Heineken Distribution Channel Analysis

Superior Essays
Distribution Channel: Heineken’s network of over 250 Breweries severing 70 countries is valuable and strong. The extensive distribution organization allows them to exploit economies of scale to serve their customer’s diverse needs and wants in the varied markets they serve.
Cash Position: The Company’s cash position, of over €800 million (approximately $1 billion) is extremely valuable enabling the company to invest in new acquisitions or develop new flavors and technology. The level of cash on hand is a rare commodity and provides stability on the balance sheet of the organization. They historically have shown their ability to exploit this level of available cash in strategic acquisitions.
Global Presence: The global presence is extremely
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The second “Shape the Cider Category” emphasizes their strong footprint, to grow the cider segment and create a larger global cider portfolio. Third, “Lead by Cool Marketing and Innovation” is a commitment by the company to be part of the discussion with the consumers, via their core cultural DNA of accessing the power of innovation in the organization. Fourth, to “Be Commercially Assertive”, focuses on the point of sale component of the value chain driving excellence in execution and ensuring availability, visibility, and quality of the brand. Fifth, “Drive End2End Productivity” concentrates on the global scale of the organization to increase efficiencies across the organization. Finally, “Brewing a Better World” is a larger focus on sustainability for the organization and …show more content…
This approach is emphasized in their more recent tag line “We Brew Experiences That Inspire Legendary Lives” [The HEINEKEN Company]. However, their message, of focus on premium, becomes garbled in the next initiative identified as creating value for their customers through their dynamic upscale portfolio of international brands, and in the next breath claim, their brand is about substance not status [Heineken U.S.A., 2016]. This approach of heavily focusing on the premium aspect of their brands may separate the younger market segment, more sensitive to cost, from trying and becoming loyal consumers. The brand further encounters difficulty in having a cohesive identity with the number of imports within their portfolio, missing a unifying

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