Download Guinness Marketing paper

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Gerald Lambert
08/03/2014
Project Assignment
Summer 4: Principles of Marketing
Dr. Gary Geissler, Instructor
Guinness and Its Dark Appeal
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Guinness stout, porter, or, as we call it in the motherland of Ireland, “mother’s milk,” has
been satisfying the massive Irish thirst ever since the brewery was founded by Arthur Guinness
in 1759. Now being exported to all four corners of the globe from the heart of Dublin city,
Ireland, Guinness has become synonymous with all things Irish and seems to have a unique
quality that embraces Ireland’s fascinating and romantic history. From its first published ad in
17941, the Guinness brand and its marketing strategy have been as dynamic as the beer itself
with an initial focus on Irish and British imbibers to a current target demographic that has
excluded only the deceased -- and even this is not a guarantee as anyone who has been to an Irish
wake can testify!
Although Guinness’ famous slogan “Guinness Is Good For You” has been an impetus for
many demographics to use their product (yours truly was given Guinness stout by my mother
when I was at the tender age of 3—for teething and other ailments as I was told), the true target
market for Guinness marketers recently has been people between the ages of 15 and 342. For
decades, this group has been out of the reach of Guinness’ executives for a couple of reasons.
First, Guinness beer had a stigma attached to it. Young people felt that drinking Guinness was
not “cool” and was a libation for their parents and old-timers. Guinness didn’t have the air of
sophistication that I believe it has today, so it wasn’t appealing to this market group. Second,
Guinness didn’t have the portability back then as it does now. Today you can buy six-packs in
bottle and can form, meaning easier access and more convenience for the consumer and thus
increasing product awareness, flexibility and market share.
The demographic segment I mentioned above goes hand in hand with a geographical
segmentation that exists with Guinness’ products. Guinness basically has two markets and two
products for those markets in the marketing mix. It brews Guinness Draught for the North
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American, European, Australian, and Japanese markets. Its second product is Guinness Foreign
Extra Stout and this product is for the African, Asian, and Caribbean markets. I might add at this
point that Guinness is owned by the multi-national company Diageo, a $60 billion dollar entity
that also owns Smirnoff (the world’s best-selling vodka)3, Johnnie Walker (the world’s bestselling Scotch whisky), Bailey’s Irish Cream (the world’s best-selling liqueur) and has a 34%
share in Moët Hennessy. Diageo is by far the world’s biggest producer of alcoholic drinks.
It was about fifty years ago when Guinness began its international positioning and
marketing campaign in earnest. In 1962, the first Guinness overseas brewery outside of Ireland
was opened in Nigeria. Breweries in Malaysia, Jamaica, Ghana and Cameroon soon followed.
Before then, foreign markets were getting small supplies of the beer and there was no real
impetus to assail these markets as consumer spending power was so low, and/or the political
climate wasn’t conducive to the effort: the Caribbean and Asian markets, for example. Though
Guinness bottles were available in the United States since 1860, draught Guinness did not arrive
stateside until the mid-1970’s.
The initial target for Guinness was the American cities that were home to many Irish
immigrants, like Chicago and New York, as well as first and second generation Irish. This is how
Guinness built up their base that exists today throughout the United States. Another base
component was the start of routine air travel to Ireland bringing American tourists to Ireland and
returning home to America with a new found love of Guinness stout4. Today, Guinness sales in
the United States are increasing every year5 due to their sporty advertising campaigns aimed at
their young demographic, the introduction of bottle and canned products, and the shifting of
some of the mainstream American beer drinkers towards imported beers and away from the
typical domestic choices.
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Guinness’ competition is widespread and varied. Their products not only have to compete
with the traditional American brands like Budweiser, Coors, and Miller, and other imports like
Heineken and Corona, but with the emerging micro and craft beer markets. Product saturation is
at an all-time high and the battle for the beer-drinker’s dollar is fierce. Although Guinness has
made great strides in the last couple of decades with regard to sales and marketing, I honestly
feel that there some other niches that Guinness might be able to fill.
As of 2010, there were 34.7 million Americans who claimed Irish ancestry6. This is a
huge market that needs to be explored and capitalized. My idea would be for Guinness to team
up with an ancestry based genealogy service such as “Ancestry.com”, for example. This
partnership would involve many activities that would result in a massive boost in Guinness
revenue. Guinness marketers could begin by promoting Ancestry.com on their website and
Ancestry.com could promote their alliance with Guinness on theirs.
Also of enormous interest to the Irish-American community would be the organizing of
family reunions through both sites, where long lost relatives would reunite for a weekend of new
friendships and endless story telling. “Guinness Gatherings” would of course involve the
consumption of vast amounts of Guinness products. Ancestry.com would be the conduit for these
Irish-Americans to find their lost relatives (perhaps offering a reduced rate for this group when a
promotion code is entered which can be obtained at Guinness.com).
Furthermore, Irish ancestry clubs could be formed around the country with meetings
being held occasionally in pubs with a Guinness representative in attendance and Guinness
paraphernalia being distributed. Cities like Boston, Chicago, Savannah, and New York that have
active Irish populations should be the initial focus of the marketers, with future hopes of forming
clubs in smaller markets like St. Louis and San Francisco for example.
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Another way for Guinness to expand on this market segment is to organize Guinness
tours to Ireland. These “Guinness Getaways” would bring these Irish-Americans back to Ireland
for a week-long (or longer) vacation. Transported in style in a Guinness bus, they (“Guinness
Groupies”) would visit the Guinness Brewery and Storehouse (the number one tourist attraction
in Ireland these days7) and see the beautiful scenery of the country. To top off the tour, they
would visit the areas and vicinities where their ancestors hailed from.
This entire enterprise would have two objectives: first, it would awaken ancestry
awareness, not just for Irish-Americans but hopefully for every American, and second, increase
Guinness sales and create new consumers or re-consumers that will be brand-loyal for many
years. Via word of mouth, these “Guinness Groupies” would tell their friends and perhaps entice
them to partake in a Guinness or three and join their club.
I have also noticed another couple of openings for Guinness in the world market. After
evaluating all of their products, I realized that Guinness does not have any product that fills the
mini or ultra-compact category. I have discovered an idea to change that. “Guinness Grabbers”
would be Guinness in an eight-ounce can sold separately or in packs of six or twelve. Priced
competitively, this product would be aimed at people who, at a particular time of their day or
night, feel like a Guinness but do not want to partake in a larger serving. People on diets, lowtolerance drinkers, and low-frequency imbibers would be a large portion of the market segment
for this smaller product size.
Additionally, these mini-cans would be offered to bars, restaurants, and clubs where
bartenders could sell them as a part of the “Irish car bomb” family of shots that are very popular
among the younger generation of drinkers (a mini can of Guinness with a mixed shot of Jameson
Irish Whiskey and Bailey’s Irish Cream, drop the shot in the Guinness and drink at will). The
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Guinness Grabbers would be also be perfect to bring to the lake, a barbeque, family gatherings,
the beach, and other on-the-go situations.
My final product proposal to the Global Marketing Director at Guinness would be
“Guinness Irish Stew” in a can, with the word “Irish” interchangeable depending on the target
market. These variations could be “Guinness Beef Stew”, “Guinness Stew”, “Guinness Lamb
Stew”, “Guinness Veggie Stew”, and many more. With a promotion emphasis on the fact that
there would be no alcohol content in the stew because it would be cooked off during production,
the product would be suitable for all ages and cultures. The “Guinness Stew” brand would be
available in two sizes: an individual size portioned can and a family-sized can. There would be
an easy pull-tab for opening, eliminating the need for a can-opener. The cans could be made
quite distinctive with a bright banner across the label asserting that “Guinness Stew Is Good For
You”. Whether it is Mom or Dad trying to fix something healthy, delicious and quick for the
family dinner or an expat longing for the taste of home, this product would check all the boxes
when it comes to competitive pricing, taste and value.
I honestly feel and believe that my ideas and products would open many new doors for
the Guinness brand. The Guinness name is very nearly a household one, not just for the beer but
also for the renowned “Guinness Book of Records.” The name has enough integrity and equity to
launch any new solid idea, but I argue that Diageo is not using the Guinness name to its fullest
potential. What I can foresee is Mr. & Mrs. Jones carrying a twelve-pack of “Guinness
Grabbers” and two cans of family-sized “Guinness Stew” in their backpacks as they head off to
join their friends for a camping weekend and to discuss their “Guinness Getaway” to Ireland.
The new revenue potential is huge for Guinness and the opportunity to make the Guinness brand
a regular staple in the lives of millions of new consumers is there for the taking. As many
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markets have shown us, Guinness marketing executives should realize that they will always be in
the black with “the black stuff”!
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References:
1. 250 years of genius: The evolution of Guinness advertising. 2014. Web. 21 July 2014.
<http://www.thejournal.ie/250-years-of-genius-the-evolution-of-guinness-advertising382849-Mar2012/>
2. 2014. Web. 21 July 2014. < http://prezi.com/mdv7lpeafyvu/guinness/>
3. The Top 10 Vodka Brands. 2014. Web. 21 July 2014.
<http://www.thedrinksbusiness.com/2013/09/the-top-10-vodka-brands/11/>
4. Milestone events at Aer Lingus. 2014. Web. 21 July 2014.
<http://corporate.aerlingus.com/companyprofile/history/milestoneevents/>
5. Diageo. 2014. Web. 21 July 2014.
< http://www.diageo.com/en-us/investor/performanceoverview/Pages/North-A
merica.aspx/>
6. United States Census Bureau. 2014. Web. 21 July 2014.
<https://www.census.gov/newsroom/releases/archives/facts_for_features_special_edition
s/cb12-ff03.html/>
7. Guinness Storehouse. 2013. Web. 21 July 2014.
<http://www.guinness-storehouse.com/en/PressRelease.aspx?prid=54/>