Loading presentation...

Present Remotely

Send the link below via email or IM


Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.


Battle of the Brands: Heineken

No description

Amanda Rushton

on 8 November 2012

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Battle of the Brands: Heineken

Star Bottle DraughtKeg Tactile Cans HEINEKEN N.V. AGENDA: Heineken N.V.
The Beer Industry
Recommendations 1864 2012 1889 Mission: Bring "beer culture" to Amsterdam Heineken N.V. founded by Gerard Adriaan Heineken Diplôme de GRAND PRIX 1946 178 countries 250 brands 70 000 employees 1968-70s 1990s-2000s 1968: acquisition of Amstel
expansion into European markets 1997-2009: €10bn in acquisitions
2010: acquisition of FEMSA (Mexico's 2nd largest brewer) Values and Principles Enjoyment - of life
Respect - for individuals, society, and the planet
Passion - for quality
Innovation The Beer Industry Brand Portfolio Joint Ventures Ciders Market Growth mature industry but still experiencing growth
most growth in emerging markets due to structural changes, eg: the fall of the Iron Curtain (Eastern Europe), opening of trade in India and China China: 28% increase in consumption of beer over the next 5 years Growth in retail volume 2005-2010: 12.3%
2% in 2010
Industry drivers: external factors The Canadian Market WEATHER INTERNATIONAL SPORTING EVENTS "There's nothing that sells beer better than hot sunny weather," Jeff Newton, president of Canada's National Brewers New Entrants Regional Markets 1. Asia
2. Eastern Europe
3. Middle East/Africa
4. Western Europe
5. Latin America
6. North America 2000: fragmented market
2009: Top 4 breweries account for 40% of global production = large barriers to entry 1997-2009: Top 4 breweries make a total of 57 acquisitions amounting to 82 billion EUR. Four of these have major strategic impacts:

1. 2005: SABMiller takes over Bavaria
2. 2008: Inbrew takes over Anheuser-Bush
3. 2008: Carlsberg takes over Baltic
4. 2010: Heineken takes over FEMSA Competition Heineken's competitive set: premium lagers IMPORTS DOMESTIC The Product: Beer Vertical differentiation: depends on the brewing process and the quality of the ingredients (barley, hops, water) Horizontal differentiation: achieved through variations of flavours and bitterness ACTUAL DIFFERENCES BETWEEN PRODUCTS ARE LOW BUT DIFFERENCES PERCEIVED BY CONSUMERS ARE HIGH! Supply Chain Distribution: breweries
POS: restaurants, pubs, retailers Transportation is costly, thus a barrier to entry of foreign markets. Consumers 2011: 2.3 billion liters in sales
2014: 2.6 billion liters in sales Primary Target:
young (19-30)
interested in sports Substitutes Beer Life Cycle: Introductory Stage: beer replaces cheap spirits Maturity Stage: wine replaces beer Government retail regulations, e.g.: SAQ (Quebec), LCBO and The Beer Store (Ontario)
legal drinking age (varies by country and province) Strategy [P]roduct [P]rice [P]lace 1999: named Brand of the Century by the Dutch business sector emphasis on quality control means a consistent product around the globe
no additives or GMOs
mildly bitter taste, fresh and fruity aroma, bright colour, exceptional clarity Average price: $0.61/mL = $6.10/L

Average competitor price: $0.56/mL = $5.60/L In Canada, Heineken is distributed by MolsonCoors. [P]romotion Positioning: CURIOSITY CREATIVITY INNOVATION YOUTH Man of the World Leader in Communication 2012: 30 communications awards, 5 Cannes Lions 'Skyfall' ad campaign 2011: signed partnerships with... Promotion through Innovation Events Sponsorship crowdsourcing Heineken 'ideasbrewery.com' Heineken Open Design Exploration Heineken Bottle of the Future Design Contest 100 clubbers, 20 countries
mandate: design the nightclub of the future
launch: April 2012, Milan Design Week Heineken's 140th anniversary
contestants partnered up via Facebook
winners connected from Australia to Mexico
1 million bottles on sale this December “We set out to experiment with ways of making the night more welcoming, more memorable and igniting conversation through design concepts and innovations. We wanted to design a total environment and experience, while exploring how co-creation could push boundaries, keep surprising adult consumers and be ahead of the game.” – Mark van Iterson, Head of Global Design at Heineken UEFA sponsorship contract extended to 2015 4.5 billion views worldwide! Results Recommendations Heineken Brand Performance Global Performance Regional Growth 15% increase in sales volume in Asia Pacific
Vietnam became second-largest market
28% increase in sales in China Growth: Heineken: 5.3% Industry avg: 3% Emerging Markets: Africa leveraging the international brand image

3 million hectoliters in sales

Nigeria, Ethiopia, South Africa The Americas North America:
30% global beer volume
50% global beer profit Heineken Target Markets:
Mexico (FEMSA)
Brazil Heineken in Canada Heineken: 7% IPS 2011: $26 millions of hectoliters in beer brewed by Heineken SWOT Analysis STRENGTHS WEAKNESSES OPPORTUNITIES THREATS leading market position
strong brand portfolio
extensive distribution network
unique brand image: the most international beer
reputation for product quality and consistency
continuous innovation dependence on developed markets
brand image not compatible with country/culture-specific "beer cultures" strategic acquisitions in emerging markets
female consumers
international sporting and culture events
first-time beer-drinkers
low-alcohol beers
flavoured beers craft beer market
strong competitors in the Canadian beer industry
private label beer
counterfeit beer Global Positioning Strategy Innovation Consumer Preferences Emerging Markets Low-alcohol and Flavoured Beer International Sporting Events Traditional Sports in Canada *based on current price per liter in Ontario
Full transcript