Heineken Internationalize To Myanmar

Heineken• Heineken is founded by Gerard

Adriaan Heineken in Amsterdam, Holland, in the year 1873.

• The beer is made up of Purified Water, Malted barley, hops and yeast.

• In 2011,2.74 Billion Litres of Heineken beer were produced worldwide.

• Heineken secured a stronger foothold in the Asian Market as it has won the control of Asia Pacific Breweries Ltd, Maker of Tiger and Bintang brands

• To Heineken , Asia is vital to the industry's biggest players because it accounts for 35% of global consumption, and is one of the fastest-growing.

• Heineken is also the sponsor for the Uefa Champions league which most people in the world recognise the brand due to brand

Myanmar The last time Myanmar was under control by military government, this mean that all the foreign companies are not allow to invest. However, after 2010, the government decided to change to democracy, so the government welcome all the foreign companies to invest and doing business. On the economic side of view, there have a lot opportunities to reach Growth stages because the market is fresh and easy to penetrate. The country’s early stage of economic development gives it a “greenfield” advantage: an opportunity to build a “fit for purpose” economy to suit the modern world.

Grand Royal (Partner) Introduced in 1995, Grand Royal Whisky is the flagship brand of IBTC and the No.1 selling whisky in Myanmar. A benchmark defining the standards of the local whisky industry, Grand Royal's elegant packaging and distinguish- able black and gold label is a trusted sign of excellence.

Entry Mode•Licensing Exchange of rights, such as manufacturing rights, to another in exchange for payment. •Joint VentureForming a partnership with local firm (Grand Royal)

SegmentationB2C marketsDemographic : age- 16 and above , middle class and high classPsychographic : lifestyle – urbanizationGeographic : Myanmar, Urban areaBehavioral : Heavy user B2B marketsDemographic : size of the firm is big, type of industry: food & BeverageEconomic : high buying power of customers

Barrier to Entry•Economic of Scale

•Product differentiation

•Capital requirement

•Cost disadvantages independent of scale

•Government policy

Competitors Analysis A Three Main Competitors:

• 1. Myanmar Beer

• 2. Tiger

• 3. Carlsberg

Myanmar Beer

• Company established in 1995• Myanmar beer was launched in 1997

• Achievements : The Brewing Industry International Awards

& Australian International Beer Awards• Exported to: Southeast Asia, China, Hong Kong, Russia, Australia and New Zealand.

Tiger Beer• Established since 1932• Introduced “Tiger Crystal” in 2010• Exported : 11 countries in Asia & Available In more than 60 countries

• Was launched in 1997 in Myanmar

Carlsberg Beer• Established in 1847• It brews 340 beers which are brewed by breweries owned by Carlsberg

• Exported: Asia, Europe & US• In Jan 2013, partnered with Myanmar’s own leading beverage company MGS ( Myanmar Golden Star)

• Factory will start operating at the end of 2014

SWOT analysisStrengths

• Well-known and reliable global brand

• High quality ingredients and taste is unique

• Designs of logo and bottle

• Business strategy of global market expansion

Weaknesses

• Price• Size of the brewer• Maintaining corporate values, image and quality standards in various countries is a challenge

SWOT AnalysisOpportunities

• Targeted Country is ripe for foreign investment

• Strategic location • Cheap labor in the targeted country

• Create job opportunities for local people

Threat

• Government regulations during entry

• Entry of new competitors

• Fierce competition from local brands

Benefits of internationalization

• Definition: The process leading to identifying and entering international markets

• To increase overall customer base

• Spreading Business risk

• Expansion of brans awareness

• Increased revenue generation

• Possibility of accessing new technology

Conclusion• It is beneficial for Heineken to enter Myanmar as Myanmar is starting to develop which will help Heineken to grow its customer base and help the economy of Myanmar.

• It is recommended for Heineken to send expatriates over to get feedbacks on people who drink beers in Myanmar what are their preferences and tastes which it will help Heineken to better position its brand in Myanmar against competitors such as Carlsberg, Guinness etc.

• Heineken could have to penetrate early to Myanmar as it will give Heineken a competitive advantage over the competitors but now they partially losing their advantage due to lateness. Henieken also need to set their price nearly same as their competitors because to achieve their market share and to gain more customer base.