Guinness stout is a beer that is highly roasted and whose drinking is normal for the beer loving crowd, contrary to what many think. This beer is brewed from a mash characterized by its content of highly roasted grain that gives it a dark color and the taste of coffee. Also note the crown of thick white foam formed by bubbles of nitrogen. In Ireland, Guinness was founded in 1750. It is not the only beer of its kind in Ireland, and the company knows the competition. Arthur Guinness, the founder of the famous beer, built its first brewery in Leixlip in 1750, and acquired another one in Dublin in 1759. It was later dubbed as the Gate Brewery St. James that became the headquarters of the group.
Guinness was served, in its infancy, in the pubs of Ireland, its success was rapid and in 1769, Guinness was exported for the first time in England. Guinness became the sole business of the brewery. As a leader in the beer market in Ireland, the brand consumed a market share of 50% for beer and 87.2% for only stout. The company owns five breweries and produces more than one billion liters per year, benefiting from breweries that are among the most technologically advanced, thanks to a major investment policy.
Guinness produced a huge impact on the Irish economy, employing over 2000 people across the country and 30,000 others indirectly, and spends about 200 million lire per year to operate. Guinness is also one of the largest exporters of the country, performing with stout for about 75% of beer exports abroad. Guinness is consumed at a rate estimated at 10 million pints per day in no less than 150 countries.
The company boasts a number of important forces that explain its leadership. Very few weaknesses and threats can darken the picture, and the opportunity to develop more overseas can be very interesting.
Depending on the model of Michael Porter, one can identify five competitive forces in a market, namely the market for stout beers, whose importance is measured by a score of one to ten. These competitive forces allow us to appreciate the attractiveness of a market over a business: the bargaining power of customers: customers are the pubs and final consumers. Their bargaining power is relatively low, as far as the company will practice reasonable prices for the same quality, they will be satisfied and continue to eat the same way.
The bargaining power of suppliers: the constituents of Guinness are not uncommon and not under the influence of any specific vendor. The threat of substitute products: Guinness is a drink very similar to beer, substitute products are the other beers, and of course other stouts. But their taste is very different, their service is faster and the bitter taste is present, and their cost is sometimes slightly lower depending on the brand. In a context of celebration products that can substitute are then all forms of alcohol, which, as we have seen above are a threat, but in a relatively small extent.
Tags: Guinness; Irish beer; marketing strategy of Guinness
[...] Several features make Guinness advertising campaigns extraordinary and particularly effective. • Frequency of campaigns: Guinness renews its campaigns very often, it is not uncommon to see new advertising of the company on television two months after the last one in general. I was able to upload about forty of these ads to Youtube, dating back to 2006. • Originality of the campaigns (message, staging, length, aesthetics): funny, aesthetic, often surprising, Guinness ads capture the attention of the audience. It is always a pleasure to watch the brand's ads, wondering what else it has found. [...]
[...] The menus are prepared by the brand. • Irish music: a distinctive and very valuable element in the eyes of consumers. Guinness sends quality musicians on tour to pubs abroad The Irish advertising concept has been very successful worldwide and more than 1400 such ads have since opened in no less than 36 countries, even outside Europe. Guinness' income is based solely on the volume of beer sold in these pubs. Every year since its launch in 1992, the number of Guinnesses sold has doubled, so it has been a success. [...]
[...] Guinness is also one of the country's most important exporters, accounting for approximately 75% of beer exports abroad. Guinness is consumed at an estimated rate of 10 million pints per day in no less than 150 countries Guinness Strategic Analysis 1. Internal analysis The classic but nevertheless useful SWOT analysis method assesses the strengths, weaknesses, opportunities and threats concerning a company. It is therefore an internal analysis to determine the company's competitive capacities and weaknesses, which may need to be addressed. Opportunities and threats are an analysis of the company that interacts with its environment. [...]
[...] Almost every region sells Guinness, it can be found in many points of sale. Even if probably few people have tasted it in their own country, it is certain that everyone knows the brand, and also knows that they can easily get it. So that's the global reach of the brand, and relatively few names can boast of having achieved this state of affairs. Guinness also took up the concept of the Guinness Irish Pub, after these ads developed on their own abroad. [...]
[...] This product represents 40% of sales worldwide. Currently, Guinness Stout is also licensed for brewing in some countries around the world. The raw material is prepared in Dublin and then sent to be mixed with locally produced beer. Guinness therefore has a fairly comprehensive international strategy, with an impressive global presence and its Irish pubs that are working very well. Let's now look at how the brand uses its marketing in Ireland Powerful and ubiquitous marketing communication Advertising campaigns The brand is well known in Ireland for its original and numerous advertising campaigns, which sometimes win awards of excellence. [...]
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