Beer is an alcoholic beverage made from malt, hops, yeast and water. The product is highly consumed across Europe, except France, where the product lags in comparison with wine. Three major groups that share the majority of the French market are Heineken, Inbev and Kronenbourg. The French sector is now in crisis, and there has been a drop in sales by 25% in the past 25 years. Most of these players are now seeking new opportunities to survive and ensure further growth.
In this study, we will analyze the brewer Heineken, the second largest French player by volume with 31% share of the market. How can Heineken find new opportunities in a market that is in crisis? In the first part of the study, we will analyze external and internal businesses in the French market, and in the second part, we will make recommendations to improve the current position of the company.
Beer has a very specific law in France, especially because of the Evin law of 1991 on alcohol. Concerning communication, 8 criteria must be met with, which are noted in the appendix. Advertising is prohibited in a majority of media. In the few accredited media marked "Alcohol abuse is dangerous for health. Consume with moderation" is mandatory.
There is political pressure from anti-alcohol lobbies. The socio-cultural issues are to better understand the difficulties experienced in the beer market in France and it is important to know that beer is suffering from a bad image. It does not know a real passion since it does not represent the image of France as well as they do with wine.
Beer is seen as a product rather "cheesy" and the French are not big fans. This is because of the economic decline in the purchasing power of French consumers, and the share of their budget on food (for the benefit of new technology and housing).
With the development of a vision for a greener world, beer producers comply with new environmental standards to improve their image vis-a-vis consumer and reduce production costs (although investments are heavy, they are profitable in the long term).
One can cite the example of the brewery Valentine (Heineken) in Marseille which has just received the ISO 14001 certification. There is a very dynamic research and development in the beer industry. For example, new modes of long-term preservation have emerged recently.
Heineken is the World's No. 4 brewer by volume, with a market share of 9%. In France, Heineken is the leader in value, but is second only in volume with a 31.8% market share, behind Kronenbourg with a 36% market share.
Tags: Heineken beer, beer in France, beer in comparison with wine
[...] - Economic: reduced purchasing power of French consumers, as well a as part of their budget spent on food (for the benefit of new technologies and housing). - Green: In the development of a vision for a greener world, beer producers must meet the new environmental standards to improve their image vis-à-vis consumers and reduce production costs (although investments are heavy, they are profitable in the long term). One can cite the example of the brewery Valentine (Heineken) in Marseille, which just received the ISO 14001 standard. [...]
[...] With 40,000 cafés and brasseries coating the Heineken brand, it has made advertising operations point of sale to intensify its visibility. These include, among others: umbrellas, ashtrays, glasses, coasters, trays, etc Heineken has also used the GMS, tasting and advertising at the point of sale the beer time A magazine called "beer culture" was also launched to keep in touch with the most loyal consumers with tasting tips, special offers, etc An eponymous concept store magazine, launched in 2005 and installed on the Champs Elysees, used to " rediscover for the consumer, a variety of consumer products" with decorative and desired products. [...]
[...] The structure is defined as follows: - L'Arche Holding SA, the holding of the Heineken family, which holds of the shares; - LAKE BV, another holding of the Heineken family, which owns of the shares; - Green fee BV, the holding company of Hoijer family, which owns of the shares. Overall marketing strategy of the company Heineken is a company that has the distinction of having a wide range. Indeed, it operates approximately 70 brands and this number continues to grow each year. So we shall consider only a few representative brands. - Entry-level product: the Export, is considered the low end of Heineken. [...]
[...] Distribution: traditional sales channel (CHR and GMS). Indeed, the CHR system is a mandatory launch pad for new products. Communication: ads in women's magazines: "Current Woman," "Here," "Gala "Etc . A communication campaign in these three magazines, over a period of 14 days would cost 236,000 for reaching a cumulative audience of 9,791,000 women. Price: women are on average willing to pay between 3.45 and Planning: to be launched in the summer of 2005. Indeed, its refreshing side will be highlighted in the communication plan Draught Keg Product: Created from many years of research and development, this product is a mini version which was from a revolutionary patented technology which allows a pressurized beer tasting pressurized anywhere. [...]
[...] - Heart product range: Heineken is the flagship brand of the company. This is the most sold. This product has the distinction of having a deep range. This beer comes in several capacities (25cl, 33cl, 50cl, 75cl, 5l) and several packaging options (glass bottle or aluminum can, keg). It is also proposed in the CHR pressure circuit. The price of Heineken is higher than its competitors. - High quality product: the so-called "specialty " beer, Allfigen brands and Fisher are in this category. Their prices remain high. [...]
APA Style reference
For your bibliographyOnline reading
with our online readerContent validated
by our reading committee
