Heineken Report | Course Paper

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For

Professor Tina West

In partial completion of

MKT 500 – Marketing Research

Section 011

Contents

Introduction. 2

Situation Analysis 2

Market Characteristics 2

Trends and Drivers 2

Legal and Political Factors 3

Sociocultural Factors 3

Sales Analysis 4

S.W.A.T Analysis 5

Marketing Problem/Decision. 6

Research Objectives 6

Research Design/Method. 6

Study Benefits and Limitations 6

References 7

Introduction

With over 125 breweries in more than 70 countries, Heineken N.V (Heineken) has wide

global recognition for its superior quality, tradition, taste and is placed world’s third

leading brewer in terms of volume. The company offers international premium, along with

local, regional, specialty beers and ciders. Recently, Heineken has ominously increased its

global volume share by various acquisitions. In 2008, Heineken took over Scottish &

Newcastle in partnership with Carlsberg; following that, it has made a substantial purchase

in 2010 with the acquisition of FEMSA, Mexico’s second largest brewer, and in the past

year (2011), the company continued to merge its position in the Middle East and Africa

with purchases in Nigeria and Ethiopia (Euromonitor International, 2012).

Note. Adapted from Alcoholic Drinks 2011 Part 2: Riding the Upsurge and Entering the

Eye of the Storm, by Euromonitor International, February, 2012, p. 10, retrieved from

The table above represents Heineken’s position within the top 10 companies by volume

1. Situation Analysis

1.1 Market Characteristics

Throughout the beer market, many companies have emerged, and as a result the top 10

brewers have accounted for 63% of global volumes (Euromonitor International, 2012).

Mature beer markets such as those in North America and Western Europe have continued

to record declines in beer volume. These losses are mainly due to the financial crisis that

the global economy was hit with as well as changing consumer preferences. However,

developing markets such as: Latin America, Eastern Europe, Asia Pacific, Middle East and

Africa have shown a combined 3% beer volume growth in 2011 (Euromonitor

International, 2012).

1.2 Trends and Drivers

A popular trend that has been evolving recently is the consumer’s choice to enjoy more

premium and craft beers. Although the general beer market has declined recently, the

developing movement of consumers switching to premium and craft beers is increasing. In

addition, “Packaging reformulation, flavour sophistication, polarisation, cocooning and

on-the-go consumption, the health proposition, other spirits’ extensions and revamps and

westernisation are all identified as primary drivers.” (Euromonitor International, 2012, p.

7).