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Introduction of report

The report overview the aspect of value drivers and their association with the creation of
customer value. I have chosen Heineken, a pioneer in the beer industry

"Beer is the proof that god loves us and want us to be happy" stated by Benjamin
Franklin. The Heineken family entered the beer business in 1864, when Gerard
Adriaan Heineken purchased a brewer in the heart of Amsterdam. In the course of
recent years, three eras of the Heineken family have fabricated and extended the
brand and the company in Europe and around the globe. It is because of the
authority of Gerard, Henry and Alfred Heineken that Heineken is one of the world's
leading brewing groups. The company has put resources into new techniques,
innovation and brand picture to transform it into a standout amongst the most
recognized premium brews around the world, positioning eighth in the top ten beers
brands in the world. From local products to international icon Heineken is the world
's most renown beer brand, which has its presence in more than 170 countries. The

company's mission has been delivering quality, value and services for many years. The company
focused on the three principle in order to maintain its mission Enjoyment, Respect and Passion.

Value drivers
Brand
The brand has become one of the main intangible assets of companies (Keller and
Lehmann, 2003). Brands are driven by a global strategic approach. This approach is then

locally adapted, based on local consumer relevancy (.Heineken Annual Report 2008). Brands
are the substance of products, the main segment that can't be outsourced to others, and includes a
clear picture, promise and experience that imparts a conviction about the advantages of specific
products offered from a specific company. In beer industry it is characterized by the strong brand
preference and loyalties and HEINEKEN also has strong brand equity, long and proud history
and heritage and reputation as a leading premium brand. They have been fruitful in tending to the
entire product spectrum ranging from expensive super-premium brews, for example, Irish Stout,
to the low-price brands, for example Dreher and Birra Messina. It is the world most
international brewer which committed to surprise and excite consumer everywhere. For
instance, Heineken shown an "Appreciate Heineken Responsibly" slogan on

promotional board up at Champions League soccer matches, which draw 850


million TV viewers week after week and are Heineken's fundamental sponsorship
stage.
Heineken has its roots In the Netherlands however keeps on looking the way to
enter into new markets while moving towards increasing market share domination
in those it already occupies. The company has a global theory with universally
known brands, however demonstrates an commitment and appreciation to local
markets, brand and production. Interestingly, not like some of its rivals, it has not
enhanced from its brewing roots, rather it has concentrated on worldwide
development methods that will help it to accomplish cost initiative and related
economies of scale for its mass market brewing. It tries to separate its brands
through market segmentation focusing on international, national markets with the
gathering brands, Heineken, Amstel and Buckler. However, Pragmatic approach
acknowledges the advantages of local brands that meet the tastes of smaller,
regularly local segment, with the goal that it showcases both international brands
and local, indigenous brands. Commonly, Heineken advances four sorts of brand,
premium, standard, speciality and local which are situated to target distinctive
business market segment Heineken, 2000c).
Premium Heineken for the renown market. This may be fermented by regional
standards or traded direct to the nation concerned. Its picture and quality is
precisely observed through central command in the Netherlands.
Reasonable price of standard quality beers e.g the Amstel brand
Speciality, particular and superior beers at moderate higher price e.g, Murphy's
Irish Red and Irish Stout.
Local brand for lower price and high volume mass market segment.

Along these lines, Heineken has effectively advanced its brand names
internationally while moreover utilizing the advantages of local brands with
contrasting attributes to suit national and regional markets. Its international brands
are distributing in every region close by locally produced and sold beers.
All through promotion of every beers, branding is basic. 'Above the line' promoting
is attempted at awesome cost, as exemplified by the Guinness Lippizzaner stallions
60-second business which cost more than 1 m. to deliver before being put on the
media (Hatfield, 1999). In conjunction with this customary adverting Heineken,
similar to the rivals, puts intensely in 'below the line' promotion, particularly
sponsorship in backing of its brand strategies. To be sure, over the decade,
sponsorship has procured an ever-more prominent part in the total communication
of the Heineken and Amstel brands (Heineken 2000b). Heineken brand sponsorship

incorporates supporting top tennis rivalries, for example, the Grand Slam titles (e.g.
the US and Australian Opens) furthermore, the Davis Cup, and also local titles, for
example, the Heineken New Zealand furthermore, Shanghai Opens. Movies with a
setting perfect with the Heineken picture, for example, 'James Bond', 'Austin
Powers', "Notting Hill' and 'Irregular Hearts' are utilized for products position.

Sustainability
Over the past recent years Heineken have taken some critical strides to make
sustainability a business basic instead of something that lies outside the typical
business operation. The company promise to brew a better future which continue
keeps on being bolstered by the company different business values and practices.
These incorporate a guarantee to decency, trustworthiness and appreciation for the
law, contained in the HEINEKEN Code of Business Conduct. As a premium brand that
grasps quality over quantity , Heineken looks to advance a responsible drinking
culture. This turned into a considerably more noticeable component of Heineken's
communication strategy in 2008, with initiative went for bringing issues to light of
mindful liquor consumption.
Heineken use the unique framework called sustainable value framework for the
creation of the value to the consumer, shareholder and employees. As shown in the
above picture the first set of drivers is related to pollution and waste materials it is
more focused to the environment protection. Heineken always focus on the
sustainability, protection of the water resources. By 2020 they promises to reduce
the water consumption by 25%, also conservation of water quantity , quality in the
local watershed and improve the clean water access for the local community. Not
only that they were able to reduce the emission of Co2 in production, distribution
and fridges. They are now planing to reduce their electricity consumption by 4%
overall in the business. A second set of drivers is related to the connection between
society and stakeholders. The company have integrated shareholder views into
business process, maintain the constructive relationship and open communication
with employees, suppliers, investors and consumers. A s per the mission

statement heineken always maintain the long term relationship with the
supplier and providing affordable and quality service sand products to the
consumers. They are always ready to explore the opportunities, expand the
business unit with sustainable goals, they also maintain the diversity in both
market and products to ensure resilience. A third set of drivers is related to
changing innovation, technology and disruptive solutions. Recently they focus on
the innovation called The SUB, to reduce the energy efficient of the packaging. They
also spread the message state " sunrise belong to the moderate drinker" to make
the people aware and responsible toward the consumption. Finally, fourth set of
drivers is related to social welfare, poverty and corporate social responsibility.
Heineken are always active in the corporate social responsible they are
collaborating with Hrvatska which is active to address the under age drinker. They

always promote the health and safety of the employees. Every years the company
contributes millions of Euros in donation, they support education, health and shelter
for the children.
Innovation
The core competency every organization should have is the capability to innovate.
With the changing environment we have to change and innovate. Innovation is the
procedure of utilizing the intellectual capital to make new products and services
that create positive business results in the form of financial returns. (. ). Being
world's leading international premium beer it always surprise the consumer with the
innovative approaches. Slogan like One world, one taste, one unchanged recipe
and available everywhere in the world alway make heineken most preferable beers
in the industry with the heavy presence in the people mind.
The innovation devours of the organization highlight the development of the
Heineken brand, which was reevaluated every year by promoting and taste turning
into a international premium beer maker. From the straightforward green bottle with
the red start Heineken logo, the Heineken inventive iprodutsadvanced in 2013 to
the formation of a draft beer device as a team with Apple industrial creator Marc
Newson, called "The SUB". Heineken was searching for an innovation accomplice
with knowledge of how technology can give answers for marketing issues. A few
innovation make a customer relationship, at HEINEKEN innovation is at the heart of
the business and believe a key part in future achievement. Regarding the matter of
the innovation process, the company know that numerous inconspicuous elements
add to achievement. On the top of that, the customer must be at the focal point of
each of the numerous many choices made during the improvement of every
innovation venture. So as to arrange the mind boggling procedure from
advancement to dispatch, HEINEKEN has one unmistakable global innovation
process. This framework based on tried best practices, guarantees that each
progression of the procedure is finished viably. Innovation goes through two
legitimate stages; the front-end, up to the point of idea determination; and the
improvement pipe, prompting dispatch.
Another innovation from Heineken is called Heineken igNITE, the first intelligent
beer bottle from Heineken, which was made particularly for occasions at which the
light intuitive components make visibility for the Heineken image: the beer bottle
which has an extra gadget battery-fueled, which comprises of a light unit and a
silicon band. Likewise, innovation with respect to the bottle design of the Heineken
beer was supported through formation of special bottle for club occasions, "The
Club Bottle". The new aluminum bottle reflects UV colors , which shine oblivious, ten
years back, Heineken being the first organization which made an aluminum bottle ,
and now the organization is among the first organizations which utilize two UV
colors for bundling and energizing impacts.

HEINEKEN Innovators Brewhouse is our joined innovation space, open to business


people, creators, colleges, suppliers and extraordinary beer personalities. Its point is
to aggregately shape the future of beers and fruit juice through creation and shared
development. With Innovators Brewhouse we join with the outside world in light of
the fact that we realize that we don't have every one of the answers and that there
are numerous extraordinary personalities out there that can supplement us. By
consolidating our aggregate information we can reach new levels of bits of
knowledge, arrangements and innovations. By consumer oriented innovation they
welcome thoughts that can prompt more effective and more brilliant methods for
working in the brewery and production network.
Recommendation
Heineken's strategy of offering self-sufficiency to local operating companies in the
business sectors it enters has prompted the creation of beers which engage local
tastes and inclinations. It has empowered the company to utilize this a dependable
balance to learn, comprehend and envision market patterns. The utilization of
stratified segmentation, offering brands to the lower, mid-and premium portions in
every business sector has anticipated it getting to be caught as a niche player.
Heineken profits by having a scope of brands focused at particular international and
domestic markets and it is liable to proceed with this effective procedure within a
reasonable time-frame. Among the principle methodologies of the Heineken
company can be mentioned the consumer centered innovation, costumer
orientation and brand growth, through sustainable development of company's
brands in all markets. Subsequently, the principle concern of the company as of now
at international level is the advancement of an sustainable development
technique, turning into a costumer propelled company, costumer oriented and
concentrated on growth of the current brand
Conclusion
In the present business environment, open innovation through proactively
captivating customer and consumers in growing new products and services and cocreating esteem for the company represent to a key basic for improving
competitiveness of company.