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Essay / Heineken Case Study - 1418
The United States beer industry accounts for 233 million hectoliters of the world's 1,501 million hectoliters and is a dynamic part of the national beer economy. United States, contributing billions of dollars in wages and taxes. In the United States, the beer market accounts for almost 50% of total alcohol volume, with the specialty import and light beer segments driving growth. Heineken was founded in the United States in 1863 and quickly became the world's largest brewer with 116.8 million barrels of beer sold. Heineken's number one position depends on the number of markets in which its products are present. Local markets are important, but international markets will provide more growth opportunities. Beer exports continue to grow year after year. In 2006, the increase was more than 18% compared to 2005. The United States exported approximately 34.4 million hectoliters of beer in 2006, compared to 29.9 million hectoliters in 2005. Heineken is expanding constantly and recently bought Hartin, China's 4th largest brewer, and invested $33. M in convertible bond of Tsing Tao Brewery. Heineken's partnership with Budweiser in Italy allowed Budweiser to brew, market and distribute "Heineken" and utilize Budweiser's distribution network in Europe. Heineken has been the most successful brewing company in Europe and the rest of the world, mainly due to the quality of its beer. their product, marketing/advertising and sponsorship capacity. They sponsor the biggest sporting event, the Champions League (a football tournament) in Europe every year. With games broadcast around the world every two weeks, Heineken has been their main sponsor for many years. The frequency and reach they achieve through the tournament is breathtaking and a marketers dream since the tournament is played nine months a year. Language and culture are problematic issues when it comes to international marketing. When a company enters global markets, it faces many problems that do not exist in the local market. Language is one of the problems and is always a challenge. Even though English is spoken in most cases around the world, it cannot be used as an international campaign language. Therefore, translating the campaign into the foreign language is very important. Some English words do not have corresponding words in most foreign languages, causing problems in exact translation. It may take more words to present the same message in a different language.