Research Topics: Heineken Analysis

The present market segmentation strategies of Heineken

EXECUTIVE BRIEF This essay utilized Heineken as the model organization to review its present market segmentation strategies and how they dealt with critical situations. From the analysis, key trends in the benefits and lifestyle study results among 20 Heineken consumers were identified; their preferences and their effectiveness in dealing with critical situations were ascertained. The paper then moved on to assess the marketing segmentation strategies of Heineken with regards to their suitability to critical situations, during which the internal capabilities of the segmentation in relation to the strategy being followed was determined also. An overall analysis of the performance and effectiveness of marketing segmentation strategies was also conducted to assess and compare the capabilities of these strategies with those of others. Gaps in marketing segmentation capabilities and environment of Heineken were then identified. Finally, several choices of strategies to improve marketing segmentation strategies of Heineken as an effective means in critical situations were recommended and evaluated by 20 respondents in terms of appropriateness to the issues reviewed, feasibility in carrying out the options and acceptability within the key stakeholders and decision makers. Several key implementation issues related to managing strategic change were also addressed as well. INTRODUCTION             In the last five years, the brewing industry has seen so much activity in terms of massive changes in the landscape of brewing companies. These changes range from mergers and acquisitions to changing consumer tastes and finally, to different branding strategies. These activities are expected to continue over the course of the next ten years. Heineken is one of the leading companies in the world’s brewing industry in terms of the volume of sales and profitability. It has also one of the widest connections among other international brewers made possible through a global network of distributors and breweries. Heineken is managing some of the world’s leading beer brands, most notably Heineken and Amstel.  Other top selling brands Heineken manages include Cruzcampo, Zywiec and Murphy’s. Heineken uses the name of both the company and its mainstream beer label, and its excellent marketing segmentation strategies has allowed the company to pursue an integrated marketing approach directly related to the company’s name. However, the main questions remain. Does this strategy produce more effective results than the others in terms of gaining company name recognition? Do the adapted strategies allow differentiation in the culture of the corporation to influence consumer choices? Statement of the Problem             Heineken has blossomed on its local / domestic home country and moved on to internationalize their trend to some other countries / continents through effective segmentation strategies. Hence, the causes of this success must be investigated through a benefit and lifestyle study and lessons must be learned and derived from this study. Purpose of the Study This study will be conducted in order to determine the success factors of Heineken in internationalizing their trend to other countries / continents through market segmentation, and provide meaningful lessons such as learning their effective segmentation strategies.             This study will also aim to increase the awareness and provide a better understanding on the issues and problems concerning lifestyle and benefits studies and in order to contribute an effective approach in addressing their problems. Significance of the Study If the success factors of Heineken in internationalizing their trend to other countries / continents will be determined, this study will be a benefit to other multinational companies experiencing problems and gaining ground to other parts of the world. Also, if effectiveness is supported, this study will be significant in developing underachieving multinational companies and organizations as productive and effective entities in the future. Research Questions Specifically this study will address the following questions: 1.      What significant success factors of Heineken in internationalizing their trend to other countries / continents were determined? 2.      What specific alternatives or measures can be done to help improve the market segmentation strategies of underachieving multinational companies and organizations? Assumptions The research will be based on the following assumptions: (a) all participants will be utilizing the correct procedures as outlined in the guidelines for the specific methodology employed, and (b) all participants will answer questions honestly to the best of their ability. Limitations Time will be the greatest limitation to this research, which could hinder long-term outcome objectives. Environmental factors, such as socioeconomic status, will not be controlled, and this could create many variables within the research. As this study will utilize a small sample of respondents, the results may not effectively represent the general population.    The Research Design             In order to come up with the most suitable research approaches and strategies for this study, the research process “onion” is undertaken. This is because conducting a research is like peeling the back layers of an onion—in order to come to the central issue of how to collect the necessary data needed to answer the research questions and objectives, important layers should be first peeled away. With the said process, the researcher will be able to create an outline on what measures are most appropriate to be applied in the study. Saunders et al (2003) said that while it is not unusual for a researcher to first think of his research undertaking by considering whether one should, for instance, administer a questionnaire or conduct interviews, thoughts on this question should belong to the centre of the research ‘onion’. That is, in order to come to the central issue of how to collect the data needed to answer one’s research questions, there are important layers of the onion that need to be peeled away: the first layer raises the question of the research philosophy to adapt, the second considers the subject of research approach that flows from the research philosophy, the third examines the research strategy most applicable, the fourth layer refers to the time horizon a researcher applies to his research, and the fifth layer is the data collection methods to be used.             Figure 1 shows how the researcher conceptualized the research approach to be applied in this study by Saunder et al (2003), in order to come up with the pertinent data needed to answer the research questions stated in the first chapter, as well as to arrive to the fulfillment of this research undertaking’s objectives.            Then again, the research philosophy that is reflected in this study is positivism. With this research philosophy, a researcher prefers to work with an observable social reality in order to come up with law-like generalizations similar to those produced by the physical and natural scientists (Remenyi et al, 1998), and in this tradition, the researcher becomes an objective analyst, coolly making detached interpretations about those data that have been collected in an apparently value-free manner (Saunders et al, 2003). In addition, the emphasis is on a highly structured methodology to facilitate replication (Gill & Johnson, 1997) and on quantifiable observations that lend themselves to statistical analysis (Saunders et al, 2003). In here, the assumption is that the researcher is independent of and neither affects nor is affected by the subject of the research (Remenyi et al, 1998; Saunders et al, 1998).             Meanwhile, the second layer shows that this study has undertaken a deductive approach. Accordingly, this approach has five sequential stages: deducing a hypothesis; expressing the hypothesis in operational terms; testing this operational hypothesis; examining the specific outcome of the inquiry to either confirm the theory or indicate the need for its modification; and finally, modifying the theory in the light of the findings (if necessary) (Robson, 1993, p. 19).             Further, the deductive approach has a number of important characteristics. First, this approach is a search to explain causal relationships between variables, which consequently leading to the development of a hypothesis. Second, it involves the collection of a quantitative data (although it can, as well, use qualitative data), and these data are important to test a hypothesis that has been previously developed. The third characteristic of a deductive approach is that it controls to allow the testing of hypothesis. However, one must remember that with this approach, it is important that the researcher is independent of what is being observed—that is, the researcher should be objective and not subjective—so that the principle of scientific strictness will be pursued, as this approach emphasizes scientific principles. (Saunders et al, 2003)           Also, it is important that concepts are operationalized, which will enable facts to be measured quantitatively. Finally, the deductive approach is generalization (e.g., to be able to generalize about regularities in human social behavior, one must be able to select a sufficient numerical size of samples). (Saunders et al, 2003) Respondents of the Study             In this study, 20 consumers of Heineken were chosen. The respondents were interviewed with the help of a questionnaire. Data Collection Data shall be collected from multiple sources, allowing  a number of different perspectives to be taken into consideration in the development of the recommendations.             The data sources that will be examined include: ·        A review of the appropriate research literature. This includes examining studies where customer satisfaction had been used either in a research or organizational setting. Both technical articles and “how-to” articles were included in the review; <ul type="disc" style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0in"> <li class="MsoNormal" style="LINE-HEIGHT: 200%; TEXT-ALIGN: justify">An examination of the regulations and practices related to customer satisfaction in housing. </li> <li class="MsoNormal" style="LINE-HEIGHT: 200%; TEXT-ALIGN: justify">Focus groups and interviews with the consumers. During the focus groups, participants will be asked about their perceptions and preferences regarding Heineken products.</li> </ul> Instruments used A self-administered questionnaire, or the type of questionnaire that was usually completed by respondents, was constructed by the researcher to gather the needed data (Saunders et al, 2003). To further enhance the study on the customer satisfaction, the researcher prepared a survey-questionnaire wherein the respondents graded each statement.             The decision was made to use a questionnaire for the data collection for this project due to the sensitivity of the information being obtained.  It was important for the respondents to be open and honest in their responses. The use of the questionnaire provided the researcher with the ability to test the views and attitudes of the respondents.             The survey-questionnaires also used open-ended questions to obtain as much information as possible about how the interviewee feels about the research topic.  Interviews took between one to two hours. The questions used during the interview were based on the research questions for this project; they have been reviewed, refined and approved by the project supervisor. The researcher designed a semi-structured interview. Here, the researcher encouraged the interviewee to clarify vague statements and to further elaborate on brief comments. The interviewer did not share his/her own beliefs and opinions. PRESENTATION OF RESULTS A total of 20 Heineken consumers were used for the data gathering process. For the purpose of gathering pertinent and reliable data, respondents of 30 years old and above were included in the sample. Of the 20 participants, the sample was divided equally according to three categories. These categories include the respondents’ gender; age; and position in the company. See table 1 for a summary description. Gender Male 10Female 10 Age 30-35 years old 536-40 years old 541-45 years old 546-50 years old 5 Occupation Regular Employees 10Contractual Employees 10 Table 1 shows the descriptive summary of the 20 respondents of the study             As seen on the table, the respondents were equally divided according to the three categories as selected by the researcher. This was for the purpose of giving an equal representation of the respondents regarding the subject matter. Since the research could not afford for a much bigger sample due to time and budgetary constraints, the equal representation of respondents can represent the significant sample categories. Semi-structured Interview Results A. Improving the current status of Heineken products Among the ideas that the 20 consumers of Heineken products mentioned in order to further improve the current status of Heineken products include mainly the following: <ul type="disc" style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 0in"> <li class="MsoNormal" style="LINE-HEIGHT: 200%; TEXT-ALIGN: justify">Allocation of appropriate consumer research studies besides technical and professional training of employees</li> <li class="MsoNormal" style="LINE-HEIGHT: 200%; TEXT-ALIGN: justify">Participation of the public consumers and private sectors in planning, financing and follow up of the Heineken products</li> <li class="MsoNormal" style="LINE-HEIGHT: 200%; TEXT-ALIGN: justify">Unification of the planning and follow up efforts for development of the Heineken products </li> <li class="MsoNormal" style="LINE-HEIGHT: 200%; TEXT-ALIGN: justify">Linking the Heineken products to the needs of the consumers</li> <li class="MsoNormal" style="LINE-HEIGHT: 200%; TEXT-ALIGN: justify">Concentration on the application of the consumer research results in order to acquire the latest information regarding the needs and preferences of Heineken consumers</li> <li class="MsoNormal" style="LINE-HEIGHT: 200%; TEXT-ALIGN: justify">Supporting the suggested changes of the consumers</li> <li class="MsoNormal" style="LINE-HEIGHT: 200%; TEXT-ALIGN: justify">Utilizing all resources and capabilities within Heineken to improve its products</li> <li class="MsoNormal" style="LINE-HEIGHT: 200%; TEXT-ALIGN: justify">Updating the Heineken products to match the consumers’ needs</li> <li class="MsoNormal" style="LINE-HEIGHT: 200%; TEXT-ALIGN: justify">Directing the focus of Heineken to the products that need development </li> </ul> B.  Enhancement of Heineken products Majority of the participants of the study evaluated that the Heineken products they purchased were comfortable to them, so there’s no need for any changes or enhancement to be done.  As shown in Figure 1, majority of the respondents strongly disagreed that the Heineken products must not be changed or enhanced. In fact, during the interview, most of the respondents observed that changing the products might even cause their popularity to be hampered. C. Allotment for Heineken products improvement Consumers are able to make the most of the satisfaction provided by Heineken products because of their high quality and cost-effectiveness. However, the sudden outburst of the prices of Heineken products brought about by the aftermath of unstable economic conditions seemed to be a problem for the consumers. The differences in the cultures of the consumers in different market segments were also sometimes the cause of problems for Heineken. With these things under consideration, the management of Heineken must be able to find ways to make their products even more advantageous and beneficial so their consumers in different market segments can enjoy their products. REFERENCES Gill, J. and Johnson, P. (1997). Research Methods for Managers. London: Paul Chapman. Remenyi, D., Williams, B., and Swartz, E. (1998). Doing Research in Business Management: An Introduction to Process and Method. London: Sage. Robson, C. (2002). Real World Research, 2nd Ed. Oxford: Blackwell. Saunders, M., Lewis, P. and Thornhill, A. (2003). Research Methods for Business Students, 3rd Ed. London: Prentice Hall Financial Times. Heineken 2005 viewed 10 May, 2006, www.heineken.com. APPENDIX HEINEKEN BENEFIT AND LIFESTYLE SURVEY Dear Respondent, I kindly request for your cooperation in this survey. I am currently assessing your needs and opinions regarding Heineken products in order for the company to improve its service quality. Your response will be treated with outmost confidentiality. I.                     PROFILE OF THE RESPONDENTS 1.        GENDER q       MALE q       FEMALE 2.        CIVIL STATUS o       SINGLE o       Married o       Widow/widower o       Others, please specify 3.        AGE q       23 below q       24-27 q       28-31 q       32-35 q       36-39 q       40-43 q       44-47 q       48-51 q       52 and above 4.        Educational Attainment q       BS Degree q       BS with MA q       MA Candidate q       PHD student q       PHD Candidate q       PHD 5. EMPLOYMENT STATUS q       Probation q       Permanent q       Casual q       On-the-job/Internship q       Others, pls. specify QUESTIONS <li class="MsoNormal" style="COLOR: #333333; LINE-HEIGHT: 200%; TEXT-ALIGN: justify">What other ideas do you think the management of Heineken should implement to improve the current status of its products and handle your needs and preferences effectively? </li> <li class="MsoNormal" style="COLOR: #333333; LINE-HEIGHT: 200%; TEXT-ALIGN: justify">Do you agree that some features of Heineken products need to be altered or enhanced? Why or why not? </li> <li class="MsoNormal" style="COLOR: #333333; LINE-HEIGHT: 200%; TEXT-ALIGN: justify">If sufficient funds are available for improving the status of Heineken products, where do you think the most consideration should be allotted? </li> Credit:ivythesis.typepad.com

The present market segmentation strategies of Heineken

EXECUTIVE BRIEF This essay utilized Heineken as the model organization to review its present market segmentation strategies and how they dea...

The present market segmentation strategies of Heineken

The present market segmentation strategies of Heineken

EXECUTIVE BRIEF This essay utilized Heineken as the model organization to review its present market segmentation strategies and how they dea...