PowerPoint Presentation

Marketing Strategy of breweries in the midst of Legal prohibitions and restrictions on promotional activities: the case of Heineken Breweries S.C. (Ethiopia).

Introduction Methodology Result and discussion (Key findings) Conclusion Recommendation and research contribution.

Marketing strategy determines how a company will build relationships with customers while creating value for them It is heavily influenced/shaped by the laws and regulations enforced in the country where the company operates Many countries introduce laws to regulate alcohol beverage marketing and promotion in an effort to reduce its consumption and protect public health. Likewise in Ethiopia , the government has issued laws in relation to promotion, advertising and sponsorship of alcoholic beverages. Advertisement Proclamation (No.759/2012)-EBA, Food and medicine administration Proclamation (No.1112/2019)- MoH and Alcoholic beverage advertisement and descriptive content control Directive (No.372/2019)-EFDCA..

Ethiopia's beer industry is growing with foreign companies entering the market -Jobs -Paying taxes, -Supporting farmers "We use digital media to engage with customers in compliance with the law, but its reach is still inferior to mass media channels for wider audiences . Mr. Eze , MD, Heineken Ethiopia (Feb.2023) The marketing strategy of breweries is likely to be influenced by new laws, which could impact their growth.

Introduction…cont.. Main provisions of Proclamation ( No.1112/2019 ) & Directive ( No.372/2019 )-EFDCA Sale of alcohol drink is prohibited in sports venues and cinemas Alcohol promotion prohibited conjunction with non-alcoholic items Alcohol companies can't fund events for children and teenagers under the age of 21 Alcohol drink promotion is prohibited on broadcasts , billboards, and lottery tickets/prizes.

Research gap Purpose Research questions General Objectives Assess the impact of laws that prohibit and restrict public advertising and promotion of alcoholic beverages in Ethiopia on the marketing strategy of breweries by taking Heineken Breweries S.C. (Ethiopia) as a case in point. What marketing strategies did Heineken Breweries S.C. (Ethiopia) employ before the laws were implemented? How do the laws impact/affect the company's promotional objectives? What marketing strategies and approaches/tactic has Heineken Breweries S.C. (Ethiopia) adopted to deal with the prohibition and restriction to promote and advertise its product ? Analyze the impact of Ethiopian laws prohibiting and restricting public advertising and promotion of alcoholic beverages on Heineken Breweries S.C. (Ethiopia)'s marketing strategy. Limited research available on laws that restrict alcohol promotion in Ethiopia and abroad. * Not explored the impact of these laws on the marketing strategies of breweries in depth or * Not show the alternative strategies to deal with the prohibitions * Most Examined the impact of the legislations from a different perspective..

Contributions Insight for policymakers to make informed decisions.

RESEARCH METHODOLOGY Descriptive research methodology A qualitative case study design is applied [ It is the most suitable approach for understanding the situation ] Data for study gather through * KIIs - Semi structure interview protocol * Desk/document review.

ATL (broader coverage) BTL (Targeted ) Through-the-line (TTL) marketing strategy.

TTL Allowed to establish a strong presence in the country’s beer market ATL Television, Radio, Billboards, Newspapers, Magazines sponsorship activities - Reach a wider audience -Raise brand awareness . BTL - Giveaways (under the crown activation), -Running online campaigns on website and social media platforms and -Outlet activation Reaching specific group of customers ..

Heineken Breweries S.C. (Ethiopia) forced to review its marketing strategy Enforcement -Proclamation No.1112/2019) & -Descriptive content control Directive No. 372/2019..

Switched its marketing strategy to BTL to comply with provisions New approaches/tactics are being employed in addition to the existing ones. Prohibition and restrictions have not greatly impacted its sales [The company’s beer brands are well established in the market] Enables the company to maintain its market position.

r esult and d iscussion …cont.. Very few New beer brands in market since the prohibition It is becoming challenging to offer new brands and be successful in the market. Heineken and other breweries mostly offer malt-based * Non-alcoholic, * Energy drink and * Draught/tap beer versions of existing bottled beer brands. Limits the company's ability to innovate offer new beer brands.

3-Marketing strategies in response to prohibitions and restrictions on promotional activities.

-Online activities are becoming increasingly important -However, it has a smaller reach than traditional media -Promotional messages reach a small audience. -Limit the company's ability to grow.

Outlet activations Important for reach out and engage with its customers Company targets nearly 43,000 outlets in Addis. Offers furniture, chairs, tables, and new bar setups to improve the shopping experience and encourage brand loyalty.

Such as Music concerts Associate brand with positive experiences.

Merit-based prizes, such as competitive sporting activities Indoor banners, posters and displayed in bars, restaurants and other outlets Brand Merchandise (such as t-shirts, hats, mug and other items Small-scale events like band nights, DJ competitions, and comedy nights Cross-selling (providing a discount on meat when customers purchase its beer).

CONCLUSION. The Laws prohibiting and restricting promotion and advertising of alcoholic beverages Shift in Marketing strategy [BTL] Reduce customer reach Limit innovation [ No new alcoholic beer brand since prohibition ] Unable to reach its full economic potential.

Recommendations. Beer factories should be responsible in their production and marketing , considering public health Strict laws hinder breweries growth and their economic contribution.

Respective Association & Heineken and other breweries Strengthen their involvement in CSR activities Implement the industry’s common self-regulation code Breweries' association must develop industry’s self-regulation code for marketing and promotion Strengthen an internal self-regulation system.

Thank You for listening!.