness Weigth Rating (1-5) Value
• Overall market size 0.2 5 1
• Annual market growth rate0.2 3 0.6
• Historical profit margin 0.15 4 0.6
• Competitive intensity 0.15 4 0.6
• Technological requirements 0.10 3 0.3
• Inflationary vulnerability 0.05 2 0.1
• Energy requirements 0.05 2 0.1
• Environmental impact 0.05 2 0.1
• Social-political-legal 0.05 3 0.15
• Market Attractiveness 3.55

• Business Strength
• Market share 0.10 4 0.4
• Market share growth 0.15 3 0.45
• Product quality 0.10 5 0.5
• Brand reputation 0.10 5 0.5
• Distribution network 0.05 4 0.2
• Price competitiveness 0.10 2 0.2
• Margins 0.10 3 0.3
• Promotional effectiveness 0.10 4 0.4
• Knowledge of customer 0.10 3 0.3
• Caliber of management 0.10 3 0.3
• Business Strenght 3.55
 GE analysis Strategies
• Focus on Asian markets
• Create brand awareness
• Brewery aquisitions
 Possible causes of corporate
decline

• Mature and declining markets

• Strong competition
• Social Trends
SMART Objectives in Millions

2010 (2008) 2015

Sales 13.500
Sales Increase % 21.47%
Profit 1.013
Profit Increase % -10.46%
Market Share % 33
Stock Market Value 33.68
Brand Equity 2.450
Global Markets 170
THE END