Case study: Heineken (2005)
Beer is an alcoholic beverage made from malt, hops, yeast and water. The product is highly consumed across Europe, except France, where the product lags in comparison with wine. Three major groups that share the majority of the French market are Heineken, Inbev and Kronenbourg. The French sector is now in crisis, and there has been a drop in sales by 25% in the past 25 years. Most of these players are now seeking new opportunities to survive and ensure further growth.
In this study, we will analyze the brewer Heineken, the second largest French player by volume with 31% share of the market. How can Heineken find new opportunities in a market that is in crisis? In the first part of the study, we will analyze external and internal businesses in the French market, and in the second part, we will make recommendations to improve the current position of the company.
Beer has a very specific law in France, especially because of the Evin law of 1991 on alcohol. Concerning communication, 8 criteria must be met with, which are noted in the appendix. Advertising is prohibited in a majority of media. In the few accredited media marked "Alcohol abuse is dangerous for health. Consume with moderation" is mandatory.
There is political pressure from anti-alcohol lobbies. The socio-cultural issues are to better understand the difficulties experienced in the beer market in France and it is important to know that beer is suffering from a bad image. It does not know a real passion since it does not represent the image of France as well as they do with wine.
Beer is seen as a product rather "cheesy" and the French are not big fans. This is because of the economic decline in the purchasing power of French consumers, and the share of their budget on food (for the benefit of new technology and housing).
With the development of a vision for a greener world, beer producers comply with new environmental standards to improve their image vis-a-vis consumer and reduce production costs (although investments are heavy, they are profitable in the long term).
One can cite the example of the brewery Valentine (Heineken) in Marseille which has just received the ISO 14001 certification. There is a very dynamic research and development in the beer industry. For example, new modes of long-term preservation have emerged recently.
Heineken is the World's No. 4 brewer by volume, with a market share of 9%. In France, Heineken is the leader in value, but is second only in volume with a 31.8% market share, behind Kronenbourg with a 36% market share.
Tags: Heineken beer, beer in France, beer in comparison with wine
[...] - Economic: reduced purchasing power of French consumers, as well a as part of their budget spent on food (for the benefit of new technologies and housing). - Green: In the development of a vision for a greener world, beer producers must meet the new environmental standards to improve their image vis-à-vis consumers and reduce production costs (although investments are heavy, they are profitable in the long term). One can cite the example of the brewery Valentine (Heineken) in Marseille, which just received the ISO 14001 standard. [...]
[...] With 40,000 cafés and brasseries coating the Heineken brand, it has made advertising operations point of sale to intensify its visibility. These include, among others: umbrellas, ashtrays, glasses, coasters, trays, etc Heineken has also used the GMS, tasting and advertising at the point of sale the beer time A magazine called "beer culture" was also launched to keep in touch with the most loyal consumers with tasting tips, special offers, etc An eponymous concept store magazine, launched in 2005 and installed on the Champs Elysees, used to " rediscover for the consumer, a variety of consumer products" with decorative and desired products. [...]
[...] Distribution: to be sold in supermarkets. For distributors, furniture special distribution will be designed to overcome the problems of placement and, assembly, and put forward the product. Price: around 15 Planning: in the course of Desperados MAS Product: Young people being more aware of the dangers of alcohol, this new version of desperados has a lower alcohol content of Distribution: traditional sales channel (CHR and GMS). Launch: a product launch of around 2 bottle of 65cl seems appropriate. Communication: Display on street furniture, and country stations. [...]
[...] Corporate Market The Deal - Heineken is the world number four among brewers in terms of volume, with a market share. In France, Heineken is the leader in value, but only the second in volume (market share: 31.8 behind Kronenbourg market share).The offer declined by one million hectoliters in 3 years. In 2004, France was the penultimate beer consumer among countries in Europe with 36 liters per capita per year, which is far from the 125 liters consumed by the Irish and 125 liters consumed by the Germans. [...]
[...] So it is more pleasing to the younger generations. Marketing Mix 1. Product ID - Product design Heineken operates a policy of strong innovation to differentiate and enhance its image quality. Here are some illustrative examples: the design of the aluminum bottle, designed by French designer Ora-Ito; limited to the launch of the festive season, or the valentine series; the Longnek: a bottle that fits the needs of the consumer by easy handling thanks to its longer neck; the can of 33 cl profiled, taking the shape of the drum with a new wider opening system for easy opening and tasting. [...]