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Marketing Plan: Phase II Paper - Essay Example

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The main challenge faced by Diageo is the rapidly declining beer sales in the UK. According to the British Beer & Pub Association, beer sales fell about 4.5 per cent in the second quarter of 2008,…
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Download file "Marketing Plan: Phase II Paper" to see previous pages... The beer market is made up of three segments, consisting of premium, mainstream, and budget priced. The premium segment accounts for 5% of the total market. The premum segment is a highly competitive market segment. The pricing of premium brands is thrice as high as the price of the other two market segments.
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Premium beer is sold in superior packages thus needing higher capital, operating and material costs. Mainstream and budget priced beer accounts for the remaining 95% of the market. These beers are packaged in returnable bottles and are distributed in returnable crates by local brewing partners.
Diageo can choose the budget priced market segment to push and improve its beer sales in the long run. Beer consumers in Diageo’s five major markets, Great Britain, Nigeria, Ireland, the United States and Cameroon are getting to be choosy and relatively price-conscious. Hence, Diageo has to develop new types of beer variants that can be sold at affordable prices for the consumers.
Identify your target market. Diageo’s faces two target markets. Diageo’s first target market, which promises the maximum revenue potentials, are working women and working men with ages ranging from 20 to 60 years old. Beer specifically developed for female drinkers in the five international markets mentioned above are very few. This segment presents the highest potential growth in revenue since working women are registering higher income and a higher corresponding consumption in beer products. However, beer choices for women are still limited. Diageo can make two to three new beer products for the working women. Diageo can pull out Guinness Red brand which posted lackluster sales since its introduction to the beer market. The company can improve the ingredients and beer concoction and introduce a new brand.
Diageo’s second target market is the elderly drinkers of beer. The elderly in society presents a rapidly growing market for beer products as well. ...Download file "Marketing Plan: Phase II Paper" to see next pagesRead More
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