Diageo Case Study

In order operations in the United States, Modelo set up Procermex Inc. a subsidiary whose purpose was to coordinate, support, and supervise the two distributors. The strength of the relationship between the importer and Modelo was very strong as taxes increased in 1991. To further expand internationally, I would encourage Grupo Modelo to continue its model of contracting with a distributor in the target region. This strategy has benefited the company because the local distributors are able to brand the beers to their local market needs. I believe that China and Australia are two markets that have great potential for demand of Grupo Modelo 's beers. China recently surpassed the U.S. in total beer consumption. There is a huge population that is potential for demand. Australia already has high per-capita consumption of beer, so it might be an easy market to enter especially considering the match of brand image of Corona to the typical image of Australian beaches.

Diageo was created when Grand Metropolitan, plc and Guiness, plc merged in 1997. While the Diageo name is not well known to consumers, its brands are among the most famous including Guinness, Smirnoff, Johnnie Walker and Cuervo. The company recently decided to focus on a strategy to grow through its spirits, wine and beer businesses and divest of its Pillsbury and Burger King subsidiaries. This case study will focus on the proposed capital structure decisions of Diageo.

Catherine, W., Tat Pui, L. and Henrik, U. (2011) The Roles of Branding for a Brand Entering

This course reviews the organization for international marketing, foreign demand analysis, product development and policies, trade channels, promotion policies, pricing, and legal aspects. Emphasis is on development of effective international marketing strategy addressing the major global market areas (Europe, Africa, Asia, and the Americas).

East African Breweries Limited (EABL) is East Africa 's leading branded alcohol beverage business with an outstanding collection of brands that range from beer, spirits and adult non-alcoholic drinks. The company’s ambition is “to create the best performing, most trusted and respected consumer products company in Africa”. Its vision is “To be the most celebrated business in every market in Eastern Africa”. Core values guiding the company include passion about consumers, value of each other, taking pride in what they do freedom to succeed and striving to be the best. Consumer insights drive the growth of the company and they therefore maximize on this aspect. EABL 's core brands include, among others, Tusker, Pilsner, Bell Lager, Guinness, Malta Guinness, Alvaro, Uganda Waragi, Senator, Johnnie Walker and Smirnoff Ice. The Company’s wholly owned subsidiaries include Salopia Limited, Allsopps (EA) Sales Limited, East African Breweries (Mauritius) Limited, Central Glass Industries Limited, International Distillers Uganda Limited, East Africa Maltings Limited, East African Maltings (Uganda) Limited, EABL Tanzania Limited and EABL International Limited. The Company exports its products

The global beer industry is highly fragmented, with the four major brewers accounting for only 22 percent of the global beer trade; a number that is strikingly low in comparison to comparable numbers of 78 percent in the soft drink industry, 60 percent in the tobacco industry, and

Branding is a tool to make the goods of one producer different from another producer (Keller, 2003). Carroll (2008) asserts that branding is a sign of quality, and it is helpful to increase

Diageo, Ricard, and other marketers of global spirits brands are localizing their advertising campaigns in emerging markets because no two countries or their inhabitants are alike. Every country has a diverse set of consumers that have specific tastes and preferences based on geographical location, religion, age, religion, sex, education, and social and economic class as well as consumer perceptions which global brands, specifically global spirits brands, should pay close attention when

Diageo, one of the world’s leading consumer goods companies, was formed from the merger of GrandMet and Guinness. In 2000, the company announced its intention to sell its packaged food subsidiary, Pillsbury, and 20% of its Burger King subsidiary. Because of the restructuring opportunity, the company wanted to rethink its financing mix.

Branding has become the key concept of marketing strategies. Brand is the name of firm, products, services, and above all, it is coherent with the firm’s image from

Coca Cola: It is a well known for their global branding company. They adopt the global branding strategy through which they effective create international brands and attract audiences. In the year 1980 & 1990, the firm first makes their global presence at the global level by offering standardized goods. Thereafter, they also used global marketing in that they successfully introduced logo names ‘think local, act globally. After that, the Coca Cola Company has been successfully making their brand image in the mind of its customers (Liou and Yang et. al., 2016). Therefore, it is recognized as a global branding product all over the world as they mainly focus on universal values. Apart from this, the Coca Cola Company make their globalize brand through the global campaign that helps them in connecting the people all over the world. It also shows their customers that the Coca Cola is free from calories and caffeine. The global marketing strategy helps them altogether Coca-Cola Zero, Diet Coca-Cola and Coca-Cola life under the single global

Diageo offers scotch whiskey, other whisk(e)y, vodka, rum, liqueur, tequila, gin, local spirits and beer and brandy; Diageo has the market leading whisky (Johnnie Walker), Vodka (Smirnoff 1818) and rum (Captain Morgan) brands and four out of the top ten RTD brands (Smirnoff

When looking at the economic aspects affecting the industry and Diageo the main concern is the market saturation reached in many of the developed economies worldwide. With demand remaining constant and competition increasing it is important for firms to identify new markets to invest in, with particular focus placed on Emerging markets. Another important development is the growth patterns in the alcoholic beverage market with the demand for beer increasing by 2.7% with particularly strong growth in the premium brands market. In contrast there has been a decline in demand for wine and spirits which are the industries that Diageo has a large market share. There has also been a recent reduction in operating profit of Diageo in Europe, which can largely be explained by the higher taxes imposed by governments who are striving to reduce alcohol consumption.

Diageo plc is a British multinational firm that owns some of the most popular alcoholic drinks in the world. The firm boosts a reputation of not only being the largest spirits producer in the world, but also being the world 's leading premium drinks company. The company has an extensive portfolio and their most popular drinks include Smirnoff vodka, Baileys, Pimms, Blossom Hill and Guinness. The company owns 312,120 Breweries, 312,130 Wineries and 312,140 Distilleries in the world and trade in near 180 markets, and employs more than 200,000 people in about 80 countries; of which include Great Britain, Canada, United States, Ireland, Spain, Italy, Africa, Latin America,

Long before now has branding been considered as one of the peripheral aspects of business. Manufacturers, investors and other key players focused on the product without paying much attention to the consumer. But as the business landscape got tougher, marketing became not just an integral part of business but one of the fundamental principles of success.