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Essay on Heineken Case Study

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HEINEKEN CASE STUDY 1. What strategy does Heineken follow in the global beer market?

The strategy that Heineken uses is that of differentiation. This strategy gains market share and competitive advantage by distinguishing their products from their competitors through excellent design. A U.S. wholesaler recently asked a group of marketing students to identify a group of beer bottles that had been stripped of their labels. The stubby green Heineken bottle was the only one among the group that showed an instant recognition. This strategy also focuses on high awareness, easy accessibility, and new products. Heineken spent a lot of money on the launch of Premium Light; the first time that brewer had created an extension of its flagship …show more content…

Such cross border deals have provided significant benefits to the brewing giants. This has given them ownership of local brands propelling them into dominant market positions around the world as global brands sell at significantly higher prices and the margins are much better as compared to the local beers.

3. What changes has Heineken made that will help it deal with its challenges?

Some of the changes that Heineken has implemented during the past few years include the following: For the first time in the history of the company, the CEO is not a family member. Van Boxmeer was appointed CEO although the family still maintains the controlling share of the company’s stock. They developed a plan called Fit 2 Fight which made several changes. Most of them aimed at streamlining management. They cut the executive board from 5 members down to three. The new board is made up of the CEO, COO, and CFO. The change is expected to assist the company in thinking about the steps that it needs to take to win over younger customers across different markets whose tastes are still developing. Heineken also created management positions that would be responsible for 5 different operating regions and nine different functional areas. These positions were created to more clearly define different spheres of responsibility. The management group was cut from 36 to 13 members in order to speed up the decision making process. Also, the

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