GUINESS CASE STUDY
How can Guiness maintain its market share and continue to grow in a competitive market?
A swot analysis is a planning method used to evaluate the Strenghts, Weaknesses, Opportunities and Threats involved in a business. Stregths
Diageo one of the 500 Fortune Company
It has 30% of global market share
It owns 20 spirit brands (Smirnoff, Johnie Walker..)
Trades in 180 markets
It has an annual turnover of 9 billion pounds
It is a world leader in stout brand
A well knowned brand even by non consumers
It uses different types of packaging: bottles, cans
Stout only accounts for 1.1% of world beer sales
An aggressive price increases policy
It has not been profitable over the last years
People stay more at home- Guiness surger launch in order to have a beer with a ‘pub experience’. Sponsorship in rugby teams in order to promote themselves in a higher volume The new Irish theme pub are lighter, cleaner and appealing to women, in order to add a new line appealing for women with softer taste or even distribute more through those pubs. Threats
Competition: Murphy by Heineken, Castle Milk Stout by SAB Miller Deterioring demographics: younger drinkers go to wine and spirits. They also buy beers and drink them at home due to the banning of smoking.
Conclusion of the Swot Analysis
Guiness or the firm Diageo is an important company with recognized brands, with different varieties of products. In order to increase market share and turnover Guiness should make a Matrix portfolio with all the products and classify them in each category in order to identify different strategies that could be helpful to increase profits and the product awareness. Although it has a big market share, Guiness (the stout beer) accounts for little sales in the beer sector, therefore I would recommend to research consumer tastes and see whethear is profitable to offer new type of beers if...
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