A brief look at the history of Heineken
The Heineken family entered the beer business in 1864, when Gerard Adrian Heineken bought a brewery in the heart of Amsterdam. Over the past 140 years, three generations of the Heineken family have built and expanded the brand and the company in Europe and around the world.
It is thanks to the leadership of Gerard, Henry and Alfred Heineken that Heineken is one of the world’s leading brewing groups. The Heineken company name stands for many things. It began as a family business; three generations of Heineken, each with their own approach to building the business. It became Europe`s favorite beer brand - successfully exporting to every corner of the world. The history of Heineken starts on December 16th 1863. It was Gerard Adrian Heineken who, in 1864, bought the Amsterdam brewery "The Haystack", which dated from 1592.
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In doing so, he laid the foundation for the Heineken concern, which was to acquire widespread international fame as time went by. Within a few years Gerard Adrian Heineken succeeded in increasing sales so much that the brewery in Amsterdam soon became too small. In 1867 construction of a new brewery began just outside the old city. His legacy was a brewery which had grown into one of the biggest and most important in the Netherlands. At the end of the nineteenth century, the competition from other breweries increased.
From the 1950s onwards under the leadership of Alfred Heineken, who was the chairman of the Executive Board of Heineken NV, Heineken expanded to become an International Company. He gave the Heineken label worldwide fame and gave it a unique image. It was Alfred Heineken who came to the conclusion that beer was not a local or regional product but that beer could travel. He laid the basis for the international structure and organization of the Heineken concern. Thanks to the initiative of the Heineken family and its response to the changes in the world beer market, Heineken has grown to become the world`s most international beer brand.
In the old days deliveries would be made by horse-drawn cart, but nowadays lorries take care of this. Loaded into the huge container ships in the port of Rotterdam, Heineken beer finds its way across the whole world. The export of Heineken beer took off at an early date. In the period between the two world wars, Heineken was exported to Belgium, France, Britain, West Africa and Indonesia. In 1933 Heineken became the first foreign brewery to export beer to the United States after the prohibition. That turned out to be a great success.
But there is more - apart from exporting beer, Heineken also acquired stakes in the local breweries all over the world. It has also built its own breweries. Today, Heineken is sold in around 170 countries in all parts of the world; the company also has ties with 116 productions units in 57 countries. Heineken has in recent years been drawing attention to the Heineken brand by making increasing use of sponsorship. Heineken has recently sponsored the Rugby World Cup in South Africa, the US Open, the Davis Cup Tennis Tournament, the Heineken Classic Golf Tournament and the Saint Maarten Regatta in the Caribbean.
Sports sponsorship is only one of the ways that Heineken can contribute to the lives of their customers. The Heineken brand is also strongly associated with music. They sponsor - The Montreux, Puerto Rico and Umbria Jazz Festivals.
Brewing beer is a 100% natural process. Heineken got its start when its founder fundamentally improved the process by which beer was made in a brewery that had existed for 251 years. The basic recipe is still closely guarded, and the principles of its success have remained the same: quality ingredients and a perfectly controlled brewing process. Heineken ingredients Heineken beer is made from the purest ingredients. It use only water, malted barley, hops and yeast. Barley Barley is the major raw material used in brewing beer. Before it can be used for brewing, the barley grain must be malted. Malting helps make the starch and protein (by its natural enzymes) in barley available for brewing by breaking down the natural cell wall that surrounds the starch. Starch will be converted to sugar, which will produce alcohol during fermentation. Malting also forms the colour and flavour that the barley will lend to the beer.
Hops Hops is one of the flavour-makers of beer, and also contributes to its shelf life. The resin from the female hop flower cones is used to help balance the sweetness of the barley with a refreshing bitterness. Water Beer contains almost 95% water. Water plays an important part in giving beer its characteristic flavor, as different sources contribute to unique beer flavors. Clean, high quality water is essential not only to our beer, but also to life everywhere. We are actively working in the communities that we're a part of to protect clean water supplies. Yeast
Yeast converts malt sugars into alcohol during fermentation. There are two types: bottom and top fermenting yeast. Beers fermented with bottom yeast are called lagers and those that use top-fermenting yeast are called ales. In 1886 in Amsterdam, Dr. Elion, a student of Dr. Louis Pasteur, discovered the famous Heineken A-yeast, a strain that is still used today only by Heineken. Gluten Beer contains gluten, which comes from the grain from which it is brewed. Only a fraction of the gluten that the grain contains gets into the beer. The proportion depends on the kind of grain that is used.
The use of barley results only in traces of gluten in the beer whilst wheat contributes considerably more. It also depends on the brewing process. Generally speaking: the clearer and blonder the beer is, the less gluten it may contain. Some people are allergic to gluten and have to follow a diet that minimises or excludes their gluten intake. Whether beer can be part of such a diet or not, is dependent on the extent of the allergy and the beer type consumed. In many cases lager beers pose no problem for people who have a gluten allergy. However, it is up to the individual to assess his or her sensitivity.
How beer is made Heineken beers are brewed using solely water, barley, hops and yeast. The barley is malted (soaked to initiate a natural geminating process), ground, mixed with water and then heated. Step by step, the temperature increases so that the starch in the malted barley is converted into sugars. After the solids have been filtered out, the result is 'wort' (malt sugars), which is then brought to the boil. During the boiling process the brewers add the hops.
Using only the female flowers of the hops plant gives beer its characteristic bitter taste and improves its storability. After the wort has been boiled, the next step is fermentation. First, the wort has to be cooled down to 8 degrees Celsius. Yeast is added to the wort and the process of converting the sugars into alcohol and carbon dioxide can then begin. This takes place in special fermentation tanks, where the beer remains for 7 days. The result is 'young beer' which, when cooled down to freezing point, is pumped into storage cellars for post-fermentation.
One of the aims of this storage is to improve the beer's taste and clarity, and help it keep longer. Once storage is completed, the remaining step is filtration, after which a superb-tasting, bright and clear beer is filled into bottles, can or kegs. Filling and bottling are automatic processes to ensure completely hygienic conditions.
- The icon: Wherever we go, it’s always nice to see something we recognize; the green bottle, the red star and the smiling “e”, telling us instantly what’s inside: cold, fresh, quality Heineken enjoyed around the world since 1873.
Aluminum bottle Heineken launches aluminum bottle reserved to the nightlife and trendy bars. Designed by design studio Ora Ito, this is a refined vision of the Heineken bottle, which transforms it into a true collector’s item. Heineken Draught Keg Real beer now invites itself at home or outside with the new keg pressure to carry, easy to share in any occasion. Heineken has created the first disposable pressure was offering a true quality beer pressure as well as the ability to consume beer until 30 days after opening.
Convenient and friendly, combining proprietary technology with a unique and patented integrated pressure, a refined design, the Heineken was to win an Oscar for the package. Heineken 15cl small Heineken dares the 2006 launch of the 15cl bottle. Revolution in the beer department, small and practical, its mini size target consumes occasional beer. It is ideal as an aperitif for those wishing to enjoy a Heineken while controlling their consumption. In the world of night, four years after the success of the aluminum bottle, its designer, Ora Ito renews its collaboration with Heineken. With smoother lines, a refined and conical shape, the new aluminum bottle made the bottle very elegant.
Nature of Marketing
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. To efficiently accomplish their goals, today have adopted the marketing concept, which requires
- A consumer orientation,
- A goal orientation,
- A systems orientation.
- A consumer orientation means that ms strive to identify the people most likely to buy their product (the target market) and to produce a good or offer a service that will meet the needs of target customers most effectively in the face of competition.
The second tenet of the marketing concept is goal orientation; that is, a firm must be consumer-oriented only to the extent that it also accomplishes corporate goals. The goals of profit-making firms usually center on financial criteria, such as a 15 percent return on investment. The third component of the marketing concept is a systems orientation.
Nature of Applied Research
Marketing research studies can be classi? ed into three broad categories: programmatic, selective, and evaluative. Programmatic research is conducted to develop marketing options through market segmentation, market opportunity analysis, or consumer attitude and product usage studies. Selective research is used to test decision alternatives. Some examples are testing concepts for new products, advertising copy testing, and test marketing. Evaluative research is done to assess program performance; it includes tracking advertising recall, doing organizational image studies, and examining customer attitudes on a ? m’s quality of service. Programmatic research arises from management’s need to obtain a market overview periodically. For example, product management may be concerned that the existing market information base is inadequate or outdated for present decision making, or marketing plans may call for the introduction of new products, ad campaigns, or packaging.
Typical programmatic research questions include the following:
- Has its target market changed?
- Does the market exhibit any new segmentation opportunities?
- Do some segments appear to be more likely candidates than others for marketing efforts?
- What new product or service opportunities lie in the various segments?
Situation Analysis of Heineken
Heineken is well-know, renowned brewery with essential strengths to be a global brand. However, at this moment, brand perception is different across the countries. Though Heineken had consistently been marketed as a premium brand, in the US and Hong Kong market, a distinct image was established for special occasion rather than for daily consumption while in Latin America, Heineken is viewed as a European imported beer among others.
The brand's good taste image is built on 5 core brand values: taste, premiumness, tradition, winning spirit and friendship. Heineken strategy is based on relating friendships and important relations which are built based on enjoyable, joyful, personal, luxury social conditions such as meeting people, fancy meals, savoring, elegant parties, intimate moments and place. The friendship value would be presented in several social conditions through “true friends” and “consumers can count on Heineken as a friend” expressions.
The taste would be built on 5 brand values: taste experience, balanced taste, foam, advertising and packaging.
Heineken is one of the world's leading brewers in terms of sales volume and profitability and it has the widest presence of all international brewers through a global network of distributors and breweries. In volume terms, it has the largest brewer and beverage distributor in Europe, where it realizes more than half of its sales. It balances a strong position in stable and profitable markets such as Europe and North America with a growing presence in rapidly expanding beer markets such as China and Russia. It employs more than 60,000 people.
The Heineken brand, available in almost every country on the planet, is the world's most valuable international premium beer brand. In addition, it owns and manages one of the world's leading portfolios of beer brands comprising other international premium, local and specialty brands.
Goal and market strategy Heineken's goal is to grow the business in a sustainable and consistent manner, while constantly improving profitability. The strategy to achieve this has four elements:
- Strive to reach a leading position in attractive markets.
- Focus on capturing an ever-growing share of the premium and specialty beer market segments.
- Work to improve efficiency and cut costs in operations.
- Grow through selective acquisitions, so long as they create shareholder value.
Brands Heineken owns and manages one of the world's leading portfolios of beer brands. Its principal international brands are Heineken and Amstel. Heineken is positioned as a premium brand, except for its home market in the Netherlands, and its appeal is growing in many markets. Heineken is the leading beer brand in Europe and Amstel is the third largest.
In Europe, Amstel is positioned in the Mid-priced mainstream segment, the largest segment of the market, and is available in more than 90 countries around the world. Heineken also owns and manages a strong portfolio of more than 120 top-selling brands that includes Cruzcampo, Z. ywiec, Birra Moretti, Murphy's and Star. It has a limited presence in the low-priced segment of the market and its international and local brands include lagers, specialty beers, light beers (low-calorie beers) and alcohol-free beers. Distribution Heineken is the largest beer and beverage distributor in Western Europe.
In every market where it is active, it strives for comprehensive coverage through alliances with independent distributors or via its own beverage wholesalers. Innovation Heineken works to continually meet consumers' changing needs. This can be seen in the area of marketing communication, packaging and dispense systems, where it is a recognized leader. It also works to further improve the quality, safety and cost structure of processes and products. This includes innovation in brewing technology and supply chain management, which reinforces the competitiveness of its global brand portfolio. Sustainability Heineken is committed to conducting business responsibly and ethically. It continuously takes its initiatives to combat alcohol abuse, misuse and focused resources and energy on setting even higher standards in the social and environmental areas of its business.
HEINEKEN and advertising
Heineken beer is a famous brand name in around the world and Ads plays the important role in the dissemination of Heineken. At the beginning, Heineken has appeared on mass media with advertisements and promotion programs very attractive, unique; use the words easy to understand.
Heineken is not only a beer; Heineken is the moment comes with the image and inspiration to everyone, anytime, and anywhere. The Heineken Ads actually attracts viewers to the world of Heineken - a strange world - World of the passion. Therefore, when mention to Heineken, people immediately think about a new lifestyle has been confirmed with the events has made the impressive, such as: Heineken & Music, Heineken & Sports and Heineken & Movies. Besides Sport and Music, Heineken also sponsored to release the series of action films of Hollywood.
Indeed, there were many companies chose movie is the part of the marketing plan. So what is the difference in the way of Heineken? The biggest difference is the investment, has demonstrated a long-term strategy. Starting in 2005 with the movie “Mr. & Ms. Smith”, Heineken wanted to announce that Heineken will provide viewers the excellent films. Nextly, in the summer of 2008, audiences once again be watched “Wanted” with the high technique screen and very impressive, never seen in any movie at Hollywood. in 2006, Heineken sponsored to release: ” Casino Royal “.
Heineken, bring the passion of peak quality, the investment to the distribution system and the media attractive, has confirmed the top brand name of beer in the world. Heineken is respectfully support all of customers, who always discover and enjoy the best of life
Product Development strategy
Given the rapid changes in consumer tastes technology arid competition companies must develop a steady stream of new products and services. When an organization introduces a product into a market they must ask themselves some questions.
- Who is interested by this kind of product?
- What profits will they expect?
- How to introduce the product in the market?
- What differential advantage will the product offer over their competitors?
The product should be viewed in three levels:
- Level 1: Core Product. What is the core benefit of your product offers? Customers who purchase a camera are buying more: they are purchasing memories.
- Level 2: Actual Product: All the camera captures memories. The aim is to ensure that your potential customers purchases for you one. The strategy at this level involves organizations branding, adding features and benefits to ensure that their product offers a differential advantage from their competitors.
- Level 3: Augmented product: What additional non-tangible benefits can you offer? Competition at this level is based around after sales service, guaranties, delivery and so on. John Lewis a retail departmental store offers for free five years of guarantee on purchases of their Television sets, this gives their `customers the additional benefit of peace of mind over the five years. As they will be quiet if their purchase develop a technical problem.
Concept development and testing
An attractive idea must be developed into a product concept. It is important to distinguish between a product idea, a product concept, and a product image. A product idea is an idea for a possible product that the company can see itself offering to the market. A product concept is a detailed version of the idea stated in meaningful consumer terms. A product image is the way consumers perceive an actual or potential product. Who is the target market and who is the decision maker in the purchasing process? What product features must the product incorporate?
What benefits will the product provide? How will the consumers react to the product? What will it cost to produce it?
In today's consumer society, competition is increasingly fierce. Consumers are less loyal to brands than before. Therefore they must remain in continuous innovation in order to avoid routine and weariness of the consumer. For these reasons, the brands are trying to find new ideas to maintain their sales and maintain their visibility and attraction. 1st idea: The creation of a packaging event is a solution that strengthens the brand’s image and market positioning.
This type of packaging, launched in small quantities, can maintain a sense of scarcity of the product. Indeed, creating a limited edition is an opportunity to do something different and to test consumer loyalty to the brand and transform it to a collector which will increase the turnover of the company. Besides, a unique and limited packaging may give the company a luxurious image because it reflects his constant search for innovation and thus seduced 2nd idea: I think that is a great idea to cover the cans by a protective film, in order o keep them hygienic and protect them against all forms of pollution. This protects consumers from germs that can accumulate over the can especially that they are in direct contact with the mouth. 3rd idea: Here are some facts about women and beer:
- The sale of beer to women is a growing market.
- Women currently account for 25 percent of beer consumption in the USA.
- Women between the ages of 21 and 30 are drinking more beer than women in other age groups.
- Beer drinking among women in the 50-plus age group is on the increase, a fact that has not gone unnoticed among beer advertisers worldwide.
Women beer drinkers are a discerning bunch. They demand more of their beer: more flavor, more complexity, more fruitiness, fewer calories and lower carbs. Above all, women want beer with more style and character. So, I propose to this target: women who enjoy beer; a light beer with lower alcohol content. This beer will package into new bottle with an exceptional shape which attract feminist target. 4th idea: Conversely to the can of NESCAFE I suggest a new system: It is a refrigerated can which cools when it is opening. This ensures the beer’s conservation and quality.
The concept of this product is to permit the end user to consume fresh beer of very high quality. It can be consume all the time and never having to access a kitchen, refrigerator or even having to rely on an external cooling source. * All these ideas will be developed in a second report. It will explain why the choice of each idea, and the techniques of achievement
Marketing strategy allows us to generate a specific response from targeted groups of customers. It can help us to achieve the following key objectives:
- increasing sales to existing customers
- building customer loyalty re-establishing lapsed customer relationships
- generating new business
At a broader level marketing offers significant benefits to society. These benefits include:
- Developing products that satisfy needs, including products that enhance society’s quality of life
- Creating a competitive environment that helps lower product prices
- Developing product distribution systems that offer access to products to a large number of customers and many geographic regions
- Offering techniques that have the ability to convey messages that change societal behavior in a positive way.
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