MAR039-6 Marketing and the Digital Future Assignment Sample

MAR039-6 Marketing and the Digital Future Assignment Sample

Introduction

Digital Marketing functions as an emerging approach used for promoting business operations across online or internet based platforms. This study presents a strategic Digital Marketing Plan for British alcoholic beverage company “Guinness”. Purpose of the presented digital marketing plan is to guide Guinness for increasing product sales across United Kingdom (UK) over next 12 months.

British Alcoholic Drinks Market overview

PESTLE Analysis

Table 1: PESTLE Analysis of British Alcoholic Drinks Industry (Source: GOV, 2022)

Market Segmentation, Consumer Persona

Market Segmentation

British alcohol industry functions as one of the leading economic contributors for the nation through distribution of diverse spirit induced beverages. Market segmentation by distribution channels involve “hypermarkets” and “supermarkets” operating within capital city London, followed by Manchester and Glasgow (GLOBALDATA, 2022). Product market segmentation as of 2021 involves vodka contributing 2.38 billion GBP in revenue, followed by gin and whiskey segments contributing GBP 13.41 billion and GBP 10.01 respectively (STATISTA, 2022). On the other hand, market segmentation by packaging material in 2021 included glass by 50%, rigid metal and plastics by 30% and flexible material by 20% (GLOBALDATA, 2022). A competitive market segmentation of spirits industry in 2021 involves leading firms such as “Diageo Plc”, “SHS Group Ltd” and “Pernod Ricard Group” (STATISTA, 2022). Overall sector value and volume growth in UK alcohol industry from 2021 to 2026 is expected to grow at a scale of 2.5% to 3% annually (GLOBALDATA, 2022). From this analysis chosen brand Guinness can be recommended to improve promotions as per identified market segmentations in distribution channel, packaging material, product category and competitor positioning.

Consumer Persona

Alcohol consumption across Britain had experienced a downward trend in the financial year of 2022-2023. Industrial analysis conducted in first quarter of 2023 had identified an average consumption per person for each week had declined by 1.5% since 2017 (IBISWORLD, 2022). Supporting this fact, Niedzwiedz et al. (2021) stated that primary reason for alcohol consumption decline in 2021-2022 was due to a decrease of household income by 20% after Covid-19 pandemic outbreak in 2020. However, ease of lockdown and transport restrictions in 2021-2022 had achieved an increase in competition by 2.2% annually (IBISWORLD, 2022). Customer demographics of British alcohol industry states that 8 out of every 10 adults purchase spirit beverages (STORE.MINTEL, 2022). Approximately 70% of adults purchase alcohol from supermarkets, followed by 50% to 62% Britons prefers to purchase alcohol at discounted prices. Furthermore, age demographics of alcoholic Britons range from 18 years to 34 years, amongst which 25 years to 30 years captures maximum consumption (STORE.MINTEL, 2022). Hence, Guinness would need to focus on targeted consumer persona of 25 to 30 year old supermarket visiting and discount preferable clients.

Guinness Brand Positioning

Guinness operates as the Irish brewery organisation that originated in Dublin, Ireland in 1759. In 1997, Guinness and Grand Metropolitan in UK had collaborated to form one of the largest alcohol beverage companies, Diageo Plc (DIAGEO, 2023). An analysis of British alcohol industry in 2022 identified 28% of Britons to be consuming stouts manufactured by Guiness, followed by 30% preferring the brand and 92% being aware of the brand (STATISTA, 2022). However, London Stock Exchange had confirmed that overall surplus of Guinness in European region had been £44.6 million in 2022, which had decreased by £25.3 million from 2021 (LONDONSTOCKEXCHNAGE, 2022). As a result, brand positioning of Guinness was simultaneously hampered due to declining revenue margins in British alcohol industry. Primary reasons for declining market position in 2022 was sudden outbreak of Omicron variant in January to April, which had resulted in temporary closure of pubs and restaurants (Jackson et al. 2021). However, by the end of May 2022, profit margins of Guinness stouts had increased by 27% as majority of British pubs sell Diageo drinks (THEGUARDIAN, 2022). Hence, brand positioning of Guinness as a part of Diageo Plc would hence require strategic marketing plans to further enhance sales in post-pandemic period.

Digital Marketing Objectives

Digital Marketing

Digital marketing introduced in an online promotional context allows organisations functioning in 21st century to advertise products and services across diverse geographical boundaries. As observed by Critchlow et al. (2019), relationships with customers are formed and nurtured in majorly used social media platforms such as “Facebook”, “Instagram”, “TikTok” and “YouTube”. Importance of digital marketing through social media lies in establishing “direct communication” with targeted client groups through “comment”, “tagging” and “inbox messages”. For instance, in 2021 user-generated alcohol-related videos over TikTok was observed as a popular marketing approach to showcase positive associations with alcohol through humour and camaraderie (Russel et al. 2021). Real-time user engagement prompted through social media had enabled organisations to promote commodities in a time-efficient manner.

Exposure to alcohol marketing through engaging social media campaigns was identified to be a negative aspect of digital marketing. For instance, children and young adults below the age of 21 years were identified to be negatively influenced or urged for alcohol consumption after seeing TikTok based promotions (APPS, 2022). In response to negative promotional exposure to children, WHO European Region had initiated “Best Buys” digital marketing campaigns for alcohol manufacturers to put up age bars on visiting websites and social media campaigns (APPS, 2022). Despite TikTok generated promotions identified as negative influencers for early alcohol consumption, simultaneous consumer awareness for psychosocial harm had reduced negative consequences.

Management

Social media marketing managed by Guinness’s parent company Diageo Plc have been primarily concentrated on Twitter along with YouTube, Instagram and LinkedIn. For instance, Twitter platform analysis of Diageo Plc had identified 4,796 tweets in 2022, followed by 149,886 retweets (GLOBALDATA, 2022). On the other hand, mostly used hash tags in retweeted posts of Diageo were “#whiskey” which had determined major customer preference of whiskey based alcohol distributed by this brand (DIAGEO, 2022). Hence, social media management of Guinness brand remains primarily focused towards promoting brand and product value through Twitter. Analysing major presence of Diageo in Twitter indicated the extensive need for developing a digital marketing plan that is suitable for customers visiting official Twitter page. In respect to future possibilities of digital marketing, strengths, opportunities, threats and weaknesses are evaluated as follows:

Table 2: SWOT Analysis of Guinness Brand in Diageo Plc (Source: DIAGEO, 2022)

Communication Objectives

Evaluating weaknesses and threats dimensions of Guinness brand, the communication objectives can be proposed as follows:

• To promote “positive drinking” concept across majorly used digital marketing platforms such as Twitter.
• To enhance innovation in digital marketing tools through smart investment activities by 5% annually till 2025
• To address vegan-friendly customers by advertising ethically brewed alcohols.

Communications Strategies: Communication Mix Model

Organisations functioning in a dynamic business environment observe communication mix to influence customers or potential customer groups. Theoretical perspectives such as “Communication Mix Model” is utilised for interlinking four major aspects such as “advertising”, “sales promotion”, “events and experiences” and “client interaction” (Chaffey and Ellis-Chadwick, 2019). Importance of communication mix model lies in enhancing flexibility in client to seller interactions across diverse distribution channels. Application of communication mix model for Guinness would focus on advertising and sales promotion “positive drinking” concept through official Twitter page. On the other hand, events and experiences of manufacturing vegan friendly beers can be communicated to vegan beer drinkers of UK. Additionally, smart tools of digital marketing such as “Catalyst”, “Demand Radar” and “Sensor” can be utilised for client interaction processes as addressed in communication mix.

Digital Marketing Strategy

Digital Marketing Issues and complexities in 21st century

Social media marketing as a major aspect of digital advertisement sector has experienced challenges in gaining followers across official operating pages. Global digital marketing survey conducted in 2021 had identified that 38% of respondents had failed to maintain consistency in social media follower numbers (STATISTA, 2022). On the other hand, 35% of respondents had identified lack of adequate knowledge on approaching influencers on social media or absence of engaging content had caused major challenges (STATISTA, 2022). Major issues of social media marketing in 2021 were identified in UK were lack of suitable understanding of influencing marketing and its importance. It can be derived that, approaching the right influencer through their official social media page can be difficult and presence of fake celebrity profiles may at times deceive markets and cause financial fraudulency.

Influencer Marketing conducted through social media platforms such as Instagram, Twitter and YouTube have been subjected to challenges of expensive and uncertain operational processes. For instance, market analysis conducted in 2022 had identified 19.76% challenges related to cost, followed by 16.49% related to measurability and 15.12% linked to authenticity (STATISTA, 2022). Costs for appointing popular social media influencers had enhanced additional burden on companies. On the other hand, lack of measurability of how customers have interacted with the influencer or whether authentic influencers were approached or not raised major concerns (Refer to Figure 2). Owing to this perspective, effectiveness of influencer marketing was doubted by approximately 14.6% respondents (STATISTA, 2022). Hence, need for improving influencer based promotional ideas and approaches were recommended for Guinness in proceeding stages.

Theoretical Perspectives

Brand Touch point Wheel for Consumer decision-making

Marketing Theories such as “Brand Touch point Wheel” are utilised for promoting commodities and services as per previous and current consumer experiences. As per the views of Lies (2021), Brand Touch point Wheel is segregated into three major stages such as “pre-purchase”, “post-purchase” and “during purchase” experiences of customers. Purpose of observing customer purchase lies in understanding advertising activities of a brand and influencing purchase decision-making (Gielens and Steenkamp, 2019). Application of this theoretical model would allow Guinness to identify how during, pre and post purchase of beer, whiskey and stout products trends have been till 2022. Following pre, post and during purchasing trends, Guinness would be able to either reinforce marketing objectives to promote safe drinking of beer, whiskey and stout through Twitter. This strategy would likely enable Guinness in enhancing brand positioning across whiskey, beer and stout products among vegan friendly Britons by positively influencing alcohol consumption decisions. Consistent identification of consumer purchasing decisions related to beet, whiskey and stouts would allow in encouraging steady sales growth of these segments in UK.

Brand Equity Model

Guinness is recommended to implement “Brand Equity Model” for interlinking digital marketing investment goals to potential opportunities that can arise through social media marketing. According to Ebrahim (2020), Brand Equity Model is segregated as per five hierarchical steps such as “presence”, “relevance”, “performance”, “advantage” and “branding”. Primary purpose of Brand Equity Model lies in understanding how financial investment in advertising campaigns would lead towards success of online branding (Sun et al. 2021). Application of this model would guide Guinness into proposing an adequate budget that would help in conducting consistent Facebook campaigns and Google Ads. Simultaneously, adequate marketing investments would enable Guinness to approach notable influencers over Twitter and Instagram for promoting vegan-friendly beers and “positive drinking” concept.

Digital Marketing Plan

SMART Objectives

(Source: Created by Author)

Digital Marketing and Market Orientation

Concept of market orientation focuses on interlinking promotional intelligence of a firm with potential responsiveness that can arise from proposed digital marketing goals. Purpose of market orientation lies in evaluating consumer’s viewpoints and derives promotional strategies as per client needs and preferences (Tajeddini and Ratten, 2020). In case of chosen company Guinness, market orientation would freshly focus on promoting “positive drinking” concept through Twitter. As observed by Liu (2019), Twitter functions as the quick insights based social media platform majorly used by celebrity or influential figures for transmitting short information among followers. In case of brands or business entities operating Twitter, then marketing tools such as “Tweepi”, “Twitonomy” and “Tweetreach” are majorly observed (Stephen, 2019). Market orientation through Twitter would extensively focus on raising positive thinking concepts through influencer engagement.

Guinness can be recommended to use these Twitter based marketing tools for consumer monitoring.  According to Mitterfellner (2019), Tweepi is an artificial intelligence (AI) powered tool for monitoring engagement with followers and clients visiting official Twitter pages. On the other hand, Twitonomy and Tweetreach had allowed marketers to prepare well designed analytical charts and reports of customer engagement and total client conversion (Guijarro et al. 2021). For instance, Tweepi may help in identifying which specific client groups or influencers and celebrities in Twitter had used #drinklow or #lowdrinkinglonglife hash tags for promoting positive thinking. Based on identified usage percentage, other tools such as Tweetreach and Twitonomy would help in designing client conversion and engagement charts of positive drinking campaigns. As a result, clients, celebrities and marketers of Guinness’s would be able to increase responsiveness of positive drinking along with analytical intelligence in identifying the number of actual positive drinkers.

New consumers and media

Internal company analysis of Guinness had identified an increase of vegan-friendly beer manufacturing and distribution across British alcohol industry. Hence, new consumer criteria for Guinness would be vegetarian or vegan preferring individuals who mostly prefer beer consumptions. A market report on veganism published in 2022 had identified an increase of vegetarian population from 150,000 in 2014 to approximately 600,000 in 2019 (METRO, 2021). Growth of veganism had positively inspired food and beverage manufacturers to ethically produce commodities from organic ingredients. For address the emerging vegan-friendly consumption trends in UK, major beer manufacturers such as “Stella Artois”, “Carlsberg” and “Budweiser”, “Heineken” and “Corona” had introduced vegetarian based spirits (METRO, 2021). Observing the existence of a vegan beer manufacturing industry in UK, Guinness can be recommended to extensively market objective and purpose of vegan-friendly beers.

Recommended media for promoting vegan-friendly beer can be official “YouTube” and “Instagram” pages of Guinness. For instance, “YouTube Shorts” and “Instagram Reels” have the ability to allow users to post videos with musical content, emoji, text and commentary within a shorter time period (Imran, 2022). Circulation of video graphics through YouTube shorts and Instagram reels allow brands to quickly transmit information to clients in an engaging manner (Menon, 2022). Observing this fact, Guinness can be similarly recommended to upload “shorts” or “reels” related to manufacturing or brewing process of vegan-friendly beers. If customers are shown how organically and ethically vegan beers are brewed in Guinness, then consumption reliability may gradually increase. As beer consumers viewing organic brewing processes would be convinced of the idea of authenticity in animal free or synthetic free usage claimed by Guiness, which would in return enhance brand reputation. On the other hand, social media platforms such as “Facebook” can be recommended for understanding public opinions related to beer bottle recycling. For example, “Facebook Communities” allow users to form virtual groups for discussing and sharing diverse ideas and opinions (Mariani et al. 2019). Guinness can be suggested to build own “Positive Drinking Community” to promote the need for age-restricted and limited alcohol consumption. This strategy would allow Guinness to encourage client groups in maintaining physical and emotional well being despite consuming alcohol for recreational purposes.

Mobile platforms and convergence

Social media campaigning plan proposed for Guinness would primarily focus on conducting promotion through internet supportive smart phones. In 2018, active Smartphone users in UK were 55.22 million which is projected to increase up to 64.89 million by 2025 (STATISTA, 2022). An estimated increase of Smartphone users by approximately 9.7 million was estimated, which would similarly allow digital marketers to focus on developing mobile-friendly promotional strategies. Observing the expected inclining trend for Smartphone usage in UK, Guinness can be recommended to introduce mobile-friendly digital marketing campaigning strategies for targeted client groups. Apart from projected Smartphone usage, 5G enabled internet services in Britain was captured by 25% of internet use population compared to 67% 4G users (STATISTA, 2022). Lower involvement of 5G enabled internet usage compared to 4G enabled devices indicated that Guiness would need to promote social media campaigns compatible to 4G enabled mobiles. However, projected vision of 5G enabled services would similarly be beneficial for Guiness due in upcoming internet communication stages that would arise in Britain. Convergence of Guinness would include hosting of mobile-friendly social media campaigns for 4G and 5G enabled devices.

Online Consumer Behaviour

Online customer behaviour prevalent in British alcohol industry would allow Guinness to estimate a potential footfall of hosted social media campaigns. Industrial analysis conducted in 2022 had identified that 13.3% of total revenue was generated through online alcohol purchase (STATISTA, 2022). Amongst online sales, 58% of consumer spending has been through online delivery platforms that have acquired alcohol from pubs and restaurants, whereas 39% of online purchases have been from supermarkets and direct company websites (STATISTA, 2022). Hence, Guinness is recommended to continue extensive distribution of beer, whiskey and stouts across leaving pubs and restaurants of UK, for attaining maximum customer purchase through online drinks delivery. On the other hand, simultaneous distribution in supermarket chains such as Tesco, Sainsbury and Morrison’s would help Guinness to satisfy customer demands on alcohol purchase from supermarket chains.

Brand Management

Marketing team of Guinness would be responsible for managing brand value across online and physical functioning platforms. For instance, social media campaigns hosted through Twitter, Instagram, YouTube and Facebook would help in addressing needs and requirements of online alcohol purchasers. Furthermore, continued distribution across physically functioning channels like supermarket, wholesaling, pubs and restaurant units would ensure traditional brand positioning of parent company Diageo.

Conclusion

Strategic digital marketing plan recommended for Guiness mainly focuses on social media campaigning. Platforms such as Twitter, Facebook, Instagram and YouTube are recommended to be used for promoting the idea of “positive drinking”. Guinness was suggested to conduct social media campaigns mainly through mobile-friendly ideas and address needs for vegan-friendly beer consumers.

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