...Beer’s worldwide popularity makes brewing industry one of the largest global industries in the world. More than 140 billion liters are sold per year generating revenues of more than $490 billion by 2013. Beer consumption differs for various countries. Czech Republic is leading the consumption with the average of 132 liters per capita. Germany, Austria, Ireland and Canada are the countries following the Czech Republic with the consumption over 100 liters per capita. Considering the global popularity of beer, there are countless brewery companies all around the world. 2. COMPANY PROFILE Heineken is a Dutch brewing company which was founded in 1864 by Gerard Adriaan Heineken in Amsterdam. The company owns around 200 breweries in more than 70 countries. Heineken is the 3rd largest brewer in the world by producing almost 140 million hectoliters of beer yearly. The company holds more than 250 brands globally including Amstel, Birra Moretti, Cruzcampo, Deperados, Dos Equis, Foster’s, Newcastle Brown Ale, Ochota, Primus, Sagres, Sol, Star, Tecate, Zlaty Bazant and Zywiec. It also produces ciders under the brands Strongbow Gold and Bulmer’s. Operating all around the world, Heineken divides its operations into 5 global districts: Western Europe, Central and Eastern Europe, The Americas, Africa and the Middle East, and Asia Pacific (Reuters.com). This picture clearly displays Heineken’s global power. Heineken’s global power comes from its activities and sponsorships worldwide. The company...
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...Heineken was established in the United States in 1863 and in a short time it became the world’s largest brewer with 116.8 million barrels of beer sold. Heineken’s number one position depends on the number of markets they are present with their products. Local markets are important but the international markets will provide more opportunities to grow. Exporting beer continues to boost year after year. In 2006 the increase was over 18% compared to 2005. The United States exported approximately 34.4 million hectoliters of beer in 2006 compared to 29.9 million hectoliters in 2005. Heineken expands constantly and recently has purchased Hartin, 4th largest brewer in China, and invested $33M in convertible bond of Tsing Tao Brewery. Heineken’s partnership with Budweiser in Italy allowed Budweiser to brew, market, and distribute “Heineken” and make use of Budweiser’s distribution network in Europe. Heineken has been the most successful beer company in Europe and the rest of the world due mostly to the quality of their product, their marketing/advertising and their sponsorship ability. They sponsor annually the biggest sporting event, which is the Champion’s League (a soccer tournament) in Europe. With games shown across the world every two weeks, Heineken has been their main sponsor for numerous years. The frequency and reach they achieve through the tournament is to die for and marketer’s dream since the tournament is played for nine months out of the year. Language and...
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...We are HEINEKEN Company Presentation 2013 | Heineken NV | Heineken Holding NV HEINEKEN: A leading global brewer with excellent growth platforms Second largest brewer in the world by revenue1 A highly diversified emerging market footprint Heineken®, the world’s leading international premium beer Heineken® available in 178 countries Highest beer brand equity in the world2 Diverse product portfolio More than 250 international, regional, local and specialty beers and ciders Leading brewer and largest beverage distributor in Europe A broad geographic footprint Excellent spread of profits and cash flow 2 1 Inclusive of APB Pro-forma 2012 2 Millward Brown: BrandzTM Global Equity Study 2012 HEINEKEN through the years A proud, independent global brewer 1864 1939 Gerard Adriaan Heineken acquires his first brewery in Amsterdam, Netherlands HEINEKEN is listed on the Dutch Stock Exchange 1865 – 1938 Import to Africa and USA, expansion in Western Europe and entry into Asia Pacific 3 2002 – 2007 2009 Expansion in Central and Eastern Europe 1940 – 2001 Expansion in Africa, and Americas 2008 Acquisition of Scottish & Newcastle 2010 The Heineken Africa Foundation is launched 2012 Acquisition of FEMSA beer business in Mexico and Brazil 2009 Joint ownership of India’s No. 1 brewer United Breweries Limited 2011 Acquisition of five breweries in Nigeria and two in Ethiopia ...
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...has been sold in similar form and taste all over the world. However, it has remained a highly local product due to barriers such as local tastes, short shelf life, high transportation costs, taxes on imported alcoholic products and difficult-to-penetrate local distribution networks. In 1999, the top-four brewers were only accountable for 17% of global beer sales. Beer was, at that time, seen as one of the least consolidated, and least profitable, industries in FMCG. But nowadays, because of greater scale, the effects of reduced competition and the growing profitability of emerging markets, the top-four brewers control over 55% of global sales. In spite of this positive change, beer is still a local business, with local operations and brands. This consolidation can bring large benefits, such as operational leverage, efficiency in advertising expenses, increased reputation and distribution networks’ power. Although slowly, brand concentration is starting to occur both in developed and developing countries. The future prospects for beer brands tend towards industry and local brand consolidation, indicating the need to develop global beers brands. Competitive Advantage And Its Sustainability Heineken and Carlsberg benefit from competitive advantage through both cost and differentiation. Throughout the years, both companies have had the possibility to accumulate knowledge and expertise about the brewing industry, take advantage from their size and operational scale, and create...
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...results of HEINEKEN’s activities. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond HEINEKEN’s ability to control or estimate precisely, such as future market and economic conditions, the behaviour of other market participants, changes in consumer preferences, the ability to successfully integrate acquired businesses and achieve anticipated synergies, costs of raw materials, interest rate - and foreign exchange fluctuations, change in tax rates, changes in law, changes in pension costs, the actions of government regulators and weather conditions. These and other risk factors are detailed in HEINEKEN’s publicly filed annual reports. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. HEINEKEN does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials. Market share estimates contained in this presentation are based on outside sources such as specialised research institutes in combination with management estimates. 3 Agenda Delivering Sustainable Top-line Growth 1 2 3 4 5 6 4 Commitment and results Heineken®: A competitive advantage Other global brands...
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...International Table of Contents Introduction Market Analysis Market Segmentation Product Positioning Impact on the Consumer Consumer Decision Process Marketing Mix Market Plan Assesment Introduction It’s a competitive world out there! Having a business and understanding the ways to market and advertise to your consumers. What ideas should companies come up with to help or guide consumers into buying their product? Heineken International is one of the world’s most recognized brewers; their brand is therefore associated with socialization and having fun. In the face of changing beverage consumption, advertising restrictions, and a blurring of its positioning among self-owned and competing beverage labels, Heineken’s marketers decided to use the company’s strong brand equity to expand into adjacent markets and provide consumers with new ways to interact with the brand. The research paper will look at ways Heineken International has grasped the sales and marketing concept, with production, competitive pricing, target marketing and market segmentation. Heineken Market Analysis: Company- Beers and Lagers, that’s what Heineken specializes in. Founded in 1864 by Gerald Adrian Heineken, it’s a Dutch based company that now owns over 125 brewers in more than 70 countries. It brews and sells more than 170 international premium, regional local and specialty beers, including Tiger Beer, Zagorka, Star, Starbrno and Heineken Pilsner. It was after World...
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...encountering. The company is facing declining sales due to changing consumer tastes and increased competitive pressure. Heineken is attempting to increase sales and retain its position as a premium beer, but is faced with a lack of support from two key demographic groups which includes Hispanic American's and young Americans (Dess, Lumpkin, Eisner & McNamara, 2012). A case study of the firm, and its market environment, utilizing value chain analysis, and Porter’s Five Forces was conducted. Recommendations and alternative strategies were developed to increase the position of the Heineken brand and regain sales from Hispanic Americans and young Americans. The implementation of the recommendations and alternative strategies may increase Heineken’s opportunity of sustainable long term growth within the industry. Introduction Heineken is the third largest brewer in the world and currently distributes more than 170 brands of beer in over 150 countries worldwide. However, over the past decade Heineken has faced some growth problems associated with the tougher drinking and driving laws in the U.S, a growing consumer appreciation of wine, and the decline of Heineken as the most popular import brand. The growth of the Hispanic population in the U.S. has allowed for the sales of Corona to exceed Heineken for over a decade now (Dess et al., 2102). Currently Heineken has made...
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...Assessment 2 Topic: The effectiveness of the Strategic Management Practices of the Organization. Company Name: Heineken 1. Introduction: Competitive advantage is a common word in business world. Organizations practice Strategic Management, which consists analysis, decisions & actions to create & sustain competitive advantages. It contains two essential sides to get in to the main perspective of Strategic Management. First, strategic management is an ongoing process, which are analysis, decisions & actions. It is mainly focused on analysis of strategic goals- vision, mission & objectives with the internal & external environment of the organization. Afterward, comes the decision making process. The higher authority needs to take all the strategic decisions. In this level, two important questions arise. What industries should we compete in & how should we compete in those industries? After sort out these questions, action must be taken accordingly. Second task is to analyse why & how some firms outperform others. Managers need to focus on gaining the competitive advantages, which must be sustainable. That means focusing on two fundamental questions: How should we compete in order to create competitive advantages in the marketplace? Michael Porter argues that sustainable competitive advantage cannot be achieved through operational effectiveness alone. Most of the popular management innovations of the last two decades-total quality...
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...HEINEKEN N.V: Global Branding and adverting Clarify and standardize Heineken brand image worldwide Executive summary Heineken N.V is a global brand symbol of premiumness, taste, and tradition worldwide. It started soon granting license across the world. As its creator, Gerad Adriaan Heineken said: “ I will leave no stone unturned in attempting to continuously supply beer of the highest quality”. And he succeeded, across all markets, the Heineken N.V brand was acknowledged “as a lighter beer of superior quality” Despite this worldwide recognition, Heineken could become a “global premium brand” with a strategic brand management. Heineken was sorely lacking of a standardized brand image worldwide; it has been perceived differently from market to market. However, through project comet and Mosa, Heineken find common perceived values of its brand across all markets. So it should build a global branding strategy. As there remained substantial differences in the evolutionary cycles on markets development and in consumers’ consumption, preferences and behaviour, Heineken must also build a local approach. It need to think” Glocal”, and to meet customer perceived value at least in each country. It must convey a brand identity through every available of marketing mix variable; in everything the company does in order to build brand equity. To do so Heineken should build a flexible strategy to handle the image brand management for local marketers. It should have both centralization...
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...Year of establishment and very brief history Heineken International is a Dutch brewing company, founded in 1864 by Gerard Adriaan Heineken in Amsterdam. It owns over 190 breweries in more than 70 countries and employs approximately 85,000 people. Cruzcampo, Tiger Beer, Żywiec, Starobrno, Zagorka, Birra Moretti, Ochota, Murphy’s, Star and Heineken Pilsener are some of it’s well known brews all over the world. Milestones of Heineken history; 1864 Gerard Adriaan Heineken buys the Haystack brewery on February 15th 1873 On January 11, HEINEKEN’s Bierbrouwerij Maatschappij N.V (HBM) is established. 1889 HEINEKEN is honored with the "Diplome de Grand Prix" at the World’s Fair in Paris 1900 HEINEKEN imports first beer into Africa. 1932 HEINEKEN co-founds Malayan Breweries and starts to brew Tiger for the first time 1933 After 13 years of prohibition, Heineken® sets foot on American soil 1937 HEINEKEN’s Nederlandsch-Indische Bierbrouwerij Maatschappij, Multi Bintang, begins operation 1939 HEINEKEN is listed on the Dutch stock exchange 1946 HEINEKEN enters Nigeria 1968 HEINEKEN acquires Amstel, its major rival in The Netherlands 1974 HEINEKEN acquires a majority stake in the Dreher Group 1975 A new Dutch brewery opens in Zoeterwoude, the largest modern brewery in all Europe at the time. 1991 The former Amsterdam brewery on the Stadhouderskade is converted to a Heineken museum which was renamed Heineken Experience in 2001. 2003-20010 HEINEKEN acquires Brau Union...
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...Date: 11/11/2015 Heineken is one of the world’s leading brands over 130 years. It is the number 2 imported beer in the U.S and it is number 1 in Europe. Its’s global network of distributors and 115 breweries in more than 65 countries. Premier brands are Heineken are Amstel Light. Heineken aims for sustainable growth as a broad market leader and segment leadership while expanding and optimizing product portfolio. It embraced innovation as a key component of their strategy in the areas of production, marketing, communication and packaging. Heineken’s goal is to grow the business in a sustainable and consistent manner, while constantly improving profitability. There are 4 priority to reach the goal. 1) to accelerate sustainable top –line growth. 2) to accelerate deficiency and cost reduction. 3) to speed up implementation by committing faster decision making and execution. 4) to focus on those markets where they believe they can win. Heineken is losing import beer market share in early 20s. The problem is the maturing competitive beer industry. 37% of U.S adults are beer drinkers and beer is the most widely purchased alcohol beverage, beer industry is projected to grow steadily. The competition within beer industry is very strong, basically it is “eat or be eaten”, and every company is just trying to strengthen their global position any way possible. The biggest rivals include InBev and Grupo Modelo. There are coupld mergers and cquisitionsi came out. For example, South African...
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...time, multiple generations have expanded the Heineken brand to be the third largest brewer in Europe and expanded its branding reach globally. The company’s portfolio includes 170 international premium, regional, local and specialty beers to date and is considered one of the world’s great brewers. These premier brands are available in just about every country globally as well as being recognized as an international premium beer brand (Euromonitor International, 2012). In its branding expansion efforts, the company offers international premium, along with local, regional, specialty beers and ciders. Examples of this can be demonstrated by the acquisition of Scottish & Newcastle followed by the acquisition of FEMSA, Mexico’s second largest brewer and merging its position in the Middle East and Africa with purchases in Nigeria and Ethiopia (Euromonitor International, 2012). Key Learning Points External Environment Exporting beer continues to be a key boost to economies. The United States exported approximately 34.4 million hectoliters of beer in 2006 compared to 29.9 million hectoliters in 2005 (Gale Group, 2012). Language and culture are problematic issues when it comes to international distribution. When any company enters the global marketplace, it has to deal with...
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...Corona is by far, one of the more recognizable names in the export beer category next to Heineken that stands out considerably from other beers. It is an easy drinking beer that is paired well with Mexican cuisine, beaches, picnics, parties, and backyard barbeques. Corona Extra has outsold every imported beer in 2006 and 2007 with Heineken coming in far behind at second place. It is the 4th best selling beer in the world and one of the top 10 breweries in the world. This fact may slowly descend away as other international brands increase their marketing budgets and spend more to gain the upper hand. Heineken’s president Michael Foley stated the truth when he said, “Beer is all marketing. People don’t drink beer, they drink marketing.” By taking a look at the overall situation that Grupo Modelo is faced with in the years ahead, there are some alternative choices that must be presented to the company if it wants to continue to grow and outperform its major competitors like FEMSA. One idea is for the expansion of Modelo’s marketing campaign by allocating more money to advertising. The majority of Corona advertisements seen on television are the famous “Fun in the sun” beach theme skits. Although simple, comical, and very effective, these commercials are the only well-known advertisements for Modelo beers in the U.S. Negra Modelo and Pacifico Clara are also produced by Grupo Modelo that actually score higher in taste than Corona Extra. These two beers could become potential revenue...
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...-- Corona Beer History of Corona Beer What’s in a name? Who is Grupo Modelo? What is the company’s mission and vision statement? All this and more will be answered in the literature review. According to an article titled “Mexican Beer” by Buen provecho (2010), “Corona Beer, started in Mexico in 1925 by Grupo Modelo, became a dominant brand by 1996, owning 32.7% of the Mexican beer industry. Before it became popular internationally, it had already established itself as a home-grown success. The name and label make Corona one of the most recognized beers in the United States. Corona, which means crown, was introduced to the world in 1925 at Mexico City by Grupo Modelo. It was produced in celebration of the tenth anniversary of the brewery. This is a light pale lager, at 4.6% alcohol by content. Corona has a mild flavor with very little of the hop bitterness. The color is light yellowish.” Also according to Buen provecho (2010), “Corona is one of the top five selling beers in the world. In the United States, Corona became the number one imported beer in 1997. It is the top selling import beer in Canada. Since its introduction in the US, its market share has consistently grown. It is the number one selling Mexican beer in the world and the fourth best selling beer in the world. It is available in 150 countries worldwide. All Corona beer is brewed in seven breweries in Mexico at Modelo Breweries.” According to Buen provecho (2010), “Anheuser-Busch owns 50% of Grupo Model...
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...Overview TheQuickRead Performance highlights €17,123million 164.6millionhectolitres €2,697million 27.4millionhectolitres Revenue +6.1% Consolidated beer volume +12.8% EBIT (beia) +2.8% Heineken® volume in premium segment +5.4% €1,584million Net profit (beia) +8.8% “ EINEKENhasonceagaindemonstrated H itsabilitytodeliverapositivefinancial performancedespitethechallenging economicenvironment.” Jean-FrançoisvanBoxmeer Chairman of the Executive Board/CEO EBIT (beia) in millions of EUR Consolidated beer volume in millions of hectolitres Net profit (beia) Heineken® volume in premium segment in millions of EUR in millions of hectolitres 2,623 2,697 1,748 1,932 164.6 2,095 2007 2008 2009 2010 2011 1,456 145.9 125.8 125.2 1,584 105.4 1,119 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011 24.7 25.9 25.1 26.0 27.4 1,013 1,055 2007 2008 2009 2010 2011 HeinekenN.V.AnnualReport2011 01 Overview | The Quick Read continued Key figures1 Results In millions of EUR Revenue EBIT3 EBIT (beia)3 Net profit Net profit (beia)3 EBITDA3 EBITDA (beia)3 Dividend (proposed)6 Free operating cash flow3 2011 20102 Change in % 17,123 2,455 2,697 1,430 1,584 3,623 3,682 477 2,093 16,133 2,491 2,623 1,447 1,456 3,609 3,584 438 1,993 6.1% (1.4)% 2.8% (1.2)% 8.8% 0.4% 2.7% 8.2% 5.0% 27,127 ...
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