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PRESENTED BY

SHIVRAJ SINGH RATHO


BHANU PRATAP
SANKALP KAUSHIK
RAVI SHARMA

Headquater : London,united kingdom


They operate in five regions which are North America, Latin America, Western Europe,
Africa/Turkey/Eastern Europe, and Asia Pacific.
Offer and brand :
three distinct categories: Spirits, Beers, and Wines.
Top Selling Spirit
Products/Brands

Don julio
Crown royal
Buchanans
Croc
Ketel One vodka
Tanqueray
Bundaberg Rum
Pimms
Johnny Walker

Top Selling Beer


Products/Brands

Top Selling wine


Products/Brands

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.

Various strategies followed by Diageo in


international market

North America

largest region by net sales and operating profit, and the


largest market for premium drinks in the world.
sell and market products through four operating units
within the United States and Canada: US Spirits & Wines;
Diageo-Guinness USA; Chateau & Estate Wines; and
Diageo Canada.
business focuses on four things: using its scale to reduce
costs; continuing to grow the on-trade (restaurants, hotels
and bars); delivering industry-leading brand innovation; and
broadening its reach to the multicultural consumer.

Europe

Western Europe, Russia and Eastern Europe, Turkey.


In Western Europe, our country directors focus is on sales delivery.
Invested resources into the remaining emerging European markets
to capture the opportunity presented by the growing number of
middle-class consumers.

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.

Latin America and Caribbean:


comprises Paraguay, Uruguay and Brazil , Andean, Mexico.
primary focus is to continue to lead the scotch market while increasing category breadth to
include vodka and liqueurs.
Diageo also owns a controlling interest in Desnoes & Geddes Limited, the Jamaican brewer
of Red Stripe lager.
This year expanded production footprint in the region with acquisition of the Ypioca distillery
business in Brazil.

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

PROBLEMS FACED BY DIAGEO IN


DIFFERENT COUNRTIES

Russias troubled economy and a collapsing Rouble gave a hangover to the


brewer Carlsberg and drinks giant Diageo, which produces tipples ranging
from Johnnie Walker whisky to Smirnoff vodka and Guinness.

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.

A political crackdown on gift giving to officials in China, unrest in Thailand,


and inflation in Nigeria, caused net sales growth to slow to 1.8 per cent in the
six months to December 31 from 2.2 per cent over the three months before.
The shares fell to 1,805.50 down 105.58.

Menezes announced a raft of self-help measures aimed at keeping the worlds


biggest drinks firm in shape. He set out a plan to cut costs by 200million
annually for the next three years that will inevitably mean more job cuts.

A tax increase on one of its beers in Kenya and a


steep decline in sales of Chinese Baiju Spirit, due
to government-enforced austerity measures.
There was a 4% fall in net sales in Ireland during
the year, with the company saying a rise in excise
duties .
Weak spots include China and southeast Asia,
where volume fell 20% and 25% respectively, and
Venezuela, where a currency devaluation and
inflation cut Scotch sales 47%.

PRODUCT STRATEGY

Diageo's brands includeSmirnoff - BEST SOLD IN NORTH


AMERICA
Johnnie Walker(the world's best-selling blended
Scotch whisky) -Ayrshire, Scotland
Baileys(the world's best-sellingliqueur) Baileys Irish
Creamis anIrish whiskeyandcreambasedliqueur, made by
Gilbeys of Ireland.
Guinness(the world's best-sellingstout) MADE IN IRELAND
AND MOSTLY IMPORTED IN AMERICA.
Diageo also owns 34% ofMot Hennessy, which owns brands
includingMot & Chandon,Veuve ClicquotandHennessy

The company announced a formalisation process to enable


licensing of outlets that previously sold illegal alcohol,
making them exclusive Senator Keg outlets. Diageo then
trained the staff of its retail outlets - free of charge - how
to rotate kegs and wash glasses to maintain freshness and
flavour, how to serve and even how to deal with customers
who had had too much.

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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