Appendix 1: Heineken Australia’s demographics Appendix 2: Heineken’s network
Appendix 3: Print screen of the Territory Maintenance File
Appendix 4: Data behind table 4.2, 4.4 and 4.5
Appendix 1: Heineken Australia’s demographics
Internal analyses
Since the beginning, Heineken Australia has been growing rapidly, selling 20.000 hectolitres of beer in 1999 and forecasted its volume for 2003 to be 124.000 hectolitres. Profitable volume growth is again the focus for the coming year.
By structuring the organization to be sales driven and investing in Sales Force Automation tools Heineken Australia hopes to create a competitive advantage in order to reach their targets. The company works with a dynamic and committed team operating with its own direct sales force and utilising several wholesalers for beer delivery. In the figure below, Heineken Australia’s organizational chart is visualized:
National Organisational Chart
Leea Taylor Personal Assistant
Hannah Martin Receptionist
Sean Cassar National Key Account Manager
Paul Ferguson Off Premise Key Account Manager
Antony Jones On Premise Manager
5 Area Managers Dan Helfand
NSW Commercial
Manager
3 Area Managers Nick Bainbrigge
QLD State Manager
3 Area Managers Andy Guiles
WA State Manager
2 Area Managers Nick Marsden
SA State Manager
Pat Hagarty Off Premise Manager
Craig Currie On Premise Manager
4 Area Managers Jeff Marsall
VIC Commercial
Manager Judd Michel
National Sales Manager
Mai Ling Turner Sponsorship Co-ordinator Danny Athans Sponsorship Manager
Nikki Norris Brand Manager
Sanchia StaffordGaffney Trade Marketing
Co-ordinator
Nikki Buttfield Insights Manager Marty Ferguson National Marketing
Manager
Peter Ching Logistics Assistant Willie-John Twomey
Logistics Co-Ordinator
Flora Chan Accountant / A/C Receivable
Meng Te A/C Payable Wendy Cheung Accountant Ernest Lam Financial Controller Hans Erik Tuijt
Managing Director
20.000
47.879
65.714
79.568
124.000
0 20.000 40.000 60.000 80.000 100.000 120.000 140.000
1999 2000 2001 2002 2003
Volume in hectolitres
Sales Management
The sales management of Heineken Australia has been divided into three levels: General Management, State Management and Area Management. The diagram above illustrates this structure.
The Australian Managing Director (MD) is responsible for the sales growth and development of Heineken beer in Australia. The MD supervises the progress of all five State Managers and receives clear trading terms and guidelines from the National Account Manager.
There are eighteen Australian Area Managers (Sales Representatives) who are accountable to their State Manager. Area Managers predominantly manage client orders and control client merchandising requirements. They are account analysts, adding value to customers by showing them opportunities. So they basically manage all their territories needs. To execute these tasks, they currently use a Compaq tablet PC with sales force automation software, the current device employed by all Area managers. The Heineken Australia sales force is comprised of motivated individuals who contribute knowledge, practices and experiences to the overall Heineken team.
The Heineken Australia sales teams are currently targeting approximately 20,000 Australian outlets, out of a total international estimate of 35,000 outlets.
There are also approximately 55 smaller second-tier wholesalers who Heineken Australia also targets. Many of these wholesalers generate a lot of revenue from Heineken beer; hence are very committed to the Heineken brand. Many secured and targeted Heineken outlets have more than one wholesaler to choose from; therefore it is a priority of the Heineken Australia sales teams to consistently provide outstanding client service in support of the Heineken brand.
Marketing
The marketing team currently consists of seven people who develop and implement consumer lead marketing plans to deliver incremental volume and profit growth for Heineken, leading to long- term increased business value.
The National Marketing Manager manages the marketing team to develop and implement marketing plans to deliver the Heineken Australia annual volume and profit (EBIT) target. The brand manager assists him in these tasks. The Market Activation Manager develops and implements the trade-marketing plan in On-premise, State Groups and National Key accounts. The trade marketing coordinator leads the development, implementation and management of all Heineken Australia brand’s in market visibility / merchandising materials. Including the overall look and feel for the Heineken brand in market, points of engagement program and account specific visibility items.
The Sponsorships manager uses sponsorships and strategic partners to develop and implement marketing plans, like the Rugby World Cup and the Australian Open Tennis.
Furthermore, the Insights manager supplies the business with timely and relevant consumer, customer and market insights.
Finance and Logistics
The finance department consists of six persons including the logistics manager and assistant. The
Heineken Export. The accountant reviews the reports, prepares the month end closing and cash flow forecast and performs accounts receivables tasks like invoicing and sales reporting. There is also an assistant who performs the tasks of accounts payable.
The Logistics coordinator monitors the flow of stock from Holland to Australian warehouses. He acts as a liaison with state managers on forecasting sales, actual sales and stock levels. Also with National sales and National key accounts managers on promotional activities, Gift of Purchases and events. He has to report to the financial controller on all logistics costs and provisions. The Logistics assistant is responsible for all necessary customs documentation for the movement of stock and is also responsible for the Stock on Hand spreadsheet.
External analyses
Australia’s beer market is almost a duopoly, controlled by two major breweries - Carlton United Breweries (CUB) with 54% market share and Lion Nathan Australia (LNA) with 42% market share.
As is shown in the figure below, the Australian beer market, with a total volume of 17,4 million hectolitres can be divided into four different segments. The regular mainstream segment is the largest, but is declining by - 3,7%. The Premium segment is the smallest, but is growing the fastest by 13%. This reveals an opportunity for Heineken, which operates in this premium segment. The average Australian consumer, in 1998, was nearly 40 years of age and has now fallen to 28 years.
This shift in age has, at the same time, caused a shift from mainstream to premium beer drinking.
There are 702 brands in the premium beer segment nationally, of which 70% of beer volume is accounted for by CUB and LNA with local and imported brands. The market leader Crown occupies 25% market share as shown in the figure on the next page. The top ten premium brands occupy a cumulative 76% of this segment.
Heineken is ranked sixth with 6% market share and is one of the key brands, together with Boags and Corona, fuelling the 13% growth of the segment described in the figure above.
13.4 14.1
65.8
6.7 3 0
7.5
-1.5
10
0.5 5
10
-3.7
13
-3
-10 0 10 20 30 40 50 60 70
Light M id R egular P rem ium Total Category
S egm ent S ize
% G rowth Last 5 Years
% G rowth Late st
Imported brands are growing stronger than local brands, from smaller base volume. Imported premium is growing at 26% and Domestic premium is growing at 6%. Again this trend can be seen as an opportunity for Heineken.
Heineken beer in Australia is a fully imported brand. The bottled beer is imported from The Netherlands and the keg beer is imported from New Zealand. Two main channels are used to sell its products, On-Premise and Off-Premise channels. On-Premise is referred to when discussing consumption in pubs, bars, restaurants, hotels, stadiums, etc. Off-Premise channel is used to sell beer through bottle shops, liquor stores and the like. Heineken Australia uses three main wholesalers to distribute the beer to both the On and Off- Premise outlets.
25%
11%
7%
6% 6%
6%
5%
5%
3%
3%
23%
Crown Coopers Original Hahn Premium Boags Cascade Heineken Corona Coopers Sparkling Premium Dry Stella Artois Other
Appendix 2: Heineken’s network
Appendix 3: Print screen of the Territory Maintenance File
Appendix 4: Data behind table 4.2, 4.4 and 4.5
Table A Expectations met Information needs currently available
1: 0%
2: 25%
1-4: 100% 100%
3: 25%
1. Managing Director
4: 0%
12,5%
1-4: 0% 0%
1: 0% 1: 100%
2: 50% 2: 75%
3: 25% 3: 100%
2. National Sales Manager
4: 0%
18,75%
4: 75%
87,5%
1: 0% 1: 50%
2: 0% 2: 50%
3: 0% 3: 75%
3. National Marketing Manager
4: 0%
0%
4: 50%
56,25%
1: 0% 1: 25%
2: 0% 2: 25%
3: 0% 3: 0%
4. Financial Manager
4: 0%
0%
4: 25%
18,5%
Table B Expectations met Information Needs Currently available
NSW: 50%
VIC: 25%
QLD: 0%
WA: 50%
State Managers
SA: 0%
25%
• AM’s need to input all relevant field information for the SM’s to see!
• Number of calls to which outlets per day, week and month including their activity (objectives, notes, follow-ups) during that call so that it can be assessed if sales targets and objectives per call cycle are reached.
• Outlet sales information ranked and compared at account and group level.
Sales trends and SKU highlights.
• Accurate market segmentation and sales by geographic area.
• Customer ordering process monitoring by AM for case rate of sales per account.
(When does the customer order)
• Asset (fridges, neon’s) distribution tracker. And number of POS per outlet.
• Promotional calendar
• Margin calculator
• Discounts analyses
25%
50%
25%
25%
25%
0%
25%
0%
0%
19,44%
Table C Expectations Met Information Needs Currently available
Area Managers
NSW:
1. 25%
2. 75%
3. 25%
4. 50%
5. 0%
VIC:
1. 25%
2. 50%
3. 0%
4. 75%
5. 25%
QLD:
1. 50%
2. 0%
3. 25%
WA:
1. 25%
2. 0%
3. 50%
SA:
1. 0%
2. 25%
29,16%
• General customer information (name, address, phone number, contact, account number, wholesale information)
• Simtac information (order history in volumes) per territory (ranked) and per outlet, frequently updated.
• YTD/Prior YTD/Rank Prior YTD/ YTD
% variance (by month, quarter and year)
• Simtac information also from all orders (phone and fax), not only orders that were put through the ASFS
• Sales by SKU (geographical area, territory, outlet)
• AC Nielsen information (market information; share, competition, market segments)
• Banner group promotional calendar (banner group / SKU / promo# / activity / price / dates). Peak trading times and public holidays flagged (popup reminder).
Buying trends
• Graphed information. Not just numbers;
this so that the AM can enhance the customer’s understanding.
• Combined graph information. (Sales and promo planner- effectiveness)
• Margin information (what can the customer get out of it). Margin calculator.
• Customer stock level and how long will that last.
• Current group performance
• Access to standard reports
• Digital photos of POS
100%
100%
100%
0%
75%
100%
0%
25%
0%
0%
25%
50%
50%
0%
34,72%
