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Diageo

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Diageo
Diageo is the leading premium drinks company in the world; of which categorizes most of the leading brands around the world and the market leader in many of the major growth market around the world! Their unique STP strategy had allowed them to develop globally into a renowned brand with operating profit reaching up to £ 2.5bn in 2010! It has also expanded from its headquarters in London into 80 worldwide offices employing around 20,000 workers. Its efficient market segmentation and diversification had allowed them to meet specific demands of its global consumer base which had contributed to the firm’s success. The Alcoholic industry is an oligopoly market dominated by about five large players estimated to be made of 26 PLC and about 200 LTD. In 2010 Diageo was right up there with annual revenue of £ 9.5 billion and return on invested capital of 14.8%. Global sales volume of alcohol reached 182.9 billion liters in 2010, growing between 1 – 2% from the previous five years! There are 3 separate categories in this market: beer, wine and spirits; which Beer is highest accountant of it, 76% of total sales. These statistics illustrate the huge competition firms face within the industry highlighting the importance of a well defined and aggressive marketing strategy. (Hatherly, 2010) Diageo was formed in 1997 via mergers: Guinness and Grand Metropolitan; since then it had efficiency in its operations, it sold off food brands Burger king and Pillsbury after finding a gap in the alcohol industry to fill. Diageo now manages a wide-ranging liquor cabinet with the world’s well popular spirits brands such as Smirnoff, Johnnie Walker, Guinness and many more! Alcohol industry is

Alcohol is 69% more affordable in 2007 than in 1980 The prices of alcohol have increased since 1980 by 19% which more than general retail price! Having said that, alcohol is now more

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