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Heineken Strategy

In: Business and Management

Submitted By maxrozendaal
Words 1061
Pages 5
Heineken
Organizational strategy:
Heinekens strategy is based on six business priorities they found most important.

1. Grow the Heineken brand
2. Consumer-inspired, consumer-oriented and brand-led
3. Capture the opportunities in emerging markets
4. Leverage the benefits of Heineken’s global scale
5. Drive personal leadership
6. Embed and Integrate Sustainability

Considering these six priorities and adapting the strategic types from Miles and Snow, we think Heineken is a prospector. Due to their continued search for market opportunities in emerging markets, Heinekens on-going search of new ways to connect with the consumers and the personal drive of leadership. One of their first major international successes was after World War 2, when the German beer brewers still had to build up a brand. Heineken took their beer overseas to the Unites States of America. There Heineken became an exclusive beer, imported beer was not for everybody. They got this image of an exclusive beer because a Heineken beer was twice as expensive as a normal beer. Heineken distinguished it self in the American market because the Dutch beer had an alcohol percentage of 5%, whereas the American beers had a percentage of 3%. Heinekens break through found place in the ’70, when the prosperity in the USA rose, the people could afford the exclusive Heineken beer.

Heineken did not only have successes in emerging markets or with introducing new products. One of their failures was the introduction of the Buckler beer in The Netherlands; Buckler beer was a beer with a very low percentage of alcohol, almost alcohol-free. The beer failed because a Dutch comedian named ‘’ Yoep van ‘t Hek’’ made fun of the non-alcoholic beer. The impact was enormous. Heineken tried tied to revive Buckler, but it was in vain. Although the Buckler failed in The Netherlands, Heineken had huge successes in other parts of Europe.

Another failure was, Heinekens strategy to enter the South-American market. They tried to sell their products but due to the resistant of the local population, the closed market and the trade barriers their strategy to infiltrate the South-American market with own products failed. Heineken did not withdraw from the South-American market. Due to a joint venture with Chilli’s biggest beer brewer, Heineken managed to conquer influence in the South-American market.

Heinekens main strategy to involve with the costumer is to be present at huge events, by introducing new products or by sponsoring. For example they sponsor huge events like, the UEFA Champions league, the Rugby world cup in 2015, Wimbledon and films like the new James Bond film ‘’spectre’’.

Heineken is a decentralised company; local managers have the responsibility over a wide variety of areas. Heineken is a decentralised company because it is vested in multiple countries, each with different problems concerning labour, the use of different methods, regulations and the costumer demand.

Adapting Porters competitive strategies, we think Heineken uses the differentiation strategy. In the USA for example, they have the status of an exclusive beer where the people have to pay twice as much as for a normal beer, so they have a high status. They also distinguish themselves by the green colour of their bottle. Heineken is the only brand with the green bottle. Heineken is also different to other beers in the USA because of their higher alcohol percentage.

We think Heineken focuses on global strategy. We choose the global strategy because they use the same product, the Heineken beer. Heineken uses his beer most of the time as an export product, where the corporate office plays a major role in controlling operations worldwide. On the other hand Heineken moves towards a multidomestic strategy. Heineken has bought many local brands all over the world, where they try to meet local conditions by customised products. So, they have two sides, one side were Heineken sells their well-know green bottle of Heineken, and the other side were they sell local brands to local costumers.

We think Heineken should improve their strategy, because people are drinking less beer and that means less profit for Heineken. People do not drink as much as they used to do because, the economic crises, the non-smoking rules in bars, the change of taste, people rather drink champagne or wine nowadays and the beer shelves do not attract people anymore.
We think Heineken can conquer these adversities by changing some parts of their strategy. We think Heineken should work together with large retailers to create a new shopping environment when the costumer wants to buy Heineken beers. Improve the beer shelves; make them more attractive by putting televisions near the shelves with an advertisement. Heineken should also make the most of their sponsoring, they sponsor huge events like, the champions league and Wimbledon for example. Heineken can use these events by making holding tournament-themed events. They should do that more than that they already do at the moment.
Heineken should also try to sell their local brands at different places. Maybe some local brands are also very attractive for the costumers outside of that local area.
For example their desperado beer, it is a beer that is wanted by the costumers, but not offered enough by Heineken.

Recommendation: We think the senior management should take the responsibility over the divisions.
This way they make sure that the different divisions implement the main goals and strategy of the organisation. Heineken has a unique brand with the green coloured bottle, this beer is the same every ware, an therefore decisions should be made by the head office an implemented by the divisions.
Otherwise, divisional managers have too much influence over the division, and this could change the culture of the Heineken brand.

Bibliografie
BRILJANTEMISLUKKINGEN. (sd). Opgehaald van http://www.briljantemislukkingen.nl/2012/02/buckler-bier-op-de-nederlandse-markt/
FRW. (sd). Opgehaald van 1. http://www.frw.rug.nl/persons/groote/cursus/global%20village/websites/0910/heineken/conclusie.html
LOTSOFESSAYS. (sd). Opgehaald van http://www.lotsofessays.com/viewpaper/1700312.html
STUDYMODE. (sd). Opgehaald van http://www.studymode.com/subjects/heineken-differentiate-strategy-page1.html
TERMPAPERWAREHOUSE. (sd). Opgehaald van http://latishvohra.com/essay-on/Hieneken-Case-Study/21589
THEHEINEKENCOMAPANY. (sd). Opgehaald van http://www.theheinekencompany.com/brands/partnerships
UVA. (sd). Opgehaald van http://dare.uva.nl/cgi/arno/show.cgi?fid=107231
WSJ. (sd). Opgehaald van http://www.wsj.com/articles/SB10001424052702303714704576383470961818358…...

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