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%