A strategic Analysis of Heineken
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In recent years, the global beer industry has been faced with major headwinds. Plateauing consumer demand, ever-increasing competition, tougher market access, and consumer’s changing attitudes. These challenging trends have resulted in declining sales for Heineken and posed major roadblocks for the company going ahead. In Europe and the US Heineken’s major markets, sales have been on a downturn mainly due to changing lifestyles with more people becoming health conscious.
However, the company has continued to prosper due to acquisitions, product developments, market development, and its strong investment in marketing. All these factors have kept it relevant in the increasingly saturated market. According to the analysis, for Heineken to keep growing, it will have to invest more in its low and non-alcoholic businesses as it has proved profitable, bringing the Heineken brand back to profitability in 2018. According to the findings, the low and non-alcoholic segment has lots of growth potential. For any company to prosper in the saturated market, it should invest in the segment.
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Heineken business strategy Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Identify, analyze, and interpret marketing activities, tactics, and strategies used by the case study company.
- Apply strategic business theories and concepts such as SWOT, Strategic Planning, Product Lifecycle, SBU, 4Ps, and BCG to real company cases.
- Understand the concept of strategy and how it can be applied to real companies
1.0 INTRODUCTION
The major aim of this report is to examine the marketing activities, tactics, and strategies of Heineken by identifying diverse components of its marketing strategy. This will be done using the marketing mix (Product, price, promotion, and place). The author will identify the company’s product target, product positioning, product lifecycle, and the kind of demand the company is facing. The author will also analyze Heineken’s business environment using SWOT, to discover the company’s strengths, weaknesses, opportunities, and threats which will help formulate the company’s strategy going forward. BCG matrix will then be used to identify the most relevant Strategic Business Units (SBUs) that the company should invest in to continue growing. The author will then discuss the report findings and recommend strategies going forward.
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