| Introduction | | | | they would not opt for a product that actually |
| The company chosen for analysis is Diageo and the | | | | associates them with their parents as is the case |
| product chosen for revamping is Guinness. Guinness is | | | | with Guinness. This aspect of capturing a fresh |
| a stout beer whose origin is in Ireland. The product | | | | consumer element will also form the basis of the |
| used to be one of the best performing alcoholic | | | | campaign. |
| drinks in the United Kingdom, however, over the past | | | | As much as Guinness has been trying to make great |
| few years this has not been the case. In 2006, | | | | advertisements, they have been missing the mark |
| Diageo recorded a three percent decline in sales in | | | | because they failed to capture the true essence of |
| Ireland. In 2007, this decline increased to a further | | | | Guinness which is its Irish heritage. The only way |
| seven percent. The company still has no hope for | | | | which they can communicate this message |
| the future of the brand regardless of the vast sums | | | | effectively is through an advertisement. (Kippen, |
| of money that the company has been spending on | | | | 2008)The company should create an ad that |
| advertising. In fact, Guinness has won so many | | | | resembles a documentary. The advertisement will |
| awards for their creative advertisements. It seems | | | | have ten participants and an interviewer. The |
| that Guinness has somehow missed the mark. | | | | interviewer will look like a reporter and his/her task |
| (Ritson, 2007)There is a need to re-brand this | | | | will be to ask people about the nature of their |
| product in order to create a turn around in | | | | Guinness experience. These respondents will all look |
| performance (with special emphasis on Ireland). | | | | young and ‘hip’. Each respondent will be |
| Marketing strategy for re-branding Guinness | | | | found in a different street, shopping mall, car park |
| Product (new name, design, quality, packaging, | | | | etc. The main idea is to make the setting appear as |
| positioning) | | | | natural and as real as possible such that consumers |
| Guinness needs to re-position itself as the beer of | | | | may think that the advertisement was a recording of |
| choice for the youth. The first step that can take | | | | an actual survey. One of the respondents will |
| towards that direction is by changing the name of | | | | describe Guinness lite’s creamy taste. Another |
| the product it needs to called Guinness lite rather | | | | respondents will talk about how Guineas lite’s |
| than just Guinness. Additionally, they also need to | | | | aroma is neither too heavy ion too light; it just right. |
| change the product content for this new name. The | | | | Other respondents will describe the look of the can |
| company can minimize on the darkness of the drink | | | | while others will talk about its Irish heritage. By using |
| and its alcoholic strength. Many youth are drawn to | | | | young actors and actresses in the ad, the |
| lagers and other lighter beers. In order to capture this | | | | advertisement will be capturing the new market |
| market, then the company should look for ways of | | | | segment of the younger market. However in order |
| engineering their product to suit that market | | | | to bring in the Irish connection, all the locations |
| preference. However, since Guinness has still been | | | | chosen for the advertisement need to be dominant |
| performing well among the older market segment | | | | Irish locations. For instance, one of the settings could |
| (within Britain and Ireland ), then the company might | | | | be at the scene where the Mel Gibson’s movie |
| loose that market segment if they follow a different | | | | ‘Brave heart’ was set. Also, some of the |
| path. In order to maintain that older market, the | | | | respondents could talk about the rich heritage of |
| company should still retain its older Guinness brand. In | | | | Guinness and this will make the fact sink in. |
| other words, there will be two offerings; the old | | | | Place (distribution) |
| Guinness brand and the new one. | | | | Distribution channels can be an important marketing |
| Since the company will be introducing a different | | | | source if utilized properly. Guinness Lite should be a |
| brand, then they need to change their packaging. | | | | common product in supermarkets and other retail |
| Consumer drinking habits have changed within the UK | | | | outlets. This represents a shift from the belief that |
| and in Ireland specifically. People are spending their | | | | Guinness is primarily a product that can only be drunk |
| time commuting and working and it has become | | | | in bars. Many Irish drinkers associate Guinness with |
| increasingly necessary for alcohol manufacturers to | | | | the common ‘pint’. However, Guinness lite |
| consider selling their product conveniently in | | | | should take a shift from this market segment, they |
| supermarkets. (O’Mahony, 2007) Diageo should | | | | need to make the product easily available to the |
| re-package the new Guinness lite in a can. The can | | | | home drinker. As it has been stated earlier, drinking |
| should have different colors from the old Guinness so | | | | habits in Ireland have changed and it would therefore |
| that young people can see that they are actually | | | | be necessary for the company to consider retail |
| buying a different product from their parents. This will | | | | chains and supermarkets as their primary distribution |
| go along way in making it convenient for the home | | | | channels. In the past, Guinness focused on bars as |
| consumer and the youth. | | | | their major retail distribution channel but this need not |
| The third and last aspect about Guinness’ | | | | be the case for Guinness lite. Additionally, the |
| positioning will be its Irish heritage. The beer will be | | | | company can market their products in those |
| tailored for the Young Ireland population. This is an | | | | distribution channels. They could place a series of |
| element that will be communicated in the promotional, | | | | posters with images of the respondents who were |
| distributional and pricing strategies as seen below. | | | | involved in their Guinness lite advertisement. They |
| Price (price point) | | | | need to place different images in different locations. |
| In order to attract the younger consumer, Guinness | | | | Each poster should have remarks made by a |
| lite’s pricing should be tailored to suit that | | | | respondent in bold. For instance, one poster could |
| category. Since most youth are not yet as financially | | | | have the words ‘I drink Guinness because its |
| stable as their older counterparts, then it will be | | | | aroma is just right’. These posters need to be |
| necessary to place the product’s price at a | | | | distributed in a large number Ireland retail chains so as |
| consumer-friendly level. The company should examine | | | | to boost their image. (Minnini, 2007) |
| what other canned products are going for (the | | | | It should be noted here that past strategies usually |
| products under consideration should be alcoholic) and | | | | utilized other channels of distribution such as |
| then offer theirs at a lower price. This will allow them | | | | wholesalers. The same strategy will be applicable for |
| to penetrate into the canned products segment | | | | Guinness lite’s mid level distribution but lower |
| easily. They should maintain their prices at that level | | | | level channels will have to be changed. |
| so as to retain their competiveness. | | | | Conclusion |
| Promotion (advertising) | | | | The essay has examined a range of issues that need |
| Over the past five years, Guinness has been | | | | to instituted in order to revitalize the Guinness brand. |
| performing relatively well in foreign markets. In the | | | | First, the company should re-position themselves as |
| United States, sales are picking up, Australia and | | | | the brand of choice for young consumers. This needs |
| Africa are also giving the brand a good reception. | | | | to capture their needs and preferences. They need |
| However, the major problem is within the core | | | | to change the product content, its name and also its |
| market-Ireland. This aspect will be the centre piece | | | | packaging. Pricing, distribution and promotion need to |
| of the promotional strategies. All avenues sought | | | | capture this element. However, since the focus is in |
| must communicate Guinness’ rich Irish heritage. It | | | | Ireland, then the company’s promotional |
| is a known fact that Guinness has actually lost its | | | | strategy should reflect its rich Irish heritage. These |
| local appeal. A blog assessing Ire’s perception of | | | | two issues are the core concepts that can get |
| Guinness found that most people think of Guinness | | | | Guinness back on truck.reference |
| as the most advertised brand and not a rich, Irish | | | | Ritson, M. (2007): when Brands loose their way: |
| brand. This will be the main message conveyed in the | | | | Guinness, retrieved form accessed on 18th |
| company’s promotional strategy. | | | | September 2008 |
| The second element that will also form part of the | | | | Kippen, D. (2008): Ford Struggling to find big idea, |
| promotional strategy is an appeal to the younger | | | | Word Press Publishers |
| audience. Statistic show that over eighty percent of | | | | Minnini, T. (2007): Rejuvenating, Revitalizing and |
| Guinness drinkers actually fall within the 30-60 age | | | | reformulating a struggling brand, retrieved from |
| groups. Only fifteen percent of their consumers lie | | | | accessed on 18th September 2008 |
| between the twenty to twenty nine age bracket. | | | | O’Mahony, C. (2007): Guinness back in the black, |
| Part of the reason for this is that many youngsters | | | | The Sunday Business Post, 21st December |
| are looking fro something that will differentiate them | | | | Goodman, M. |
| from their parents. (Goodman, 2007) Consequently, | | | | |
