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Lambert1 Gerald Lambert 08/03/2014 Project Assignment Summer 4: Principles of Marketing Dr. Gary Geissler, Instructor Guinness and Its Dark Appeal Lambert2 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 Lambert3 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. Lambert4 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. Lambert5 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 Lambert6 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 Lambert7 markets have shown us, Guinness marketing executives should realize that they will always be in the black with “the black stuff”! Lambert8 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/>