What do you like to drink?

What do you like to drink?

Strategy Management Heineken Key Study Dang Trang Thanh Nha

Contents 1. Heineken companyintroduction 2. Beer industry 3. Market share 4. Portes s 5 forces analysis 5. SWOT anlaysis 6. Value chain analysis 7. Recommendation

Heineken company-introduction Beer industry Market share Portes s 5 forces analysis SWOT anlaysis Value chain analysis Recommendation

Introduction Heineken Internatonal-Dutch brewing company Industry: Beverage - Beer Established: 1864 by Gerard Adriaan Heineken Headquarter: Amsterdam, Netherlands Global present: ranks as the third largest brewer in the world after Anheuser-Busch InBev and SABMiller Number 2 imported beer in U.S in 2015 Global network of distributors and 165 breweries in more than 70 countries Premier brands Heineken, Amstel Light

Heineken company-introduction Beer industry Heineken Market Share Portes s 5 forces analysis SWOT anlaysis Value chain analysis Recommendation

Beer industry overview Beer is the most widely purchased alcohol beverage A craft beer boom is showing no sign of slowing down after increasing 16% of production volume since the middle of 2014 USA remains leading beer importer while China remains leading beer consumer across the globe

Beer Market share

Global Beer Market forecast

Heineken company-introduction Beer industry Heineken Market Share Portes s 5 forces analysis SWOT anlaysis Value chain analysis Recommendation

Heineken Market Share

Heineken key segment Heineken volume in premium segment +3.5% in 2015

Heineken in 4 key market Remarkable decrease in Africa Middle & Eastern Europe market, down to 3.8% in 4Q15 while Asia market grow up 2.8%

Product line cycle

Heineken company-introduction Beer industry Heineken Market Share Portes s 5 forces analysis SWOT anlaysis Value chain analysis Recommendation

Porter s Five Forces Analysis Rivalry among Existing Competitors Porter s Five Forces Threat of New Entrants 10 8 6 4 2 0 Threat of Substitute products Bargaining Power of Suppliers Bargaining Power of Buyers

Porter s Five Forces Threat of New entrants (6/10) -The barrier -10 new beer last year is popular and have the special taste Bargaining power of Buyers(9/10) -A lot of choice -Less loyalty Threat of substitute products (9/10) There are a lot of alcohol beverage like wine, spirit, cider and non-alcohol one, also Bargaining power of Suppliers(4/10) -participating in some malting companies and input require companies. -focus on biofuels-agricultural products Rivalry among Existing Competitors (8/10) -a lot of best sale brand beers : Bud light, Corona, Budweiser, -Craft brewers tend to increasingly

Heineken company-introduction Beer industry Heineken Market Share Portes s 5 forces analysis Value chain analysis SWOT anlaysis Recommendation

Value Chain Analysis (Primary Activities) Inbound logistics -Store in warehouses placed throughout the world -> minimize shipping costs Operations -Main operation is Brew beer -They carry out quality controls at every step in brewing process -Have set the target of reducing the amount of water used and the direct, indirect CO 2 emissions Outbound logistics -Green Distribution program aims to reduce CO2 emissions -has brewers throughout the world so that minimize shipping costs to local areas Marketing and sales -the 3th most recognized brand of beer in the world -made a 15-second film based on a tweet, ran an Instagram campaign for Gay Pride month, and trialled a mobileonly campaign for a new beer-tequila brand (2014)- Desperados Service -Encourage consumers to become part of the "Heineken by registering, and they will do surveys to meet consumer demand

Value Chain Analysis (Secondary Activities) Firm infrastructure has four operating regions: Europe, The Americas, Africa and the Middle East and Asia Pacific. Each region is headed by a Regional President Human Resource Management: Heineken create good conditions for promoting and improving their employee leadership and business skill through prudent risk Technology Development: Heineken uses technology to keep their information systems 2013, new innovative cooling draught systems were recognized in the Best environmental/sustainability initiative of the year category. Procurement Thermal energy: Heineken control nineteen anaerobic treatment plants and it's the 7th largest company that uses the biogas as an energy source Electricity: buy most of the electricity and remaining 45% of electricity generate in the site by combining heat and power systems, also using diesel generators Water: reduction 17% in water consumption since 2008 Raw material: participating in joint development projects with malting companies in countries where Heineken operates

Heineken company-introduction Beer industry Heineken Market Share Portes s 5 forces analysis Value chain analysis SWOT anlaysis Recommendation

SWOT Analysis-Strength Leading brand portfolio includes more than 250 other international premium, regional, local, and specialty beers. Strong brand with the third place in the market Owns over 165 breweries in more than 70 countries, lead to minimize shipping costs to local areas Innovation rate of 9.2% in 2015, top of the mind recall owing to advertising and sponsorship initiatives An M&A crisis worth more than $4 billion: buy Asia Pacific Breweries (APB) which own the leading Asian brand - Tiger

SWOT Analysis-Weakness Produce don t use for young people while there are less alcohol beverage for them come from the rivals Lack of female customers Being a leader susceptible to fake imitation products Average higher price

SWOT Analysis-Opportunity Healthy beer,gluten-free options, is a attractive segment needed to be develop Asia market is growing rapidly The generation tastes are trending sweet.

SWOT Analysis-Threat Increase in Drunk-driving laws An increasingly negative perception in society towards alcohol could prompt legislators to restrictive measures. Customers are less brand-loyal than ever before Craft beer (14.1% growth last year) and whiskey (up 4.6%), according to the Beverage Information Group and tend to be increasingly Mergers and acquisitions of other breweries as Anheuser- Busch Inbev buying the U.K. s Camden Town Brewery, Arizona s Four Peaks Brewing,and Colorado s Breckinridge Brewery

Heineken company-introduction Beer industry Heineken Market Share Portes s 5 forces analysis Value chain analysis SWOT anlaysis Recommendation

Recommendations Need to grow in the in Africa Middle & Asia market Increase advertising Keep advertising to young beer drinks & Hispanic population Tap into beers with fewer calories and lower carbohydrates Sustain global competition Keep buying more national breweries globally or joint venture. Increase awareness of all national

Recommendations Marketing Advertising toward young people, female customers Language advertising base on country National brands Increase presence in convenient store Product and accessories Healthy beer (low-carb/low calories beer) New tastes product Beer tender, mini keg Recycled glass