Heineken Case Study

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Heineken Case Study

Heineken Overview
* One of the world’s leading brands >130 years.
* Number 2 imported beer in U.S.
* Number 1 in Europe
* global network of distributors and 115 breweries in more than 65 countries * Premier brands – Heineken, Amsteel Light
Beer Industry Overview
* 37% of U.S. adults are beer drinkers
* Beer is the most widely purchased alcohol beverage
* Beer industry is projected to grow steadily

Problem
1. Losing Import beer market share

SWOT Analysis
Strengths * Brands in over 13 markets * Very Differentiated * Global brand/pioneer of international strategy * Has made many acquisitions with national breweries * Bottle Recognition and different dispensing instruments * Green Bottle * Mini keg| Weaknesses * Conservative/”Play it safe” culture * Struggle to obtain large breweries * Not drank by younger beer drinkers * Although consumption age has dropped from 40 to 30 * Price when compared to U.S. domestic beers * $10 per six pack—Heineken$7 per six pack--Domestic| Opportunities * Low calorie beer * Society is pushing for a “healthy” beer * Russia/Asia * Population increasing dramatically * Have greater market share * Hispanic consumer’s are growing rapidly * U.S. Industry| Threats * Increase in Drunk-driving laws * Competitors increasing market share * U.S. Industry * Mergers and acquisitions of other breweries * Other Breweries are becoming much larger than Heineken’s Brewery * “In danger of becoming a tired, reliable, but unexciting brand” * John A. Quelch |

Recommendations
* Increase Advertising
* Advertising toward young people
* National brands
* Increase presence in convenient store
* Vertically Integrate
* Make own Ingredients
* Look into recycled glass
* Supply chain efficiency
* Diversification...
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