The marketing strategy and business model of Heineken

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The marketing strategy and business model of Heineken

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Heineken, marketing strategy, business model, the brewing business, the international beer industry, beer manufacturers, bottling and distribution companies

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Abstract

Heineken was founded in 1863 in Amsterdam by a man named Gerard A. Heineken. While the Dutch brewing business was in decline, Heineken purchased a brewery for an excellent price and, as a result of the high quality products he produced, eventually received international acclaim for the Heineken brand (www.heinekeninternational.com). Today, almost 140 years after initially starting the company, Heineken is still based in Amsterdam and continues to do exceedingly well as one of the most popular and well-recognized international beers. By constantly expanding into new markets, acquiring new breweries, and ensuring that the Heineken quality remains excellent, the company is able to continue to gain market share and expand into new countries.

Introduction
Competitive pressures facing the international beer industry
1. Critical factors for Heineken's success
2. Competencies and competitive advantages of Heineken
3. Current international strategy and recommendations

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[...] Works Cited “Anheuser-Busch Companies, Inc.: Form 10K.” Anheuser-Busch, March Accessed May Hawkins, Josh. “Heineken Halts All TV Advertising.” FutureLab, October Accessed May History Page.” European Challenge Cup. Accessed May Fowlkes, Michael. “Heineken - the next Starbucks?” BloggingStocks.com, March Accessed May “Heineken Premium Light: Great Strategy, Poor Execution.” Ad Blabber, June 26th Accessed May “Heineken USA - Marketing Strategy.” Bnet, January Accessed May “Heineken streamlines.” BeverageDaily.com, October Accessed May “Heineken to target younger market as part of new growth strategy.” Drinks Business Review, October Accessed May “Heineken Holding N.V. [...]

[...] The entire bar is covered with signs, tools, and t-shirts and dedicated to Heineken. The TV will play Heineken ads, and there will be no way for a customer to enter the bar without feeling the presence of Heineken. This move has been a success in airports, and it allows Heineken to expose itself to millions of potential international customers annually. When asked whether or not Heineken will be able to duplicate this “Starbucks” experience outside of the airport, one source was doubtful: think that it will probably see some success in the airports, but I don't think that they will be able to take that success and move it onto Main Street America” (bloggingstocks.com). [...]

[...] Based on my research, the market for beer is currently saturated and there is little room to introduce the Heineken brand in entirely new regions. Instead, the focus should not be expansion, but success in the current markets. Once more success is obtained in this way, Heineken could look to expand in the future. With the money that Heineken is not using towards expensive television ads, more effort should be put into sponsoring well known sporting events, creating promotions, and attempting to sell directly to consumers by making them switch from other brands. [...]

[...] This is just one of many efforts by Heineken to get the brand name out. Another marketing success was the keg, which was a popular alternative to cans when hosting large parties. Another special package was the new Mardi Gras 16-ounce can, which was also a success in the U.S. market. According to one source, The can has been designed for Mardi Gras 2001, and the company has imported 45,000 cases for distribution around the country. "Cans are the preferred package for on-the-go occasions, the new Heineken Mardi Gras can is a unique way for people to make Heineken a part of their Mardi Gras celebrations," said Steve Davis, senior vice president of marketing (findarticles.com). [...]

[...] The result of all of this, essentially, will be a uniform IT system that can provide Heineken international with a system that allows all aspects of the company and its operations to be managed from one master data system. Using such a system will improve product distribution on a local level, and it will cut many inefficiencies out of the way (www.beveragedaily.com). Such technological innovations are crucial, and in order for Heineken to remain competitive, it must continue to take advantage of these sorts of innovative possibilities. [...]

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