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HEINEKEN
HEINEKEN CLAIMS TO BE THE MOST INTERNATIONAL BREWERY GROUP IN THE WORLD IN 2004, BIGGEST COMPANY OF THE EUROPEAN BREWING INDUSTRY EXPORT: 17.7 MILLION HL 11.7 %SHARE OF THE MARKET CURRENTLY OWNS 115 BREWERIES IN MORE THAN 65 COUNTRIES MAJOR EXPORTER OF BEER IN EUROPE
IMPACT OF TRENDS
Loss of Sales Shrinkage of Market May Result in Brand Dilution Need to review existing Strategies/ Portfolio
SWOT ANALYSIS
STRENGTH Premium Brand Presence in more than170 countries Attractive package Advertisement WEAKNESS Mostly Based in European Market Relies on its Key Brands Only small acquisitions apart from BBAG
SWOT ANALYSIS
OPPORTUNITIES East Europe, Asian & Other Markets Growing demand for Non Alcoholic & Flavored Beverages Growing Off Trade Markets THREATS Mature Western European Market New Laws icw Alcohol Consumption FABs and Non Alcoholic Drinks Danger of becoming a tired Brand
CHANGE IN STRATEGY
1. PENETRATE NEW MARKETS Eastern Europe & Asia Markets are in full expansion Heineken has a strong brand. Presence in Many Markets 2. ACQUISITION OR JOINT VENTURE Acquire local companies with strong image and readily available distribution systems Joint Venture with Major Brewers to enhance Image, and retain Competitive Advantage
CHANGE IN STRATEGY
3. EXPAND PRODUCT PORTFOLIO Develop Low Calorie/ Flavoured Drinks Propose New Products to enhance the off trade consumption experience (Beer Tender) New Products to bring Variety & encourage loyal customers to buy more, thus boosting Brand Image 4. Vertical Forward &Backward Integration
CHANGE IN STRATEGY
5. ADVERTISING & SPONSORSHIP Continue to sponsor major sport events Continue Image Building Association with Hollywood Premium Stars Sponsorship of Musical Events 6. BRAND REINFORCEMENT Bring Out the positive aspects of the Heineken / Amstel Brand Campaigns to drink Responsibly
CHANGE IN STRATEGY
7.
PRODUCT DEVELOPMENT/ ENHANCEMENT STRATEGIES Emergent Markets Build Strong Portfolio to combine with local brands + High Advertisement Developing Markets Promotion of the Premium product and its qualities in developing markets Enter New Distribution Channels & Market Segments. Propose New Products Mature Markets Investment to strengthen Brand Image Joint Ventures
IMPACT OF TRENDS
Market stagnation. No further scope for improvement. Sales will decline along with profits. With the trend of Mergers and acquisitions other international beer brands can invade the market. When other players enter the market, tendency to lose your resources
Already present in Northern America. Should enter Southern America Look for strategic alliances, acquisitions in booming economies in Eastern Europe and China. Develop new beers and adapt accordingly to each country. Create brand awareness through extensive advertising. Look for sponsorship in different fields of sports, which are popular in the countries
CHANGE IN STRATEGY
CHANGE IN STRATEGY
Develop new beers and adapt accordingly to each country. Create brand awareness through extensive advertising. Look for sponsorship in different fields of sports, which are popular in the countries E.g In America- Baseball In Southern America - Football In India- Cricket