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Diageo PLC Marketing Strategies

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Jessica Lindeman

on 28 November 2013

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Transcript of Diageo PLC Marketing Strategies

Diageo PLC Marketing Strategies
Understanding Customers - 5W1H
Who is involved in buying & consuming
What are their choice criteria
When do they buy/use the product
Why do they buy-use the product
Where do they buy the product
Market Penetration
Porters Five Forces
Taxation policy driving price up
Government focus on binge drinking
Decline in alcohol industry sales
Reduced consumer spending power
Increased health awareness
Home consumption of alcohol
Social media to promote drinking culture
Customer Analysis
Top global alcohol company that within the spirits market produces whiskey, gin, vodka, rum and liqueurs
Formed in 1997 after the merger of Guinness PLC and Metropolitan PLC
Its products are sold in more than 180 countries

Bargaining power
of suppliers
Competitive Market Analysis - Macro
Threat of
New Entrants
Threat of Substitutes
Bargaining Power of Suppliers
White Spirits: 50% Penetration with 20-24 year olds
Dark Spirits: higher penetration for women
Share of Wallet
78,536,125 / 314,144,500 = 0.25
Market Overview & Competitive Benchmarking
Diageo: Market leader
Bicardi-Brown Forman Brands & Glen Catrine Bonded Warehouse ranked 2nd in the spirits category
Diageo falls back in the rum category
Trend towards flavoured spirits
Introduction of own brands
Competitive Environment
New entrants and substitutes: Craft & Dark beer; Private labels
Industry competitors: beer
Strategic group competition
SWOT analysis
Strengths: dominant market leader, EOS, wide range of brands, maximum utilisation of resources
Weaknesses: Legal proceedings, over-reliance on mature markets, product portfolio gaps, underperforming brands
Opportunities: Strategic acquisition, segmentation, technology
Threats: Economic climate, own-brands, health awareness, government
Marketing assets
Resource portfolio
Competitive advantage
Competitive advantage
Competitive strategies
Defensive strategies
Launch more premium/ super-premium products
Maximise lifetime-value
Drive value in mature markets
Niche opportunities
Low alcohol content spirits
Promote products for at-home consumption
Introduce economically competitive products
Full transcript