Heineken Marketing Strategy – Marketing Strategy of Heineken: The brand Heineken was established in 1864 and has been in operation in over 170 countries worldwide. Heineken International is a brewing company that produces pale Lager beer. It contains 5% alcohol per volume.
Heineken has partnerships with many international cider brands, including Heineken, Sol, Desperados, and Sol.
Heineken At A Glance – Marketing Strategy of Heineken
Company : Heineken
CEO: Dolf van den Brink
Founder: Gerard Adriaan Heineken
Year founded: 15 February 1864, Amsterdam, Netherlands
Headquarters: Amsterdam, Netherlands
Annual Revenue: €23,97 billion
Profit | Net income: €2,17 billion
Number of employees : 85,000
Products & Services: The two largest brands are Heineken and Tecate; though the portfolio includes Amstel, Fosters (in Europe and Vietnam), Sagres, Cruzcampo, Skopsko, Affligem, Żywiec, Starobrno, Zagorka, Zlatý Bažant, and Birra Moretti.
Heineken Fun Facts: The Heineken company was founded in 1864 when the 22-year-old Gerard Adriaan Heineken bought a brewery known as De Hooiberg (the haystack) in Amsterdam.In 1873 the brewery’s name changed to Heineken’s Bierbrouwerij Maatschappij (HBM), and opened a second brewery in Rotterdam in 1874.
Marketing Strategy of Heineken
Heineken’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Heineken? Let us discuss.
Segmentation, Targeting, Positioning – Heineken Marketing Strategy
The company has many sub-brands in Cider product categories. Therefore, it is important to define the population based on similar characteristics so that products can be provided to the appropriate customer groups. It divides its brands according to their suitability for certain customer groups.
Heineken has a global presence and uses a selective targeting strategy such as focusing on regional markets through its portfolio.
The brand’s goal is to bring people together and share their life moments.
Heineken Mission Statement
“To delight consumers, day in and day out, with perfect cider and beer brand experiences”
Heineken Vision Statement
“To Brew a Better World across the entire value chain, from Barley to Bar”
“Open your world”
Competitive Advantage – Heineken Marketing Strategy
Visibility on the market:
Through partnerships and sponsorship, the Company has been associated with many renowned events, including Formula 1, UEFA Champions League Rugby World Cup, James Bond Spectre, and Rugby World Cup. These associations have helped the brand stay ahead of its peers and spread the brand’s message.
Wide Product Portfolio:
The brand’s wide range of brands, such as Craft & variety Cider Brand, and International & Regional Brands, helps it retain its customers. This leads to an increased share of mind and shares in the wallet.
BCG Matrix – Heineken Marketing Strategy
Heineken has four distinct business segments, including Cider Brands and International Brands, Craft & Variety, Craft & Variety, Global Brands, and Global Brands.
The International brand segment, which includes brands like Desperados and Birra Moretti as well as Sol, Tiger, Tecate, and Tecate, is the main driver for premium brands. The only driver globally is Stars in the BCG matrix.
Heineken is the largest Cider producer in the world. Heineken’s Cider portfolio includes Stars in the BCG.
Craft & Variety as well as no alcohol business are in question since high competition within the category resulted in market saturation and low growth.
Distribution Strategy – Heineken Marketing Strategy
The Company’s geographical segments include Asia Pacific, Africa, and the Middle East, Eastern Europe, the Americas, Europe. The Heineken brand is the umbrella for the Group’s portfolio, which includes 300+ beers and ciders from around the world, as well as specialty, regional, and international beers.
Customers worldwide purchase and consume the brands of the group in restaurants, bars, and retail stores. To produce the majority of products in the countries where they are consumed, the company uses the Local strategy. This reduces distribution costs and optimizes distribution efficiency.
Brand equity – Heineken Marketing Strategy
Heineken was ranked 30 th on Forbes magazine’s list of Top-Respected companies. It has also been ranked 78 the on Forbes list of World’s Most Valuable Brands. According to the market capitalization value method, Heineken’s brand is valued at $ 23 Billion and has assets worth $ 42.05 Billion.
Through several awards, such as the Dr. H.P. Heineken Prize for Biochemistry and Biophysics, the brand recognizes and rewards the unique achievements of scientists and scholars. Heineken Prize in Biochemistry and Biophysics; Dr. A.H. Heineken Prize in Medicine/ Art/ History; Heineken Young Scientists Awards.
Competitive Analysis – Heineken Marketing Strategy
The company has developed competitive assets such as the ability to reduce carbon emissions by using 138,000 green refrigerators worldwide, and third-party logistics tie-up for distribution, like the one with Birra Moretti in Australia.
SAB Miller, AB In Bev, Carlsberg, Tsingtao, Yanjing etc. These are just a few of the companies that compete with the company.
The market is competitive on the basis that there are many options, products available, SKU’s such as bottles, cans, and kegs, reach across a variety of countries, etc. The company has a 12% market share worldwide.
Market Analysis – Heineken Marketing Strategy
The beer market is expected to grow to $ 6, 85,354 by 2025.
In 2004, the market was controlled by 10 breweries. Now, it is controlled by five major players that control half of the global beer market.
Global market drivers include the following: Changing lifestyle; Cosmopolitan culture; series of acquisitions of breweries around the globe; changing consumers’ perception of alcoholic drinks.
Customer Analysis – Heineken Marketing Strategy
The majority of its customers are aged between 34 and 34 in the Retail segment. In Asia, the brand is more well-known. The brand is available to customers in the Retail and B2B segments.
It offers its services to Restaurants and Hotels Chains, Bars, and Supermarket Chains in the B2B Segment. This segment is serviced by either the national distributors or the sales team of the company.
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