Market Research
Summary
The firm : DIAGEO
Strategy of communication
Needs of consummers
The competitor
Conclusion
The firm : DIAGEO (1/6)
Foundation
1997: fusion between Guiness and GrandMarket  Diageo
Greater actor on feeding market
The firm : DIAGEO
This trust work on 3 axes:
Strategy of
communication
13%
Needs of consummers
77%
10%
vins et spritueux et brasserie
alimentation
restauration rapide
The competitor
Stock exchange
Quotation in London stock exchange and Wall street
Conclusion
Financial results
CA = 12,5 milliards € en juin 2004
Source : latribune.fr et boursier.com
The firm : DIAGEO (2/6)
Products
A lot of the best brands of alcoholized drinks
The firm : DIAGEO
Strategy of
communication
Needs of consummers
The competitor
Conclusion
Source : introductiondiago.pdf sur www.diageo.com
The firm : DIAGEO (3/6)
Geographical results
6%
The firm : DIAGEO
Strategy of
communication
6%
9%
42%
37%
Amérique Nord
Europe
Asie-Pacifique
Amérique Latine
Autres
Needs of consummers
The competitor
Results on Jun 2004
Net result : 2 091 861 €
Conclusion
 World’s leader on alcoholized drink’s market
The firm : DIAGEO (4/6)
SMIRNOFF range
The firm : DIAGEO
Strategy of
communication
Needs of consummers
2005 result
The competitor
Conclusion
25.2 million of 9 liters boxes sold
Increase of sales : +3%
SMIRNOFF’s five biggest markets
•
•
•
•
•
USA
Great Britain
Canada
South Africa
Brasil
Source : www.diageo.com
The firm : DIAGEO (5/6)
Market situation
World’s leading premium drinks company
Diageo is the market leader
The firm : DIAGEO
Strategy of
communication
• USA
• Great Britain
• Ireland
• Australia
• Brasil
• India
• Korea, China
• Russie
Emergent markets
Needs of consummers
Geographical position
The competitor
Conclusion
implanted on 180 countries
3 geographical areas :
- North America
- Europe
- International
Source : www.diageo.com
The firm : DIAGEO (6/6)
Main strength and weakness
The firm : DIAGEO
Strength
World’s Brands recognized
Strategy of
communication
Complet range (vodka, whisky, rhum, gin, bier, win, liquor)
They adapt their range to the different world’s areas
Needs of consummers
Weakness
The competitor
Conclusion
Alcohol consumation is bounded by many rules (restreint of action fields)
Tastes of consummers change quickly
Source : www.diageo.com
Communication strategy
Their notoriety
Dia (latin) = day and geo (greek) = world
The firm : DIAGEO
Strategy of
communication
Catchphrase : « Celebrating life, every day, everywhere »
 « Every day, everywhere, people celebrate with our brands »
Is known as « party partner »
Needs of consummers
The competitor
Marketing activities :
- Programs with a powerful creativity which aim to increase their fame.
Conclusion
- Callback : alcohol consummation must be sensible.
Source : www.diageo.com
Needs of consummers
Segmentation
Westerners
The firm : DIAGEO
18-35 years old up to date
18-25 years old
Strategy of
communication
women
men
25-35 years old
men
women
Needs of consummers
The competitor
Conclusion
NEEDS ARE CLOSE BUT DIFFERENT
Needs of consummers
Segmentation
Statistics
50 million of people in Europe
The firm : DIAGEO
Strategy of
communication
General case
• Quality ensured by a well-known brand
Needs of consummers
The competitor
Conclusion
• Hedonism
• Alcoholic drinks
• Signs of fest
• Oneself picture
Needs of consummers
Segmentation
18 – 25 years old up to date westerners
The firm : DIAGEO
Strategy of
communication
Needs of consummers
The competitor
• Innovation / fashion
• Way of consummation + young people
• Nomadism
• Beer alternative
• Taste
• Price
Conclusion
• Low alcohol content (women especially)
Needs of consummers
Segmentation
25 – 35 years old up to date westerners
The firm : DIAGEO
• Traditional consummation
• Enssential consummation during parties
Strategy of
communication
Needs of consummers
• Beer alternative
• Taste hiding alcohol
• Not very expensive
The competitor
• Individual part (women especially)
Conclusion
Needs of consummers
Similar expectations but three different groups
The firm : DIAGEO
• Cheap and fashion drink, with taste and
slightly alcoholized
Strategy of
communication
Needs of consummers
The competitor
Conclusion
• Drink slightly alcoholized, new, with taste and
prices don’t matter
• Alcoholized drinks, not very significant taste
and price, significant returned image
Competitor : ABSOLUT
The firm : DIAGEO
Strategy of
communication
Needs of consummers
• Identity
- Group : Vin & Spirit AB
- Headquarters : Stockholm (Sweden)
- Place of production : Ahus
• World growth of the vodka Absolut drink (Annual report
ABSOLUT 2004)
- 1985 : 12,3 M liters
- 1995 : 43,2 M liters
- 2004 : 76,1 M liters
The competitor
Conclusion
Currently, the drink world growth of the « spirits » tends to
slow down, except for the BAA.
• Absolut, its brand image : the drink for connected
people
Competitor : ABSOLUT
The firm : DIAGEO
Strategy of
communication
Needs of consummers
The competitor
Conclusion
• The structure of the offer
V&S ABSOLUT
- Wine
- Liquor
- Vodka
• Range vodka ABSOLUT
- 1979 : ABSOLUT VODKA
- 1986 : ABSOLUT PEPPAR
- 1988 : ABSOLUT CITRON
- 1992 : ABSOLUT KURANT
- 1999 : ABSOLUT MANDRIN
- 2003 : ABSOLUT VANILIA
- 2004 : ABSOLUT RASPBERRI
- 2005 : ABSOLUT APEACH
Competitor : ABSOLUT
The firm : DIAGEO
Strategy of
communication
• Geographic coverage
- The Absolut’s products are sold
everywhere in the world
• Distribution
- In the coffee-house, hotels,
restaurants, supermarkets
• Main customers
Needs of consummers
The competitor
Conclusion
www.absolut.com
Competitor : ABSOLUT
• Partners
- Leadership
Jean-Paul Gaultier, Gucci, Versace
The firm : DIAGEO
Strategy of
communication
Needs of consummers
The competitor
Conclusion
- Bars and connected night clubs
Advertising with partners
- The artists
• Positive aspects : a quality brand image, a good and effective
communication, a good product, the coherence between its
range and its image
• Negative aspects : its price
Competitor : ABSOLUT
• Place in a supermarket
ABSOLUT
The firm : DIAGEO
Strategy of
communication
ERISTOFF
Needs of consummers
The competitor
Conclusion
SMIRNOFF
In conclusion
The firm : DIAGEO
Strategy of
communication
Needs of consummers
The competitor
Conclusion
TEST
IT !!!