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Marketing Guinness - Essay Example

However it was on the 31st of December 1759, how the SST James Gate Brewery become famous all around the world when Arthur Guinness signed a 7000 year lease for it back in 1759. Guinness is one of the most popular drink in the world as over 10 million pints of Guinness is poured out a day. Guinness has expanded extendedly in other countries exceptionally well, in countries like Nigeria and other Africa nations on the continent as Africa consumes over 40% of the famous stout. 1. 1 Present Situation Adagio was formed by the 1997 merger of Guinness with foods and spirits company the Grand Metropolitan.

Adagio is the world’s biggest producer of alcoholic drinks; these include (Guinness, Captain Morgan, Sunroof, Harp Larger etc… ) Guinness is now operating in over 49 countries, Guinness owns now over 5 breweries in 5 other countries around the world and sold in 150 countries worldwide. Guinness employs 23,786 at Adagio. Guinness has 5 breweries, the largest was built in 1962 in Kea which is the heart of Largos, and this was one of the first brewery to be built away from Ireland and England. Other breweries has open over the years included Benign City which opened in 1974, Gobo opened in 1982.

These Breweries were opened in Nigeria, making Nigeria the hot spot for Guinness Brewing for the last 40 years. In 1965 Segueing Way Brewery, near (Koala Lump) was open Malaysia to tackle the Asian markets. Guinness is one of the biggest companies in Ireland. Heinlein Ireland and Worldwide is one of Guinness and Diagnosed biggest competitor on the market at the present. Guinness is known for the peculiarly taste and color however when Heinlein bought Beamers and Murphy’s, It was showing an increase in the stout arrest.

Guinness is the most popular stout and the number one stout drink in the world, but how does compare to other drinks? Well there are averagely about 20’000 different brands of beer throughout the world and in between Ireland and Britain there are over 2000 different brand develop here day after day. Guinness has found new techniques and different ways to keep its customers over their years, through its clever market ad campaigns to its sport and music events, its new Arthur day and its new beer selection which helps non-Guinness drinkers to choose and try new efferent types of beer that Guinness has to offer. . 0 Environmental forces Marketers at Guinness need to good at building relationships with customers, in the company, and external partners. To do this, Guinness must be able to accept major environmental forces that surround Guinness that consists of the actors and forces outside marketing that effect its ability to build maintain and successful relationships and target customers. 2. 1 Micro Environment According to The micro-environment includes of the actors close to the company affects its ability to serve its customers.

This includes (the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. The Company Is the internal environment which the company puts into groups such as top management, finance, research and development (R), purchasing, operations and accounting. Top management sets objectives, the company missions, strategies and policies. Guinness believes from that their mission statement “To document the beauty, majesty, elegance, wonder… Of filling a glass with the finest beverage on Earth. Guinness objectives want to “connect with its customers, and get them involved with the brand on a deeper level than straightforward consumption. By providing them with innovative on-brand planning tools and entertainment, the mobile campaign created “tolerability’ and encouraged fun, interaction and Craig in the pub and beyond. Guinness also wanted to use the campaign to promote its new product, Guinness Red, and introduce it to traditional Guinness drinkers and the wider market. Suppliers Suppliers help create a chain in the company overall customer value delivery system. They form the resources needed by the company to produce its goods and service. Guinness has to have a sophisticated and well planned out list for supplying their product as Guinness depends on its unique test and its quality of the stout; however it uses a “Just-in-time” system to help distribute the FMC. Marketing Intermediaries Help the company to promote, sell and distribute its goods to final buyers.

Resellers play an important role in marketing intermediaries; resellers help companies or help makes sales for them. For example one of Guinness big resellers in the USA are a company called Empire Distributors Inc, which work with more of Diagnosed alcohol beverages. Cybercafé is one of Ireland’s biggest market agency, and has worked with Guinness on many different projects. Cybercafé helps promote an event or ad campaign and has currently worked with Guinness for their help with Urethra’s day and with Guinness promoting rugby and the national rugby team.

Customers The customer market has 5 main types: consumer markets, business markets, reseller markets, government markets and international markets. Guinness quality assurance teams help the like of business market regain confidence in their customers. The Guinness quality assurance van would travel round to each public souse and measure the quality of the pint to make sure that the high standards of the Guinness name are kept up. Competitors The marketing concepts explains to become successful, a company must show greater customer value and satisfaction than its customers do.

Thus, marketers must do more than simple adapt the wants or needs of a customer. Adagio help Guinness by making Guinness and their other products to be as sustainable organic growth (which was 58% of total volume in the year ended 30 June 2009) Adagio has one of the best marketing team in the world as they use their capabilities to combine he possibilities on a global scale with local insight, and stay true to the consumers with both their trusted brand favorites and the introduction of new and exciting innovations.

They plan to improve everything they do to the highest possible standard, and continue to invest in the skills to be one of the most highest and excellent seller of alcohol beverages. Publics Publics are any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives. This can be seen in seven different types Financial, Media, Government, Citizen, Local, General and Internal.

Guinness has always been known for its charity since Edward Cecil was appointed the first Lord of Visage and establishes the Guinness and Visage Trusts to provide homes for the poor in Dublin and London. He provides a donation to Trinity College Dublin and Dublin hospitals. His brother Arthur landscapes SST. Stephens Green and gives it as a gift to the public.. Today Guinness have Arthur Guinness fund, which helps give the chance of one young entrepreneur the chance who are leading or helping Ireland for the better.

This is competition that takes place every year and the entrant that wins ill get to see their plans develop by Guinness 2. 2 Macro Environment According to the macro-environment includes larger societal forces that affect the micro-environment-?economic, political, technological, social natural, and culture forces. Demographic Environment Guinness marketers help stay on track on demographic developments such as changing age structure, geographic population shifts and a better educated population.

Guinness/Adagio strategy is to drive top line growth and margin improvement in a sustainable and responsible way, to deliver consistent value for shareholders over the long term. It will do this through its geographic breadth, its outstanding brands across beverage alcohol categories and the expertise of its people. This is Adagio model on the Demographic environment Figurer. 2. 1. Economic environment Since the recession, Ireland had a reduction in customer spending continued to impact the alcohol industry with sales down 10%. On-trade channel declined at the higher rate of 14%.

Adagio volume and net sales dropped by 9% but has increased in the on-trade in both beer and spirits. The “25th Celebration” campaign on Guinness, “Urethra’s Day” on 24 September, led to significant brand equity improvements and share gains in both the on-trade and the off-trade for the brand Technological environment Guinness are always trying to create and improve the perfect pint a Guinness, Guinness were always finding difficulties with their caned version of the stout, the the head of the pint doesn’t last as longer as the pint you would get in a publican house.

However after years of developing Guinness are now putting “Widgets” a small circular ball with nitrogen that helps improve the head and pint of the Guinness. Limerick university students have also discovered that microscopic plant fibers made f cellulose, such as cotton, can also froth up a stout. Political environment Guinness has and other possible alcohol beverages could see a life time ban in the use of using their brand image to sponsor sporting events.

Philip Browne said that alcohol related sponsorship was worth a total of в? 9 million to the RIFF while John Delaney said it was worth a significant portion of the FAG’S overall sponsorship revenue of в? mm. Mr. Duffy said alcohol sponsorship was a small amount of the Saga’s overall revenue. This is to been considered as seen as loss in both ways but a new tackle on underage drinking in Ireland. Cultural environment The culture of Guinness and how it has changed due to since it was first developed in 1744 is Just magnificent.

Since entering Nigeria market in the asses, it has improved life of the employees and the people around Guinness. It build new wells, new employment opportunities and has won many awards on how Guinness is one of the best companies to work for over in Nigeria 3. 0 SOOT Analysis of Guinness Strengths The most consumed beer in Ireland Known for its iconic advertising It is frequently used in cooking recipes Weakness The advertising ban on sport events in Ireland, as Guinness is a main sponsor for the

Ireland national rugby team The low market share the company has in worldwide sales Opportunities Its legacy and strong following even in the market where it has a very little presence will help it in expansion plans Guinness is trying to break in more to the Asian market as a Asian beer called “Snow Beer” is the most consumed beer in the world Nigeria and its strong loyalty for Guinness, as 40% of the beer is consumed there.

Threats The rising cost of raw materials because of inflation The recession itself has seen beer sales being hit rapidly It has strong competitors in the beer market as Guinness does not reach the top 10 errs on the market 4. 0 Product and branding strategies Guinness has four main different types of alcohol products: EXTRA STOUT Figure 4. 0. 1 This is the one that started it all. Crafted over 200 years ago. It has an unmistakable deep-dark color. The crisp hint of roasted barley, the fresh breeze of hops.

DRAUGHT GUINNESS Is the most popular Guinness consumed in Ireland, with its rich smooth head and rich dark body, it has uniquely made this country famous from it taste Figure 4. 0. 2 FOREIGN EXTRA STOUT Foreign Extra Stout is a beer like no other. The most full flavored Guinness of the family range. It is brewed with extra hops and roasted barley for a natural bite. It also is the strongest Guinness as it reaches 7. 5% of alcohol and is the most consumed Guinness in Nigeria. Figure 4. 0. 3. Figure 40. 4 GUINNESS MID-STRENGTH Guinness Mid-Strength is brewed in exactly the same way as regular 4. 2% alcohol Guinness.

The same ingredients are used for the same quality. The only difference is the alcohol content which is 2. 8%. GUINNESS BLACK LAGER Figurer. O. 5 Guinness Black Lager was launched in ROI markets in July 18th of 2012 is brewed using a lager cold filtered process for a crisp refreshing lager taste. It’s the combination of Guinness’ signature dark roasted barley and Guinness lager yeast, that gives a depth of flavor & color that’s quite unlike any other lager. 4. 1 Guinness most popular branding strategies Guinness is relatively famous for everything they produce from the drink, clothes, food and their books.

However what makes it so famous? Is it the tourists, the marketers, the history or the Irish people itself. I believe that all these facts make Guinness and its brands the way are today. Guinness first brand was the famous “Harp”. The harp caused some problems for the Guinness family when it was first introduced in 1862, 2 years later the harp had to be changed as the straight edge of the harp facing right hand side, the harp was facing the same side as the official government symbol, Guinness now have the harp facing the edge and that straight left hand side.

Guinness started to use the icon of animals that all started round the asses and has been very popular over the last couple of years. Guinness used a marketing firm called S. H. Benson. The artist who created the lovable characters was a man called John Glory. John Glory first got his creativity to put animals on Guinness poster when e was at the Beatrice Mills circus in London, where he saw a Sea lion balance a ball on his nose, and tried to wonder if it would be possibly to with a bottle of Guinness stout.

He also produced the Toucan which is one of Guinness most memorable characters, with a famous slogan that is known round the world “Guinness is good for you”. The toucan retired in 1982 but can be still bought Guinness clothes and different items today. Guinness is known for is fun and wacky advertising, however in 1997 Guinness shocked most of the public in being one of the first company to try ND air a Guinness commercial that for the gays and lesbians drinkers. The ad is called “Men and Woman shouldn’t live together” the ad was never aired and features the song “stand by your man”. 5. Pricing strategies Segmented pricing According to Guinness represents several layers of segmentation, youth, gender wealth and lifestyle. Guinness use age segmentation: They use age segmentation by have a strong persisted marketing campaigns which target the young males. Guinness is often seen as the ‘Fathers beer’, the Guinness marketers are trying to show that their campaigns are unique, young, trendy and fun. Income Segmentation: Guinness beers are more expensive to the consumer, however they target customers may be willing to pay more for a taste which is more expensive to produce.

On Anther’s Day celebrations Guinness drop their prices which lead to the knock on effect of consumers some who never tried the beer acquiring a taste for this product, therefore leading to a rise in sales Promotional pricing Every Urethra’s day Guinness lowers it prices the day of the event, this gives customers a chance to see they would prefer the beer over their current brand. Promotional racing have proven greatly on 27th of September in the cities where it is celebrated in Dublin, Koala Lump, Lagos, New York and Yaounde. 6. 0 Promotional Strategies 6. Urethra’s day 2012 According to Urethra’s Day is Guinness main event every year, Arthur day is created to celebrate of over 250 years, from the day Arthur Guinness signed in 1759, and the famous call to Arthur at 5. 59, every year the celebrations reach every corner of Ireland. Which also include live music acts in all 32 countries. The aim of Arthur day, is to have a nice Guinness in your local pub, where you could be Joined by some local Caucasians or someone famous, there are no tickets on sale, Just grab some mates and head to one of 500 free Urethra’s Day music events taking place in local pubs across all 32 counties.

Here are Just a reminder of the artists that played in Ireland’s 2012 “Arthur day’ such as Example, Tine Attempt, Elli Colluding, Mike, Professor Green, Potboy Slim, Texas and rising star Amy Macdonald to one of the 500 Urethra’s Day music events taking place in a local pub near you. For a pub a pub to get a headline act, pubs hate to send their vote into Guinness, voting was opened on the 1 5th August to 16th September, however the lucky winners would not know till the night of Urethra’s day where they would be surprised by the act.

Urethra’s Day artist Tine Attempt had this to say “l played Urethra’s Day back in 2010 so I know all about the magic of it. I’m honored to be invited back to Ireland for 2012 and couldn’t be more excited about playing a pub gig for a small, surprised crowd! We’ll be kick starting the global celebrations in Ireland on September 27th” (discover Ireland)2012 6. 2 Hurling Hurling almost goes back as far as 1272 BC. It didn’t become a part of the Gaelic Athletic Association till 1884. Hurling is now a big part of Ireland and is played in schools, age level, club and county level.

Guinness Ireland Group is the first ever sponsor of the All Ireland Hurling Championship. It all started in 1995. Since then the Guinness sponsorship has become one of the most recognizable of all sports sponsorship in Ireland. 7. 0 Distribution According to Adagio is required by law to have a operating three-tier distribution system in the United states, Adagio have strong routes to market which help with local expertise. The three tier distribution system is suppliers, distributors and tillers. Adagio works with a team of distributors that reach around 2,900 people.