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Heineken (Background information asdfsdf4567 (:beer: Gerrard Adriaan…
Heineken
Background information
:beer: Gerrard Adriaan Heineken bought the first brewery in Amsterdam on the 15th February 1864. Heineken started off with brews such as Ale, Old Brown and Porter and developed to brew lager by the 19th centuries as Bavarian lagers was very much in trend back then.
:world_map: Today, Heineken has operations in over 70 markets globally, which makes it the world's most international brewer.
Heineken is now the number one brewer in Europe and the number two brewer in the world.
:red_flag: Heineken Vietnam Brewery which was established by Heineken Asia Pacific is in charge of Vietnam's production of Heineken.
Mode of Entry
Foreign Direct Investments - can be a new-build, or the company might acquire a current business that has suitable plant etc. Heineken wants to purchase a plant from Carlsberg at the southern part of Vietnam, in eye to expansion.
Expansion in Southern Vietnam
Plans to push expansion into northern Vietnam, to enlarge it's :footprints:
Environmental factors
Controllable
4P'S
:money_with_wings: Price - Premium pricing strategy is used as Heineken markets itself as a high quality brand with drinks priced at (20,000-25,000 dong) which is equivalent to 2-3USD
:pushpin: Place- Heineken has an international presence in estimated 170 countries which has made its products and brews easily available in thirty-four countries throughout the globe. In Vietnam, Heineken has four breweries and distributes its products in clubs, bars, and supermarts
:beer_mugs: Product - Heineken beer, Tiger Beer, Laure beer,BGI, Bivina, Desperados, Affligem and Strongbow ciders
Uncontrollable
Economic
:chart_with_upwards_trend: Growth in GDP, manufacturing and export industries growing, maintained stability in macroeconomics, low inflation rates. Heineken able to maintain sales as a result.
Social
:baby::skin-tone-3: Increasing young population that are attracted to the western culture, heightened literacy rate, more educated and healthier society. A society where beer drinking is evolving into a culture
Reccomendations
1) Younger population in Vietnam are more attracted to westernized culture, and hence may follow their lifestyle trend of healthy lifestyle/ going vegan. Hence Heineken should revise it's product line to meet the changes or potential changes in consumer lifestyle.
Can come with environmentally friendly-packaging / vegan and healthier beers with lower alcohol
levels.
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2) Delivery apps have attained mass popularity in Vietnam Hence Heineken should go e-commerce by :handshake: with famous restaurants in delivery apps.
As a result, Heineken :beer: is available as a drink option when people place food their orders via delivery apps. Leads to :chart_with_upwards_trend: of brand loyalty amongst consumers and increased sales
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