![beer industry threat of new entrants beer industry threat of new entrants](https://www.mbaskool.com/2019_images/stories/jun_images/market-analysis-framework.jpg)
Heineken is the only alcoholic beverage present in most shelves of supermarket snacking departments. It will target women (which is more and more important in France) and could be drank at lunch. Develop a horizontal brand extension by creating a Heineken Light line as Budweiser did with Bud Light.Our main recommendation for the brand is that they should probably focus their marketing campaign on closer and more meaningful values for their target: a quality, refreshing and most of all affordable beer. Even if the ingredients remain unchanged, the brand always tries to position its product through authenticity towards youth and not through tradition, whilst Heineken is certainly much more perceived as a dynamic brand. Indeed, Kronenbourg keeps focusing on their authenticity, which meant great added value, associated with the previous kronenbourg beer.
![beer industry threat of new entrants beer industry threat of new entrants](https://0901.static.prezi.com/preview/v2/hglgskbarkxubvmybtfxckn2pp6jc3sachvcdoaizecfr3dnitcq_3_0.png)
Rethink the use of their brand values. Since the evolution of their packaging, Kronenbourg has restored its brand image with its target market although, there is still a lot a work to do for the brand.The small non-integrated French brewers no longer exist and new large foreign brewers don’t attempt to enter this highly locked market. If modernization of beer distribution and vertical integration allow brewer’s efficiencies, they are not likely to offset the anti-competitive effects of a closure of the distribution to non-brewers integrated and new entrants. Thus new entrants would have many difficulties to successfully enter the market, as these three leaders control distribution. The monarchical position of these three leaders (Heinken, Kronenbourg and InBev) is due to the strategy of vertical integration. Indeed, the market is pretty much saturated, as three main companies are sharing the market. Therefore the threat of new entrants is low, because the barriers to entry of this industry are high. However, according to Raphael Prevot, brand manager for Kronenbourg, private labels reported a very strong growth in the beer market since 2009 and will be, soon, part of this competition.įew businesses are willing to acquire market share and upset the established order on the beer market. Nowadays, brewers are looking to target new niches of customers: women, younth and seniors, for example, but they also seek to revitalize their image by developing partnerships, by strengthening their presence on social networks like Facebook and Twitter, inaugurating shops or by launching massive communication campaigns. Moreover, with a decline in beer consumption in France between 20 (-4% in retail with a price increase of 14 % for 25cl), the competition is increasing. With this huge amount of brands, brewers rely on marketing strategies to strengthen their position on the market. The three major European groups represent more than 320 brands including twenty brands sharing the largest part of beer sales in France. 1370), the beer market is a place of intense competition between brewers including major innovation research, advertising and online presence development with social networks. With about 2 billion euros of annual turnover (see “Stratégie magazine” No. INTENSIFY OF COMPETITIVE RIVALRY ON THE BEER MARKET