Professional Documents
Culture Documents
Don julio
Crown royal
Buchanans
Croc
Ketel One vodka
Tanqueray
Bundaberg Rum
Pimms
Johnny Walker
Guinness
Harp Lager
Kilkenny
Tusker Lager
Red Stripe Lager
Sterling Vineyards
Beaulieu Vineyard
Chalone Vineyard
Acacia Winery
Organization structure
Competitor of Diageo
Diageos main global competitors are Pernod Ricard,
Beam, Bacardi, and Brown Forman.
In the beer industry, Diageo faces major global
competitors such as SABMiller, Anheuser-Busch,
Carlsberg, Heineken and Molson Coors Brewing
Company.
Local craft breweries are becoming a significant trend in
developed economies and are acquiring a growing
market share in Europe and in the US, Diegos main beer
markets .
The wine industry mainly consists of local producers and
distributors.
North America
Europe
Africa
Nigeria, East Africa (Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan), Africa
Regional Markets (Ghana, Ethiopia, Cameroon, Indian Ocean and southern African
countries), South Africa.
producing and distributing Guinness, Africas leading premium beer brand.
own many strong local lager brands and are the regions leading international
premium spirits company. During the year, acquired Meta Abo Brewery, the second
largest beer company in Ethiopia.
With 20 operational sites including breweries, glass manufacturing, blending,
malting and cider plants aim to create wealth directly through employment, and
indirectly through partnerships in our supply chain, such as working with and
supporting local farmers.
Asia pacific:
South East Asia (Vietnam, Thailand, Philippines, Indonesia, Malaysia, Singapore),
Australia, North Asia (Korea, Japan), Greater China (China, Taiwan, Hong Kong,
Macau), India and Middle East, a business unit including duty free sales along with
middle eastern markets.
strategy is to drive net sales growth by continuing to develop super and ultra premium
scotch and to capture the opportunities presented by emerging middle-class consumers.
In a number of markets such as China and Thailand, we distribute most brands through an
agreement with Moet Hennessey
Diageo, meanwhile, is selling less whisky in Russia, with sales down by 17 per
cent in a market where, it admits, consumer confidence is low.
PRODUCT STRATEGY
ADVERTISEMENT STRATEGY
Diageo developed a sophisticated marketing strategy to reenergize its
Smirnoff Vodka brand using 3 key components:
Develop a beverage that tasted like soft drinks.
Use the Smirnoff Vodka brand name but market the product as a malt
beverage to compete effectively with beer in terms of price, availability, and
advertising in electronic media.
Reorient Smirnoff Vodka itself as a young person's brand by adding new fruit
flavors and using other marketing innovations.
Diageo placed its Smirnoff Ice advertising in media venues with relatively
large youth audiences. The Center for Alcohol Marketing and Youth (CAMY)
conducted a series of studies documenting the extent to which alcohol
advertising was placed in television programming with disproportionately
youthful audiences
PRICING STRATEGY
In Kenya, a country where illicit alcohol is thought to account for about
half of all consumption, they have worked with the government to
introduce a new affordable beer, Senator Keg, which is estimated to have
replaced 600 million servings of unregulated drink.
Diageo made strategy Providing a safe, ultra low-cost beer to compete
with illegal supplies could play a crucial role in both resolving alcoholrelated health problems and in achieving the targeted growth for Diageo.
The company created a new product - a beer called Senator Keg - to tap
the approximately 60 per cent of consumers who drank only illegal
alcohol.
Diageo wants to build up its luxury portfolio in India as India is the third
largest spirits market by volume. Thus, Diageo aimed to implement a
strategy called Premiumisation, which means product prices increase
and more premium products are introduced into the market. It gives the
consumer the option to trade up; better is better
OPERATION STARTEGY
Diageo caters its operations to each country for an optimal
efficiency. In order to explore this model, they looked at two
dissimilar countries: The United States and India.
The US is an established, reliable, and highly profitable
market. In the US, the worlds most profitable beverage
market, Diageo has strong routes-to-market (RTM) which
leverage local expertise to optimize sales.
Whereas, India is an emerging market of which a large
growing middle class is Diageos target market. India has a
very large population spread out over numerous states,
languages and cultures, all factors that a company have
considered when selling a product.
FINANCIAL STRATEGY
In response to financial pressures, the company has announced a costcutting program which aims to reduce spending by 200 million pounds a
year by the end of fiscal 2017 (Bloomberg 2014). CFO Deirdre Mahlan
said that most of the savings will be from information systems,
procurement of goods and services, and simplification of the
organization.
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