MK7040 Marketing in the Digital Age and CSR Assignment Sample
Part 1: Introduction
Identification of Diageo
Diageo is a global leader in beverage products with an amazing collection of various brands across spirits and beers. Diageo operates in more than 180 countries and production performs in 140 sites globally (diageo.com, 2022). The beer products that helps UK businesses to reach the summit of the world. Diageo opens for everyone as they realize everyone’s ambition and modify the range of background, different skills, and capabilities.
This company aims to promote and make an optimistic impact on every community globally. Diageo’s share plans help to motivate and build shareholding capacity in the company. Diageo cannot lose its free trade as it has secured the businesses in the UK. Diageo’s member has been the key success to the workforce and their work on time.
Background of Diageo
In the year 1997, Guinness and Grand Metropolitan merged and formed the Diageo Company. Its creation drove the executives of the company to a different level.Hence, the company is still going on as the largest producer in the world. In the year 2000, the company sold many food brands hence the Diageo Company can focus on their food and drinks.
The world’s largest producing company has its own two-grain distilleries over 28 distilleries (diageo.com, 2022). It has a wide stretch under the power of distilleries such as Clynelish, Cragganmore, Dailuane, Knockando, Auchroisk, Benrinnes, and many more.
The company demonstrates its confidence in UK businesses to reach the different sectors at the top level. Diageo Company motivates the youngsters to reach the company at the top level with their creative and innovative ideas. Diageo has shown that whatever time has come and gone, Diageo Company will always be as strong as before. In today’s time, Diageo Company has made it a trusted brand in the world.
Identification of the core product/service of the Diageo
Diageo produces the beer products that owned and leased manufacturing facilities, distilling, blending, bottling, and packaging facilities. For more than a year, the company has been raising the bar for beer and spirits decades (diageo.com, 2022). Diageo’s beer brand includes only the global stout brand Guinness mand allowing it to serve its customers and consumers better.
Part 2: Evaluation of the effectiveness of digital marketing
2.1 Segmentation and targeting
Diageo’s strategic priorities are one of the ambitious and support the achievements of the best performing, most trusted consumer product companies in the world. As stated in a journal authored by Tabassumet al. (2020), through this, the company executed its strategic outcomes, which measured its overall performance. Diageo creates sustainable and quality growth is the ambitious thing that helps to maintain one of the best performers and invests in business growth and proliferates the margins at the top level (Naseret al. 2019).
Market segmentation, in this context can specify that, is the procedure through which Diageo company decides the whole segment and divides it into smaller segments and groups which will have various attributes, behavior while buying, and socio-economic backgrounds (Harris et al. 2019). All this helps to reach out to the group consumers with more effective and efficient (Seifu, 2022). The main goal here is to create various customer segment on some specific criteria. Diageo follows two segmentation such as geographic segmentation and demographic segmentation.
After identifying the youth drinkers within the age group between 21 to 40 years in the marketplace, Diageo Company now needs to have a target on the specific market. The choice of a target market is depend on some factors. Presence of core infrastructure to the market successfully to the target market. In a target market, collaboration is very important to become successful. In a target market, the strengths and weaknesses of Diageo’s market will make it successful (Frick et al. 2021).
The company targets to sell their products such as Johnnie Walker and J$B whiskey in a competitive way to reach the top level (Helsen, 2019). In the year 2020, Diageo wants the company to handle more volatility, wants themselves in a good position the company follows some targeting strategies, and those are differentiated marketing or multi-segment targeting, focus or concentrated targeting, and customized marketing.
The company maintains flexibility in delivering its plan to the shareholders for the next three years. The company aims to attract luxury consumers, middle-class family in emerging markets and more female customers in the market as the company believe in a significant opportunity to unlock growth by targeting female customers. Diageo’s strategy focuses on selling its products to consumers and understanding their habits and preferences.
Diageo Company followed some objectives based on target marketing such as increasing market penetration, enhancing brand recognition, proliferating the use of digital marketing, and retail growth. Diageo’s internal strengths include excellent financial performance the company has cash flow and achieved every year another. Internal strength that has made Diageo, the global leader in the alcoholic beverages in the market is the faster adaptation to the consumer trends and response to customers’ needs and the company has achieved it through constant innovative ideas and depth understanding to fulfill the customers’ needs.
The company spends at a very competitive level (Owora, 2019). The new strategic choices and across the brands have invested more than before. Using the current situation to invest more in strategic choices and grow out from the problems rather than cut off from the slippery slope (Jernigan et al. 2020). Diageo’s competitive advantages are its strong brands and global distribution network.
The company is committed to helping people and reaching their potential and for this; there are numerous training and development opportunities however, they strongly believe that leaders are creating the condition to get successful (Mogajiet al. 2020). Company is marketing strategy approach in the international market that approach and for the growth in future. The segmentation and targeting, as it can specify, are a good fit for the Diageo Company as it helps them to reach the top level globally and to reach everyone in the world.
Until now, Diegeo, in this scenario, it can easily specify that it reached a good position and for which their brand is famous. Thus, this is a good strategy to follow. Most of the time Diageo Company focuses on the business strategy however along with that the company focuses on social work (Dahivaleet al. 2018). Diageo has always assured that success depends on target they achieved; it always gives back to the business and always reserves to contribute towards the environment as well.
2.2Positioning& Branding
DIAGEO is the world’s biggest distiller of premium alcoholic liquor companies. They believe that paying for quality has proved a long-term business success strategy. They are doing their famous “Guinness clear” campaign in the UK through TV and social media for premium products (Berridge, 2019). In addition to innovation and commercial performances, DIAGEO uses the tagline “Celebrating life, everyday everywhere”.
The company is focusing on the sales cutting cost. They are aiming to take up their business 700milion of costs and revenue four third into the business company to put up sales growth. After applying the strategies their sales have increased 12163 million Euros. The positioning strategy includes creating benefits for the products. It compares the brand product to the other brands, positioning the product to the targeted buyers. The company has adopted the pull-push strategies.
The strategy is pointing to the sales display, exploring new packages or designs of the products, promoting sales and discounts, email marketing as well as advertising the mass media production of the company (Jernigan, and Ross, 2020). With the help of the strategies, the company establishes a sales channel, they are building customer loyalty, gaining the ability to accept products acceptance in the market.
2.3 Communication strategy
The communication strategy of DIAGEO based on the overview the uses of segmentation, targeting and positioning. On-demand platforms for alcohol sales, DIAGEO has adopted the approach of digitalization with customers.
They are using Twitter to communicate with people. Through Twitter, the companies connect with the users and promote their business. This platform gives DIAGORE the possibility to transport the products.Drizle finally agreed to promote their brands.
They are also investing in E-commerce retail sales as well as online food services to spread their brand. A brand always runs well if they have proper key messages. The key message is the note about the services that a company offers to their audience accuracy of the products. The key messages of DIAGEO are that they want to change the way the world drinks by promoting the moderate and addressing the harmful use of alcohol.
Its ambition is to be the best performance drinking company and become the most trusted and respected consumer product brand. They communicate with direct contact and strategies. The leaders of the company deliver the information along with the employees. Their purpose is to communicate with people that they care about their business and improve their standards of business.
The purpose is for the reduction of the crisis that comes in its way. Some problems are difficult to address such as outperforming brands, gaps in the brand’s portfolio, and regional weakness. These problems are relative to the management and market strategies. The purpose of the communication is mainly to improve the company’s business practices and reduce the Errors that may affect the company (Hefler and Gartner, 2020).
Internal communication among the employees formed executive workgroups through teleconferences and short period meetings. It is most important to upgrade communication through leadership. With the interactive communication method, they use interactive tv programs and ads to promote their brands (Jernigan and Ross, 2020). They upload their product video for growing interest to the customers. Twitter is promoting its new model of premium products to ensure the effectiveness of the brand value and to spread it to the people. DIAGEO applies the functional moral of implementing to run their business successfully.
The allocation of products among the audiences for the cooperation of the business, this approach helps to achieve corporation business. The main purpose of DIAGEO taking the approach is to achieve a level of business objectives in the functional areas of the UK. According to the beliefs of Kostyginaet al. (2020), it provides the strategic decisions of a company.
The functional implementation leads DIAGEO to communicate all the functional areas through the UK. It focuses on the parts that need more attention to improve the functions. The corporate and external communications engage the employees, and improve the internal communications including the alcohol production in a sustainable way.
However, with the best communications DIAGEO is facing some challenges to perform its business. According to a study, the company needs to research more to know the desires of the customers. According to the beliefs of Kumar, (2018), the alternative communication methods that they use to solve communication problems are- face-to-face meetings, the company codes as well as placards.
With the proper implementation of social media marketing, and email marketing, it will also become effective for the company to run business seamlessly. People who speak different languages face the problem of communication. Hence,in this context it can specify that the company adopt the communication symbols as evidence for people. When they understand the intention of the product then they can tell other people.
Thus, the companies can grow in other countries, and states. Since working with the transaction of community strategy and including decisions such as product innovation, marketing messages, and retail, DIAGEO provides the changes in packing and branding that successfully launched the products. Sprites and Reach arehelping DIAGEO to capture new drinking occasions.
The effectiveness of digital marketing is targeting the audiences about the brands and the product in all sectors. Digital marketing helps DIAGEO to reach among all the costumes in a small period in a measurable way (Carahet al. 2018).
The effective advantages are raising the brand’s values more than better. Now DIAGEO is more effective in knowing their customers’ choices. They also can make changes to the perception of the customers. Their review however is bad or good they also can check and improve the brand loyalty and positively drive their business.
DIAGEO now allows the marketers to join up with the people around the world that can highlight the brand offers to the targeted audiences (Papp and Kerti, 2021). After hosting the digital marketing, it has become more time-consuming than the traditional marketing through TV (Chitra, 2021). The digital marketing makes inbound marketing in an effective way that leads DIAGEO to attract and delight customers.
2.4 Segmentation and Targeting
The company can use the marketing segmentation in an effective way. They can divide the customers on the basis of the characters and their needs. This process gives them a scope to approach the competitor in the global brewing industry (De Pelsmacker et al. 2018).
The target of the company is to gain potential customers. The company ensures that its product is not promoting the habit of alcohol consumption but safe drinking for society. The marketing policy must be transparent enough to convey its messages to society (Bala and Verma, 2018). In order to set a target, the company has to identify the group of customers who benefits the company most.
2.5 Positioning and Branding
The promotional strategy of the company is focusing on safe drinking policies. The company claims that they ensure the world drinks in a better way. Their strategy for the company is to avoid the harmful way of drinking. They are promoting the goal of ‘ Drink better, not more. The promotion strategy of the product is also based on the selling of the product on the basis of the customer’s habit preferences (Saura et al. 2019).
The brand segment of the company is divided into three categories as Global, reserve, and local. The company follows the goal of investing smartly and effectively. They invest to grow and develop their people and acquire new attractive brands. The company also should try to develop its technologies, data, and e-commerce to invest more in the industry (Robul et al. 2020).
The company has to support the growth of the brewing industry with the right capital investments. The primary advantage of the marketing strategy of the DIAGEO is its position in the global market and the strength of its brand name and the customers are willing to pay for their premium product across the border of the nation.
In this report, the brand perception is based on the collected data during the research. The brand perception also depends on the review of the customers. The researchers can build a brand perception on the basis of collected data and the customer review (Syazali et al. 2019).
As per the outcome of the research, the company stands out in various aspects of brand awareness and the strength of its brand. The company is also building a strong corporate identity, leadership, and brand management (Gkikas and Theodoridis, 2019.). The company has gained the trust of the customer through its policies. The company does not only pay attention to customer attraction but claims to provide support for the betterment of society.
Part 3: CSR and Ethical Issues
DIAGEO‘s business policy is based upon the business strategy of the company. The company intends to become the best performing, most trusted, and respected company in the brewing industry.
Providing the best product to the customer is the central ethic of the company (AL-AZZAM and Al-Mizeed, 2021). The strategic outcome of the company evaluates the performance of the company. Consistency and sustainable quality growth of the company is ensuring the performance development of the whole organization. The performance of the company is based on the overall efforts of each and every worker (Alghizzawi, 2019).
IT brings a new opportunity and enthusiasm to the company to maintain sustainable growth. The overall performance and the ethical values help the company to invest in its future growth. One of the main motifs of the company is to promote a safe drinking policy.
Ethical Issues
The maintenance of the personal integrity of the company is one of the major policies of the company. The trust of the consumers is an asset to the company. The company intends to be the best in its field and provide its unique product to its customers (Hammou et al. 2020). Maintaining the work ethic is another issue in the personal integrity issue of the company. Avoiding the integrity of each person related to the company may cause an ethical issue.
Commercial integrity issues include the problems related to the practice and the operations of the company. The marketing of the three products is based on how much their employees are dedicating themselves to promoting their products. The activity of the company is based on moral values and ethical guidelines.
The marketing ethic of the company belongs to the commercial integrity of the company. Marketing, innovation, political issues, and corruption are the main issues that companies are facing recently. The growing competition in the brewing industry is also becoming a challenge to the company.
The company also respects the value of each individual in the company. The company has to maintain the personal security of the very members of its organization. Maintaining human rights and the reduction of discrimination is one of the ethical plans of the company. The company’s reputation may be hampered if they avoid any kind of harassment case inside or outside the organization.
Every company faces some issues related to their policies at any moment. The policy of a company depends on the ethics of the company. The police of the company are to mote the side of the safe drinking policies.
The company has to advertise its product as per its ethical value the product. The company policies provide security to the company and the stakeholders. One of the main issues in the process is to maintain the information and the data of the company safely. The company has to make type policies where every partner of the company will feel safer while dealing with the organization.
The company also finds some issues in communication inside or outside of the company. Customer satisfaction is the main motive of marketing and the issues related to marketing may harm the sales of the product.
The hierarchy of the company may not be able to explain its strategy to the stakeholder if they fail to communicate. The communication issues inside the organization may lead to the disruption of the workflow inside the company
The CSR or the corporate Social responsibility may provide awesome recommendations to the company to perform better in the world of competition in the brewing industry. The main motive of the company is to market its product in such a way that its customers feel safe buying the product.
As being a part of the brewing industry the ethical value of the company is always under threat but the company is assured that its product is not intended to harm the society (Bocean et al. 2018). Alcohol consumption is a part of the entertainment of human life but unsafe drinking may cause harm to society and the idea of positive drinking is the key to their marketing campaign.
The company should follow the policy that enables them to advertise their product and present a clear understanding of their products. The company has to protect and support the natural resources and the community and ensures that its products are playing a positive role in society.
The CSR policies of the company include the priority of the company. The issues in the value chain and the materials are encouraging the company to adopt new policies that will serve the beat of the company. The company claims that each party, consumers, and farmers are three priorities. The trust of the company is built on the performance of each section of the organization (Nuseir and Ghandour, 2019).
The company has to prioritize the farmers of the company, as they are the main source of their raw materials (Yunus et al. 2020). The employees of the company are another major aspect as their performance maintains the sustainability of the brand. Positive influence on society and the safety of the environment are the main concerns of the company policies.
Reducing the negative impact on the environment is another ethic of DIAGEO. The north American branch of DIAGEO is focusing on the reduction of the impact of the comp0mny’s commitment to the environment. The company claims that they do not intend to harm the environment in terms of its sustainable development goal of the company.
The company is supporting and approaching the wider community of North America. The company tends to improve its water-use efficiency within 2020. The Diageo water blueprints provide scope to the North American branch to improve the supply chain of the raw material and their products. As per the information available on the company website, the water efficiency improves by 38% after improvements (DIAGEO, 2022).
They paid attention to the amount of water used in the distillation or packaging of their product. The company claims that they are now saving up to 30 million liters of water after changing some equipment. The company feels proud to be the community and the comply is also providing learning and career opportunity for the betterment of society and its people.
Recommendation
Recommendation to the CSR of the company refers to the improvement of the performance of the company and the responsibility of the company towards society.
- The company has to work on the communication policy of their business to explain the ethics of their business to their customers and the employees.
- The company may use innovative ideas and new equipment to preserve water. Modern equipment can reduce the use of water in the packaging of their product.
- Proper marketing policies may help them to gain the trust of the customer in the brewing industry. Transparency of the policies of the company conveys their main motif of safe drinking to the customers (Ghahremani-Nahr and Nozari, 2021). Providing the best service and the product to coaster is the key to gaining the trust of the customers.
- The company may provide proper learning and training to their employees to work in the US and the wider scope of the career opportunity for society. The company may associate with the local business community to ensure the work placement opportunity for the trainees after they graduate.
Conclusion
Digital marketing is providing a new platform to the company to advertise their product beyond the national boundaries. The main motive of the company is to be the best Beer producing company in the global market. These modern techniques of marketing help the organization to promote their product to the world market. The digital techniques give the company a scope to communicate with their customers across the world.
The central focus of the company is to attract the potential customers through the successful marketing of its product. The company has considered the present market of the brewing industry before they launch their product. The branding and the positioning of the beers and the other products of the DIAGEO is giving the customer a reason to buy their product. The reputation of the company is always at stake as its main products are related to alcohol. Hence, the company has to ensure that their brand is harming the ethics of society.
The company has to create a healthy way to promote their brand ethics to the public and clear the misconception about their product. A huge number of the customers have been showing interest in digital marketing as they can directly communicate with the company in case of any issues. The customers can directly place their views before the company. The company can also use those reviews to evaluate its performance. Digital marketing helps to generate a better revenue system. The online data and the information helps the customers to gain knowledge about the brand and the company.
The correct marketing strategy of the business ensures the growth of the company through digital media. The digital marketing strategy of the DIAGO helps the company to use the proven strategy and techniques that only attract the necessary customers. Targeting the right kind of customers delivers the right kinds of results that ensure the survival of the company in the global market.
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