1. Heineken
Strategy and Value Creation
The Lisbon MBA
Groups 2 and 7
Ana Santos
Bruno Oliveira
Caspar Guggenbühl
James Shannon
Jide Famuyiwa
Leonor Martins
Marixcela Victoria
Pedro Henriques
Rui Barata
6. Pest Analysis
•Heavy Regulations
•Restrictions on drinking ages
•Taxes
•Government anti-alcohol
campaigns
Political - Legal
•Economic slowdown / recession
•Middle income growing
•Raw materials price fluctuation
and scarcity
•Infrastructure developments
Economic
•Awareness of alcohol negative
effect
•Healthy lifestyle
•Cultural and social side of drinking
•Premium and craft
Social - Cultural
•Innovative techniques in the
production
•Digital interaction with customers
•Environmental regulations
•Eco-friendly packaging
Technological -
Ecological
S
24. Vision & Mission
Vision
• “To win in all markets with Heineken®,
and with a full brand portfolio in
markets where we choose.”
Mission
• A proud, independent, global brewer
committed to surprising and exciting
consumers everywhere.”
”A passion for quality, enjoyment of life, respect for
people and respect for our planet.”
26. Objectives
Financial Other - Non Financial
o Lead by Innovation
o Opportunities in the emerging
markets
Shape the Cider market
o “Brewing a Better World”
o Global Business Services
o Lead by Cool Marketing
SMART
SMART
SMART
SMART
29. • Market Penetration
• Increasing market share in current
markets (North America and Europe)
• Market Extension
• Expansion into emerging markets in
South America, Asia and MEA
• Product Development
• Innovations with development of Radler
variants in 2014
• Diversification
• Introduction of innovative products to
new markets in Asia and MEA
Products-Market Evolution
30. Cost Leadership
• Size and scale through major acquisitions
in Mexico, Southern Africa and other regions
• High bargaining power with suppliers and economies of scale
Differentiation
• Strong brand established for products across geographies
• Industry leader in sustainability efforts.
• Top 5 globally
Competitive Advantage
COST LEADERSHIP
Low High
DIFFERENTIATION
High Pure differentiation Differentiation with cost leadership
Low No advantage Pure cost leadership
31. Heineken embraces “moment marketing”
Your best moments
Your most premium moments
Your most irreverent moments
Your good moments
Key Product Differentiation Elements
36. Internationalization
*Only Product extension so far has been Heineken Light for the US market
Local Adaptation
Low High
Global
Integration
High
Low
Culture/Habits Design Language Size/Package
Technical
System
Concept Standardized Standardized Standardized Standardized Standardized
Marketing Adapted Standardized Adapted Standardized Standardized
Technology Standardized Standardized Standardized Standardized Standardized
Product Standardized Standardized Standardized Standardized Standardized
Culture/Habits Design Language Size/Package
Technical
System
Concept Adapted Adapted Adapted Adapted Standardized
Marketing Adapted Adapted Adapted Adapted Standardized
Technology Standardized Standardized Adapted Adapted Adapted
Product Adapted Adapted Adapted Adapted Adapted
Portfolio
Heineken
37. Internationalization
Attractiveness Factors Weight (%) Asia Pacific Americas
Africa Middle
East and East
Europe
West Europe
Market evaluation 35% 2,51 2,43 1,93 2,34
Operational evaluation 35% 1,95 2,15 1,95 1,95
Risk evaluation 30% 1,64 1,9 1,64 2,3
Overall attractiveness 100% 6,1 6,48 5,52 6,59
Competitive Strength
Low Medium High
Country
Attractiveness
High
W. Europe/Pacific
Asia
Medium US/Canada/Africa
Low Middle East
41. Simple Structure
Functional Structure
Divisional structure or by
strategic business units
International structure
by strat. b. units or
network
Divisional Structure
International structure by
strat. b. units, matrix or
networks
Functional Structure
International functional
or divisional structure
Expansion of the products-markets matrix
Related
Diversification
Internationalization
Related Diversification
Related
Diversification
Internationalization
Non - Related Diversification
Internationalization Activities
Recentering
Activities
Recentering
STRATEGY AND STRUCTURE
Organizational Structure
43. WEAKNESSES
STRENGTHS
TIME
PREMIUM
BRANDS
CONSOLIDATE PRESENCE IN ASIA,
AFRICA AND LATIN AMERICA
LOW / NON-
ALCOHOLIC
FEMALE
CONSUMERS
LEGISLATION
INCREASE
READY-MIXED AND
FLAVOURED
DRINKS
New SWOT
STRENGHTS
•Brand Portfolio
•Strong Breweries Network
•Excellent Brand Image
•International Development
•Product Differentiation
•Brand Marketing
WEAKNESSES
•Difficulties to penetrate some
countries
•Lack of young consumers
•Average higher prices compared
to competition
•Premium Prices
•Lack of female consumers
