Brewing and Heineken

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Executive Summary

Clear strategic recommadations have arisen at the end of our case study.
They need to build a stronger portofoglio by increasing its presence in convenient stores in ordert to be and, most of all, remain “THE leader” in the premium beer market. This challenge has to be attained with social responsibility by continuing all Heineken’s environmental incentives, such as the development of energy-efficient production and recycling issues.

The development of more Heineken Accessories could be also a good way to improve customer loyalty and have advertisement for free (using tee-shirt, lighters…)
Finally, huge markets shares that our beer brand should adapt to are the the low-fat and “low-carb” ones: when a “diet beer” will be invented, every types of customers, even womens and healthy people, would fall in love with Heineken!

Table of contents

1.External analysis

a. Global Environment
b. Industry Analysis
c. Market Analysis
d. Opportunities and Threats of French Beer Market

2. Internal analysis

a. Company description
b. Value Chain description and cost margin analysis c. Company capabilities
d. Internal capabilities (SW analysis)
e. How to develop internal capabilities?

3. Strategic recommendations/strategic choices

a. Corporate level recommendations and diversification b. Business Unit level strategy
c. Production Unit strategy (innovation, price, distribution…) d. Which method to pursue strategy? Business Priorities

4. References

1.External analysis

a. Global Environment

* Pestel Analysis French Market

* Political forces: :

* Political Forces
The French government tends to control the sale and supply of alcohol for several reasons like public safety, road accident prevention and health. So in that way, France has seen the emergence of advertisement campaigns broadcasted through all media (TV, radio, newspapers), with awareness messages like “Drink Responsibily” or “Alcohol abuse is dangerous for health”.

* Legal and Regulatory Forces
Legislation is a major constraint limiting the number of potential consumers. For example, in 1991, the law entitled “Loi Evin” promulgated an alcohol sales restriction to people under 18 years old and the prohibition of sale of alcohol at local grocery stores after 9pm everywhere in France.

* Taxation: Exercise Duty and Value Added Taxes
The excise duty on beer is low compared to other European countries creating a favourable market opportunities for beer’s brands. Concerning the VAT, in general, in supermarket is about 5.5% compared to the 17% in the UK

* Social Wealthfare Policy
Government exercises significantly because it contains alcohol which is addicted people. For example, recently drinking alcohol is prohibited on and the streets and public transport in Paris and big cities. This hence will impact on the beer market because people want to enjoy their beer not only at home but also at public where they can have fun time with their friends.

* Economic forces

* Industry Health
Even if France is the 5th largest producer of beer in Europe (16.3 millions of hectolitres in 2008 (Berkhout, 2009)), it is a primary wine consuming country and overall consumption of beer decline of 5% from 2008 to 2009. And many research shows that the decline of sales is supposed to continue in the next few years…

* France Exports and Imports
In Europe, France is the...
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