Heineken US Marketing Audit Essay Example
Heineken US Marketing Audit Essay Example

Heineken US Marketing Audit Essay Example

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  • Pages: 6 (1565 words)
  • Published: March 26, 2018
  • Type: Case Study
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The majority of beer consumed in the US is by men, accounting for about 80% of consumption. Most male beer drinkers are white and have a preference for domestic light or draft beer. Approximately 67% of men admit to drinking alcohol, with an average weekly intake of 6.2 drinks. Men between the ages of 18-49 consume the highest amount of beer. In terms of beverage choices, around 55% of men usually opt for beer, followed by liquor at 21%, and wine at 20%.

On the other hand, about 64% of women state that they drink alcohol, with an average intake of two drinks per week. Women predominantly favor wine as their most commonly consumed alcoholic beverage, with over half (52%) expressing this preference. Approximately one-fifth (20%) prefer either liquor or beer. Among female consumers, light beer is quite popular. Unlike men, women tend to lean towards

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specialty microbrewery beers rather than well-known brands due to the wider variety available.

In terms of different age groups, Baby Boomers (born between 1945-1964), who constitute a population size of roughly 78 million people, are now surpassing their prime drinking age.

Generation X refers to a cohort of people, numbering 69 million, who were born between 1965 and 1984. This group currently represents the primary age range for consuming alcoholic beverages but will eventually transition from this phase.

The generation referred to as Generation Y consists of 79.5 million individuals born from 1985 to 2004. Beer companies are directing their marketing towards this age group as they will soon become the main consumers of beer. The Midwest is the leading region in alcohol consumption, holding a 47% market share, while

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the East favors wine and accounts for 44% of alcohol consumption.

The states that consumed the greatest amount of beer in 2012 were:

  1. New Hampshire
  2. North Dakota
  3. Montana
  4. South Dakota
  5. Nevada

Heinlein Aqua's recent advertisements have a main focus on men, with an emphasis on cultivating a "man of the world" image. The objective of these ads is to present a modern and progressive man who is sophisticated and capable in any situation. It is worth mentioning that Heinlein has had a longstanding 15-year collaboration with the James Bond franchise.

Heinlein's involvement spans the past six James Bond films, and in the recent Safely movie Bond is depicted holding a green Heinlein bottle on the beach, opting for it over a martini. This partnership not only appeals to men but also transcends generations, including Baby Boomers, Generation X, and Generation Y. While there is no specific geographic targeting, Heinlein aims to position itself as a beer consumed by those who enjoy traveling and exploration. Advertisements often feature prominent cities worldwide.

In March 2013, the "DJÃ iv" ad was released, featuring a man's expedition across different cities such as Ho Chi Mini City in Vietnam, Lagos in Nigeria, and ultimately New York City. Along the way, he manages to obtain the Heinlein Star Bottle. While the wine and spirits sector in the United States faces economic challenges, the beer industry emerges as a prominent and respected field. According to US Federal Excise Tax regulations, a tax rate of $18 is applied per standard 31-gallon barrel of beer.

The brewing industry in

the US pays a total of $3.5 billion in Federal Excise Taxes and approximately $1.7 billion in State Excise Taxes per year, with these costs being passed on to consumers. Additionally, the industry contributes over $44 billion in personal and consumption taxes, including $5.3 billion in excise taxes and $5.8 billion in sales, gross receipts, and other taxes. In terms of employment, the US brewing sector directly and indirectly employs 1.8 million Americans who receive a combined total of $71 billion in wages and benefits. Over the past five decades, there has been a significant decrease in the relative cost of beer.

According to the Consumer Price Index, the average price of beer has decreased by over 25%. Whininess's US sales dropped by nearly 11% in 2009 due to a difficult economic climate for pricey imports. AdAge also attributes this decline to an insufficient and inconsistent marketing plan. To address this issue, Heinlein has adopted a new strategy aiming to establish the company as a significant player in the premium beer market. This particular sector saw a growth rate of 1% in 2011.

In the upscale segment, customers are willing to buy a Heinlein beer not only for its taste but also to be a part of the brand experience. The US beer industry has been actively involved in protecting the environment and supporting the green movement for sustainability. Over 30 percent of the materials used to produce new bottles in the beer industry are made from recycled glass. In 2006, the Enhancers-Busch Recycling Corporation recycled over 800 million pounds, which is equivalent to 27 billion cans.

The beer industry acknowledges the significance of recycling

and preserving paper products in packaging. Packaging cartons include around 42% recycled cardboard. Several breweries have adopted methods to recover and treat wastewater generated during brewing while also utilizing alternative energy sources to minimize carbon dioxide and air emissions for electricity and heat production. As part of its ambition to be the greenest international brewer, Heinlein has six strategic initiatives, one of them being 'Green'.

Two breweries, 'Brewer' and 'Green Commerce,' are dedicated to improving Whininess' environmental impact. They operate five major offices, which are Energy Star buildings and promote sustainability. These companies have also implemented significant changes throughout their supply chain to minimize any harmful environmental effects. Moreover, they have invested in their employees by providing education and programs related to 'Brewing a Better Future.' Additionally, there are several brewers in the US, along with international companies that import their beer for consumers to enjoy.

The process of brewing is an ongoing effort to supply fresh and delicious drinks for beer enthusiasts. It involves eight steps: Malting, Milling, Mashing, Brewing, Cooling, Fermentation, Maturation, and Finishing. In terms of sales figures, the top importers of beer are ranked as follows: 1) Corona Extra (418.80 million), 2) Heinlein (273.3 million), and 3) Corona Light (129.10 million). In the US market, the best-selling beers are Bud-Light, Budweiser, and Coors Light. Whininess has been naturally brewing its beverages since 1873.

Whininess attributes its success to the use of high-quality ingredients and a meticulous brewing process. They aim to educate the public about Heinlein's long-standing excellence, spanning over 150 years, while also embracing Amsterdam's beer culture and emphasizing their family-owned heritage.

Political challenges in the U.S. beer industry arise

due to alcohol restrictions and the importance of responsible consumption. Four states have "Blue Laws" that prohibit liquor sales on Sundays, causing people to cross state borders for beer purchases. Alcohol advertising in the U.S. is self-regulated and follows ethical standards. Advertisements are only permitted in media where at least 70% of the audience is of legal drinking age. Ads cannot target individuals under 21 years old using cartoon characters, nor can brands be promoted based on alcohol content or effects.

Ads should avoid promoting irresponsible drinking. Heinlein's 2011 campaign, titled "Sunrise belongs to moderate drinkers," aimed to encourage responsible drinking. In the campaign, the characters are shown drinking Heinlein and water bottles during the night. Additionally, the prevalent beer consumption in the US has made beer and the drinking environment a significant aspect of American culture. The beer culture is continually evolving and embracing new trends each year. The craft brew market has experienced significant sales growth since 2011, with double-digit increases.

The craft brew market has seen significant growth, almost doubling its market share to nearly 6% since 2004. Over the past year, 250 breweries have opened, driven by a trend of supporting local businesses and an anti-corporation sentiment in politics. It is worth noting that chefs are now giving more importance to pairing wine and beer with their cuisine, as well as incorporating beer into their cooking. This shift has been embraced by the younger generation, especially young women, who view beer as part of the social experience offered by celebrity chefs and the fun-dining phenomenon. Analysts believe that this new generation of beer drinkers, currently in their 20s and 30s, grew

up in a culture where they had plenty of choices.

The forecast predicts a 1% decline in US beer volume sales by 2016. Heinlein's market share decreased from 2.7% to 2.2% between 2007 and 2011, while the imported beer market grew by 1% in that same year due to consumer interest in trying different types and brands of beer. Despite losing market share, Heinlein has been able to maintain consistent profits. It is currently the second most popular imported beer and the top European beer in the US, accounting for 15% of total volume sales. The US beer market includes three main segments: domestic, imports, and others.

The beer market consists of three segments: Premium, Standard, Light, Cider/Malt, and Craft. Heinlein beer is categorized as a Premium Import. Beer consumers satisfy their desire for an alcoholic beverage through various sub-segments within these categories. Heinlein's customers include Bars/Pubs/Taverns/Nightclubs, Grocery retailers, supermarkets, food/drink/tobacco specialists, and convenience stores. The purchasing process for beer customers is influenced by forecasted demand. On the other hand, nonusers of beer have different buying processes characterized by being habitual and brand loyal; they only purchase their preferred brand of beer.

High-value deal seekers prioritize finding the best value for their money, disregarding quality. Variety-loving shoppers buy different beers out of curiosity, preferring a diverse selection rather than large quantities. Quality shoppers prioritize purchasing the best quality, environmentally aware, or reputable beers, regardless of price or calories. Health-conscious shoppers specifically seek beers with the lowest calorie content.

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