Heineken ‘BREWtal’ Strategy

 Hugo McDonald
 Ryan O’Neill
 Harrison Byrne
 Jake Turley
 Adam Reynolds

1
04/03/2024
Executive Summary: Heineken ‘BREWtal Growth Strategy’

Future-proofing HEINEKEN in the face of emerging opportunities and challenges, allowing it to

respond quickly to external dynamics, deliver superior yet balanced growth for sustainable, long-
term value creation, and ultimately reposition itself at the forefront of the global beer industry

Vision
Social Digital Data
How can we keep up with How can we leverage the data
How can we leverage in-person
everchanging customer trends from these strategies to enable
digital interactions to increase
consumption of Heineken and find new revenue substantial growth?
Question Beer? sources?

‘BREWtal Growth Strategy’

Offering a personalised digital Distil insights from macro and

Transforming the Heineken
shopping experience which micro data sets to secure
Solution experience through online-
includes an individualised Heineken’s future and ensure
to-offline mobile
portfolio to enhance the beer- it thrives for years to come
engagement
buying journey

Incremental Social Revenue of Incremental Digital Revenue Total Incremental Revenue: 5.2%
Impact
€170,000,000 of €215,000,000 by 2025
2
EXECUTIVE SUMMARY ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION
ANALYSIS

3
Value Chain – Primary Activities
Inbound Logistics
Through Heineken’s “Brew a Better World” program, it suggests that the company prioritizes sustainable practices.
This involves sourcing raw materials from environmentally friendly farms, reducing water usage and minimizing
their carbon footprint. Additionally, their push towards becoming the “best-connected brewer” involves the use of
digital analytics for demand forecasting, digital platforms for supplier management, and IoT devices for tracking
the movement and condition of goods in transit
Service Operations
Through these services, Heineken aims to enhance its customer
Heineken's operations demonstrate a comprehensive
engagement, expand its market reach, and support the well-being
of its employees and communities, all while adapting to the approach to growth, sustainability, digital transformation, and
. evolving digital landscape and changing consumer preferences: operational efficiency:

Heineken excels in its primary activities

1. Premiumization and Diversification
1. Digital Route-to-Consumer Platforms
2. eB2B Platforms by sourcing high-quality raw materials, 2. Global Expansion and Market Exit
3. Health and Wellness Programs leveraging advanced brewing 3. Digital Transformation
4. Innovative Product Offerings techniques for production, ensuring 4. Data and Analytics
5. Global Brewer with a Wide Brand Portfolio efficient logistics for global distribution, 5. IT and Operations Efficiency
and executing innovative marketing and 6. Sustainability Initiatives
sales strategies to maintain its strong
brand presence worldwide Outbound Logistics
Marketing and Sales
Integral component of its value chain, designed to reinforce Heineken's outbound logistics involve the processes and systems
its brand premium status, expand its global market reach, used to distribute its products from manufacturing plants to
and cater to evolving consumer preferences various end points such as distributors, retailers, and ultimately,
consumers. Several key components involved in their outbound
1. Driving Premiumization at Scale logistics:
2. Investment in Brand Building 1. Distribution Centers
. & Warehousing
3. Leveraging Sponsorships 2. Transportation
4. Addressing Specific Customer Needs with Hero Brands 3. Third-Party Logistics (3PL) Providers
5. Global Footprint Expansion 4. Sustainability Initiatives
5. Route Optimization & Logistics Software

INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION

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Value Chain – Support Activities

Firm Infrastructure Procurement

Heineken's infrastructure investments reflect a comprehensive plan to As a leading global corporation in the FMCG sector, Heineken’s
adapt to changing market dynamics, drive sustainable growth, and procurement is focused on sustainability, cost efficiency, quality,
embrace digital transformation. By focusing on connectivity, talent and innovation. It fosters long and healthy relationships with
. development, and strategic priorities, Heineken aims to strengthen its suppliers to the highest quality of raw materials, goods and
market position, and create long-term value for stakeholders services
Heineken's support activities, include a 1. Sustainability Sourcing
1. Digital Transformation for Connectivity 2. Strategic Partnerships
strategic focus on procurement that
2. Talent and Skill Development 3. Global and Local Sourcing
emphasizes sustainable and ethical sourcing,
3. Productivity and Cost-Conscious Culture investment in technology and R&D for 4. Quality Assurance
4. Sustainability and Responsibility innovation, a strong human resources strategy 5. Innovation in Procurement
5. Strategic Priorities for Long-Term Value that fosters talent development and a 6. Risk Management
collaborative culture, and a robust 7. Ethical and Responsible Sourcing
infrastructure that ensures operational
HR Management excellence Tech Development
Heineken's Human Resource Management practices demonstrate a Heineken has initiated several technological advancements
strategic and integrated approach to managing people, emphasizing as part of its ambition to become the best-connected and
talent development, employee engagement, and adaptability. Their most relevant brewer for digital-age customers and
HRM strategies are aligned with the company's broader goals and are
consumers:
designed to support a sustainable and inclusive organizational
culture. 1. Connected Brewery Program
1. Encourage Bold and Agile Decision Making 2. Investment in Analytics Solutions
2. Investing in Talent and Skill-Building 3. IT Streamlining and ERP Systems Consolidation
3. People-Centric Culture 4. Digital Route-to-Customer
4. Continuous Learning, Greater Inclusion and Diversity 5. Digital CORE Program

INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION

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Resources & Capabilities
Resources Capabilities
Financial Performance Financial Ability
The company experienced a natural growth in its net This gives Heineken the capacity to achieve enhanced and
revenue, increasing by 12.2% compared to the previous sustainable profitability, even in the face of economic
year, reaching a total of 21.9 billion downturns.

Strong Brand Name Mergers & Acquisitions

Despite having a global portfolio with more than 300
brands, this case states that its flagship Heineken brand
was one of the most valuable beer brands in the world.
Product Offerings
Heineken diversified its product range beyond beers to
include ciders, hard seltzers, canned cocktails, and a
range of non-alcoholic options
Tech Infrastructure
Heineken prioritized promoting a digital approach to
reaching consumers through its eB2B and eD2C platforms.
INTRODUCTION ANALYSIS ISSUES
Heineken’s strong brand name allowed them to merge with
Amstel and also acquire a share of the Scottish & Newcastle
brewery
Broader Market Reach
By diversifying their product offerings, Heineken gains the
capability to appeal to a broader audience beyond traditional
beer drinkers.
Omni-Channel Approach
Offers a consistent and engaging user experience across
multiple touchpoints, including websites, mobile apps, and
social media platforms. Heineken’s omnichannel approach
is designed for scalability, with plans to reach €10 billion in
digital sales by 2025
RECOMMENDATIONS CONCLUSION
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 Omni-Channel Approach
Value
• Heineken’s omni-channel approach creates value by enhancing customer engagement, driving
sales, and building brand loyalty.
• Through a focus on eB2B and eD2C platforms, the company reaches consumers at every stage of
their purchasing journey, delivering personalized interactions and ensuring a consistent brand
experience across all digital touchpoints.
• This approach enhances Heineken's competitive edge in the market.

Rarity
• Heineken's omni-channel approach is relatively rare in the beverage industry, as many companies
have been slow to adopt digital technologies.
• By leveraging multiple digital channels and offering a seamless digital experience, Heineken
differentiates itself from competitors and strengthens its market position.

INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION

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 Omni-Channel Approach
Inimitability
• Imitating Heineken's omni-channel strategy proves challenging, yet not impossible, given its
widespread international reach, strong customer engagement, and seamless integration of digital
technologies.
• The company's focus on data analytics, collaboration, and continuous improvement also makes it
challenging for competitors to replicate its approach.

Organisational Support
• Heineken's omni-channel approach is well-organized, with a clear strategy, multi-platform
presence, and emphasis on personalization, convenience, and scalability. The company's focus on
an omni-channel approach is also reflected in its Evergreen strategy, which prioritizes digitalization
as the fourth pillar of its five strategic priorities. ‘(4) Digital – Become the best-connected brewer’.

INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION

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 VRIO Framework
Valuable? Rare? Inimitable? Org Support?

Financial Ability Yes No No Yes Competitive Parity

Mergers & Acquisitions Yes No No Yes Competitive Parity
Broader Market Reach Yes No No Yes Competitive Parity
Omni-Channel Approach Yes Yes No Yes Temporary Competitive
Advantage

INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION

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Porters Generic Strategies
Heineken utilizes a differentiation strategy as part of Porter's generic strategies.

Differentiation Strategy

Premiumization and Innovation in Product Offerings: Heineken focused on premiumization and innovation,
expanding its portfolio beyond traditional beer into categories such as ciders, hard seltzers, canned cocktails,
and low-and non-alcoholic (LONO) beverages. This strategy was aimed at capturing new growth opportunities
and meeting evolving consumer preferences for healthier and more diverse drinking options .

Digital Transformation and Customer Engagement: The company invested in becoming the "best-connected
brewer" by digitalizing its business end-to-end. This included enhancing digital route-to-consumer platforms
(eB2B and eD2C), investing in digital capabilities for better customer and consumer engagement, and
implementing a Connected Brewery program to support brewers with digital tools and insights .

INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION

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Porters Generic Strategies
Differentiation Strategy

Sustainability and Social Responsibility Initiatives: Under its "Brew a Better World" program, Heineken set
ambitious sustainability and social responsibility goals. This included efforts to reduce its environmental
footprint, promote responsible drinking, support smallholder farmers, and commit to gender equity and
diversity within its workforce. Such initiatives differentiate Heineken by aligning its brand with broader
societal values .

Investment in Talent and Skill Building: The company focused on unlocking the full potential of its employees
through investments in talent and skill-building. This people-centric approach emphasizes creating a culture
of continuous learning, agility, and diversity, which is critical for sustaining innovation and adaptability in a
competitive market .

Heineken's differentiation strategy enhances its brand appeal and market position by offering a diverse, premium product
portfolio, innovative digital experiences, and strong sustainability practices, driving long-term growth and customer loyalty.

INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION

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Porters 5 Forces Analysis
Degree of Existing Rivalry: Intense
• Heineken operate in a highly competitive industry with several players such as Carlsberg, Ab Inbev and Molson
Coors all holding a significant market share.
• Industry players compete on price, product differentiation, marketing and international expansion.

Bargaining Power of Buyers: Moderate Bargaining Power of Suppliers: Low – Moderate

• There is a wide choice of beverage and beer within the beer
industry.
• While there is a significant level of customer loyalty, due to
. the array of both alcoholic and non-alcoholic drinks,
customers can easily switch from brands if their needs and
expectations are not met.
• By offering a premium experience and associating their brand
with quality and prestige, Heineken have been able to
establish a loyal, less price-sensitive customer base.
• Heineken’s focus on innovation and wide product line also
reduces customer buying power by offering unique products
and experiences.
Threat of Substitutes: Intense
• The beverage industry experiences intense competition,
with a variety of drinks available to consumers in place of
beer. (Wine, Spirits, Seltzers)
• An increase in heath and wellness trends have lead to
increased demand in low-alcohol, low-calorie and
natural/organic drinks.
• Heineken have aimed to tackle this with the introduction
of ciders, seltzers and non-alcoholic beverages.
• Heinekens global brand and presence allows it to negotiate
lower, favourable terms with suppliers.
• However, Heinekens commitment to sustainability in their
Evergreen strategy means it may prioritise suppliers with
the same goals, giving them additional bargaining power.
While there is significant external force
that could impact Heinekens prosperity
• On the other hand, it may limit the options of suppliers
and profitability, its global and historic who are no in alignment with sustainability goals, given
brand help the company establish itself Heineken are such a global and well-recognised name.
as a leading player in the beer industry
Threat of Potential Entrants: Moderate - Low
• Entry into the beer industry is difficult due to the capital,
brand and supply chain requirements, as well as the
regulatory challenges in the sales of alcohol.
• Heineken, as a well-established player with a large
distribution network benefit from economies of scale.
They are a historically successful industry leader with
strong brand portfolio and loyalty.

INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION

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PESTLE Analysis
P E S T L E
Political Economical Social Technological Legal Environmental
• The Covid-19 • Rising energy and • As work and • Covid-19 also • Regulations • Consumers have
pandemic forced food prices, as education moved disrupted the introduced to help begun to expect
world closure and well as global online under beer industry by contain the spread brands to do
strict containment inflation, put lockdowns, accelerating its of Covid-19 also more regarding
measures increasing consumers rapidly digital caused concern for environmental
introduced by pressure on both adapted their transformation. many businesses. issues.
world operating costs shopping
governments. and consumers’ behaviour. • It was expected • This included • Companies must
purchasing power. the digitalization government- therefore respond
• Government- • Another growing trend would mandated to these trends of
mandated • Geopolitical and consumer trend expand at a much lockdowns and environmental
lockdowns and macroeconomic was healthier faster pace than mandatory awareness.
other restrictions developments living. anticipated. vaccines to partake
forced companies post-pandemic led in certain activities. • This can be done
in the industry to to high levels of • Consumers were • The vast amount by creating short-
take drastic cost- uncertainty and becoming of available data, • Beer sellers also term and long-
mitigating actions. volatility. increasingly machine learning have a term
selective, seeking and AI meant responsibility to environmental
• Covid-19 caused products that companies spread awareness goals to solve
not only a global were both healthy needed to adapt surrounding legal issues such as
health crisis, but a and and use these issues such as climate change or
global economic environmentally powers to their underage drinking water scarcity.
crisis. aware. advantage. and drunk driving.

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INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION
ISSUES

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What are Heineken’s reasons for acting now?
Rising Energy and
Food Prices
Due to many factors such as Covid-19,
Increased demand, speculation in
commodity prices, and more, it has
caused food and energy prices to rise
which means Heineken must charge a
higher price for the same product as
operating costs continue to rise
Global Inflation
The economic fallout from the pandemic,
which led to inflationary pressures is
expecting to put increasing pressure on both
operating costs and consumers’ purchasing
power in the months ahead
Recent Geopolitical &
Macroeconomic
Developments
The Russia-Ukraine war continues to cause
supply chain issues. Additionally, Heineken
decided to exit the Russian market,
without a profit. These developments
threaten to create a post-pandemic world
characterised by high levels of uncertainty
and volatility

Changing Consumer Markets with Stringent Acceleration of Digital

& Market Trends Lockdowns
Heineken was hit-hard due to its greater
The economic fallout from the pandemic has exposure to the on-trade sector and stronger
led to a recession and inflationary pressures,
presence in markets with the most stringent
affecting consumers' purchasing power and lockdowns, such as Mexico and South Africa.
spending behaviour. Additionally, products
This resulted in a significant decline in net
that address social & environmental issues revenue and operating profit in 2020 compared
are in higher demand to the previous year.
Transformation
Consumers are rapidly adapting their shopping
behaviour to online platforms due to improved
online innovations. This will require Heineken
to scale up their e-commerce businesses to
capture the new wave of digital shoppers

INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION

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4
Threats to be Prevented and Opportunities' to be Seized

Threats Opportunities
1. Growing 1. Differentiation
Competition through Social
Experiences
3
2. Tech Developments
2. Digital Personable

Urgency
3. Changing Consumer 1
Experiences
Trends
3. Data-Driven Insights 2
4. Global Inflation
4. Bio-Harvest
4
5. Geopolitical Technology
Developments 5. Innovation in Product
6 5
6. Continued Pandemic Line
Impact 6. Market Expansion
and Localization Importance
INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION
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Problem Statement

Given the backdrop of shifting consumer preferences,

rapid technological advancements, and the vital need
for data-driven insights, how can Heineken strategically
navigate and win the three critical battles of consumer
engagement, digital transformation, and sustainability
to secure its future and ensure continued growth in the
years to come?

PROBLEM STATEMENT

INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION

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RECOMMENDATIONS

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‘BREWtal Growth’: The future of beer exists in three layers --the social
core, the digital channel, and the data outcome.
How do we reimagine the future of beer?
Data: The ultimate future of technology and
Introduction alcohol.
This is how we use social interactions and digital
platforms to know who’s drinking
what, where, and why. Using ultra- Digital: A new medium that allows customers to personalise their
localised specific data to make strategic beer shopping experience. An individual portfolio that helps you
decisions, good data ensures long-term choose the ideal beverages to purchase for the home.
continuity This will subsequently promote the sales of
Heineken’s lesser-known beers , while catering to
fluctuating consumer preferences.

Social: At its core, beer is product driven by social experiences. It acts

as a social lubricant in pubs, clubs, sports games, or just having a chill
Hours spent on night at home with friends.
digital social
4.5 platforms But the fundamental nature of the human
social experience has changed. It’s more digital
4.0 than ever.
We need something that keeps Heineken just as
relevant and just as loved in the new social
3.5
landscape, at the same time increasing Heineken’s
15 16 17 18
consumption per social experience.

INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION

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Customer Profile
Who Are We Targeting ?

Name: Daniel

Age: 27
Introduction
Issues Facing Daniel
Occupation: Digital Marketer

Location: Marylebone, London, UK

Limited Personalization in Product Recommendations

Background: Daniel is a tech-savvy young parent who adeptly balances his social
life and family responsibilities. Married with two young children, he not only enjoys
socializing with work colleagues and friends but also treasures coming home to Difficulty in Engaging with Heineken's Digital Presence
unwind with his family, often relaxing with a few bottles of beer alongside his wife. In
addition to his offline activities, Daniel spends considerable time online and is active
on social media, further reflecting his modern approach to life. His sense of
belonging is deeply rooted in community involvement, and his commitment to
sustainability has intensified, motivated by a desire to secure a brighter, healthier Inadequate Access to Exclusive Offers and Loyalty Rewards
future for his children to thrive in. Moreover, Daniel is health-conscious, carefully
balancing his enjoyment of social beers with a keen interest in maintaining a healthy
lifestyle for himself and his family.

Lack of Interactive and Immersive Brand Experiences

INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION

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 What?
What? What?
Answer 1
How Can We Increase The
Consumption of Heineken Transforming the Heineken
Beer? experience through online-to-
offline mobile engagement

S Welcome
WelcomeDaniel!
Daniel
Leveraging smartphones to
redefine the social
experience of drinking
We’re glad you
called for a Transforming the engagement
Heineken between Heineken brands and
the customer to digital in-
person experiences
Social Let’s Heineken!

Let’s Heineken!

Intro screen

21
Why Are We Implementing This?
What are the reasons for acting now?

Why?
Leveraging Smartphones
How Smartphones can Enhance Social Interactions
of Europeans (<40 y/o) use
89% smartphones during social gatherings Key mechanisms that leverage the smartphone

Source: Bocconi University, Italy

Games that facilitate social interaction and

increased consumption
What do they use it for at social gatherings?
Texting other friends
1. Games

Posting to social media 2. Incentives

Others (news, Incentives that encourage group consumption with

time, real-world rewards
calendar)

Smartphone usage in social settings is normal for These two mechanisms can help Heineken restore social as
Europeans, but are not focused on those who are present the core of the drinking experience

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INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION
How Will This Recommendation be Implemented?
How will We Increase the Consumption of Heineken Beer?
1
How? Geolocation check-in
Let’s Heineken Mobile Application Allows for users to locate their friends they
are drinking with

2
Drink
You’re calling for a Heineken at:
Allows users (like Daniel) to access promotions, drink
75th Earl Street
information, and on-trade locations
Check-in

3
DRINK Play
Welcome Daniel!
Allows users to access games that involve the
consumption of Heineken drinks
Welcome Daniel
(Discussed in further detail on next slide)
We’re glad you PLAY
called for a 4
Heineken Win
Allows users to redeem rewards and participate in
Let’s Heineken! WIN events, lucky draws with tokens

Tokens: 5
Intro screen Tokens
Let’s Heineken!
33/60 to group goal Virtual currency that allows users to track their
progress towards group/individual- based
rewards
Intro screen Main menu
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INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION
How Will This Recommendation be Implemented?
How will we get Customers to Engage?
How? Continuous Engagement with Play
Increased group consumption via social elements of fun,
engaging content

A. Friendly competition
Facilitates bar games with friends with game (drinking-related forfeits) “Betting” on live sports with/against
ideas, automatic roll functions, and score friends with real-time information
tracking
Eg: Will there be a foul committed in the
E.g.: King’s Cup, Trivia, Truth or Dare next 2 minutes of the game?

Games Sports

Provides rewards for submissions of Provides rewards for submissions of

videos with friends that involve Heineken videos with friends that involve Carlsberg
brands & suggested food pairings. beverages found outside of user’s country
Rewarded with tokens.
Food
Eg: Take a photo of your buddies with Travel Eg: Take a photo of your buddies
Heineken beer and the beef burger from drinking a Heineken brand from
restaurant X country X
B. Enjoying with friends
(drinking-related submissions)

Digital medium further allows Heineken to experiment with activities that best encourage group consumption, with dynamic
content and testing
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INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION
How Will Heineken Implement This?
What Regions should they Target for Success and How?

. Deployment
How?
Heineken should execute the following implementation steps of ‘Lets Heineken’ in key markets of UK
and Germany

Driving Initial Adoption of the Application Implementation Focus by Country

Worldwide Annual Consumption of Beer by Country in 2020 (in thousands of kiloliters)

LET’S
Heineken
Open Your World.

Posters at on- Bottlecaps, cans, bottles,

Source:
trade locations draught cups Statistica, 2022

Campaigns with current sponsorships and • Germany and The UK are the top 2 consumers of beer by country in Europe
influencers in Europe publishing the App • Heineken should deploy pilot tests in these countries before scaling up
Developments
• KPI’s to measure:
- Champions League Games • Monthly downloads
- F1 Races • Weekly active users
- The Olympics
• Referral rate
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INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION
 What?
What? What?
Answer 2
How Do We Keep Up With
Everchanging Consumer By providing a customizable
Trends? digital sales tool, Heineken can
meet new consumer
preferences and drive revenue

D
growth.

YOUR Through a digital solution

Welcome Daniel!
TAILORED Heineken can tailor
TASTE consumers’ beer pallets.

Heineken can also use the

digital system to push its
Let’s Heineken!
Digital product portfolio and promote
Let’s Heineken! beers that may not sell as
well.

26
Why Are We Implementing This?
What are the reasons for acting now?

Why?
Changing Consumer Trends
“Consumers were becoming increasingly
selective, seeking products that were both
healthy and environmentally aware.”
Experience-seeking consumers prefer a
unique, specialized beer experience, but
usually have limited options at on-trade
sellers

I enjoy a
On-trade sellers often offer a narrow
light beer, range of beers and have little incentive to
what is the cater to individual consumer preferences
best
What
available I am not or learn about Heineken’s extensive
Heineken
beer
option? sure what product portfolio
beer is best
contains with my
the least dinner?
calories?

Through a digital solution that tailors beer

pallets, Heineken can simplify their
portfolio and make it easier for the
consumer to find their ideal beer selection

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INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION
How Will This Recommendation be Implemented?
How will Heineken adapt to consumer trends using Digital Insights?
1
Profile Log-In
How? Heineken ‘BrewMetrics’ Beer Create a profile or use existing profile with Heineken’s
Tailor system official website/application through a phone, laptop or any
other preferred device.

2
Taste Profile
You’re calling for a Heineken at:
Create a taste profile by entering specific preferences
75th Earl Street to your needs e.g. taste preference, calorie intake,
price limits.

3
Tailored Taste Pallet
Welcome Daniel! RE-ORDER? Heineken ‘BrewMetrics’ processes the individuals'
preferences and proposes a tailored taste pallet
Welcome Daniel according to customer data and insights from specialists
in this field.
We’re glad you
called for a 4
Option to Buy
Heineken The application will then give users the option to order in a
certain quantity of their tailored taste pallet directly to their
Let’s Heineken! homes for a swift and efficient experience with Heineken.

5
Loyalty Bonus
Through continued use of the ‘BrewMetrics’ system,
Let’s Heineken! Heineken will offer discounts after a certain number of
regular orders from the application.

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INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION
How Will Heineken Implement This?
What Regions should they Target for Success and How?

. Deployment
How?
Heineken should execute the following implementation steps of ‘BrewMetrics’ within the Heineken
application.

Promotion of Heineken ‘BrewMetrics’ Feature

LET’S
Heineken
Open Your World.

Posters at on- ‘Finding Your Taste’

trade locations
Creative use of multimedia • Heineken’s ‘BrewMetrics’ system allows for a direct extension to the
Create awareness and educate the consumers about company’s ‘Know What You Drink’ campaign. The application feature allows
the new tailored taste pallets
consumers to ‘know what they drink’, without having to read the label of
Format each bottle or do any further research on Heineken's vast product portfolio.
2-3 minute promotional spot displaying customer • This marketing of efficiency and easy-going consumerism will help to
(Daniel) and his experience with 'BrewMetrics’ and his promote the application while also promoting Heineken’s vast portfolio.
tailored beer pallet.
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INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION
Stakeholder Map: How Will Each Party Benefit From ‘Brewmetrics’?
Enhanced Customer Experience
Personalized recommendations from Heineken
improve customer experience, fostering loyalty and
repeat purchases.
Daniel
Personalised Recommendations
Brewmetrics analyses Daniel's history and behaviour
to offer Heineken recommendations tailored to his
tastes, improving his shopping experience.
Other Beer sellers
Market Insights
Access to Brewmetrics data offers valuable market
insights, enabling beer sellers to adjust product
offerings and marketing strategies for better
competition
INTRODUCTION ANALYSIS ISSUES
Increased Sales
Customizing product suggestions to fit customer preferences
boosts sales, driving revenue growth for Heineken.
Increased Satisfaction
Personalized recommendations for Daniel increase
satisfaction, enhance brand perception, and boost
repeat purchases.
Competitive Analysis
Heineken's use of Brewmetrics sets a benchmark for
competitors to learn from, potentially improving
their market position through enhanced customer
engagement and personalized recommendations..
30
RECOMMENDATIONS CONCLUSION
 What?
What? What? Answer 3
How Do We Subsequently
Leverage Data from Digital Distil insights from macro
and Social Strategies? and micro data sets to fuel
further growth

Using social interactions

and digital platforms to
D
Welcome Daniel! know who's drinking
what, where and why

Good data ensures

long - term continuity
Let’s Heineken! Data
Let’s Heineken!

31
Why Are We Implementing This?
What are the reasons for acting now?
Why?
Data Driven Insights
• Utilising existing customer data to inform
future strategic decision-making.
• Sell to customers, based on how they interact
with Heineken already, learning from their
purchase behaviour.
Heineken:
- Acknowledge most of Daniel's orders
on the 'brewmetrics' platform take
place at the end of the week, and offer
discounts and promotions based on
purchase history.
- Become aware Daniel's orders drop
significantly in January.
- Can group additional customers with
similar attributes to Daniel and send
tailored product recommendations and
discounts.
INTRODUCTION ANALYSIS
Daniel:
- Receives discount and promotional
offers at times when he is most likely
to follow through with a purchase
- Is recommended lighter beers and
lower caloric options due to his
commitment to his health
- Enjoys taking part in the digital
interactions with friends, while
ordering Heineken products online.
ISSUES
Collect data from the 'brewmetrics' data
system to identify trends and patterns in
customers' shopping behaviour
Segment the Heineken customer base into
groups to target specific customers
with tailored marketing campaigns,
product offerings and relevant discounts.
Provide highly tailored product
recommendations to its customers
based on their purchase history,
browsing behaviour and demographic
information.
32
RECOMMENDATIONS CONCLUSION
How Will This Recommendation be Implemented?
How will we Leverage Data from Digital and Social Insights?
Collect Key Data for Digital Age
Individual Data from Social
Demographics:
- Age, gender, geography
Consumption preferences:
- Frequency, quantity, type of
beverage, location, correlation with
events eg. Live sports matches
Competitive and Macro
Data from Digital
Alcohol sales of bar(s):
- Location, time of day, overall
volume, comparison of bars
Alcohol sales by brand:
- Carlsberg brands vs competitors
brands
- Difference in sales within
INTRODUCTION
Use Data to Keep up With Change
Recurring engagement: Partnerships
- Performing tests with new ways to - Forming partnerships with other
engage in the digital medium via the stakeholders (eg. lifestyle brands)
application where Let’s Carlsberg tokens can be
used
- Understanding how best to use social
element to drive consumption
Sense and respond: Value to bar owners
- Anticipating and responding to - Providing bar owners with changes in
consumption suggestions to improve alcohol
preferences sales
- Understanding what factors - Cross learning from other bars
influence better sales
- Overall, improve value proposition and
- Eg. Identification of a flavour profile negotiating power with bar owners
that is trending, acquire or develop?
33
ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION
Financial Breakdown
Overview of Financial Implications and Potential profits of Recommendation
Social
• The following financials
are for Heineken’s
European operations on
a pilot programme basis.
• Heineken can scale its
operations for future
expansion by leveraging
connections and
partnerships with 3rd
parties in other
geographic locations
• A phased rollout will
lower costs and ensure
operational success
before wider
implementation
INTRODUCTION
Social Cost Breakdown
App/Website Development
Marketing and Promotion
Operational Costs
Compliance and Security
Staff Training
ANALYSIS ISSUES RECOMMENDATIONS
Total
Incremental
Revenue:
5.2% increase
by 2025
• € 2.5 million is dedicated towards the
development of the ‘Let’s Heineken’ app
• €2 million towards the marketing and promotion
of it through an omnichannel approach
• €1.3 million to cover operational costs
• An additional € 750,000 towards security,
compliance and staff training
34
CONCLUSION
Financial Breakdown
Overview of Financial Implications and Potential profits of Recommendation

Digital Data

• The ‘BrewMetrics’ development on both the company website and
application is of moderate complexity with a high-end estimate, meaning it
accounts for intricate design, extensive testing and unforeseen difficulties.
• €2.3 million is dedicated towards planning, design, development, QA, testing
and deployment.
• An additional €1.6 million is set aside for additional recruitment in the IT
department (if needed).
• Includes software maintenance, development operations, quality assurance,
security specialist and data science.
• A customer data-driven strategy involves a number of key components:
• €1.2 million towards data collection and management and includes system
upgrading for the ‘brewmetrics’ strategy.
• €250,000 towards customer segmentation tools
• €700,000 towards tailored marketing and personnel software
• €1.2 million in legal and compliance expenses ensuring compliance with
security and GDPR
• Investment of €30 million into staff and training includes data scientists and
analysts, marketing specialists and training for existing staff

Total Cost: Data Cost Breakdown

€43,850,000

Projected Growth:
5.2% Revenue Productivity in
European Region

KPI:
Revenue Growth 30,000,000 1,750,000 1,200,000 250,000 700,000

35
INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION
How long will it take to fully rollout this strategy?
Implementation Timeline

0 months 3 months 6 months 12 months 15 months 18 months 21 Months

Target Analysis and Strategy Aggressive Marketing Performance Analysis and Strategic Strategic Refinement and
Development Campaign Adjustments Future Planning
Social
Platform Selection and Campaign Launch and Sponsorship of Expansion and Integration with Data and
Content Development Events Digital initiatives

Analytics and Platform Development Platform Optimisation and Future

Pilot Launch and Marketing Full Campaign Launch
Readiness

Digital
Beta Development Advanced Feature Integration
Feedback Analysis and Marketing Expansion
and Initial Testing

Influencer
Data Collection framework Strategic Integration and Predictive
Involvement Modelling Optimisation and Segmentation
Establishment Securing Investment
Data
Initial Analytics Implementation Analytics Capability
Enhancement Insight Driven Strategy Refinement Future Strategy Planning
Outreach and Generation
and Insight Negotiation

INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS

36
CONCLUSION
KPI's To Track The Progress
Recommendation Goals

Total Incremental
Revenue:
5.2% increase by
2025
Incremental Revenue
Incremental Revenue
of Social:
of Digital: €215,000,00
€170,000,000

WITHIN THE NEXT 1-

INTRODUCTION
2 YEARS
ANALYSIS ISSUES RECOMMENDATIONS
37
CONCLUSION
Risks to be Considered and Keys to Mitigate These Risks
Likelihood and Impact Graph of Risks faced by Heineken

5
Ris Mitigatio
k n
Implement robust encryption, access controls,
Data Privacy and
3 1 comply with data protection laws, and maintain
4
1 Security Risk transparency with consumers to safeguard data
privacy and security.

Technology Adoption Invest in robust testing and planning phases and

3 2 ensure technology rollouts with pilot programs. A
2 and Integration Risk
budget has been set aside for staff training to ensure
Impact

smooth integration and adoption.

Analyze continuous customer feedback, A/B
2 Consumer Engagement testing, and an agile strategy adaptation to

3 and Adoption Risk enhance consumer engagement with digital and

social platforms

4 Form a cross-functional team, use project

1 Alignment and Execution
management methodologies, and regularly
4 Risk adjust strategies to ensure alignment and
efficient execution across sectors.

0 1 2 3 4 5
Likelihood

38
INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION
Customer Profile
Who Are We Targeting ?

Name: Daniel Issues Facing Daniel

Age: 29 Limited Personalization in Product Recommendations

Introduction Utilising data analytics to understand consumer preferences, our recommendation includes
Occupation: Digital Marketer developing a more sophisticated recommendation engine on digital platforms. This will offer
Daniel and others personalized beer selections based on their tastes and
past purchases.
Location: Suburbs of Urban Area
Difficulty in Engaging with Heineken's Digital Presence
By focusing on UX/UI design and integrating social media insights, the recommendation aims to
overhaul Heineken's digital presence, making it more intuitive and engaging for users like
Background: Daniel is a tech-savvy young parent who adeptly balances his social Daniel. This includes streamlined navigation and more compelling content that resonates with
life and family responsibilities. Married with two young children, he not only enjoys his interests.
socializing with work colleagues and friends but also treasures coming home to
unwind with his family, often relaxing with a few bottles of beer alongside his wife. In
addition to his offline activities, Daniel spends considerable time online and is active Inadequate Access to Exclusive Offers and Loyalty Rewards
on social media, further reflecting his modern approach to life. His sense of The recommendation includes the development of a comprehensive loyalty program,
belonging is deeply rooted in community involvement, and his commitment to integrated across all digital touchpoints, offering exclusive deals and rewards for engagement
sustainability has intensified, motivated by a desire to secure a brighter, healthier and purchases. This approach aims to provide Daniel with the value and recognition he seeks
future for his children to thrive in. Moreover, Daniel is health-conscious, carefully from his brand interactions.
balancing his enjoyment of social beers with a keen interest in maintaining a healthy
lifestyle for himself and his family. Lack of Interactive and Immersive Brand Experiences
By incorporating advanced digital features such as AR for product visualization and personalised
virtual events, the recommendation seeks to enrich the brand experience for customers. Daniel
will be able to enjoy immersive experiences that enhance his connection with the Heineken
brand.

INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION

39
 Heineken ‘BREWtal’ Strategy

 Appendices

40
 Value Chain – Inbound Logistics
1.Sustainability Initiatives: Heineken has set ambitious
sustainability goals, including achieving carbon neutrality in
production by 2030 and across the entire value chain by 2040.
This involves maximizing renewable energy use and energy
efficiency at all production sites. Such initiatives likely affect
their inbound logistics by prioritizing the procurement of
sustainable and renewable resources.
2.Support for Smallholder Farmers: Heineken has committed
to supporting smallholder farmers by sourcing agricultural
ingredients, aiming for a 50% increase in volume by 2025
compared with 2020. This suggests an emphasis on developing
responsible and sustainable sourcing practices, which are key
components of their inbound logistics strategy.
Appendices
3. Digital Transformation: The company is focused on enhancing its
digital capabilities, including the Connected Brewery program which
aims to improve operational efficiency and data insights for better
decision-making. While this primarily impacts production, it can also
have implications for inbound logistics through improved demand
forecasting, inventory management, and supply chain coordination.
4. Productivity and Efficiency: Heineken's productivity program aims
for €2 billion in structural gross savings by 2023. This includes
streamlining operations, rationalizing portfolio complexity, and
reducing logistics costs, indicating a focus on efficiency across the
supply chain, including inbound logistics.
41
 Value Chain – Operations
1.Premiumization and Product Diversification: Heineken has focused on driving
sales through premium beer offerings, achieving significant growth in this
segment. The company has also diversified its product range to include non-
alcoholic beers, flavoured alcoholic beverages, ciders, hard seltzers, and
innovative products, which have seen substantial growth in various markets​​.
2.Global Expansion and Market Exit: The company has expanded its physical
presence by opening Southeast Asia's largest brewery in Vietnam, while also
making strategic decisions to exit markets, such as Russia, due to geopolitical
issues, ensuring the safety and well-being of its employees during the transition​​
. the Digital CORE program to facilitate data integration and
3. Digital Transformation: Heineken has made strides in digital transformation
by expanding its e-commerce business (eB2B and eD2C platforms), capturing
significant digital sales value, and enhancing consumer engagement through
platforms like Beerwulf in Europe and GLUP in Mexico​​. Additionally, the
company has advanced its "Connected Brewery" program to retrofit breweries
with digital capabilities, supporting complex tasks with intelligent diagnostics
and insights
Appendices
4. Data and Analytics: The company has invested in analytics
solutions to utilize data, machine learning, and AI across the value
chain for smarter business decisions, revenue and margin growth,
promotion optimization, churn prediction, and spend analysis​​.
5. IT and Operations Efficiency: Heineken has streamlined its IT
infrastructure by moving applications to the cloud and consolidating
its ERP systems. The company has embarked on programs like BASE
and SHARP-X to standardize core business processes and simplify
finance functions, aiming for a lean and modern ERP system under
operational efficiency​​.
6. Sustainability Initiatives: As part of its climate transition plan,
Heineken has built the largest solar plant in the African beer industry
in South Africa and new wastewater treatment plants in Serbia and
Haiti. These initiatives highlight the company's commitment to
reducing carbon emissions and water usage, addressing the
sustainability challenges in its operations
.
42
Value Chain – Outbound Logistics
1. Distribution Centres and Warehousing 4. Route Optimization and Logistics Software
•Heineken operates numerous distribution centres and warehouses •The company utilizes advanced logistics software and technologies for route
globally. These facilities are crucial for storing large quantities of optimization, tracking, and managing shipments. This tech-enabled approach
products before they are shipped to customers. Efficient warehouse helps in reducing delivery times, minimizing transportation costs, and improving
management ensures that products are easily accessible, properly service levels
inventoried, and ready for distribution in a timely manner.
5. Sustainability Initiatives
2. Transportation •Heineken is increasingly focusing on making its logistics and distribution
•Road Transport: This is commonly used for domestic distribution processes more sustainable. This includes initiatives to reduce CO2 emissions
within countries, utilizing a fleet of trucks and other vehicles to deliver through optimized routing, increased use of eco-friendly vehicles, and exploring
products to local distributors, retail outlets, and sometimes directly to alternative fuels and electric vehicles for transportation
large consumers such as event venues or hospitality establishments.
•Rail, Sea, and Air Freight: For international distribution, Heineken
relies on a combination of rail, sea, and air freight to move products
between countries and continents. The choice of transportation mode
depends on the distance, cost, and urgency of the shipments.

3. Third-party Logistics (3PL) Providers

•Heineken often partners with 3PL providers to manage aspects of its
distribution and logistics operations, especially in regions where it may
not have extensive local infrastructure. These partners can offer
specialized logistics services, including transportation, warehousing, and
fulfilment, which help Heineken maintain efficiency and flexibility in its
distribution network

Appendices
43
 Value Chain – Marketing and Sales
1. Premiumization and Diversification
Heineken focused on driving growth through premiumization, leveraging its
flagship Heineken brand and introducing premium lines like Heineken Silver.
This strategy was complemented by a diverse portfolio that catered to various
consumer preferences, including health consciousness (Amstel Ultra), and
innovation in flavours across different geographies.
2. Brand Building and Emotional Engagement
Heineken invested significantly in brand-building campaigns that emphasized
togetherness and emotional connections, evident in their ad campaigns like
"Home Gatherings" and "Worth the Wait" featuring Daniel Craig. This
approach aimed to strengthen brand loyalty and attract consumers through
shared values and experiences.
3. Strategic Sponsorships
2021 marked Heineken's biggest year for sponsorships, with significant
investments in global events such as the UEFA Champions League, Euro 2020,
Formula 1, and the Olympics. These sponsorships not only increased brand
visibility but also aligned Heineken with high-profile, prestigious events,
enhancing its premium brand image.
4. Innovation and Responsiveness to Consumer Trends
Heineken actively responded to global consumer trends, notably health and wellness, by
expanding its low- and non-alcohol beverage portfolio (e.g., Heineken 0.0). This strategic
innovation allowed Heineken to tap into new consumer segments and meet growing
demands for healthier beverage options.
5. Expansion Beyond Beer
Recognizing the evolving preferences of consumers, Heineken ventured into the hard seltzer
category and strengthened its position in the cider market. This diversification beyond
traditional beer products allowed Heineken to capture new market segments and adapt to
changing consumer tastes.
6. Efficiency and Productivity
Heineken's focus on increasing efficiency and productivity, enabled by digitalization and a
company-wide standardized tool for project management, was a crucial aspect of their
strategy. This approach helped in streamlining operations, reducing costs, and improving
overall performance, which, in turn, supported their marketing and sales efforts by freeing up
resources for brand investment and growth initiatives.
7. Cost-Consciousness
In response to the challenges posed by the pandemic, Heineken implemented a large-scale
productivity program aimed at achieving substantial savings, which also included rationalizing
its marketing, sales, and personnel expenses. This cost-conscious mindset ensured that
Heineken could maintain its marketing and sales efforts effectively even in the face of
financial pressures.
Appendices
44
 Value Chain – Services
Heineken provides a variety of services,
primarily focused on its beer and beverages
business, with significant investments in digital
transformation to enhance its consumer and
business services.

1. Digital Route-to-Consumer Platforms: Heineken has invested in
building and strengthening its digital capabilities, particularly its e-
commerce business, to meet the changing shopping behaviours of
consumers, especially noticeable during lockdown periods. This
includes eD2C (Direct-to-Consumer) platforms such as Beerwulf, GLUP,
and Drinkies. These platforms offer services like beer delivery to
consumers' doorsteps, with Beerwulf performing strongly in Europe
and GLUP gaining traction in Mexico.
2. eB2B (Business-to-Business) Platforms: Heineken has also focused on
growing its customers' businesses through its eB2B platforms as part
of an omnichannel approach. These platforms were operational in 30
markets, including Brazil, Mexico, South Africa, Nigeria, the United
Kingdom, Italy, and Vietnam, accounting for 75% of net revenue. The
platforms aim to connect with customers, offering digital sales and
support to help grow their businesses.
1.Support for Health and Well-being: In response to the COVID-19 pandemic,
Heineken launched a global educational campaign to encourage vaccination and
responsible behaviour among its employees. The company also introduced HEI-
Life, a holistic framework aimed at supporting the professional, emotional, social,
and physical well-being of its employees.
2.Global Brewer with a Wide Brand Portfolio: Heineken operates globally with 75
operating companies and 80,000 employees, offering over 300 brands in more
than 190 countries. Its services extend beyond the digital platforms to include the
global distribution and marketing of its extensive brand portfolio.
Through these services and initiatives, Heineken aims to enhance its customer
engagement, expand its market reach, and support the well-being of its employees
and communities, all while adapting to the evolving digital landscape and
consumer preferences​​.

Appendices
45
 Value Chain – Procurement
1.Sustainable Sourcing: Heineken likely places a strong emphasis on
sustainable sourcing practices, seeking suppliers that adhere to
environmental standards and social responsibility. This could involve
sourcing ingredients like barley, hops, and water from suppliers that
practice sustainable farming and water usage.
2. Strategic Partnerships: The company may establish long-term
partnerships with key suppliers to ensure a stable supply of critical raw
materials. These partnerships can offer mutual benefits, such as
guaranteed volumes for the supplier and stable pricing for Heineken.
3. Global and Local Sourcing: To balance efficiency and resilience,
Heineken might employ a combination of global and local sourcing
strategies. This approach allows the company to optimize costs while
also supporting local economies and reducing the carbon footprint
associated with transportation
Appendices
4. Quality Assurance: Ensuring the quality of inputs is critical for maintaining the
brand's reputation. Heineken likely has stringent quality control measures in place
for vetting suppliers and conducting regular audits to ensure compliance with its
quality standards.
5. Innovation in Procurement: Heineken is known for its focus on innovation, not
just in product development but also in its operations. The company may leverage
technology and data analytics to optimize its procurement processes, enhance
supply chain visibility, and improve decision-making.
6. Risk Management: Effective risk management is likely a key component of
Heineken's procurement strategy. This involves diversifying the supplier base to
mitigate risks associated with supply chain disruptions, geopolitical tensions, and
price volatility of raw materials.
7. Ethical and Responsible Sourcing: Heineken has made commitments to social
responsibility and ethical business practices. This includes ensuring that its
suppliers adhere to fair labour practices, human rights standards, and ethical
business conduct.
46
 Value Chain – Technology Development
• Connected Brewery Program: Heineken initiated the "Connected Brewery" program aimed
at retrofitting its breweries with digital capabilities to support brewers in their complex tasks
and unlock value through insights generated from vast amounts of data. This involves
connecting brewery employees to equipment via a unique company-owned data layer for
smarter operations. As of 2021, over 115 sites were using connected apps like One2Improve,
which assists brewery employees by offering solutions generated by an intelligent diagnostic
tool that aggregates knowledge from company breweries worldwide. The company aimed to
connect all 115 sites by 2025​​.
• Investment in Analytics and AI: The company invested in analytics solutions, data, machine
learning, and artificial intelligence to make smart business decisions across the value chain.
Machine learning models supported revenue and margin growth in 24 operating companies
by helping analyse the impact of promotions, recommending strategic improvements, and
estimating product cannibalization. Analytic models included promotion optimization, churn
prediction, and spend analysis, enabling cost savings and revenue generation​​.
• Digital Route-to-Consumer: In response to changing consumer
behaviours during lockdowns, Heineken has accelerated its digital
capabilities and scaled its e-commerce business. Investments have
been directed towards Heineken’s eD2C (Direct to Consumer)
platforms, including Beerwulf in Europe and GLUP in Mexico, to
strengthen digital sales channels and offer quick delivery services​​.
• Digital CORE Program: Initiated preparations for the Digital CORE
program, which aims to migrate all operating companies to a lean
and modern ERP system, enhancing data integration, scalability,
and access. This program builds on previous initiatives like BASE
and SHARP-X programs, aiming to replace all of Heineken's ERP
systems by the end of 2027

• IT Streamlining and Cloud Migration: Heineken continued to streamline and rationalize its IT
by moving applications to the cloud and consolidating its ERP systems. This involved the
rollout of its BASE program, which made the organization more agile and efficient by
standardizing core business processes in finance, procurement, production, logistics, and
sales. The SHARP-X program simplified and harmonized finance processes, making the
finance function more efficient and value-focused. Preparations began for the Digital CORE
program, aiming to migrate all operating companies to a lean, modern ERP system for
greater data accessibility, speed, and scalability

INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION

47
 Value Chain – HR Management

• The final pillar focused on unlocking the full potential of HEINEKEN’s

employees by investing in talent and skill-building. The company took
pride in its people-centric culture, and management believed that
investing in the best talent and the right skills was crucial for future-
proofing HEINEKEN. Van den Brink and his team saw a clear opportunity
for the company to drive bold and agile decision making, along with
continuous learning and greater inclusion and diversity

INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION

48
 Value Chain – Firm Infrastructure
1.Digital Transformation for Connectivity: Heineken aimed to
become the world's most connected brewer by digitalizing its
business from end to end, focusing on customers, consumers,
and colleagues. This strategy involved significant investments
to transform the company's value chain, enhancing the digital
experience across all touchpoints and modernizing IT
infrastructure​​.
2.Talent and Skill Development: A critical aspect of
Heineken's infrastructure was its focus on unlocking the full
potential of its employees through investments in talent and
skill-building. The company prioritized a people-centric
culture, aiming for bold and agile decision-making, continuous
learning, and greater inclusion and diversity​​.
4. Sustainability and Responsibility: The company's commitment to
sustainability was evident in its "Brew a Better World" program, which set
ambitious commitments for environmental impact, social sustainability, and
responsible alcohol consumption. Heineken aimed for a positive impact on
the environment and promoted moderation and responsible choices around
alcohol consumption​​.
5. Strategic Priorities for Long-term Value: Heineken's "EverGreen" strategy
was built around five strategic priorities: shaping the future of beer and
beyond, funding growth, enhancing sustainability, becoming a digitally
connected brewer, and unlocking employee potential. These priorities were
designed to deliver long-term value creation through a balanced approach to
growth, profitability, capital efficiency, and sustainability​

3.Productivity and Cost-Conscious Culture: Heineken stressed

the importance of funding growth through continuous
productivity improvements and cultivating a cost-conscious
company culture. Simplifying and rightsizing the cost base,
along with instilling a company-wide cost-cutting mentality,
were seen as essential for supporting growth ambitions and
restoring profitability

INTRODUCTION ANALYSIS ISSUES RECOMMENDATIONS CONCLUSION

49