BCU - MM - Guinness - 1.2013

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An analysis of a traditional Irish brand in the U.K.

description

Group presentation in Marketing Management doing research about Guinness.

Transcript of BCU - MM - Guinness - 1.2013

Page 1: BCU - MM - Guinness - 1.2013

An analysis of a traditionalIrish brand in the U.K.

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Noora Al-AbdullaPanchapha LaochooSolar PereraJoachim KranzlerNavin MahaveerOkwuchukwu Nnajiofor

Birmingham, 13/11/2013

The Team

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ContentsI. Brand &

History

II. PESTLE-

Analysis

III.5-Forces-

Analysis

IV.SWOT-

Analysis

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Famous Irish beer brand

3 main-variations (Guinnes Draught, Extra Stout and Foreign

Extra)

History:1759 – Arthur Guinness founded the brewery in Dublin

1769 – First export to Great Britain

1824 – First Guinness advertisement printed

1833 – The brewery became the largest in Ireland

1920 – Released their campaign ‘‘Guinnes is good for you“

1950 – Brewery‘s worldwide expansion (e.g. Africa, Canada, Australia, Thailand,

etc.

1954 – Guinness Book of World Records

1997 – Merger with Grand Metropolitan to form Diageo PLC

2001 – The world drinks £2bn pints a year

2013 - Highest brand-expenditure in history (£34m)

(Sources: marketingweek.co.uk, 2013; guinness.com, 2013; guinnes-storehouse.com, 2013)

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PESTLE

Political

Economic

Social

Technological

Legal

Environmental

Political Influence of political

system Minimum price policy Government‘s tax

policy BBPA guidelines

Beer duty guidelines

Alcohol labelling

(Sources: British beer pub association Brewing, 2013; Guardian News and Media Ltd., 2013; Sky news, 2013; Conservatives, 2013)

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PESTLE

Economic

Social

Technological

Legal

Environmental

Political

Economic Economic growth Unemployment Inflation Consumer Confidence

(Sources: bankofengland.co.uk, 2013; ecb.europa.eu, 2013; epp.eurostat.ec.europa.eu, 2013; tradingeconomics.com, 2013)

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PESTLE

Social

Technological

Legal

Environmental

Political

Economic

Social

Change in Lifestyle Health Conscious

Society Responsible drinking Decline in affluent

customers Cross-Channel

Shopping

(Sources: Joseph, 2012; Joseph, 2013; Chahal, 2013; Young, 2013; Bishop, 2012; Guinnes & Co, 2013; Mintel, 2010)

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PESTLE

Technological

Legal

Environmental

Political

Economic

Social

Technological Technology in

production Packaging & logistic Internet & e-

commerce Draught technique Service & support

(Sources: MBASkool.com, 2008; myarticle.com, 2008; guinness.com, 2012; guinnes-storehouse.com, 2013;ResearchPapers247.com, 2008)

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PESTLE

Legal

Environmental

Political

Economic

Social

Technological

Legal Duty on Beer Alcohol consumption

laws

(Sources: Gov.uk, 2012; Drinkaware.co.uk, 2013)

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PESTLE

Environmental

Political

Economic

Social

Technological

Legal

Environmental Climatic factors

Pollution Packaging &

Recycling

(Sources: Anon, 2008; Benfield, 2012; British Beer & Pub Association, 2011; Clarke, 2006; Jones, 2012; MBASkool.com, 2008; Phelan, 2013; ResearchPapers247.com, 2008; The Environment Agency, 2013)

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FORCES

LR LR

AR

LR

LR

INDUSTRY RIVALRY

Stout beer brands like Murphy‘s and

Beamish in addition to Lager and Ale brands.

BARGAINING POWER of SUPPLIERS

Weather-sensitive raw materials could be an

advantage to suppliers.

THREAT of NEW ENTRY

Potential risk of other breweries entering the

stout beer market. (e.g. Gösser Venus in Austria, etc.)

THREAT of SUBSTITUTES

Potential products that entice people to consume other

alcoholic beverages rather than Guinness.

BARGAINING POWER of CUSTOMERS

Trend of drinking at home could make

customers more price sensitive.

(Sources: MBASkool.com, 2008; myarticle.com, 2008; ResearchPapers247.com, 2008)

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Highest reputation and consumption in U.K.

Iconic status achieved due to advertising

Manifested knowhow and technology (e.g. widget)

Decreasing sales and market share

Advertising restrictions

Youngsters prefer beer over any other liquor

Increase in the numbers of female drinkers

New products from global market

Country-specific regulations in the alcohol industry

Rising costs of raw materials due to speculation and climate change

Diageo‘s reputation could be a negative factor

Strengths Weaknesses Opportunities Threats

(Sources: MBASkool.com, 2008; Mintel,2010; myarticle.com, 2008; ResearchPapers247.com, 2008)

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THANK YOU!

ANY QUESTIONS?

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Research list (1)

Anon (2008) Guinness. Available at: http://www.mbaskool.com/brandguide/food-and-beverages/4794-guinness.html [Accessed 26 October 2013].

Bankofengland.co.uk (2013) Interest and exchange rates data. Available at: http://www.bankofengland.co.uk/boeapps/iadb/index.asp?Travel=NIxIRx&levels=1&XNotes=Y&H3688XNode3687.x=9&H3688XNode3687.y=5&C=13T&C=KV&C=P9&C=E32&C=E77&C=E7D&C=E81&XNotes2=Y&Nodes=X3687X3688X3691X3694X3716X3738X3754X3757X3764X3771X3774&SectionRequired=I&HideNums=-1&ExtraInfo=true#BM

[Accessed 11 November 2013].

Benfield, K. (2012) The greening of Guinness. Available at: http://switchboard.nrdc.org/blogs/kbenfield/the_greening_of_guinness.html [Accessed 5 November 2013].

Bishop, D. (2012) Lower strength drinks heralded as Stella Artois, Becks and Budweiser switch to 4.8% & 'mid-strength' 2.8% Guinness announced: Alcohol Policy UK. Available at:

http://www.alcoholpolicy.net/2012/01/lower-strength-drinks-heralded.html [Assessed 30 October 2013]

British Beer & Pub Association (2011) brewing green/our commitment towards a substainable future for Britain’s beer. [pdf] London: British Beer & Pub Association. Available at: http://s3.amazonaws.com/bbpa-prod/attachments/documents/resources/ 21206/original/Brewing%20Green%20Report%202011.pdf?1328626886 [Accessed 4 November 2013].

British beer pub association Brewing (2013) Beer duty guidelines. Available at: http://www.beerandpub.com/industry-briefings-filtered?ib_filter=17 [Accessed 1 Nov 2013].

Chahal, M. (2013) UK beer struggles to raise the bar: MarketingWeek. Available at: http://www.marketingweek.co.uk/trends/uk-beer-struggles-to-raise-the-bar/4007556.article [Assessed 28 October 2013]

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Research list (2)

Clarke, J. (2006) Ireland: Where Being Stout is a Virtue. Available at: http://www.starchefs.com/wine/features/html/irish_stouts/html/ [Accessed 5 November 2013].

Conservatives (2013) Taking action to tackle the problems of alcohol abuse. Available at: http://www.conservatives.com/Policy/Where_we_stand/Crime.aspx [Accessed 8 Nov 2013].

Drinkaware.co.uk (2013) Alcohol and the Law. Available at: https://www.drinkaware.co.uk/check-the-facts/alcohol-and-the-law [Accessed 2 November 2013]

Ecb.europa.eu (2013) Statistics. Available at: http://www.ecb.europa.eu/stats/html/index.en.html [Accessed 11 November 2013]

Epp.eurostat.ex.europa.eu (2013) Statistics. Available at: http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/themes[Accessed 11 November 2013]

Gov.uk (2012) HM Revenue & Customs: Alcohol Duties. Available at: https://www.gov.uk/alcohol-duties#beer-duty [Accessed 1 November 2013]

Guardian News and Media Limited (2013) Coalition to set minimum alcohol price. Available at: http://www.theguardian.com/society/2012/mar/23/coalition-minimum-alcohol-price-40p?guni=Data:in%20body%20link [Accessed 1 Nov 2013].

Guinness.com (2012) The Draught Family. Available at: http://www.guinness.com/en-row/thebeer-draught-bottle.html [Accessed 5 November 2013].

Guinness-storehouse.com (2013) The Story 1950. Available at: http://www.guinness-storehouse.com/en/thestory-1950.html [Accessed 5 November 2013].

Guinness & Co (2013) Calorie Guide: Guinness.co.uk. Available at: http://www.guinness.com/en-gb/food-calorie-guide.html [Assessed 1 November 2013]

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Research list (3)

Jones, S. (2012) Branding Guinness. Available at: http://www.articlesbase.com/international- business-articles/branding-guinness-5907801.html [Accessed 5 November 2013].

Joseph, S. (2012) Diageo readies Guinness Mid-Strength UK release: MarketingWeek. Available at: http://www.marketingweek.co.uk/diageo-readies-guinness-mid-strength-uk-release/3033503.article

[Assessed 27 October 2013]

Joseph, S. (2013) Guinness Launches £12m bid to push quality credentials: MarketingWeek. Available at: http://www.marketingweek.co.uk/news/guinness-launches-12m-bid-to-push-quality-credentials/4007779.article [Assessed 28 October 2013]

Joseph, S. (2013) Guinness needs to woo younger drinkers to maintain ‘surfer’ cool: MarketingWeek. Available at: http://www.marketingweek.co.uk/news/guinness-needs-to-woo-younger-drinkers-to-maintain-surfer-cool/4007793.article [Assessed 28 October 2013]

Marketingweek.co.uk (2013) Guinness needs to woo younger drinkers to maintain `surfer` cool. Available at: http://www.marketingweek.co.uk/news/guinness-needs-to-woo-younger-drinkers-to-maintain-surfer-cool/4007793.article [Assessed 8 November 2013]

Myarticle.com (2008) An introduction of DIAGO company. Available at: http://www.myarticle.com/Business/diageo-company.html[Accessed 9 November 2013].

MBASkool.com (2008) BrandGuide: Guinness. Available at: http://www.mbaskool.com/brandguide/food-and-beverages/4794-guinness.html [Assessed 4 November 2013]

Mintel (2010) Ales and Stouts: Consumer Usage. Available Through: http://academic.mintel.com/display/525016/?highlight=true#hit1 [Assessed 2 November 2013]

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Research list (4)

Mintel (2010) Ales and Stouts: Market in Brief. Available Through: http://academic.mintel.com/display/525003/?highlight=true#hit1 [Assessed 2 November 2013]

Mintel (2010) Ales and Stouts: Consumer Attitudes to Drinking: Strengths and Weaknesses. Available Through: http://academic.mintel.com/display/541695/?highlight=true#hit1 [Assessed 3 November 2013]

Mintel (2010) Ales and Stouts: Consumer Attitudes to Drinking: *Consumer Usage – What People Drink and How Often. Available Through: http://academic.mintel.com/display/541697/?highlight=true#hit1 [Assessed 5 November 2013]

Mintel (2010) Ales and Stouts: Consumer Attitudes to Drinking: *Appendix – Consumer – Drinking Behaviour. Available Through: http://academic.mintel.com/display/541706/?highlight=true#hit1 [Assessed 6 November 2013]

Phelan, A. (2013) FAQ. Available at: http://www.guinness-storehouse.com/en/faqs.aspx#faq60 [Accessed 31 October 2013].

ResearchPapers247.com (2008) An introduction of Diageo company. Available at: http://www.myarticle.com/Business/diageo-company.html [Assessed 26 October 2013]

Sky news (2013) Beer sales slump blamed on tax policy. Available at: http://news.sky.com/story/1042679/beer-sales-slump-blamed-on-tax-policy [Accessed 1 Nov 2013]. Tradingeconomics.com (2013) United Kingdom Calender . Available at: http://www.tradingeconomics.com/united-kingdom/calendar [Accessed 11 November 2013].

The Environment Agency (2013) Climate Change Agreements Scheme. Available at: http://www.environment-agency.gov.uk/business/topics/pollution/136236.aspx [Accessed 5 November 2013].

Young, A. (2013) Pub beer sales fall by 50 million pints: The Drinks Business. Available at: http://www.thedrinksbusiness.com/2013/04/pub-beer-sales-fall-by-50-million-pints/ [Assessed 30 October 2013]