heineken positioning

Communication

El Salvador - February 2014

Heineken’s Positioning

Strategy

Page 2

Background• No strong beer culture in Spain• Preference of wine over beer• Flagship premium brand Heineken: 4.1%,

against the 18.2% market share of Mahou• Cruzcampo: 16.5% market share• Amstel: 8% market share• No significant growth

Page 3

Problem Statement Increase Market Share and Growth:

1. Maintain Heineken at its current premium position

2. Reposition Heineken – change prices?

3. Realign portfolio: Heineken, CruzCampo and Amstel

Page 4

Segmentation

Page 5

Analysis: Segmentation

Voll-Damm9%

San Miguel12%

Mahou5%

Heineken17%

Estrella6%

Cruzcampo5%

Coronita19%

Carlsberg9%

Bud12%

Amstel6%

Segment 1: Beer preferences: Coronita, Heineken and San MiguelMain Attributes: International, well-known, easy to drink, refreshing and smooth.Description: Light beer lovers – Bars and Clubs Availability (Out)Availability (Store)

Bitter

Easy to drink

Everyday/Home

Expensive

Family

Home party drink

International

National

Night clubPremiumPrice

Refreshing

Share at home

Smooth

Sophisticated

To be seen

Value

Watery

Well Known

With foodYouthful

0

1

2

3

4

5

Suma de Coronita Suma de Heineken Suma de San Miguel

Page 6

Segment 2: Beer preferences: Mahou, Coronita and HeinekenMain Attributes: Well known, availability, easy to drink, home party drink, International, smoothDescription: Light beer lovers - Home

Analysis: Segmentation

Voll-Damm6%

San Miguel8%

Mahou19%

Heineken15%

Estrella5%

Cruzcampo7%

Coronita16%

Carlsberg9%

Bud9%

Amstel6%

Availability (Out)Availability (Store)Bitter

Easy to drink

Everyday/Home

Expensive

Family

Home party drink

International

National

Night clubPremiumPrice

Refreshing

Share at home

Smooth

Sophisticated

To be seen

Value

Watery

Well Known

With foodYouthful

0

1

2

3

4

5

Suma de Coronita Suma de Heineken Suma de Mahou

Page 7

Voll-Damm8%

San Miguel19%

Mahou15%

Heineken14%

Estrella8%

Cruzcampo5%

Coronita6%

Carlsberg8%

Bud7%

Amstel10%

Segment 3:Beer preferences: San Miguel, Mahou and HeinekenMain Attributes: Well-known, availability, easy to drink and nationalDescription: National beer drinkers – price sensitive (Home)

Analysis: Segmentation

Availability (Out)Availability (Store)Bitter

Easy to drink

Everyday/Home

Expensive

Family

Home party drink

International

National

Night clubPremiumPrice

Refreshing

Share at home

Smooth

Sophisticated

To be seen

Value

Watery

Well Known

With foodYouthful

0

1

2

3

4

5

Suma de San Miguel Suma de Mahou Suma de Heineken

Page 8

Voll-Damm9%

San Miguel5%

Mahou9%

Heineken16%

Estrella7%

Cruzcampo9%

Coronita10%

Carlsberg13%

Bud13%

Amstel8%

Segment 4: 

Beer preferences: Heineken, Bud, and CarlsbergMain Attributes: International, Premium, Night Club, well knownDescription: Premium International beer drinkers – Bars and Clubs

Analysis: Segmentation

Availability (Out)Availability (Store)Bitter

Easy to drink

Everyday/Home

Expensive

Family

Home party drink

International

National

Night clubPremiumPrice

Refreshing

Share at home

Smooth

Sophisticated

To be seen

Value

Watery

Well Known

With foodYouthful

0

1

2

3

4

5

Suma de Heineken Suma de Carlsberg Suma de Bud

Page 9

Voll-Damm15%

San Miguel9%

Mahou6%

Heineken12%

Estrella19%

Cruzcampo6%

Coronita13%

Carlsberg6%

Bud9%

Amstel5%

Segment 5: Beer preferences: Estrella, Voll-DammMain Attributes: Availability, Premium, National, Well knownDescription: Premium National beer drinkers

Analysis: Segmentation

Availability (Out)Availability (Store)Bitter

Easy to drink

Everyday/Home

Expensive

Family

Home party drink

International

NationalNight club

PremiumPriceRefreshing

Share at home

Smooth

Sophisticated

To be seen

Value

Watery

Well Known

With foodYouthful

0

1

2

3

4

5

Suma de Estrella Suma de Voll-Damm

Page 10

Voll-Damm4%

San Miguel13%

Mahou14%

Heineken14%

Estrella9%

Cruzcampo14%

Coronita6%

Carlsberg11%

Bud4%

Amstel11%

Segment 6: Beer preferences: Mahou, Cruzcampo, Heineken and San MiguelMain Attributes: Well known, Availability, Easy to drink, Family, Home Party drink, NationalDescription: National home beer drinkers – price insensitive (Home parties)

Analysis: Segmentation

Availability (Out)Availability (Store)Bitter

Easy to drink

Everyday/Home

Expensive

Family

Home party drink

International

NationalNight club

PremiumPriceRefreshing

Share at home

Smooth

Sophisticated

To be seen

Value

Watery

Well Known

With foodYouthful

0

1

2

3

4

5

Suma de Heineken Suma de Mahou Suma de Cruzcampo

Page 11

Segment 7: Beer preferences: Mahou, Voll-Damm, EstrellaMain Attributes: Well known, Availability, National, Home party drink, easy to drinkDescription: Value seekers

Analysis: Segmentation

Voll-Damm15%

San Miguel10%

Mahou16%

Heineken7%

Estrella13%

Cruzcampo10%

Coronita5%

Carlsberg7%

Bud7%

Amstel10%

Availability (Out)Availability (Store)Bitter

Easy to drink

Everyday/Home

Expensive

Family

Home party drink

International

NationalNight club

PremiumPriceRefreshing

Share at home

Smooth

Sophisticated

To be seen

Value

Watery

Well Known

With foodYouthful

0

1

2

3

4

5

Suma de Mahou Suma de Voll-Damm Suma de Estrella

Page 12

Voll-Damm17%

San Miguel9%

Mahou11%

Heineken13%Estrella

7%

Cruzcampo11%

Coronita8%

Carlsberg12%

Bud4%

Amstel8%

Segment 8: Beer preferences: Voll-Damm, Heineken and CarlsbergMain Attributes: International, well known, premium, sophisticatedDescription: International stronger beer drinkers – Home

Analysis: Segmentation

Availability (Out)Availability (Store)Bitter

Easy to drink

Everyday/Home

Expensive

Family

Home party drink

International

NationalNight club

PremiumPriceRefreshing

Share at home

Smooth

Sophisticated

To be seen

Value

Watery

Well Known

With foodYouthful

0

1

2

3

4

5

Suma de Voll-Damm Suma de Heineken Suma de Carlsberg

Page 13

Voll-Damm6%

San Miguel12%

Mahou10%

Heineken11%

Estrella7%

Cruzcampo20%

Coronita13%

Carlsberg7%

Bud7%

Amstel7%

Segment 9: Beer preferences: Cruzcampo, Coronita and San MiguelMain Attributes: Availability, well known, Family, refreshing, easy to drink, valueDescription: Eventual beer consumers – Home

Analysis: Segmentation

Availability (Out)Availability (Store)Bitter

Easy to drink

Everyday/Home

Expensive

Family

Home party drink

International

NationalNight club

PremiumPriceRefreshing

Share at home

Smooth

Sophisticated

To be seen

Value

Watery

Well Known

With foodYouthful

0

1

2

3

4

5

Suma de Cruzcampo Suma de Coronita Suma de San Miguel

Page 14

Positioning

Page 15

Analysis: Positioning by Customers

Market share

Price

National

Availability (Store)Availability (Out)

Youthful

SophisticatedFamily

To be seen InternationalNight club

With food

Home party drink

Series43

Everyday/Home

Refreshing

Bitter

Smooth

Easy to drink

Watery

Premium

Well Known

Value

Expensive

Voll-Damm

BudAmstel

Coronita

CarlsbergSan Miguel

Estrella

Heineken

Cruzcampo

Mahou

II (2

8.6%

)

I (48.4%)

Market Share

Drinking Beer Occasions

Taste

1

4

28

6

3

7

9

5

Page 16

Market share

Price

National

Availability (Store)

Availability (Out)

Youthful

Sophisticated

Family

Series53International

Night club

With foodHome party drink

Series43

Everyday/HomeRefreshing

Bitter

Smooth

Easy to drink

WaterySeries29

Well Known Value

Expensive

Voll-DammBud

Amstel

Coronita

Carlsberg

San Miguel

Estrella

HeinekenCruzcampo

Mahou

II (2

7.8%

)

I (44.8%)

Market Share

Analysis: Positioning by Management

National & Traditional

Value

5

6

28

6

3

7

9

1

Page 17

Analysis: Positioning by Regions

Market share

Price

National

Availability (Store)Availability (Out)

Youthful

SophisticatedFamily

To be seen InternationalNight club

With food

Home party drink

Series43

Everyday/Home

Refreshing

Bitter

Smooth

Easy to drink

Watery

Premium

Well Known

Value

Expensive

Voll-Damm

BudAmstel

Coronita

CarlsbergSan Miguel

Estrella

Heineken

Cruzcampo

Mahou

II (2

8.6%

)

I (48.4%)

Drinking Beer Occasions

Taste

1

5

642

3

Page 18

Recommendations

Page 19

Heineken

Along the Y-axis: Smooth, Youthful, Refreshing, Easy to drinkAlong the X-axis: Nightclub, To be seen, International

• Focused marketing efforts will appeal to segment 1, 2, 4, 8

• Preference for more exclusive beers yet easy to drink fits current strategy of targeting bars and restaurants.

• Regions 5 and 6 cluster around attributes such as not bitter, refreshing, and easy to drink.

• Maintain current positioning and strengthen main appealing attributes

Page 20

CruzCampoAlong the Y-axis: Everyday home, Home party drink, Availability

Along the X-axis: Family, Everyday home

• CruzCampo reposition to a younger crowd, social or family/home users, the everyday beer in the fridge.

• Target segment 6 and 9 • Regions 2, 3, and 4 grouped in one region

based on similar attributes such as: not watery, well-known, and available in stores

• Results in brand’s market share increase of 11.11%

Page 21

Amstel

• Amstel currently has relatively low market shares

• Will continue to represent Heineken’s portfolio in its current quadrant, where differentiation between brands is low

Page 22

Expected Results •By strengthening Heineken can push it further out of the center and increase market share by

11.11% to 22.22%

•By repositioning CruzCampo can increase market share from 0% to

11.11%