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Diageo Group 9

Diageo is a global alcohol company formed in 1997 through the merger of Grand Met and Guinness. It owns 17 of the top 100 premium spirits brands worldwide and competes with companies like Bacardi, Beam Suntory, Pernod Ricard, and SABMiller. Diageo follows core values of passion for customers, freedom to succeed, pride in work, striving for excellence, and valuing each other. Its key strategies include focusing on global, local, and category brands, deep consumer understanding, sustainable practices, and strengthening in emerging markets including through potential M&A.

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Mudit Sahai
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201 views9 pages

Diageo Group 9

Diageo is a global alcohol company formed in 1997 through the merger of Grand Met and Guinness. It owns 17 of the top 100 premium spirits brands worldwide and competes with companies like Bacardi, Beam Suntory, Pernod Ricard, and SABMiller. Diageo follows core values of passion for customers, freedom to succeed, pride in work, striving for excellence, and valuing each other. Its key strategies include focusing on global, local, and category brands, deep consumer understanding, sustainable practices, and strengthening in emerging markets including through potential M&A.

Uploaded by

Mudit Sahai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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INTRODUCTION

• Diageo was formed in 1997, through the merger of Grand Met


and Guinness.
• The alcohol industry is subdivided into three major categories:
• Beer
• Wine
• spirit.
• Beer sales accounted for 76% of total alcohol sales- So, global
players concentrated on this.
• 17 of the brands owned by the group were among 100
premium spirits brand world wide.
Competitor Analysis

• The top 4 competitors of Diagio are:

1. Bacardi :
1. more than 200 brands and label ;
2. Bacardi white rum, grey goose vodka.
3. Total sales over $5 billion
2. Beam Global Spirits & Wine Inc:
1. fourth largest premium Spirits Company
2. eight of the world’s top-100 premium spirits 3.
3. products of global origin
4. $2.5 billion in revenue
• 3. Pernod Ricard:
1. world’s largest co-leader in wines and spirits
2. Key to success : highly-talented teams decentralised
organizational structure, a product-based culture,
outstanding sales and marketing.
3. Total revenue : 8.98 billion Euros
4. Some famous Brands : Chivas regal ; jameson
• 4. SABMiller plc
1. one of the world’s largest brewers
2. distribution agreements across six continents
3. Six of the company’s brands are among the top 50 in the
world.
Culture

• Diageo follows five core values:

1. They are passionate about their customers.

2. Gives freedom to succeed.

3. Proud of what they do

4. Strive to be the best

5. Value each other.


Key Strategy
• Global
Brand • Local
Classification • Category

Consumer • ‘Diageo Way


Focus of Selling’

Sustainable • promote the


safety and legal
and nature of
Responsible branded alcohol
• The global priority brands were the big sellers that were popular across a
number of important markets and received the lion’s share of promotional
resources. Local priority brands were those popular in specific geographic areas.
Category brands played specific roles within a sector; they might be aimed at a
particular type of consumer or at a particular price point.
• Diageo developed ways to deepen its understanding of consumers, including in
emerging markets.
• The ‘Diageo Way of Selling’ program equips both Diageo and its customers with
the tools to be the best sales force in the industry and to create commercial and
strategic value for all parties.

• Diageo understands the social, environmental and economic impact of its


activities and has adopted a structured approach to manage these impacts, to
build engagement across stakeholders, to create value, especially in emerging
markets; and to protect Diageo’s license to operate
Future of the company
• Diageo has Insufficient market resources in Wine portfolio hence it
should focus more on it’s wine and beer portfolio.
• Look forward to strengthen their hold in emerging markets by
merging with the local players.
• Diageo's wine portfolio forms only about 4% of its annual sales and
close to 1.5% of the operating profits

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