Heineken Case Study
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
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