Heineken Lager Beer: SWOT Analysis

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Company Profile

Heineken is one of the largest beer brands in the world. In addition the company has more than 165 international. In this company the main aim is to have a worldwide best brand portfolio and be the leading brewer.

Today beer is widely available and enjoyed in most countries and cultures all over the world. Heineken is one of the largest companies in a global network of distributors and breweries. In addition, Heineken manufactures the world’s most popular beer brands.

The headquarters of the company has both centralized and decentralized organization to enhance global marketing. Specific guidelines have been put up to provide the face of the brand with fundamental values and add value for local marketers.

The company has an executive board that creates and implements the corporate strategy and manages all companies related to it. The board members are appointed by shareholders of the company who ensure that the company’s strategies are enacted.

The company aims at striking equilibrium between the various managerial positions within the whole conglomerate.

Promotional events of the company entail incorporation of the various managers’ submission of budgets and strategies in the specific market spheres. These are then viewed by the headquarters to allow for consistency in Heinekens international advertising.

Product Name

The name of the product is Heineken beer. Heineken has a cooperate culture whereby it enables the organization to adapt and integrate into the culture in which they will be operated.

Heineken’s name is picked after being viewed as an integral part of the societies it is present. Much value is put on respect, honor and understanding the socio-political nature and the local culture consuming the product.

History

In Central Europe, Heineken is the largest brewery; it has a number of brands that are well marketed. Heineken is usually marketed around the world as a premium brand; in terms of price towards the customers (Sharon 300). The company adopted the laid down ideology of the Dutch Corporate Governance Code (Ashish and David 34). The company has a strong foothold in the european markets that account for almost half of its revenues.

Information

According to a study done by Project Come it proved that the brand’s uniqueness arises from a strong foundation that comprises of various unique attributes of the Heineken brand. It was evident that the Heineken beer brand was loved and adored by many consumers due to these unique characteristics.

The ingredients of the beer mainly include, hops water and yeast. All these are supplied by farmers nearest to the production plant.

Target market

The target market of the brand is wide with much focus put on the youth above eighteen years of age. The brand is also widely found throughout Europe, Africa and America.

A higher percentage of those who consume the product are middleclass individuals who enjoy their drinks in bars. However, in certain countries the beer is taken during occasions while others take it as a daily consumption beer (Heiat, Gross and Krumholz 1685).

Strengths

Heineken as a beer is produced on the high quality standards.

The beer has attractive packaging that pleases the customer.

Heineken is a lighter beer with less alcoholic content.

The beer has a special unique taste.

The formula used to prepare the beer is original with none of it used anywhere.

The brand is widely available.

Heineken is a premium brand beer that is available to its customers in terms of price.

An additional strength to it is that it is the most heavily advertised premium beer in Europe and worldwide and use TV commercials heavily. The appearance and make of the Heineken bottle and logo puts the brand ahead of the rest.

Weaknesses

The brand lacks an integrated marketing campaign.

The efforts necessary for brand revitalization are not present.

The brand image is not consistent with the brand communication.

In certain areas there is no production base.

Cultural factors have played a big role in limiting the expansion of the Heineken brand in various markets. Heineken is usually consumed by patrons of a slightly older generation when compared to other brands. There is a challenge in enabling the brand to be accepted by teenagers and younger individuals.

Cost; the cost of Heineken compared to most beer brands are on the higher side.

There brand lacks worldwide advertising thus market for the brand is not well reached.

The TV commercials that are aired basically reach the larger markets only.

Opportunity

The company has an opportunity of sponsoring sports both at local and regional levels.

Information technology has created an opportunity to Heinekens upgrade on security. Business operations in and outside the company is increasing. For example, the current advancement in technology has opened a large market to access world population without any barrier. This has enabled the company to reach various areas of the world.

Threats

The long-lasting proclaimed of superiority the Heineken brand may in itself be a threat. This is to enable the brand to flourish and have a strong reputation.

Heineken meets a challenge to enhance a global recognition through the identity of the brand, to maintain a healthy financial position.

With globalization going on, more brewers are looking for new markets, while governments on the other hand have an intention of gaining maximum profit and also get empathy on ethical grounds by imposing taxes that are heavy on beer imports.

In London, drinking alcohol on public transport is prohibited; this will hence decrease the market of Heineken as individuals want to enjoy their beers wherever and whenever they want to.

Economic changes that occur in revenues of a country would also pose a threat to the sales of Heineken. Currency fluctuation could create a threat to the company’s results.

Recession in certain countries has brought individuals to choose an alternative drink that is cheaper; as a result Heinekens distribution aspect faces a threat.

The brand might face a decline in consumption as the lifestyle of this new generation has changed due to lack of time and individuals spend less time in bars. This would then lead to a fall in sales volume.

The threat for power of supplier is high as the main suppliers of raw materials to the company are farmers.

The threat for power of buyers is also high as the consumers have a wide variety of companies serving beer and thus the choice of the customer’s preference is not limited.

Today, there is a high number of small breweries being opened up making the industry very competitive, making Heineken have no choice but to share the market with other brewers. Therefore, there is a threat of probable new entries in the beer industry.

The threat of substitutes; Due to the above threats Heineken may be forced to create a new and unique product that can sustain the competition the face in the beer market.

Since beer is an alcohol beverage, an individual may choose to switch to drink wine which also contains alcohol. This will also affect the beer market which as well affects the sale of Heineken. As a result, the threat of substitute for beer market is high.

Recommendations

Different stages of the product in different markets dictate employment of different strategies such that in growing markets both pulling and pushing strategies are suitable (Britton, et al. 115). In these advertisements they should also be able to focus on the local market thus market mix should also be observed whereby the consumer will develop a greater emotional link to the company.

The website developed for the company should be able to attract every consumer depending on the area. Thus local language should be used on different countries.

If the company is involved in sponsorship, there is a high chance of it opening up to its marketing. This can be through sports and music events or films targeting to appropriate demographic profiles.

Also, its global branding strategy should account for the socio-cultural influences, attitudes and the perception of its consumers in all foreign markets.

This will enable the headquarters marketing forces to play an important advisory role for local partners (Herring, Patti, et al. 427).

Works Cited

Ashish, Chandra, and David, Paul. ‘Modern Brewing technologies‘. Hosp Top 3.81 (2003): 33-38.

Britton, Annie, et al. “Beer brewing: Threats to success on heineken“. Journal of Breweries 4.2 (1999): 112-121.

Heiat, Asefeh, Gross, Cary, and Krumholz, Harlan. ‘European business techniques,’ Beer Industry 162.1 (2002): 1682–1688.

Herring, Patti, et al. ‘Understanding the challenges in attainig an excellent beer industry: The beer study,’ Ethn Dis 14.3 (2004): 423–430.

Sharon, Mason.‘How Europe and worldwide and use TV commercials.’ Heineken beer 30.1 (2004): 296-304.

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