Strategic Mkt Diageo

Strategic Marketing Management

Evaluation of Key Marketing Decisions for Diageo

Executive Summary

The current performance of Diageo in the international market is a result of effective marketing management strategies to maintain its competitive position. Also, the continuous growth in the sales and profits of the Company supported by its existing strengths and competencies needs to beprotected from harmful business trends that may affect its constant development. Thus, there is a need to come up with practical and valuable strategies that will sustain market performance. The objective is to describe the key findings and locate areas of opportunity for the Company. This will be done through the use of different theoretical models such as SWOT and Porter’s Five forces as well asan overlook at Diageo’s value proposition, segmentation, core values.

Index

1. Introduction page 3
2. Company Background page 4
3. Key Findings page 5
4. Recommendations page 4
5. Conclusion page 4
6. References page 4
7. Appendix page 4Introduction

The topic of this assignment is to evaluate the key marketing decisions for Diageo, a company currently leader in the alcoholic beverages market with a portfolio across three categories in the business: spirits, beer and wine.
In their recently published annual report released on August 2012 Diageo shows it continues to drive the market dictating the trends and maintaining itscompetitiveness and positioning. There is a substantial growth in Emerging markets which in the last two years have increased their net sales to 33% while developed markets show a less promising result due to the current crisis experienced in Europe and North America. The last three years revenue demonstrates growth and records £10,762 million in 2012, £9,936 and £9780 million in 2011 and 2010respectively. 10
There will be an analysis on all plausible variables at stake and relevant to the business such as the strategy, competition, environment and others supported by real life examples and backed up by theoretical models such as Porters Five Forces and SWOT.


Company Background

Diageo is the leading premium spirit company in the world by volume, net sales and operatingprofit. It exists since 1997 and operates worldwide across spirits, beer and wine. It creates long term value for shareholders through its outstanding brands, its geographical breadth and the expertise of its people. It figures in the London Stock Exchange (DGE) as well as the New York Stock Exchange (DEO).
The name of the company derives from the words “dia” meaning day and “geo” meaning world. Itreflects the use of the products of the company each day and everywhere. This goes hand in hand with their corporate goal, which is “Celebrate life, Everyday, everywhere.”
Diageo manages a broad range of brands across several categories. It manages eight of the world’s top twenty premium spirits brands, including Smirnoff, the number one brand by volume and Johnnie Walker, the number one brand byvalue. In beer, Diageo owns the only global stout brand, Guinness, and a range of lager brands sold primarily in Africa. Diageo’s wine brands are sold predominantly in North America and Great Britain across a full range of price points.
Diageo produces and distributes a collection of branded premium spirits, beer and wine. The range of premium brands it produces and distributes includes Smirnoffvodka, Johnnie Walker scotch whisky, Baileys Original Irish Cream liqueur, Captain Morgan rum, Zacapa Rum, J&B scotch whisky, Tanqueray gin and Guinness stout.
In addition it also has the distribution rights for the Jose Cuervo tequila brands in North America and many other markets. Diageo's beer brands include the global stout brand, Guinness.
In August 2011, the Company acquired Mey...