Market Research

Summary

The firm : DIAGEO

Strategy of communication

Needs of consummers

The competitor

Conclusion

The firm : DIAGEO (1/6)

Foundation1997: fusion between Guiness and GrandMarket Diageo

Greater actor on feeding market

This trust work on 3 axes:

Stock exchangeQuotation in London stock exchange and Wall street

Financial resultsCA = 12,5 milliards € en juin 2004

Source : latribune.fr et boursier.com

vins et spritueux et brasserie

alimentation

restauration rapide

77%

13%

10%

The firm : DIAGEO

Strategy of communication

Needs of consummers

The competitor

Conclusion

The firm : DIAGEO (2/6)

Products

A lot of the best brands of alcoholized drinks

Source : introductiondiago.pdf sur www.diageo.com

The firm : DIAGEO

Strategy of communication

Needs of consummers

The competitor

Conclusion

The firm : DIAGEO (3/6)

Geographical results

Amérique Nord

Europe

Asie-Pacifique

Amérique Latine

Autres

42%

37%

9%

6%6%

Results on Jun 2004 Net result : 2 091 861 €

World’s leader on alcoholized drink’s market

The firm : DIAGEO

Strategy of communication

Needs of consummers

The competitor

Conclusion

The firm : DIAGEO (4/6)

SMIRNOFF range

Source : www.diageo.com

2005 result 25.2 million of 9 liters boxes soldIncrease of sales : +3%

SMIRNOFF’s five biggest markets• USA• Great Britain• Canada • South Africa • Brasil

The firm : DIAGEO

Strategy of communication

Needs of consummers

The competitor

Conclusion

The firm : DIAGEO (5/6)

Source : www.diageo.com

Market situation

World’s leading premium drinks company

Diageo is the market leader

• USA• Great Britain• Ireland• Australia

Geographical position

implanted on 180 countries

3 geographical areas :- North America- Europe- International

• Brasil• India• Korea, China• Russie

Emergent markets

The firm : DIAGEO

Strategy of communication

Needs of consummers

The competitor

Conclusion

The firm : DIAGEO (6/6)

Source : www.diageo.com

Main strength and weakness

Strength

World’s Brands recognized

Complet range (vodka, whisky, rhum, gin, bier, win, liquor)

They adapt their range to the different world’s areas

Weakness

Alcohol consumation is bounded by many rules (restreint of action fields)

Tastes of consummers change quickly

The firm : DIAGEO

Strategy of communication

Needs of consummers

The competitor

Conclusion

Communication strategy

Source : www.diageo.com

Their notoriety

Dia (latin) = day and geo (greek) = world

Catchphrase : « Celebrating life, every day, everywhere »

« Every day, everywhere, people celebrate with our brands »

Is known as « party partner »

Marketing activities :

- Programs with a powerful creativity which aim to increase their fame.

- Callback : alcohol consummation must be sensible.

The firm : DIAGEO

Strategy of

communication

Needs of consummers

The competitor

Conclusion

Needs of consummers

Westerners

18-35 years old up to date

18-25 years old 25-35 years old

women men womenmen

NEEDS ARE CLOSE BUT DIFFERENT

Segmentation

The firm : DIAGEO

Strategy of communication

Needs of consummers

The competitor

Conclusion

Statistics

50 million of people in Europe

General case

• Quality ensured by a well-known brand

• Hedonism

• Alcoholic drinks

• Signs of fest

• Oneself picture

Segmentation

Needs of consummers

The firm : DIAGEO

Strategy of communication

Needs of consummers

The competitor

Conclusion

Segmentation

18 – 25 years old up to date westerners

• Innovation / fashion

• Way of consummation + young people

• Nomadism

• Beer alternative

• Taste

• Price

• Low alcohol content (women especially)

Needs of consummers

The firm : DIAGEO

Strategy of communication

Needs of consummers

The competitor

Conclusion

Segmentation

25 – 35 years old up to date westerners

• Traditional consummation

• Enssential consummation during parties

• Beer alternative

• Taste hiding alcohol

• Not very expensive

• Individual part (women especially)

Needs of consummers

The firm : DIAGEO

Strategy of communication

Needs of consummers

The competitor

Conclusion

Similar expectations but three different groups

• Cheap and fashion drink, with taste and slightly alcoholized

• Drink slightly alcoholized, new, with taste and prices don’t matter

• Alcoholized drinks, not very significant taste and price, significant returned image

Needs of consummers

The firm : DIAGEO

Strategy of communication

Needs of consummers

The competitor

Conclusion

Competitor : ABSOLUT

• 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

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

The firm : DIAGEO

Strategy of communication

Needs of consummers

The competitor

Conclusion

Competitor : ABSOLUT

• 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

The firm : DIAGEO

Strategy of communication

Needs of consummers

The competitor

Conclusion

Competitor : ABSOLUT

• Geographic coverage- The Absolut’s products are sold everywhere in the world

• Distribution

- In the coffee-house, hotels, restaurants, supermarkets

• Main customers

www.absolut.com

The firm : DIAGEO

Strategy of communication

Needs of consummers

The competitor

Conclusion

Competitor : ABSOLUT

• Partners- Leadership

Jean-Paul Gaultier, Gucci, Versace

- 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

The firm : DIAGEO

Strategy of communication

Needs of consummers

The competitor

Conclusion

Competitor : ABSOLUT

• Place in a supermarket

ABSOLUT

ERISTOFF

SMIRNOFF

The firm : DIAGEO

Strategy of communication

Needs of consummers

The competitor

Conclusion

In conclusion

TEST

IT !!!

The firm : DIAGEO

Strategy of communication

Needs of consummers

The competitor

Conclusion