Strategic Marketing Plan Angostura LTD Related Company essay

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strategic marketing plan ANGOSTURA LTD related company ( alcohol related). identifing incorporating marketing objective. Use format: SITUATIONAL ANALYSIS -Introduction -Company background -Vision -Mission (analyse) -Corporate objectives (financial & financial) -Portfolio analysis BCG show SBU -For SBU selected state critical success factors, unique resources & core competences give a competitive advantage INDUSTRY & ENVIRONMENT ANALYSIS -pestle implications -SPICC a table -7S's a table -7P's a table -Key drivers change -sector trends COMPETITOR ANALYSIS -Porters forces -Identify major competitors, analyse including strategies -Customer analysis competitor -Portfolio analysis competitor -Company's SWOT -Two major competitor's SWOT PRODUCT / MARKET FOCUS -Marketing & Product Objectives, SMART objectives -Target Market -Segmentation -differentiation -positioning MARKETING PROGRAMME -Include marketing mix, financial data projections (past current sales revenue 3-year forcast (budget) showing sales, gross operating profit) -Option Ansoff growth strategy (choice & ) 2 strategies needed, market penetration objective -Promotional Gantt chart -Assumptions & Contengencies -Control.

Strategic marketing plan for Heineken International

1. Situational analysis

1.1. Introduction

In the context of the internationalized economic crisis, the investors often come to place more emphasis on alcohol beverages manufacturers, since these tend to remain consistent in sales and demand registered by the public. Still, the downside to investing in this industry sector is represented by the fact that the industry is rather mature, with limited opportunities for growth and development (Dukcevich, 2001).

In the case of Heineken International however, the company still has the ability to further expand within other markets, namely the emergent economies in Asia, Latin America or India (Clark, 2011). The organization's presence in these regions is currently decreased, yet an increase can be supported by the raising consumer power in these regions. In such a setting, it is now useful to assess this new opportunity for development within the emergent markets.

1.2. Company background

Heineken International was established in 1864 in Amsterdam, the initial brewery having since then been transformed into a museum. Heineken today employs over 60,000 individuals worldwide and is the third largest brewing company after Anheuser-Busch InBev and SABMiller.

Currently, Heineken International remains headquartered in the Netherlands, and conducts most of its brewing in the Zoeterwoude, 's-Hertogenbosch and Wijlre breweries. Throughout the past recent years, despite the economic downturn, Heineken International has been registering increasing revenues (ascendant path from 11,245 million euros in 2007 to 17,123 million euros in 2011); its net profitability however slightly decreased in 2011 relative to 2010, from 1,447 million euros to 1,430 million euros (Website of Heineken International, 2011).

1.3. Mission and vision

The mission and vision at Heineken International revolve around transparency and communication and they refer to the attainment of the business objectives through the satisfaction of the needs and wants of the various stakeholder categories.

"Heineken's core values -- respect, enjoyment and a passion for quality -- help define our corporate culture and working methods. They are fundamental to the way in which we do business today; they support our drive towards economic, environmental and social sustainability. These three dimensions are strategically important for the long-term success of Heineken" (Website of the Heineken International Website, 2012).

1.4. Corporate objectives

The overall objective of Heineken International is that of "winning in all markets with Heineken® and with a full brand portfolio in markets where we choose" (Website of Heineken International, 2012). In order to attain this great objective, the company emphasizes on accomplishing the following five smaller goals:

Increasing the Heineken brand

The creation of leadership through customer inspired decisions, orientation on the customers and brand leadership

The capturing of the opportunities within the emerging markets

Leveraging the benefits of Heineken at the global scale, and last

Driving personal leadership (Website of Heineken International, 2012).

1.5. Portfolio analysis

Heineken International currently produces and sells over 170 beer products, making a portfolio analysis rather difficult to conduct. In such a setting then, the BCG matrix would best be comprised of the portfolio investments, rather than the actual product categories.


Asia Pacific

Question marks





United States

The Asia Pacific region is an emergent economy, where people are beginning to sense an increase in their purchase power and their demand levels also increase. In such a setting, Heineken could register increases if it focused on the SBU of development in Asia. Within Europe, the revenues of Heineken are rather stable as the market place is stable and mature; there are limited opportunities for growth in this area, but it does reveal the main advantage of requiring little new investments and generating stable and sustainable revenues.

The question mark investments are represented by African endeavors, which could either succeed or fail. The African market place could, at this point, respond to the organizational efforts either in a positive, or in a negative manner. Last, the dog portfolio investments are present within the United States of America, where the market is also stable and secure, and the prospects for further development are limited. Normally, the dog investments would be considered for divestiture (Net MBA, 2010).

1.6. Analysis of the strategic business unit

Heineken International has first launched operations in Asia Pacific over seven decades ago, and since then, it has strived to further expand and consolidate its position within the region. The strategies within this business unit have included gradual acquisitions of local breweries, as well as marketing efforts to promote the company's brand and products. The organization has entered joint ventures with Fraser and Neave within the Asia Pacific and the Pacific Islands, and has also entered a joint venture with United Breweries Limited in India. Additionally, increased emphasis has also fallen on the export and licensing of items in Asia Pacific (Website of Heineken International, 2012).

At a financial level, the operations in the Asia Pacific region have been following an ascendant trend, despite the decrease in the corporation's overall profitability. In 2011 relative to 2010 for instance, the beer volume increased by 8.9 per cent and the regional operating profit margin increased from 22.1 per cent to 29.9 per cent (Website of Heineken International, 2012).

2. Industry and environment analysis

2.1. PESTLE implications

Given that it operates within the global market place, Heineken International is directly impacted by the general state of the economy. More specifically, the internationalized economic crisis has shown its impacts on the company by generating a decrease it is 2011 profitability. Still, at the economic level, it must also be noted that the company is influenced by the different stages of economic development in the regions in which it operates. In the United States and Europe for instance, where the economies are developed and mature, the growth opportunities are decreased; in Asia however, where the economies are emergent, Heineken International is presented with more opportunities for growth and development.

Still, Heineken International is severely impacted by other features in the external environment. At the political level for instance, the Dutch brewery is impacted by the vast taxation implemented by governments on the alcoholic beverages (Oliver and Colicchio, 2011). Then, at the social level, it is impacted by changes in the beer consumption patters, such as the preference for beer over wine (and vice versa), as well as the increasing rate of beer consumption among women (Moore, 2009).

At the technological level, the implications include the rapidly evolving technology, which allows the company opportunities to improve productivity and efficiency, but also further increases competition and resource consumption. At the legal level, implications arise from the international feature of the business, forcing Heineken International to comply with the laws and regulations issued by multiple parties. Finally, at the ecologic level, implications are observed in the increasing pressure towards environmental responsibility, such as demands for lower pollution levels.

2.2. SPICC

1. Suppliers

Various and the supplier strategy is that of cooperation and mutually beneficial development; the company has devised a Heineken Supplier Code (Website of Heineken International, 2012)

2. Publics

Globe wide and is interested in not just the products, but also the strategic endeavors

3. Intermediaries

The company brews its own beverages, yet it uses intermediaries for retail in the various markets and also for marketing operations (Lamb, Hair and McDaniel, 2008)

4. Customers and markets

Belonging to various demographic groups

European market is the most powerful, while the Asian market is the most promising in the future

5. Competition

Mostly from industry leaders Anheuser-Busch InBev and SABMiller; local breweries pose little competition

2.3. The 7 S's

1. Strategy

Going green, meaning the operation in a more environmentally responsible manner, through three strategic commitments

Continuously improving the Heineken brand and business impact on the environment

Empowering the Heineken employees and the communities in which the firm operates, and last

- Increasing the positive role of beer within the society (Website of Heineken International, 2012)

2. Structure

Complex and multileveled, organized around a vertical integration of the command chains (See chart below the table)

3. Staff

64,252 employees worldwide (Website of Heineken International, 2012)

The company strives to integrate the employees in the attainment of the business objectives and the emphasis…[continue]

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