BRIEF HISTORY1864: Gerard Adriaan Heineken, only 22 years old,buys the Haystack brewery on February 15th.1873: On January 11, HEINEKEN’s BierbrouwerijMaatschappij N.V (HBM) is established.The founders son, Henry Pierre Heineken, managedthe company from 1917 to 1940, and continuedinvolvement with the company until 1951Henry Pierres son, Alfred Henry "Freddy" Heineken,started working at the company in 1940, and 1971was appointed Chairman of the Executive Board.
UNIQUE FACTORSHeineken was the first and remains the onlytruly global beer brand, enjoyed in 178countries around the worldWe have a unique, worldwide footprint withoperations in over 70 countries, which meanswe have a broader reach for our brands thanany other brewerWe have an internationally diverse, dynamic,committed and entrepreneurial team of over85,000 employees
UNIQUE FACTORSSince 2008, Heineken has acquired FEMSACervesa, Scottish & Newcastle, and fivebreweries in NigeriaToday, HEINEKEN is the number one brewer inEurope and the number three brewer byvolume in the world. With recent acquisitionsin Africa, India, Asia and Latin America, we arecontinuing to increase our presence withinemerging markets, which will contribute toour ongoing growth.
PROBLEMSConfronting a Globalizing IndustryWrestling with ChangeMaintaining a Premium PositionTargeting Smaller Demographic Segments.Tired, Reliable but Unexciting Brand
CONFRONTING AGLOBALIZING INDUSTRYBeer industry has been undergoing significantchange due to consolidationMany brewers have also expanded theiroperations without the use of such acquisitionsHeineken has to adapt to keep up or lose it’sopportunities in the global market share
WRESTLING WITHCHANGEFor the first time Heineken implemented non-family, non-Dutch management teamHeineken has created management positions tomore clearly define different spheres ofresponsibilityExecutive board cut from five members to threeExecutive committee cut from 36 members to 13
MAINTAINING APREMIUM POSITIONFor decades Heineken was able to rely on thesuccess of its brand, but since the 1990’s, “It’s indanger is becoming a tired, reliable, butunexciting brand”The firm has been working on attractingyounger drinkers, and launched a video calledThe Entrance which became a major successand lowered the average age of the Heinikendrinker from 40 to 30Heineken has also been stepping up itsmarketing to Hispanics, acquiring FEMSACervesa has greatly aided this process
BUILDING A GLOBALPRESENCEDespite it’s presence around the globe,Heineken is in danger of falling behind itscompetitorsIn order to keep up with competitors Heinekenneeds to acquire bigger breweries, instead ofmany smaller breweries
SWOT ANALYSIS-Established trackrecord as brewerwith internationalsuccess-owns over 200brands of beer-Size-Grown so largethere is little roomto expand market-Made acquisitionsin emergingmarkets such asIndia, Asia, andLatin Americawhere there islarge potential forgrowth-Anheuser-Buschthe worlds largestbrewer-Threat inemergingmarketing where itis investing
PROPOSED SOLUTIONSAlignment of vision between Heineken familyshareholders and new upper managementNew management needs to keep in mind the valuesthat the Heineken family established within thecompany when it was foundedThe current Heineken family shareholders need torealized the importance of globalization and trust thenew management team
RECOMMENDEDSOLUTIONFocus on expanding marketing efforts to keep upwith new company growthPotential Areas of Growth :Younger Consumers• Sponsor exciting events (model after Red Bull)• Use social media to get customers involved• Make Heineken more available to consumersNew Demographic Groups• Market new acquisitions to appeal to similarcultural groups in different countries• Identify emerging consumer groups and focusefforts to gain market shares