This paper dwell on a case study of Diageo’s Global Branding in some part of Africa with focus on the challenges experienced with the strategies employed and the new approach evolved with changing the strategies, limitations experienced towards its actions.
Key words: Diageo’s Global Branding, its marketing strategies, Africa penetration, mass production, challenges and consequences.
Overview of Diageo’s Global Branding in Africa
Diageo plc is a British multinational alcoholic beverage company that produces and distributes alcoholic and non-alcoholic beverages. The company headquarter located in London, UK with a revenue base of 15.64 Billion (GBP) and 30,400 workforce worldwide. As a custodian of the most world iconic drinks, its brands include: Malta Guinness, Black Label, Smirnoff, Johnnie walker, Captain Morgan, Windsor, JB, Cîroc and Baileys just to mention but a few. The world’s largest distiller of malting, brewing until it was overhauled by China’s Kweichow Moutai in 2017. The name of its chief Executive officer is Ivan Menezes and its president (Deirde Mahlan).
In Africa today, Diageo has categorized its markets into four, East Africa, Africa Region Markets, Nigeria markets and South Africa markets with 13% net sales. Its existence in Africa paved way for its leadership role in beverages industry with a 25.6% market share. (Forbes,2017).
by 73% agricultural materials source in Africa, most materials is locally used for its Africa markets and over 10
Federal Restrictions and Guidelines in Smoking and Politics by A. Lee Frischlet and James M. Hoelfer
As noted above, a key element of Interbrew 's global strategy has been to acquire brewers and established brands in areas with significant growth potential, and then allow the company administrators in that country considerable autonomy in the marketing of their brands locally. Thus, for example, Interbrew purchased two breweries in Nanjing, China, and through these purchases acquired their locally popular brands Yali and Jingling. This made Interbrew the dominant market player in this large Chinese city, with possibility to serve as a platform for expansion (Beamish and Goerzen 8).
Catherine, W., Tat Pui, L. and Henrik, U. (2011) The Roles of Branding for a Brand Entering
In order operations in the United States, Modelo set up Procermex Inc. a subsidiary whose purpose was to coordinate, support, and supervise the two distributors. The strength of the relationship between the importer and Modelo was very strong as taxes increased in 1991. To further expand internationally, I would encourage Grupo Modelo to continue its model of contracting with a distributor in the target region. This strategy has benefited the company because the local distributors are able to brand the beers to their local market needs. I believe that China and Australia are two markets that have great potential for demand of Grupo Modelo 's beers. China recently surpassed the U.S. in total beer consumption. There is a huge population that is potential for demand. Australia already has high per-capita consumption of beer, so it might be an easy market to enter especially considering the match of brand image of Corona to the typical image of Australian beaches.
A flat disc that has been used in magick for over thousands of years is the Pentacle. Most commonly engraved with the pentagram, which signifies the five elements: fire, air, earth, water and spirit, the pentacle is used as a protective talisman. However, in most Wiccan traditions it is seen as representative of the element of Earth, and can be used on the altar as a place to hold items that are going to be ritually consecrated. The pentacle itself can be made of any material, including brass, gold, silver, wood, wax and clay. The pentacle is an instrument of protection and a tool used for invocation. It is sometimes considered to be a portal between this world and the spirit world. Sometimes, it is hung above windows and doors due to its protective
Branding has become the key concept of marketing strategies. Brand is the name of firm, products, services, and above all, it is coherent with the firm’s image from
Diageo, one of the world’s leading consumer goods companies, was formed from the merger of GrandMet and Guinness. In 2000, the company announced its intention to sell its packaged food subsidiary, Pillsbury, and 20% of its Burger King subsidiary. Because of the restructuring opportunity, the company wanted to rethink its financing mix.
Diageo was created when Grand Metropolitan, plc and Guiness, plc merged in 1997. While the Diageo name is not well known to consumers, its brands are among the most famous including Guinness, Smirnoff, Johnnie Walker and Cuervo. The company recently decided to focus on a strategy to grow through its spirits, wine and beer businesses and divest of its Pillsbury and Burger King subsidiaries. This case study will focus on the proposed capital structure decisions of Diageo.
When looking at the economic aspects affecting the industry and Diageo the main concern is the market saturation reached in many of the developed economies worldwide. With demand remaining constant and competition increasing it is important for firms to identify new markets to invest in, with particular focus placed on Emerging markets. Another important development is the growth patterns in the alcoholic beverage market with the demand for beer increasing by 2.7% with particularly strong growth in the premium brands market. In contrast there has been a decline in demand for wine and spirits which are the industries that Diageo has a large market share. There has also been a recent reduction in operating profit of Diageo in Europe, which can largely be explained by the higher taxes imposed by governments who are striving to reduce alcohol consumption.
Coca Cola: It is a well known for their global branding company. They adopt the global branding strategy through which they effective create international brands and attract audiences. In the year 1980 & 1990, the firm first makes their global presence at the global level by offering standardized goods. Thereafter, they also used global marketing in that they successfully introduced logo names ‘think local, act globally. After that, the Coca Cola Company has been successfully making their brand image in the mind of its customers (Liou and Yang et. al., 2016). Therefore, it is recognized as a global branding product all over the world as they mainly focus on universal values. Apart from this, the Coca Cola Company make their globalize brand through the global campaign that helps them in connecting the people all over the world. It also shows their customers that the Coca Cola is free from calories and caffeine. The global marketing strategy helps them altogether Coca-Cola Zero, Diet Coca-Cola and Coca-Cola life under the single global
Diageo is a global leader in beverage alcohol with an outstanding collection of brands across spirits and beer – a business built on the principles and foundations laid by the giants of the industry. Diageo picked Africa as a potential market using Global Branding strategies. I am going to explain their strategies and early mistakes and their success in this essay (Trefis Team, 2015)
Branding is a tool to make the goods of one producer different from another producer (Keller, 2003). Carroll (2008) asserts that branding is a sign of quality, and it is helpful to increase
Diageo plc is a British multinational firm that owns some of the most popular alcoholic drinks in the world. The firm boosts a reputation of not only being the largest spirits producer in the world, but also being the world 's leading premium drinks company. The company has an extensive portfolio and their most popular drinks include Smirnoff vodka, Baileys, Pimms, Blossom Hill and Guinness. The company owns 312,120 Breweries, 312,130 Wineries and 312,140 Distilleries in the world and trade in near 180 markets, and employs more than 200,000 people in about 80 countries; of which include Great Britain, Canada, United States, Ireland, Spain, Italy, Africa, Latin America,
Long before now has branding been considered as one of the peripheral aspects of business. Manufacturers, investors and other key players focused on the product without paying much attention to the consumer. But as the business landscape got tougher, marketing became not just an integral part of business but one of the fundamental principles of success.
The German philosopher, Friedrich Wilhelm Nietzsche, referred to a life without music as a mistake (“Don’t”). Unfortunately, many children never get the opportunity to discover the fulfillment that music can bring to their lives. They are denied this chance by an unfair educational system. Music education is beneficial to the student throughout his entire life, thus it should not be cast aside and neglected as it often is in the public school system today, but instead schools should do just the opposite; treat music education as a priority.