A graph below shows cost to health of alcohol on males and females in the UK. Ina shortage of wine in Western Europe resulted in increased prices, leading to slower volume growth and consumers switching to cheaper alcoholic alternatives such as beer.
In conclusion, Diageo needs to take a look at the SWOT analysis and act upon it due to the fact that this analysis would help them to develop and improve their reputation because presently their main problem is that the business is seen as a main contributor of alcohol abuse, health issues and social problems.
Celebrity endorsement, product placement in films and the broad-based promotion of a culture of wine connoiseurship are central strategies in wine marketing. Specific marketing towards younger consumers in these markets, and continued expansion of wine distribution in developing markets are two key strategies in confronting this challenge.
In addition the SWOT analysis will help them to improve their sales techniques by introducing new products in new markets or launching limited editions of their best sellers to raise profits. Diageo PLC is the leader of an alcoholic drinks in the world operating in countries providing customers with wide range of premium drinks such as vodka, whisky, wine and beer.
This would help the firm in increasing sales as most of the limited edition products quickly find themselves large amount of customers as there are high number of collectors that would be willing to pay a higher price for a unique product.
Bacardi and Pernod Ricard that also have a vast amount of market shares and can influence the market with their products to take away customers from Diageo PLC. Additionally the business needs to aware of the economic condition of each market due to the fact that economic slowdown and recession will have a huge factor on the sales of the products.
Although sales in these countries are growing, they are not yet at the same level as other Western European countries. Furthermore the main problem that the company is facing is that they have been constantly targeted as the main contributors for health and social problems which lead to alcohol abuse.
We operate as a market-based business and have a presence in over countries. We have a large beer business in Africa with a portfolio that reaches across price points.
Destabilising fluctuations in supply: In addition it would be recommended that the firm plans and implements new wine strategy and concentrate less on their spirits due to the fact that they are losing customers on wine market. Focused marketing of Blossom Hill in the UK has paid off, with significant volume increases during fiscal In contrast, the Spanish wine market is much slower, suffering from maturity and the same change in family habits that has had such a negative impact on the French wine industry.
One way of doing this is to provide guidelines of how to consume alcohol smartly and how many units are recommended to drink a week. There is a need to coordinate between producers to maintain steady level of supply, and the use of available technology to prevent the damaging effects of over, or under, supply.
The company is at risk, however, from losing its premier position in the global spirits market once South Korean spirits maker Jinro, currently ranked second in the market, is sold at the end of March.
This is causing geographical and sector expansion via acquisition, global branding, and an increasing focus on the key growth sector of premium wines. It would be recommended that Diageo improve their reputation as the company produces alcoholic drinks which cause health and society problems that lead to alcohol abuse.
As a British company, with significant overseas sales, the company is at the mercy of fluctuating exchange rates, when a strengthening pound, particularly against the US dollar may impact negatively on revenues. A graph Swot of diageo shows cost to health of alcohol on males and females in the UK.
The business could also improve their image by creating a charity or a help group that would assist people who are addicted to alcohol and help them out to overcome their issues. Our strategy is to support premiumisation in developed and emerging countries.
Everywhere we operate, we aim to do so in a responsible and sustainable way. In conclusion, Diageo needs to take a look at the SWOT analysis and act upon it due to the fact that this analysis would help them to develop and improve their reputation because presently their main problem is that the business is seen as a main contributor of alcohol abuse, health issues and social problems.
As Diageo is currently well represented in Europe, it is in a strong position to further exploit these markets. In addition an interview with CEO of the firm was used as it provided an inside information of the business.
Furthermore the information on the internet supplies the user with massive amount of data, figures and government statistics that are available to be accessed at any time. Corporate Watch consulted on 12th December at One way of doing this would be to look towards acquiring a smaller company, with one or two recognised brands, and leveraging Diageo's main strength: Beer is our second largest category after scotch.
Diageo Company Profile - SWOT Analysis: A combination of weak emerging market economies and historic failings of a pre-great recession focus on North. Diageo PLC Terms of reference: The main purpose of this report is to highlight the main problems which Diageo PLC is facing by using SWOT analysis which analyses strengths, weaknesses, opportunities and threats of the business.
Diageo has already begun to do this by encouraging our vodka brands to develop products that appeal to our younger customers. If you look at appendix IV, the vodka industry is one of the most attractive industries that we are in. Diageo is unlikely to be approached with regard to its wine business alone, because of its lack of a major global brand, which is an essential element of any major wine company.
Diageo (DEO) SWOT Analysis Profile Diageo plc (London based) produces, packages, distributes, and marketing spirits, beer, and wine. Its premium brands include; Smirnoff vodka, Johnnie Walker scotch, Captain Morgan rum, Baileys Original Irish Cream, JeB scotch, Tanqueray gin, and Guinness stout.Download