1. Heineken’s leading brand portfolio includes more than 170 international premium, regional, local and specialty beers. 2. The company has undertaken various advertising and promotional initiatives, which has improved its brand equity.
3. Strong brand portfolio helps the company to create a favorable image in the market and ensures stable revenues. 4. Heineken has a large network of breweries. It owns over 125 breweries in more than 70 countries.
5. Since the breweries are located close to their end markets, the company is in a position to serve fresh beer to customers.
6. A geographically widespread plant network reduces transportation costs as well.
7. Strong network of breweries helps the company boost customer satisfaction and reduce costs
8. Excellent branding and top of the mind recall owing to advertising and sponsorship initiatives
1. Beer markets in Western Europe faced a challenging year due to the combined impact of the financial crisis, mixed weather, smoking bans and unprecedented increases in excise duties 2. Maintaining corporate values, image and quality standards in various countries is a challenge
3. Being a leader susceptible to fake imitation products
1. Heineken’s acquisition of other breweries and brands
2. Expand product line – for new areas and to accommodate changes in taste and preference. 3. Innovations contribute to the top-line growth and to the strength of the Heineken brand in particular.
4. Integration forwards and backward.
5. Driving top-line growth by winning customers at the point of purchase has been the key rationale behind the roll-out of Heineken’s extra Cold program.
6. Falling trade and ownership regulations in foreign countries.
1. Tax regulations on the beer industry. 2. An increasingly negative perception in society towards alcohol could prompt legislators to restrictive measures. 3. Slowed industry growth rate.
4. Legal issues dealing with underage drinking – retailer’s license may be revoked or suspended.
5. Heineken has many operations in mature beer markets where the attractiveness of the beer category is being challenged by other beverage categories.
6. Changing buyer taste and preference.
7. Input costs (including transportation and energy) have accelerated to unprecedented levels in the past few years.
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