Questions As an international marketing consultant, you are asked to give an independent assessment of Guin-...

 

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Questions As an international marketing consultant, you are asked to give an independent assessment of Guin- ness's opportunities in the world beer market. You are specifically asked the following questions: 1. How would you explain the Guinness pricing strat- egy and the underlying assumptions about con- sumer behaviour when Diageo reports for 2013 to 2018 that in the UK and Ireland Guinness sales vol- ume fell by 5 per cent, but a value growth of 3 per cent was achieved in both markets, mainly due to price increases? 2. Motivated by the success of this pricing strategy, shou Diageo continue to increase the price Guinness? 3. In Choueke (2006), an anonymous beer retail buyer comments on Guinness's decreasing sales volume: Guinness has an older profile of drinker and with an ever-increasing availability of continental lagers and a fast-growing range of alcopops, the younger generation of drinkers simply haven't bought into it. Innovation - widgets and gadgets - will keep the brand alive for a while but where else can Dia- geo go? Flavoured Guinness? No thanks. It is in decline and Diageo's best minds can't do much about it. The brand may have only a couple of decades' worth of life in it and I would milk it for everything before getting rid of it and concentrat- ing on spirits. Do you agree with this statement? Explain your reasons. 4. What elements of the Guinness international marketing strategy would you focus on in order to increase both global sales volume, value and profits? 5. What do you think about the '1759' marketing idea? Should Guinness introduce more special edition beer brands with a limited lifetime for special occa- sions or as a gift product? Questions As an international marketing consultant, you are asked to give an independent assessment of Guin- ness's opportunities in the world beer market. You are specifically asked the following questions: 1. How would you explain the Guinness pricing strat- egy and the underlying assumptions about con- sumer behaviour when Diageo reports for 2013 to 2018 that in the UK and Ireland Guinness sales vol- ume fell by 5 per cent, but a value growth of 3 per cent was achieved in both markets, mainly due to price increases? 2. Motivated by the success of this pricing strategy, shou Diageo continue to increase the price Guinness? 3. In Choueke (2006), an anonymous beer retail buyer comments on Guinness's decreasing sales volume: Guinness has an older profile of drinker and with an ever-increasing availability of continental lagers and a fast-growing range of alcopops, the younger generation of drinkers simply haven't bought into it. Innovation - widgets and gadgets - will keep the brand alive for a while but where else can Dia- geo go? Flavoured Guinness? No thanks. It is in decline and Diageo's best minds can't do much about it. The brand may have only a couple of decades' worth of life in it and I would milk it for everything before getting rid of it and concentrat- ing on spirits. Do you agree with this statement? Explain your reasons. 4. What elements of the Guinness international marketing strategy would you focus on in order to increase both global sales volume, value and profits? 5. What do you think about the '1759' marketing idea? Should Guinness introduce more special edition beer brands with a limited lifetime for special occa- sions or as a gift product?

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Question 1 There are a few possible explanations for Guinness s pricing strategy and the underlying assumptions about consumer behavior First it is possible that Guinness is trying to target a higher ... View the full answer