Guinness marketing strategy
•Download as PPTX, PDF•
2 likes•7,347 views
This document outlines marketing strategies for establishing Guinness beer in India. It begins with an industry overview of the global and Indian beer markets, including growth rates. It then provides an overview of Guinness as an organization, including its mission statement and history. The document performs a PESTEL analysis and identifies demographic, geographic, psychographic, and behavioral targets in India. It outlines Guinness' product portfolio and competition in India. Marketing strategies include sponsoring music festivals, tie-ups with pubs, and pricing. Financial projections estimate profits over two years. A contingency plan involves exporting to other markets.
Recommended
More Related Content
What's hot
What's hot (20)
Similar to Guinness marketing strategy
Similar to Guinness marketing strategy (20)
Recently uploaded
Recently uploaded (20)
Guinness marketing strategy
- 3. Industry overview Organization overview Marketing strategies Feedback & control Contingency plan Flow of presentation
- 5. Introduction • Beer is the world's most widely consumed and probably the oldest alcoholic beverage • It is the third most popular drink overall, after water and tea. • The production of beer is called brewing, which involves the fermentation of starches, mainly derived from cereal grains—most commonly malted barley, wheat, maize (corn), and rice are widely used.
- 6. • The strength of beer is usually around 4% to 6% alcohol by volume (abv). • Beer forms part of the culture of beer-drinking nations and is associated with social traditions such as beer festivals, as well as a rich pub culture, in the form of micro-breweries • The brewing industry is a global business, consisting of several dominant multinational companies and many thousands of smaller producers
- 7. Industry size Beer Industry- Worldwide • Total Available Market - Global Alcoholic Drink Market $1,198.6 billion (2014). • Serviceable Available Market : Global Beer Market $485.3 billion (2014).
- 8. 71% 29% Global alcohol sales by revenue (2014) Spirits Beer
- 9. Beer Industry- India • Total Available Market - Indian Alcoholic Drink Market $35.96 billion , 730 million cases (2014). • Serviceable Obtainable Market : Indian Beer Market $4.13 billion , 240 million cases (2014).
- 10. 70% 18% 12% Indian alcohol sales by revenue (2014) IMFL CS Beer 36% 31% 33% Indian alcohol sales by volume (2014) IMFL CS Beer
- 11. Growth • Global beer sales targeted at $688.4 billion by 2020. • Indian beer sales targeted at $10.34 billion by 2020. Market Predicted CAGR by 2020 World - alcohol 3% World – beer 6.5% India - alcohol 11% India - beer 16%
- 14. 14% 11% 9% 9% 8%7% 6% 4% 3% 29% Indian state-wise beer market share (2015) Maharashtra Telangana Karnataka Tamil Nadu Rajasthan Uttar Pradesh Andhra Pradesh Madhya Pradesh Kerala
- 16. Mission statement To document the beauty, majesty, elegance, wonder... of filling a glass with the finest beverage on Earth.
- 17. Introduction • The Guinness business model began in 1759 and through various acquisitions and mergers, has developed into the current parent company, Diageo, Ltd. • The Guinness brand is recognizable in nearly every country, and has been gaining momentum internationally since the late 1800’s. • The first exportation of Guinness occurred in 1769. By 1870, exports had branched out to Guernsey, Barbados, Trinidad, Sierra Leone, Lisbon, New York City and New Zealand.
- 18. • In 1886 the Guinness brewery became the first major brewery to be incorporated as a public company on the London Stock Exchange, and was now, the largest brewery in the world. • The first independent brewery built outside of Ireland and Great Britain was in Nigeria in 1963.
- 20. Political • Some states like Gujrat, Manipur, Nagaland and Bihar are dry states where the sale of liquor is completely banned. • The age limit is state-dependent, ranging from 18 to 25.
- 21. Economic • There is a rise in per capita income (6.3%) and as a result the disposable income of people specially living in urban cities is also increasing rapidly. • Targeting only the urban cities of India in their early stage to penetrate the market.
- 22. Social • As India is said to be the land of diverse culture, we can’t categorize India under one segment. • Per capita income is rising, but at the same time the gap between the haves and have-nots is also widening.
- 23. Technological issues • Importing beer attracted heavy taxes from the government resulting in higher prices of the same.
- 24. Environmental issues • As the climate here is generally warm, Guinness intends to increase the promotions during summer time. • Loss of market share to spirits like Rum in Winters.
- 25. Legal Issues • The Indian beer industry is plagued with a myriad of taxes & levies that vary from state to state. In fact no two states or UTs have a same or even a similar policy.
- 26. Micro influences • Suppliers • Market intermediaries • Customers • Competitors
- 27. Drivers and challenges Drivers • India has an emerging upper-middle class. • 36.3% of the country’s population is between the ages of 20-44 (2011). • Astounding forecasted CAGR of 16% Challenges • Brewers must create a sense of brand loyalty. • Utilization of brewing capacity – to keep manufacturing costs low, in order to maximize profits. • Clever advertising – to induce beer drinkers to buy our brand.
- 28. Our products Guinness Draught Guinness Black Lager Guinness Blonde Guinness Dublin Porter Guinness Foreign Extra Stout Guinness Golden Ale Guinness Smooth Guinness Hophouse 13 Lager Guinness Nitro IPA Guinness Original Guinness Special Export Guinness W. Indies Porter
- 29. Guinness book of World records • The idea of the Guinness book of world records was laid down by Sir Hugh Beaver in 1951, the then M.D. of Guinness, after a drunken hunting trip. • The first issue was published in 1955 by twins Norris and Ross McWhirter.
- 30. Largest business Guinness Original accounts for 55% of all Guinness beer sales globally.
- 32. • The beer industry is relatively less fragmented compared to the Indian-made foreign liquor (IMFL) segment, with top two players controlling more than 70% of the market share whereas top four players account for more than 60% market share in the IMFL segment. • United Breweries Ltd (UBL), owner of the Kingfisher brand, accounts for almost 51% market share of the beer market.
- 33. Top 10 selling beers in Indian market 1. Kingfisher 2. Royal Challenge 3. Hayward’s 4. Heineken 5. Budweiser 6. Carlsberg 7. Kalyani Black Label 8. Foster Lager 9. Corona 10. King’s
- 34. 50% 20% 10% 3% 1% 2% 14% Market share by volume (2015) United Breweries SAB Miller Carlsberg India AB-Inbev Mohan Meakins Mt. Shivalik Others
- 35. Trend in volumes and net sales of UBL
- 36. SWOT analysis Strengths • Global brand image and awareness. • Regarded as one of the healthiest beer because of presence of antioxidants. • Good distribution and availability owing to parent company Opportunities • Youngsters prefer beer over any other liquor • Sponsorships and advertisements Weaknesses • Complexity of taste - new to market • New entrant in already established market Threats • Alcohol regulations(tax and prohibitions) • More expensive than domestic beers.
- 38. Demographic • Age group : 22 – 35. • Income : Middle and upper income groups
- 39. Geographic • Area: Urban • Cities: Metropolitan
- 40. Psychographic • Working class • Hectic lifestyle
- 41. Behavioural • People drink beer when they are happy, in parties, outings etc. • People drink even more beer when they are sad, alone.
- 42. Marketing Mix
- 43. 4P’s Products • Guinness Original/Extra Stout – Our prime product. • Guinness Draught—Most Popular in U.S.A.
- 44. We offer premium products. • Primary feature of the product : *Chocolate and roasted coffee flavor healthier than other beers in the category. • Brand association- Roasted coffee flavor beer
- 45. Place • Targeting metropolitan cities namely Delhi, Mumbai, Bengaluru, Kolkata, Hyderabad, Pune, Ahmedabad, and Chennai. • Launch party at Striker’s, Gurgaon, a prominent pub/brewery in one of the most happening cities of India, attracting higher-middle class beer lovers from all over Delhi NCR.
- 46. Promotion • Proposal to be the official sponsor for ‘GO HARDWELL OR GO HOME’ at New Delhi, 1st October 2016. • Proposal to be the official sponsors at IPL 2017. • Tie-ups with prominent pubs around Delhi NCR, in order to get a detailed report of gradual increase in sales.
- 47. Pricing • Projected price Rs. 160-170 per bottle (650 ml). • Guinness is sold with premium price because it gives to its consumers more than a product, it delivers an experience, a lifestyle model.
- 49. • Customer feedback with an introductory 10% discount on the bill. • Ensuring standard manufacturing procedures. • Ensuring beverage safety and nutritional standards.
- 50. Financial analysis • Hardwell 2016 official sponsorship 10 crore (estimated return 140%) • Various small EDM concert’s sponsorship in 2017 5 crore • IPL official sponsorship for 1 year 100 crore (estimated return 125%)
- 51. • Brewery rent for two years 10 crore • Provision for miscellaneous advertisements and other expenses 25 crore
- 52. Assumptions Particulars Amount Total advertisement/sponsorship cost 150 crore Cost of raw material/unit 57 Factory overheads/unit 9 Direct wages/unit 4 Office overheads/unit 4 Miscellaneous overheads/unit 3 Total cost/unit 77
- 53. Profit calculation for initial two years Particulars Amount Expenses 160 crore Cost price/unit 77 Selling price/unit 140 Profit/unit 63 Estimated units sold in two years 45 lakh Revenue from sponsorships 139 crore Revenue from sales 30 crore Total profit 9 crore
- 54. Contingency plan
- 55. • Exports to USA, UK, Nigeria. • Cheap labor and land available in India. • Already established market all over the world. • Outsourcing.
- 56. Thank you, have a chilled Guinness.
Editor's Notes
- CAGR- Compound Annual growth rate
- Sir Arthur Guinness
- Nigeria 40% business
- Dry days
- Golden Plover