What are Heineken's strengths and weaknesses?
The major strengths and weaknesses of Heineken are as follows: Strengths: The taste of Heineken beer is unique. The yeast that is used to make Heineken beer till today was developed in 1886. So the taste and uniqueness of it has been there for a hundred years. Heineken is the world’s second largest beer manufacturer. They produce 5.6 billion ltrs of beer each year. Second only to Anheuser-Busch who produce 10 billion ltrs. They have substantial market share in Europe and America with 38% where as they are growing very fast (rate of growth 23% over 1992 sales) in Asia and Australia. In some markets like USA and Hong Kong the Heineken brand is perceived as a premium brand and has successfully established a brand image. They have wholly owned subsidiaries in Netherlands, France and Ireland whereas they held majority stake in 15 other breweries all over the world. This gave them a global presence. Across all markets the brand was acknowledged as a lighter beer or superior quality presented in attractive packaging. Weaknesses: The local Heineken brand managers had the resources to develop own commercials which were not always aligned to the Heineken brand image that the managers at headquarters wanted to project. In some countries the brand image of Heineken was too narrow such that the brand was seen appropriate for special occasions only. While in other countries like Latin America the brand was viewed as just another imported European beer. In Netherlands it was viewed as a mainstream brand. This difference in brand image across global markets was hurting Heineken. Heineken was loosing market share in Europe (drop in sales 1.6% compared to 1992 ratings). In Africa also the brand was losing market share @ 1.5%. Is Heineken a global brand? Heineken is a global brand in the sense that...
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