Heineken Marketing and Business Analysis

Heineken Marketing and Business Analysis Jump to: SWOT Analysis of Heineken | Porters 5 Analysis of Heineken | Heinekens Main Competitors Heading the Heineken Group, Heineken Holding N.V. is no ordinary holding company. Since its formation in 1952, the objective of Heineken Holding N.V., pursuant to its Articles of Association has been to manage and/ or supervise the Heineken Group and to provide services to the Heineken Group. The role Heineken Holding N.V. has performed for the Heineken Group since 1952 has been to safeguard its continuity, independence and stability and create conditions for controlled, steady growth of the activities of the Heineken Group. This stability has enabled the Heineken Group to rise to its present position as the brewer with the widest international presence and one of the worlds largest brewing groups. Every Heineken N.V. share held by Heineken Holding N.V. is matched by one share issued by Heineken Holding N.V. The net asset value of one Heineken Holding N.V. share is therefore identical to the net asset value of one Heineken N.V. share. The dividend payable on the two shares is also id entical. Historically, however, Heineken Holding N.V. shares have traded at a lower price due to technical factors that are market-specifi c. Heineken Holding N.V. holds 50.005 per cent of the Heineken N.V. issued shares. LArche Green N.V. holds 58.78 per cent of the Heineken Holding N.V. shares. The Heineken family holds 88.42 per cent of LArche Green N.V. The remaining 11.58 per cent of LArche Green N.V. is held by the Hoyer family. Mrs. De Carvalho-Heineken also owns a direct 0.03 per cent stake in Heineken Holding N.V. Bondholder information On 4 November 2003, Heineken N.V. issued two bonds for a total of EUR 1.1 billion. In addition, on 26 February 2009 Heineken placed six year Notes of GBP400 million (EUR 450 million) with a coupon of 7.25 per cent, on 25 March 2009 fi ve year Notes of EUR 1 billion with a coupon of 7.125 percent and on 1 October 2009 seven year Notes of EUR 400 million with a coupon of 4.625 per cent. These Notes were issued under the European Medium Term Note Programme established in 2008 and updated in September 2009. The European Medium Term Note programme allows Heineken N.V. from time to time to issue Notes for a total amount of up to EUR 3 billion. As currently approximately EUR 1.9 billion is outstanding, Heineken still has capacity of EUR 1.1 million under the programme. The programme can be used for issuing up to one year after its establishment. The Luxembourg Stock Exchange has approved the programme. Risk Management and Control Process Main risks Under the explicit understanding that this is not an exhaustive list, Heinekens main risks are described below, including the mitigation measures. Risks concerning the Heineken brand and Company reputation, economic downturn, volatility of input costs, exchange and interest rates, availability and cost of capital and increasing legislation (such as alcohol excise duties and anti-trust) affecting the business are considered the most significant risks. The main Company risks have been discussed with the full Supervisory Board. Attractiveness of beer category under pressure Heineken has many operations in mature beer markets where the attractiveness of the beer category is being challenged by other beverage categories. Consumers may also change behaviour following the rise of discount brands and retailers following the recession. In these markets, especially, the on-trade channel is under pressure, which makes adjustments to the cost base unavoidable. Heineken is relatively highly geared to mature markets since their acquisition of Scottish Newcastle. Management focus is on product innovation, portfolio management and costeffectiveness in order to secure market position and profitability. Pressure on alcohol An increasingly negative perception in society towards alcohol and more specifically alcohol abuse could prompt legislators to take restrictive measures including restrictions, on such things as commercial freedom and increased government tax. This perception is fed by critical coverage in the media. Further restrictions of our commercial freedom to promote and sell our products could lead to a decrease in brand equity and potentially in sales and damage the industry in general. Heineken actively participates in the EU Forum on Alcohol and Health and delivered its commitments in the area of consumer information, alcohol consumption at the workplace and commercial communication. In 2009, Heineken continued to work on establishing effective self-regulation in the EU together with the Brewers of Europe. Volatility of input costs Pricing strategies are top priority in all of our markets. This includes assessments of customer, consumer and competitor responses based on different pricing scenarios, which will have different outcomes market by market. In principle, we will pass on increased input costs impacting volume. During the second half of 2008, commodity markets rapidly declined following the world economic climate and remained depressed for most of 2009. In addition, the run of several years poor harvests in key grain and hop markets has reversed and world grain stocks are recovering. Economic downturn The economic crisis has impacted our regular business activities and performance, in particular in consumer spending and solvency. However, the business impact differed across our regions and operations. Local management has assessed the risk exposure following Group instructions and is taking action to mitigate any higher than usual risks. Intensified and continuous focus is being given in the areas of customers (managing trade receivables and loans) and suppliers (financial position of critical suppliers). Also, management attention is given to our relationships with banks (see capital availability risk) and insurance companies (credit worthiness (re)insurance companies). Regional Management and involved Group functions oversee the effectiveness of management analysis and action, supported by input from Internal Auditors. Financial risks Currency risk Heineken operates internationally and reports in euros, which has proven to be a very strong currency over the past few years. Currency fluctuations, relating to the US dollar, South African rand, Polish zloty and, to a lesser extent, the British pound could materially affect overall Company results, considering the size of exports from the eurozone to mainly the USA and South Africa. Heineken has a clear policy on hedging transactional exchange risks, which postpones the impact on financial results. Translation exchange risks are hedged to a limited extent. In 2009, operating results of Operating Companies in countries with currencies that devaluated versus the euro are translated into euro at lower rates. Since the Group attracts funding and pays interest in these currencies as well, the impact of devaluations of such currencies like the Russian rouble, British pound and Polish zloty on our results is mitigated to a certain extent. In addition, Heineken strengthened its risk manage ment regarding the monitoring and managing of currency and interest positions. Capital availability The Company has a strong focus on cash generation to reduce its debt levels and to improve its financing ratios. The Company has a clear focus on ensuring sufficient access to capital markets to refinance maturing debt obligations and to finance long-term growth. The Company aims to further fine-tune the maturity profile of its long-term debts. Financing strategies are under continuous evaluation. Terms and conditions of additional refinancing may be impacted by the changing credit market conditions. Strong cost and cash management and strong controls over investment proposals are in place to ensure effective and efficient allocation of financial resources. Litigation Due to increasing legislation there is an increased possibility of non-compliance. Additionally, more supervision by regulators and the growing claim culture may potentially increase the impact of non-compliance, both financially and on the reputation of the Company. Each half year, all majority-owned companies formally report outstanding claims and litigations against the Company in excess of EUR 1 million to Group Legal Affairs, including an assessment of the amounts to be provided for. There may be current risks that do not have a significant impact on the business but which could at a later stage develop into a material impact on the Companys business. The Companys risk management systems are focused on timely discovery of such risks.   SWOT Analysis (S)trengths Heineken has very different brands in thirteen markets. It is a global brand and established itself in international strategy The company have purchased a lot of national breweries. There is Recognition of bottle (Green bottle) dispenses and different  instruments such as (Mini keg) (W)eaknesses Heineken has a conservative and safe play culture. The company had  struggled to obtain larger Breweries. Young Beer drinkers dont prefer Heineken Prices are costly when compared to domestic market such as $10 would  be for six packs and in the domestic market it is $7 for six packs. (T)hreats Government restriction to drunken driving laws. High competition in the beer industry to increase the market share. Joint ventures and acquisition of other companies which tend to become  larger than Heineken. (O)pportunities The trends of the society changing to consumption of healthy beer with  low calories. In Asia and Russian there is increase in population which the company is  having high market share. In the U.S industry a particular segment the Hispanic are growing  tremendously Porters Five Forces of Competition Threat of substitutes: Very little technical composition of beers The growing segment of wine industry Threats of new Entry: An investment amount of $250 million dollars to build 4 million barrel brewery There is risky entry since there is no alternative use of breweries Top positions have not been cracked by new entrants Bargaining power of buyers No true brand loyal to any particular brand The Demand for the major competitor brand Budweiser is Inelastic Bargaining power of suppliers There were fewer amounts of Brewers and larger plants. High cost of production due to rise in price of products such as grains glass and  aluminium. There were many number of buying supplier of input (Wheat field). Rivalry Between established competitors During 1947 Heineken established itself in top 5 acquired 19% of the market in  U.S. During 2001 Heineken was included in top 5 and generated 87% of the U.S  market share. The beer industry is very highly competitive industry due to this reason many  brewers leave the industry. Main Competitors for Heineken Anheuser-Busch, Inc. Anheuser-Busch, Inc.is 100 percent owned by the holding company Anheuser-Busch Companies, Inc. The company mostly focuses on domestic beer sales, 75% of its total revenue, 4% from international beer sales, 15% from packaging, and 6% fromentertainment. Corporate level strategy At the corporate level, Anheuser-Busch pursues the dominant vertical business strategy. All ratios (specialization, related and vertical) are well above 70%. The company focuses mainly, but not exclusively, on beer production and is heavily vertically integrated, which sets it apart from most of its main competitors. Value Drivers Anheuser-Busch ranked first in the category quality of products and services. The company also won the first rank in the overall category Beverage Industry. Strength challenges and weakness Anheuser-Busch derives most of its market strength from its overwhelming scale and scope economies. The king of beers uniquely transforms this strength into several unrivalled competitive advantages, including cost efficiencies, exclusive relationships with many of its wholesalers, a dominant presence at the retail level, advertising efficiency and pricing power. A-B is growth limited because the company is operating above 95% production capacity, which already presents seasonal challenges. The overwhelming success of the past decades could potentially lead to complacency among ABs employees and distributors. SAB MILLER PLC SABMiller has brewing operations in more than 40 countries spanning four continents. The company is the second largest brewer in the world by volume and one of the largest Coca- Cola bottlers and distributors of Cokes carbonated soft drinks outside the U.S.79 The primary brands in the U.S. markets are Miller Genuine Draft, Miller Lite, Fosters and Pilsner Urquell, and Henry Weinhards and Leinenkugels. Other U.S. brands include Icehouse, Old English 800, High Life, Milwaukees Best, Mickeys Malt Liquor and a non-alcoholic beer called Sharps. Corporate Level Strategy The SABMiller corporate level strategy is a dominant linked  corporations strategy. The stated corporate level strategy is to optimize and expand its existing positions through acquisition and to seek value-adding opportunities to enhance its position as a global brewer. SABMiller business level strategy is to serve the mass markets for beer and soft drinks with broad differentiation as perceived by consumers. Value Drivers A primary value driver of SABMiller is its brand recognition. The Miller Genuine Draft  and Miller Light brands, for example, have a long established brand equity that drives their  respective sales. Strength and weakness SABMiller has strong brand leadership and it continues to develop new brands through partnerships. The strategy of diversification across currencies and geography makes the company relatively immune to regional changes in beer consumption, tastes, growth trends, and currency fluctuations. The Miller Brewing acquisition required significant management attention and a large investment on the part of SABMiller that will continue to affect profitability over the next two to three years. Coors Aldoph Coors Company was founded in 1872. Coors was family owned until 1975 when  the company first became public. The Coors family continues to be involved in the company  with nine of its members working for the firm.95 All of Coors brewing and packing facilities are currently U.S. based, having divested a brewery in Zaragoza, Spain in 2000.96 Its largest facility, in Golden Colorado, has the ability to produce 20 million barrels of beer in a year and is considered the largest brewing facility in the world. Corporate Level Strategies Coors current corporate strategies focus on improving  operational efficiencies and expansion through acquisition. Coors seeks to grow its markets  regionally. This is evident through its Carling acquisition and its current regional appeal in the U.S. All of Coors revenues come from the sale and distribution of beer and malt beverages. Value Drivers Coors is improving its brewing operations by investing in supply chain management systems, joint ventures with packaging companies and plant upgrades. Strength and weakness Coors has never wavered in its dedication to maintain their access-based position in the market. Its success has been attributed to latching onto a market trend toward health conscious consumers and developing and executing a focused strategy. The companys weakness is in establishing the correct cost basis for their strategy. Coors has the highest COGS per barrel compared to its peers. Further growth may be limited unless the  company seeks global expansion. As of today, Coors is not participating in the fastest growing global geography, China. CORONA AND LABATT Corona beer, a brand of Grupo Modelo de Mexico, and Labatt, a brand of Labatt USA,  are the major competitors to Heineken. In addition to the individual brands of Corona,  Grupo Modelo also owns Pacifico and Modelo Especial. Labatt USA has strong brands with  additional products such as Rolling Rock, and is the distributor of Tecate and Dos Equis. Both companies participated in the beer industry consolidation. Anheuser Busch has increased ownership of Grupo Modelo to 51% after an initial investment of 13% in 1993. Corporate level Strategies The corporate level strategy of Labatt USA is dominant  linked, serving various niche markets throughout the country. Labatts large portfolio of  specialty beers serves different niche markets with widely divergent geographic strengths. Grupo Modelo pursues a dominant linked strategy, however its limited brands serve only  smaller niche group. Both companies focus on the specialty beer market by controlling  manufacturing and distribution channels through vertical integration. Business level strategies. Labatt USAs and Grupo Modelos business strategies are  product differentiation. Both companies emphasize the quality of their products and their  abilities to satisfy customers. Value Drivers The primary value driver for Grupo Modelo and Labatt is their individual brand equity. Corona has been a staple in Mexico since the early 1900s. Many of the brands in Labatt USAs stable, such as Bass and Lowenbrau have been around for centuries. Since Grupo Modelo focuses on only 5 brands with huge production volume, it is able to  exploit manufacturing and production scale and scope economies as cost drivers. Strength and weakness Labatt and Grupo Modelo enjoy strong brand leadership, while Labatt has additional advantages due to its relationship with Interbrew and FEMSA that allows brand  expansion. Regression Analysis Heineken NV Heineken Holding NV Anheuser-Busch InBev Carlsberg A/S Group Modelo SAB de CV SAB Miller PLC Molson Coors Brewing Co.

Lil Red Riding Hoodlum:twisted Fairy Tale Essay examples -- essays res

Little Red Riding Hoodlum   Ã‚  Ã‚  Ã‚  Ã‚  There is a teenager named little red riding hoodlum. If this girl sounds familiar, you guessed it right. She was formerly known as Little Red Riding Hood, until she turned to the life of crime. Right now she is paying for the trauma the wolf caused her. She is now in Utah State Youth Rehabilitation Center. I’ll tell you the part of the story they left out at the end that made it a fairy tale.   Ã‚  Ã‚  Ã‚  Ã‚  After the woodcutter killed the wolf, the wolf’s brother was furious, so he killed the rest of Li’l Red’s family. Luckily, the woodcutter was near the house where Li’l Red and her family lived in, so he ran over with his shotgun, and, when the wolf was running away, he shot him in the back of the head. The woodcutter took Li’l Red to live with him.   Ã‚  Ã‚  Ã‚  Ã‚  A couple of years after Li’l Red’s incident, she started to show signs of traumatization. These signs that she showed were of criminal behavior. She turned rebellious and turned into a criminal. She would shoplift, commit grand auto theft, and other illegal activities. She liked to crash the cars that she had stolen. Soon, her friends started doing the same thing. Her friends looked up to her and thought she was cool for doing criminal things and not getting caught. After she turned to the life of crime, she started thinking she was a bad little chola. After a while, she started getting bored with the usual car theft or shoplif...

Baroque and Classicism

The Baroque style in art that flourished in the seventeenth century is characterized by â€Å"intense emotions, monumental decors, and even a kind of artistic sensationalism (Hunt, Martin and Rosenstein 473). † It is a movement that was heavily embellished and very complex, primarily because it wanted to evoke a strong sense of emotion from the viewer. The artists who subscribed to this particular movement â€Å"embraced dynamism, theatricality, and elaborate ornamentation, all used to spectacular effect, often on a grandiose scale (Klein 649). The term itself is believed to have come room the Portuguese word barroom, which referred to an irregularly shaped pearl. It somewhat fitting, as baroque sculptures, particularly, have many complex textures as part of their ornamentation. A prime example of the baroque style in sculpture is the work of Italian sculptor Giant Lorenz Bernie, Ecstasy of SST. Teresa of Г?vial. The sculpture is distinctly baroque, first in terms of its form. Looking at the sculpture, it is easy to see how diverse the visual textures are in Bering's work. The large, thick folds of the clothing of SST.Teresa contrasts with the lighter, thinner texture of the clothing of the angel piercing her with an arrow. These textures are also clearly discernible and different from the smoky texture of the cloud below, the smooth, porcelain-like skin of both SST. Teresa and the angel, and the ordered rays representing God behind the primary figures. This diversity in textures is a manifestation of the baroque style's obsession with ornamentation, as the complexity it creates is almost overwhelming to the viewer. Another aspect of Bering's work that exemplifies the baroque is its whitetail presentation of emotion.The choice of the subject matter is already lends itself to such theatricality, since the sculpture is depicting the SST. Teresa in one of her trances after her conversion to Catholicism after the death of her father, which she describes as being caused by â€Å"the fire-tipped arrow of divine love that an angel had thrust repeatedly into her heart (Klein 654). † The emotion on her face as rendered by Bernie is one of an almost sexual climax, on display for everyone to see. This equation of an orgasmic, painful pleasure is a means to let the viewer understand on hysterical terms the transcendent experience of the divine.Only the baroque style, with its emphasis on emotion can capture and manifest such a state. Classicism is an art movement that was also popular during the seventeenth century, but more so in France, compared to the primacy of the baroque in Italy. It was espoused by the French king, Louis XIV as the preferred style for French artists. Classicism reflected the ideals of the art of antiquity: â€Å"geometric shapes, order, and harmony of lines took precedence over the sensuous, exuberant, and emotional forms of the baroque Hunt, Martin and Rosenstein 510). It recalls the classical period, whic h in the arts refers to the traditions of the Greeks and the Romans. There is a stronger emphasis on symmetry and straight lines in classicism, which embody the order and reason prized among artists that subscribe to this movement. The work by French artist Nicholas Poisson, Discovery of Achilles on Gyros, is an excellent example of classicism. Looking at the forms in the painting, it is easy to see how ordered everything is. There is a dominance of straight lines, not only in the classical architecture depicted behind Achilles and his sword, but also in the poses assumed by the figures.The arms of the women are carefully positioned to create straight lines. The use of color is also very harmonious and ordered, as Poisson uses complementary colors of blue and orange to make the clothing pop out. The skin tone of the all the women are also clearly fairer than that of the men, so as to make the viewer clearly recognize differences in gender. There is a distinct lack of emotion in the painting, as the facial expressions of the figures are very stoic and subdued.

The Woman Behind the New Deal - 813 Words

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