ANALYZE

MARKETING
ENVIRONMENT
OF HEINEKEN
Heineken® was the first imported beer in the USA after
Prohibition was lifted in 1933. A proudly Dutch beer that
fully embraced the American art of advertising, exports to
the US grew by 600% in the space of just four years.
01
MICRO-ENVIRON
MENT

CONTENTS
TABLE OF
SWOT, Porter’s 5
FORCES MODEL

02
MICRO-ENVIRON
MENT
PESTEL MODEL

03 RESPONDING
MICRO-
ENVIRONMENT
SWOT, Porter’s 5 FORCES MODEL

01
 SWOT MODEL
S W O T
T E P H
P
R A O R
E K R E
N N T A
G E U T
N
T S I S
H S T
S I
E
S
 SWOT MODEL
S W O T
T E P H
P
R A O R
E K R E
N N T A
G E U T
N
T S I S
H S T
S I
E
S
 Heineken is a high quality and reliable product in the world: In 2010,

S
●
according to the ranking of Interbrand, Heineken ranked 114th with
brand value up to $ 6.6 billion.
● Heineken is a product produced with modern technology, high
quality on a global scale: Heineken beer present in the Netherlands
today is like Heineken beer present in all over the world, made with a
traditional recipe from 1873.
● Heineken is a reputable brand with a strong position in the hearts of
consumers: Heineken always outpaces its competitors in quality tests
and customer response between beers.
● Heineken is in increasing popularity: when Heineken first entered the
UK market in 1961 and almost quickly dominated the market when it
ranked second after only 9 months, and entered the US market in
1933 when orders came out.
 SWOT MODEL
S W O T
T E P H
P
R A O R
E K R E
N N T A
G E U T
N
T S I S
H S T
S I
E
S
 Relatively high product prices: Overall, the target customer's

W
●
Heineken are successful young people, also a premium beer brand.
Its price is in the relatively high range compared to the general board
of the beer market
● Heineken Has many manufacturing facilities around the world,
requiring talented managers with a broad vision: Heineken beer is
everywhere and Heineken owns more than 130 breweries in more
than 70 countries, has more than 66,000 employees globally:
produces and consumes more than 8 million Heineken beer glasses
per hour ... To manage a global production line, managers need to
have a vision and strategy to ensure smooth operation of the
business.
● Heineken's enormous scale created difficulty in expanding the
market. Heineken has done well in the distribution sector so far, most
of the country have their own production plants, now the gaps in the
market are very small, this is also a difficulty in expanding market.
 SWOT MODEL
S W O T
T E P H
P
R A O R
E K R E
N N T A
G E U T
N
T S I S
H S T
S I
E
S
 O
● Advertising and public relations budgets are very large
● Heineken has acquired emerging markets such as India, Asia, and
Latin America, which have great potential and many growth
opportunities: Heineken is gradually implementing its market
expansion plan. Emerging economies as growth in traditional
markets such as the EU and the US are slowing down.
● Increasing beer consumption: New research published by the Lancet
Medical Journal (UK) on the status of alcohol consumption in 189
countries and regions between 1990 and 2017 shows that the
proportion of Global alcohol consumption tends to increase rapidly.
Therefore, the consumption of heineken beer also increased
gradually.
 SWOT MODEL
S W O T
T E P H
P
R A O R
E K R E
N N T A
G E U T
N
T S I S
H S T
S I
E
S
 Many competitors as well as the pressure of replaceable products:

T
●
Being one of the top beers, but Heineken still has to compete fiercely
with many other famous brands of similar quality.
● Fake beer: on the market today, there are a lot of fake Heineken beer
bottles of poor quality. When consumers buy fake products of poor
quality and think it is heineken product, they will no longer trust and
use it. That reduces reputation and beer consumption.
● Pressure from substitute products such as fruit juices, minerals,
alcohol, especially the nutritious water market: Today, people pay
more attention to health care and use healthy foods.
● Beer is a product that is not recommended to use much: beer is an
alcoholic beverage that can harm human health so it is not
recommended to use much.
 ENVIRONMENT
MICRO-
Porter’s 5 Forces analysis
of Heineken
DEGREE OF RIVALRY
The competitive rivalry in the industry is high as
product differentiation is low, leading to high
advertising costs. The diversity of rivals is high with a
massive number of breweries in which
Anheuser-Busch InBev, SABMiller and Carlsberg
(Economicsonline.co.uk, 2011) or Hanoi, Saigon in
Vietnam
THREAT OF SUBSTITUTES
This threat is substantially low for Heineken when
o The switching cost of using the substitute product is
high (due to high psychological costs or higher
economic costs)
o Customers cannot derive the same utility (in terms
of quality and performance) from substitute product as
they derive from the Heineken’s product.
THREAT OF NEW ENTRANTS Threat of new entrants reflects how new market players impose
threats to the existing market players. If the industry will be profitable
and barriers to enter the industry will be low, it will attract more
players and hence, the threat of new entrants. will be high.
Here are some factors that reduce the threat of new entrants for
Heineken:
o Entry in the industry requires substantial capital and resource
investment.
o Heineken will face the low threat of new entrants if existing
regulatory framework imposes certain challenges to the new firms
interested to enter in the market.
o The threat will be low if psychological switching cost for consumers
is high and existing brands have established a loyal customer base.
o New entrants will be discouraged if access to the distribution
channels is restricted.
BARGAINING POWER
o The number of suppliers in the industry in which Heineken
operates is a lot more than the number of firms producing
OF CUSTOMER
the products.
o The product differentiation within the industry is high, which
means that the buyers are not able to find alternative firms
producing a particular product.
o The income of the buyers within the industry is low. This
means that there is pressure to purchase at low prices,
making the buyers more price sensitive.
o The quality of the products is important to the buyers, and
these buyers make frequent purchases.
o There is no significant threat to the buyers to integrate
backwards.
BARGAINING POWER
o The number of suppliers in the industry in which
Heineken operates is a lot compared to the buyers.
OF SUPPLIERS
o The product that these suppliers provide are fairly
standardised, less differentiated and have low
switching costs.
o The suppliers do not contend with other products
within this industry.
o The suppliers do not provide a credible threat for
forward integration into the industry in which
Heineken operates.
o The industry in which Heineken operates is an
important customer for its suppliers.
MICRO-ENVIRONMENT
MICRO-ENVIRONMENT

PESTEL
PESTELMODEL
MODEL
TUNNEL
GAS PIPELINES WORKS
Yes, Saturn is the ringed Jupiter is a gas giant and Despite being red, Mars is
one. This planet is a gas the biggest planet in our a cold place, not hot. It’s
giant, and it’s composed Solar System. It’s the full of iron oxide dust,
mostly of hydrogen and fourth-brightest object in which gives the planet its
helium the sky reddish cast
INTRODUCTION
Today beer is widely available and enjoyed in most
countries and cultures around the world. Heineken
is one of the largest companies in a global network
of distributors and breweries. In addition, Heineken
owns and manages one of the world's leading
portfolios of beer brands in terms of sales volume
and profitability. Moreover, Heineken was
established in the 1873s in Amsterdam,
Netherlands, the company has been able to
remain one of the world's leading consumer and
corporate brands for nearly 150 years. It became
Europe's favorite beer brand - successfully
exported to every corner of the world.
 POLITICAL FACTORS
The beer industry is heavily dependent on taxation regulations.
Little can be done by raising taxes since the government, on a
federal and state level, approves the rates. The beer industry
must comply with both the federal and state to legally produce,
distribute, and advertise their products. Everything from the
ingredients to the labels on the cans must be approved before
the product can hit the shelves.

Political factors have played one of the most substantial

functions in the development of Taiwan's Heineken industry in
the type of personnel development, modern technology growth
as well as setting up of institutes for moving innovation.
 ECONOMIC FACTORS
National companies are large-scale (like Heineken). The reality that
the Heineken sector is experiencing an unbalanced demand as well
as supply circumstance is not the only economic problem of the
sector. The excess supply in the market is followed by a rate which is
lower than the expense of Heineken which has actually resulted in
capital problems for producers.
Economic downturn is a major issue in the market since it can set off
low production. Improvements in efficiency degrees can result in
boosted production which leads to economic downturn once again
because of excess supply and also reduced need leading to closure of
companies due to low income. The Heineken market has actually
undergone economic downturn thrice from 1991 to 2007
recommending that there is a high potential for recession due to
excess supply as well as low revenue of companies.
 SOCIAL FACTORS
Social factors have actually additionally added towards the
growth of the Heineken sector in Taiwan. The Taiwanese
government has actually concentrated on human capital
development in the industry via training focused on enhancing
the understanding of sources in the sector. The launch of the
Semiconductor Institute in 2003 for training and creating skill is
an instance of the social initiatives to enhance the sector. Even
though modern technology was imported, obtaining sources
acquainted with the technology has actually been done by the
government. Social initiatives to enhance the picture and also
top quality of the Taiwanese IC market can be seen by the fact
that it is the only sector which has properly constructed divisions
of labor worldwide.
 TECHNOLOGICAL FACTORS
Social media marketing
Heineken can leverage the opportunities offered by social media
marketing to improve business performance. Technological trends can
be used to start the creative social media campaigns for developing
online brand communities.
Technological innovations and development level
Heineken should carefully consider the on-going technological
innovations to stay ahead of the competition. Entering in markets
where technological advancement has not reached maturity means
Heineken can increase the market share by focusing on emerging
technological innovations.
Shortened product life cycles
The adoption of new technologies has shortened the lifecycle of new
product development. Today, new products are developed quickly,
and supply chain partners have also gained more power. It
pressurizes Heineken to develop new products quickly, increase
product range diversity, integrate flexibility into the value chain and
develop healthy business relationships with value chain partners.
 ENVIRONMENTAL FACTORS
The growing environmental consciousness and changing climatic
conditions have made ‘environmental analysis’ an important part of
the PESTEL analysis. The environmental standards, laws and
regulations vary across different markets. The international presence
of Heineken. require the organization to consider these differences to
avoid undesired circumstances carefully. Detailed environmental
analysis is imperative before deciding to enter a new market or start
a new product line. Some examples of environmental factors that
Heineken need to consider are given below.
Environmental factors that influence Heineken:
● Recycling Waste
● Water Conservation and Treatment
● Energy Management
● Renewable technologies
● Weather and climatic conditions
● Attitude towards eco-friendly products
 LEGAL FACTORS
Heineken cannot enter a new market without studying in detail
the legal environment and regulatory structure of the new
consumer market. A careful evaluation of legal aspects is
required to avoid getting into some serious trouble. Ignorance in
this regard can cause undesired circumstances for Heineken.,
such as- hurting competitive advantage as a result of intellectual
property rights violation and harming organizational image due
to violation of consumer protection standards. Heineken should
consider the following legal factors when exploring a new
market.
Legal factors that influence Heineken:
● Employee protection laws (discrimination and health
and safety)
● Consumer protection laws
● Intellectual property laws
 TYPE OF COMPANY
To conclude the analysis on Heineken, it can be
stated that Heineken’s competitive system,
which is strategy to retain a competitive
advantage. Heineken has a great insight in their
target market, which makes it easy for them to
fulfill the needs. The company invests
(technological) innovations and in environmental
issues, such as drinking restrictions and
campaigns. Some of the key success factors that
drive Heineken are: differentiation, marketing,
premium quality, cost, customer experience.
They also highly value creating a strong brand
image and having and preserving premium
quality. From the perspective of the analysis,
heineken is considered as an active
company.
THANK
YOU