Heineken and the beer market

Résumé du document

Heineken was born in 1973 in Amsterdam. The company grew with its brand image and acquired international recognition in a momentum which was fairly gradual. One of its key product which is beer was being exported to Dutch India which is now called Indonesia. Further, in 1876 France was identified as the first external market to open the brand Heineken. This external market developed and flourished despite the exportations that had emerged in a far advanced manner from the two war periods.

It was not until an April day in 1933 when the state of New York saw a load of beer from Heineken arrive in Hoboken. This event took place exactly three days after the lift of the prohibition. Therefore, this was indeed the day when the first legal unloading took place in New York. Hence Heineken has been regarded as the first brand of beer which was imported into the United States.

What can one expect, when the beer market booms and grows in the wealthy American equity market? Indeed, it was from this time that the brand gained international recognition. This resulted in increased production thereby, contributing to the overall development of the company.

Coming down to the next continent i.e. Asia. It was in the 30s' that Heineken gained a substantial position in the Asian market. Heineken would not have achieved this position if it were not for the joint venture with the company Fraser and Neave, and the brewery 'Mayalan Breweries' in Singapore.

It was a time for partnership and with the intervention of local entrepreneurs, Heineken produced its beer in breweries across Surabaya (Indonesia), Brussels and Leopoldville.

The 50s' and the 60s' were also important years. The development of the export zone and the presence of numerous breweries in Western Africa was witnessed by Heineken during the 50s' and the 60s'.

In the 70s' and the 80s', Heineken set out to conquer Europe by acquiring a large number of participation in the European brewery business.

Thus, 1998 saw 19.4 million hectoliters of beer from Heineken being sold across the world

Extraits

[...] Here are some Heineken advertisements. The first was used for the latest James Bond movie and the next two were used in the French press. By diverting their products, the company hopes to have an impact on the mind of the customer Strategy 1. Communication As highlighted earlier, when a person hears the Heineken Company, he thinks of the beer Heineken. Imagine the perception and the comprehension capacity of people about the Heineken brand. Since time immemorial, Gérard Adriaan Heineken highlighted the significance of communication. [...]

[...] Heineken has the widest presence across all the international brewers. This is visible through the strong global network of distributors and 115 breweries in more than 65 countries. The Heineken brands are well established in profitable and mature markets, while the popularity of beer continues to grow rapidly in emerging beer markets in countries such as Russia, China and Latin America. are the largest brewer and distributor in Europe' is the voice of the Heineken brand and its family. The global coverage is achieved through a combination of wholly owned companies, licence agreements, affiliates and advanced strategies 2. [...]

[...] Positioning III. Competitive Analysis 1. Main Competitors 2. Competitors and their strategies 3. SWOT Analysis IV. Marketing and its Strategy 1. Brand Image 2. Communication 3. Marketing Mix (Implementation of the 4Ps' concept) 1. Product 2. Price 3. Place 4. [...]

[...] It also hampered the reputation of the company in the market at large. Sluggish revenue growth across Western Europe: Heineken's Western European market which consists of Netherlands, Spain, Italy, France, Ireland and Switzerland showed a deteriorating and rather weak revenue growth during the fiscal year ending 2006. Revenues from Western Europe reached 4,752 million in 2006. This was just an increase of only over 2005.Western Europe which is Heineken's largest geographical market, accounts for approximately 40% of the total revenues of the company. [...]

[...] So the Heineken Brand is a very important asset. It is only 20% of the Group beer volume. However, it continues to serve as the emotional pillar for the Company. It has been identified as a clear leader in the premium segment of the market. Thus, it expects to generate a significant part of the total beer category profit growth over the next 10 years. This brand is always in a growing phase. In fact, towards the end of 2006, the brand's share of the international premium segment rose to from in 2005. [...]