This website uses cookies to ensure you have the best experience. Learn more

Heineken Case Analysis

1724 words - 7 pages

International Case Analysis – Heineken
Ronald J. McIntosh
MG 495 Strategic Management - Winter 2014
City University of Seattle


Heineken begins it story as a company in 1864 when its founder, Gerard Adrian

Heineken purchased a small brewery in Amsterdam, Netherlands. Since that 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 ...view middle of the document...

Language is a major challenge, and even

though English is spoken around the world in most cases it cannot be used as a language for

international marketing campaign. Needless to say, the translation of the campaign

into the foreign language is of the upmost importance.

There are English words that do not have corresponding or associated words in most

foreign languages and in here lies the challenge in communicating the right message.

These words have different emotional meaning than the same words in the other language.

A marketing or branding message that the advertising campaign is based on might be

“lost in translation” and deliver a different meaning or unwanted effect.

“Slang” words that are used in American ads might be very hard or impossible to translate

into a foreign language because they do not mean the same thing or don’t exist at all in

another language. For example, Budweiser launched a very successful “What’s up”

campaign. If Heineken used that’s same campaign theme, it would have delivered negative

results globally.

External Legal and Political Factors
There are a number of multiple regulations and laws affecting the beverage
alcohol industry. In the United States, the alcohol industry imposes various federal
and state government regulations. Alcoholic beverages in general face national import
and excise duty taxes as well as in the global marketplace. Further, the industry is
subject to restrictions in advertising, marketing and sales distribution. (Imbs, J. 2013).

External Cultural Factors
Sociocultural factors must be considered that apply to lifestyle changes,
economic concerns in identifying use of disposable income, and the level of social
impacts. These factors affect consumer’s behaviors when making purchasing decisions
of their preferred alcoholic beverage. Further, these sociocultural factors can
developed over years and most companies have been able to adapt to them effectively.
“Light beers” or better known as “low-carb beers” are an example of companies being
able to adapt to these factors (Gale Group, 2012).

Business Level Strategy

The business level strategy of Heineken is to grow the business in a sustainable and
consistent manner, while constantly improving profitability. The four priorities for action

➢ To expand sustainable top-line growth;
➢ To improve operational efficiency and cost reduction;
➢ To maximize implementation: Committing to faster decision making and execution;
➢ To approach markets where the company believes it can achieve a “must win” battle.

Driving this mission focus is the Heineken Group Board of Directors. The management of
Heineken is run by the Executive Board, which has two members and one Chairman. The
company has five operating regions: Western Europe,...

Other Papers Like Heineken Case Analysis

Heineken And The 2022 World Cup

3572 words - 15 pages HeRunning Head: Heineken moving into Qatar Heineken moving into Qatar before the 2022 FIFA World Cup to gain the major beer sponsorship Anthony Colaluca Southern New Hampshire University Table of Contents Heineken Background: Past and Present Information about Qatar Risks and Opportunities for Heineken to consider Cultural Differences between the Netherlands and Qatar Entry Strategy into Qatar Recommendations for

International Marketing Between Carlsberg And Heineken In Malaysia

2379 words - 10 pages International Marketing Assignment 1 1. Executive Summary We would like to apply Porter’s 5 forces of competitiveness to analyze in details the business environment faced by Carlsberg and Heineken in Malaysia. Detail of how Carlsberg and Heineken had done a good choice to take the risk of marketing in Malaysia is discussed below. The advantages and disadvantages of such decision are highlighted below as well. We then identify the

Case Write Up

1002 words - 5 pages Case Write Up Prepared by: Claire Liao Case: Heineken, Marketing Management Course 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

Psychology of Advertising

3633 words - 15 pages consumers, some being the same and some being different for each ad. In my opinion, due to this analysis, the fact that every consumer is evolving and is different than one another is why there are a variety of different marketing techniques through different sources of media. Even with analyzing a specific category, in this case beer, different methods can be seen being used by different products. Marketing techniques used in product advertisements

Corona Beer

2482 words - 10 pages production to face growing in international demand. This can help Corona to be available and ready to be a number one replacement in case of consumer number one choice is not available. Financial Analysis Grupo Modelo was generate majority of its sales from domestic market which contributed about 70% of the overall (Exhibit 1 & 2). Also it have high gross profit at 55% (Exhibit 1) which is quite high compare to the industry. For overall

Sabmiller Case Study Solution

808 words - 4 pages ” - They own most of the supply chain (they buy breweries) Rivalry among competitors Intensive - Industry that keeps consolidating - ABInbev -Heineken Customers bargaining power Low Customers don’t interfere with the price-making Threat of Potential new entrants Medium to Low - Anyone can start a brewery but it is difficult to become main player - Cost advantage - Lot of capital needed - Reputation CASE STUDY ANALYSIS CASE STUDY

Corana Beer

4386 words - 18 pages Corona’s case, they have created a strong network of distributors, especially with Barton Beers Ltd. and Gambrinus Inc. in the United States. The company chose Barton because it was the largest beer importer in the 25 western states and was experienced in the marketing and sales of imported, premium beers. Barton was the company who coined the “fun in the sun” marketing campaign. Gambrinus Inc. was chosen because of the success of Barton and the fact

Onside Outlook

1539 words - 7 pages primary driver for irish sponsors in the next 3 years is very clearly about increasing loyalty to their brands. A record high 8 in 10 single this out as a most important criteria in writing their sponsorship business case – with the traditional brand awareness goal now next highest, but some way back at 1 in 2. the Question was asked of sponsors : Please indicate the 3 sponsorship objectives that will be most important for your company in the future

Phizz Beverages

1256 words - 6 pages beverage market growth, made $31,944.0 (millions) despite the world recession. Coca-Cola increased its volume of unit case by one billion since 2007. The following is data on the top two through 10 competitors (Beverage World, 2009): Nestlé - $26,559.0 SABMiller - $25,302.0 Coca-Cola Enterprises – $21,807.0 Anheuser-Busch In. Bev – $21,253.2 Heineken – $19,981.9 Kirin Holdings Co., Ltd – $16,780.4 PepsiCo, Inc. – $15,972.2 Suntory

Global Forces and the Western European Brewing Industry

1261 words - 6 pages Introduction The purpose of this briefing paper is to analyse the data given from the case study to determine the impact and consequences global forces have, by using the PESTEL framework. This framework is used to help form a strategic analysis of the macro-environment; the outside factors beyond the control of a company. It categorises the environmental influences into six groups: political, economical, socio-cultural, technological

Assignment 8

867 words - 4 pages Brewing CO, Yuengling and Son, Inc , Boston Beer Co and North American Breweries. As for the International Division we could use as comps: SABMiller, Heineken International, Carlsberg Group and China Resource Snow Breweries Ltd, which are the biggest brewery companies after ABInBev. Fort he packaging division, I will asume it operates all around the world. If it is only the US division, we should compare it to the top packaging companies in the US

Related Essays

Strategy Carlsberg Vs. Heineken Essay

2363 words - 10 pages about the brewing industry, take advantage from their size and operational scale, and create brand awareness among beer consumers. This way, Carlsberg and Heineken were able to develop the mentioned advantages, however, with a relative different weight. Carlsberg has a relative source of competitive advantage in scale in the value chain, whereas Heineken’s source is brand strength. Cost Advantage The companies under analysis reached a dimension

Heineken Brand Essay

2197 words - 9 pages 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 economic

External Environment Heineken Essay

601 words - 3 pages -political situation as well as the culture they are dealing with. Through this action they create value for the government as well. When talking about the competition it might be wise to first mention the strengths and weaknesses of the company by using a SWOT-analysis. For Heineken we can state that one of its strengths is the establishment of a track record as the brewer with on of the biggest international successes in the market. As stated

Heineken N.V Global Branding & Awareness

532 words - 3 pages HEINEKEN N.V- Global Branding & AwarenessProblem Statement: As the consumer needs & tastes vary across the globe, Heineken must decide how much to adept their marketing strategy to local needs using a variance of standardized marketing mix & adapted marketing mix, owing to the strong brand preferences & loyalties that exist among the beer drinkers.Recommendations: Heineken needs to evaluate its home replication, multi-domestic