Marketing Audit Guinness Nigeria

2245 WordsNov 7, 20109 Pages
Scenario Diageo Africa is a £1bn net sales value, £300m trading profit drinks business that operates in over 40 markets across Africa through various business models including publicly quoted companies, joint ventures and licensed brewing arrangements. In Nigeria it trades under the name Guinness Nigeria and will be referred to as such from this point. Over the past few years Africa has been Diageo’s most dynamic growth region, delivering the highest proportion of its global growth. Guinness is by far Diageo’s largest brand in Africa accounting for over 30% of the region’s turnover and profits. Moreover in the last few years it has consistently delivered double digit growth. Nigeria overtook Ireland in 2007 as the second largest…show more content…
* The political environment in Nigeria is stable and will encourage more foreign investors * “Research shows that political stability is a key component in the rise in beer consumption in Africa,” said Andrew Holland, drinks analyst at Evolution Securities, a stockbroker. “The fact that the Nigerian market has grown so strongly has a lot to do with the relative civil calm.” (The times 2009 Mathew Goodman) | Economic * A growing middle class with more buying power * GDP is growing due to oil revenues * Continued private sector investment * “Nigeria is one of the top 10 fastest-growing drinks markets in the world” (Sarah Rundell 1/10/2009 African Business magazine) * Nigeria has however been affected by the global downturn and this has affected Heineken owned Nigeria Breweries business * Nigeria is attracting investment from foreign retailers such as ‘Park n Shop’ | Social * In addition, there is a growing number of expatriate Nigerians returning home and “bringing Western culture to Africa”, (The Sunday Times) * Alcohol consumption is a social activity. People rarely drink alone which reflects in a strong on trade market * Drinking is traditionally done in bars but high crime rates mean that people are less likely to go out for the evening for fear of

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