PT Multi Bintang / Heineken

PT MULTI BINTANG INDONESIA Tbk.

Syndicate 4 :• Rafael Binczyk• Rachmi Rida Utami• Rieke Fitri Yuniar• Pramadona• Joseph Enrico• Yunus Arie Wiratama

Member of the HEINEKEN Group

Marketingplan for PT MULTI BINTANG INDONESIAExpansion of HEINEKEN Int. into the Indonesian Market

History of Heineken International

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PT MULTI BINTANG INDONESIA Tbk.Member of the HEINEKEN Group

Founded in 1864 by Gerard Adriaan Heineken, known as De Hooiberg (the haystack) in Amsterdam

In 1873 the brewery's name changed to Heineken's Bierbrouwerij Maatschappij (HBM)

The founder's son, Henry Pierre Heineken, managed the company from 1917 to 1940

Heineken is one of the world’s great brewers and is committed to growth and remaining independent

The territories are: Western Europe, Central and Eastern Europe, The Americas, Africa and the Middle East, and Asia Pacific

In 1929, NV Nederlandsch-Indische Bierbrouwerijen first established in Medan, with brewing location in Surabaya

In 1936 the position of the Company moved to Surabayaand in the same year Heineken NV became the major shareholder

In 1981, the Company offers shares to the public (go public), the position of the Company moved from Surabaya to Jakarta and has since been known by the name of PT Multi Bintang Indonesia (Heineken subsidiary)

History of Heineken in Indonesia


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Business Definition


Business Mission

Heineken aims for sustainable growth as a broad market leader and they aim for segment leadership. In both cases, the Heineken brand plays an important part. Heineken wants to establish broad leadership usually by acquiring strong brands, which are combined into a new, larger company.

The business mission is guided by three core principles:

• strong brand portfolio • strong local market positions• corporate social responsibility with regard to policies on

alcohol abuse, social and environmental issues

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Business Definition


Company Values

Values of Heineken subsidiary PT Mulit Bintang Indonesia:

• Respect and enjoyment• Passion for quality• Innovative spirit

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Beer Market in Idonesia


Forecast

• Beer category is expected to post a modest grow of 2% in volume terms in Indonesia

• Increasing number of foreign business investors and growing tourism industry are expected to continue to impact beer volume sales positively over the forecast period

Competition

• PT Multi Bintang has leading position in the Indonesian Market• Main competitor: PT Delta Djakarta Tbk, a subsidiary of the

international San Miguel Corporation• Manufactures and distributes as well some of the best beer

brands in the world under the Anker, Anker Stout, Carlsberg, San Miguel, and Kuda Puthi trademarks

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Segmenting – Targeting – Psotitioning


The Indonesian beer market can be segmented in:

- Men (main segment)

- Women (minor segment)

- Old and Young consumers

- Low/Middle/Upper class

- Regular consumers/Seldom consumers

PT Multi Bintang is targeting the following segment:

- rural areas

- approx. 22 to 50 years old

- middle to upper class

- middle to high education

- liberal lifestyle

- pleasure and follow a hedonistic life-style

- socializing and meet up with friends

open minded and likes western products

High quality, value-for-money beer, for Indonesian males, who value friendship and togetherness with friends.

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Current Marketing Mix


Product• The Indonesia premium beer market• Is available as quart bottle, pint bottle, can and draught• Product Portfolio:

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Pricing

• Product Line Pricing• Product Bundle Pricing (e.g. carton of beer)• Price Adjustment Strategies (e.g. discounts)

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Place• Multiple retailers and

hyper-markets (off-trade consumption)

• Sales of beer for consumption at the points of sale, such as hotels, restaurants and cafés (on-trade consumption

Promotion• Advertisement and

sponsorship • The global

sponsorship of Champions League soccer in 2010

• ‘Heineken Music’ events

• ‘Heineken Acoustics Beer Night Out’ events

• ‘Heineken Ultimate Thirst DJ Competition’ events

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Strengths PT Multi Bintang is selling beer which is perceived as beer of highest quality.

In 2011, Bir Bintang received the Champion Beer title at the Brewing Industry International Awards, United Kingdom.

Original formula and a long tradition of the brand Heineken in brewery with strong competencies in this field.

Heineken brand availability in many countries around the world

Heineken brand popularity through most heavily advertised premium beer in Europe and Worldwide

Heineken perceived as premium quality brand and Bintang as high quality brand in Indonesia.

Attractive, recognizable and distinctive packaging

Educated employees forming an innovative company


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Weaknesses TV commercials are famous only in larger markets

Lack of a higher product variety to choose from as a customer

Threats Corruption is still widely pervasive

The faith and religion of many people does not allow them to consume alcoholic drinks

Beer as an alcoholic beverage has still some negative image in fundamentalist regions of Indonesia

In some regions and stores of the country beer is not allowed to be sold

In some regions the availability of beer is very low


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Opportunities The beer consumption is expected to rise slowly but constantly within the next years

Beer is becoming a drink that is consumed in communities together with friends

Low cost of labour and potential to source production locally

Until know the current beer products serve only one specific need, there’s no version or beer for light drinkers

The young generation likes western and trendy products


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Challenge


Challenge

To accelerate sustainable

top-line growth

To accelerate efficiency and cost reduction

Keep the primary

position in the Indonesian

Beer Market

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Segmenting – Targeting – Positioning


The Indonesian beer market can be segmented in:

- Men (main segment)

- Women (minor segment)

- Old and Young consumers

- Low/Middle/Upper class

- Regular consumers/Seldom consumers

Needs of the customers are becoming more and more heterogeneous

In addition to the current target market, PT Multi Bintang should target a secondary minor market:

- Men and Women, who prefer only light alcoholic drinks

- approx. 20-30 years old

- Targeting the segment of light drinkers

High quality, value-for-money beer, for Indonesians, who value friendship and togetherness with friends.

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Suggestion


Product• Implement a new trademark “BintangGold”• Contains light beer mixed with lemonade• Low percentage of alcohol and has a more fresh taste

BintangGold

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Suggestion


Pricing• For the new product BintangGold the company should

follow the skimming pricing strategy• Set middle to high price during the initial stage of

the product life• Set high margin to cover the significant portion of

the promotional expenses and development costs

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Promotion• The promotion program which was used until now, like

the thematic campaign ‘Bersama Kita Bintang’ (Together We are Stars) should be pursued in the future

• Start into-market campaign of Bintang Gold:• Below-the-line activities to address as well light

customers• E.g. Free try out drink in bars and clubs• Events

• TV and social media advertising• The main principle of Heineken International “enjoy

responsibly” should be implemented in the promotion

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Place• Seek to further increase distribution coverage and

improve efficiency and service to its customers and consumers

• Enlarge the presence of the trademarks • Distribution scope strategy: focus on a selective

distribution to reach as many retailers as possible to distribute the product

• Strengthen multiple channel distribution

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Education

PT Multi Bintang / Heineken