About Company Marketing Strategy BCG Matrix Porter Five (5) Forces Analysis Bargaining Power of Suppliers Bargaining Power of Buyers Threat of Substitute Products or services 4P’s

1. NAME SIBAM DHAR
MBA20C42
ASSIGNMENT

2. Type - Naamloze vennootschap
Industry – Beverage
Founded – 15.Feb.1864
Founder -Gerard Adriaan Heineken
Headquarters – Amsterdam, Netherlands
Owner: Charlene de Carvalho-Heineken (23%)
Products: Heineken brands
Revenue: 2,188.8 crores EUR (2017)
Parent organization: Heineken Holding
Subsidiaries: Heineken, FEMSA, Lagunitas Brewing
Company.
About

3. Marketing Strategy of Heineken
Segmentation, targeting, positioning in the Marketing strategy of Heineken –
Since the company operates with so many sub-brands in beer and Cider product categories so defining the
population based on similar characteristics is essential for providing suitable products to the respective customer
groups. It segments its brands based on Regional, Local and International Brands and alcoholic and non-alcoholic
brands which are suitable for certain age/ group of customers.
Through operating in a large number of countries globally, Heineken uses selective targeting, strategy like
focussing on regional markets with its portfolio of brands.
Bringing people closer to each other and sharing their life moments, is what brand has been positioned itself in
the market.

4. BCG Matrix in the Marketing strategy of Heineken

5. Heineken Porter Five (5) Forces Analysis
Threats of new entrants
•Entry in the industry requires substantial capital and resource investment. This force also loses the strength if
product differentiation is high and customers place high importance to the unique experience.
•Heineken will face the low threat of new entrants if existing regulatory framework imposes certain challenges
to the new firms interested to enter in the market. In this case, new players will be required to fulfil strict, time
consuming regulatory requirements, which may discourage some players from entering the market.
•The threat will be low if psychological switching cost for consumers is high and existing brands have
established a loyal customer base.
•New entrants will be discouraged if access to the distribution channels is restricted.
Rivalry among existing firms
•There are only a limited number of players in the market
•The industry is growing at a fast rate
•There is a clear market leader
•The products are highly differentiated, and each market player targets different sub-segments
•The economic/psychological switching costs for consumers are high.
•The exit barriers are low, which means firms can easily leave the industry without incurring huge losses

6. • Suppliers have concentrated into a specific region, and their concentration is higher than their buyers.
• This force is particularly strong when the cost to switch from one supplier to other is high for buyers (for example, due to
contractual relationships).
• When suppliers are few and demand for their offered product is high, it strengthens the suppliers’ position against Heineken
• Suppliers’ forward integration weakens the Heineken’s position as they also become the competitors in that area.
• If Heineken is not well educated, does not have adequate market knowledge and lacks the price sensitivity, it automatically
strengthens the suppliers' position against the organisation.
• Other factors that increase the suppliers’ bargaining power include-high product differentiation offered by suppliers, Heineken
making only a small proportion of suppliers’ overall sales and unavailability of the substitute products.
Bargaining Power of Suppliers
Bargaining Power of Buyers
•A more concentrated customer base increases their bargaining power against Heineken
•Buyer power will also be high if there are few in number whereas a number of sellers (business organisations) are too
many.
•Low switching costs (economic and psychological) also increase the buyers’ bargaining power.
•In case of corporate customers, their ability to do backward integration strengthen their position in the market.
Backward integration shows the buyers' ability to produce the products themselves instead of purchasing them from
Heineken
•Consumers’ price sensitivity, high market knowledge and purchasing standardised products in large volumes also
increase the buyers' bargaining power.

7. Threat of Substitute Products or services
•A cheaper substitute product/service is available from another industry
•The psychological switching costs of moving from industry to substitute products are
low.
•Substitute product offers the same or even superior quality and performance as
offered by Heineken’s product.

8. The company owns nearly one hundred and sixty-five breweries and besides it main products Heineken Lager Beer and
Heineken Light Lager Beer, it is associated with marketing and brewing of two hundred and fifty other beer types.
Heineken markets its products under several brand names like Foster’s, Dos Equis, Desperados, Cruzcampo, Anchor and
Heineken. Heineken beer is available in diversified packaging like
The Icon
The Can
Draught
Extra Cold
Club Bottle
The Sub
Draughtkeg
Product in the Marketing Mix Of Heineken :
4P’s

9. Place in the Marketing Mix Of Heineken :
Heineken Beer started its operations from a brewery in Amsterdam and within a few years started exporting its
products to France. The company has an international presence in nearly one hundred and seventy countries and
since the year 1975, a high percentage of beer has been brewed in the brewery at Zoeterwoude in Netherlands.
Several beer brands have been incorporated with Heineken from various countries like Africa, China and Mexico. Its
products are easily available in twenty countries situated in Eastern Europe, Middle-East and Africa.
Price in the Marketing Mix Of Heineken :
As its target customers are upper and upper-middle class people they do not mind shedding a few extra dollars for
qualitative products. For actual beer lovers, its range seems reasonable and affordable and hence it has enabled
the company to maintain its status-quo of premium pricing and has ultimately generated higher revenues.
Promotions in the Marketing Mix Of Heineken :
Heineken has a strong marketing team that promotes its products through several advertising tools. It believes in
creating catchy commercials that help in creating positive brand awareness through electronic and print media. Ads
are telecast on popular channels of television, aired on radio and displayed in magazines and billboards. Heineken
has a strong social media presence through Twitter, Facebook and YouTube. Famous international personalities have
been associated with Heineken

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