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Coursework Front Sheet

Module Title: Marketing Communications

Date: 16th November 2014

Word Count: 2736

Coursework Title: Guinness Diageo Marketing Report

Student: Anastasia Pahl

Table  of  contents  

1. Introduction ......................................................................................................... 3  

2. Target Audience .................................................................................................. 3  

2.1 Demographic Segmentation .......................................................................... 3  

2.2 Psychographic Segmentation ........................................................................ 4  

2.3 Geographical Segmentation .......................................................................... 5  

3. Marketing Communication ................................................................................. 5  

3.1 Involvement Theory and Guinness Diageo ................................................... 5  

3.2 Marketing Communication Mix .................................................................... 6  

3.2.1 Advertising ............................................................................................. 6  

3.2.2 Social Media and Internet ...................................................................... 7  

3.2.3 Sponsorship and Events ......................................................................... 7  

4. D.R.I.P. Definition .............................................................................................. 8  

4.1 Definition of Differentiation ......................................................................... 8  

4.1.1 Superiority and Uniqueness ................................................................... 9  

4.1.2 Heritage .................................................................................................. 9  

4.2 Definition of Reinforcement ......................................................................... 9  

4.2.1 Healthy Guinness ................................................................................. 10  

4.2.2 Strategies .............................................................................................. 10  

4.3 Definition of Information ............................................................................ 10  

4.3.1 Guinness Website ................................................................................. 10  

4.4 Definition of Persuasion .............................................................................. 11  

4.4.1 Guinness Storehouse ............................................................................ 11  

5. Conclusion ......................................................................................................... 11  

6. Bibliography ...................................................................................................... 13  

7. Reflective Diary ................................................................................................ 16  

7.1. Introduction ................................................................................................ 16  

7.2. Concrete Experience (Kolb, 1984) ............................................................. 16  

7.3. Reflective Observation (Kolb, 1984) ......................................................... 16  

7.4. Abstract Conceptualization (Kolb, 1984) .................................................. 16  

7.5. Conclusion .................................................................................................. 17  

7.6. Bibliography ............................................................................................... 17  

1. Introduction

This is a report investigating and analysing main marketing activities of Guinness-

Diageo. An examination of the target audience was analysed, communication

theories and concepts peculiar to Guinness Diageo were reviewed in comparison

with academic literatures. The tools of marketing communication mix, as well as

the various types of digital media the brand uses, were reviewed and the DRIP

elements of marketing communication were subsequently explained and evaluated

regarding to the Guinness Diageo brand. (Essay UK, 2014)

Diageo was formed in 1997 through the merger of Guinness and Grand

Metropolitan. (Hollensen, 2008) Diageo is the world's leading premium drinks

business with an outstanding collection of international brands across spirits, wine

and beer. Many of its brands have been around for generations, while some have

been developed more recently to meet new consumer tastes and experiences.

Trading in approximately 180 markets, Diageo employ over 20,000 talented

people around the world. With offices in 80 countries, it is manufacturing

facilities across the globe. Diageo is at the forefront of industry efforts to promote

responsible drinking. (Essay UK, 2014) Diageo Plc has one major beer brand:

Guinness, which is the world´s leading stout brand. (Hollensen, 2008)

2. Target Audience

The target audience is the intended group for which a product or a service is

performed or marketed, the specific group to which advertisement is directed.

(Dictionary, 2014) Segmentation is the process of dividing a market up into

different groups in order to create different products to meet specific need.

Currently, Guinness is using psychographic segmentation where they target their

customers based on values, opinions, lifestyle and personal characteristics. (UK

Essays, 2014)

2.1 Demographic Segmentation

Demographic Segmentation divides the target audience into groups based on

demographic variables such as age, gender, family size, family life cycle and

income. Guinness uses age segmentation by using very effective marketing

campaigns which mainly target the young male population. (Fahy, Esslemont, &

Ansor, 2011)

But although the Guinness brand has always been all about community, where

people come together and share their stories, it was also increasingly perceived in

Ireland as a brand choice of the older, rural generations, while younger people

preferred more often fashionable lager beers and alcopops. (Wohlfeil & Whelan,

2007)

However Guinness addresses their advertising campaigns to the younger

generation. Their campaigns are young fun and humorous and there is the

constant message that Guinness is a uniquely challenging and rewarding beer.

Although Guinness don’t directly segment its product into different segments,

Guinness beers are more expensive to the consumer because they target customers

may be willing to pay more for what some pensive to be a distinctive taste. (Fahy,

Esslemont, & Ansor, 2011)

2.2 Psychographic Segmentation

The psychographic segmentation targets the audience regarding their values,

opinions, lifestyle and personal characteristics. From as early as 1794, Guinness

was branded as Irish, a gentleman's drink, and was known for its properties to

boost health. (Peopalove, 2009) Till today their advertisements are leaning on the

Irish heritage and loyalty of true man. The basketball commercial shows a group

of young men playing basketball in wheelchairs. The twist is that only one of the

men in the group is an actual wheelchair user – the rest, it seems, are his friends

who are playing wheelchair basketball so that they can all play together.

(Schoultz, 2014). Afterwards the group of young sporty men is seen in a pub

enjoying a pint of Guinness. This Guinness advertisement veers away from the

clichéd beer model and creates its own: beer-drinking, manly men can be strong

and sensitive. It also creates an impactful and unique message promoting qualities

like dedication, loyalty and friendship, the personal characteristics any Guinness

drinker has. (Altadonna, 2013)

2.3 Geographical Segmentation

Guinness stout remains the best-selling alcoholic beverage in Ireland. However,

globalisation, it has expanded itself as a product and has reached different

countries, with the recent roll out of products in countries like Nepal and Ethiopia.

Guinness now has a market presence in more than 150 countries throughout the

world. (Essay UK, 2014)

3. Marketing Communication

3.1 Involvement Theory and Guinness Diageo

Purchase decisions made by consumers vary considerably, and one of the factors

thought to be a key to brand choice decisions is the level of involvement a

consumer has with either the product or the purchase process. (Fill, 2013)

Alcoholic items such as Guinness are seen as low-involvement, but they induce a

strong sense of ego risk associated with self-gratification that is attached to the

consumption of the product. Because of the low personal relevance and perceived

risk associated with this type of processing, message repetition is necessary to

define brands and create meaningful brand associations. (Fill, 2013)

The strategy of the Made of More campaign is to use simple storytelling to gain

the consumers attention. (Schoultz, 2014) As you can cee on the basketball

wheelchair commercial, discussed in 2.2, the plot of it is very simple but

meaningful; it raises awareness of Guinness´ true nature and attitude: dedication,

friendship, loyalty. Accompanied by an intensive background music there are only

little phrases that are told by the narrator. Watching this commercial once, the

audience impulsively gets the need to watch it again and to share it with their

friends. The basketball wheelchair ad is very emotional and transformational as it

is also predicted in the involvement theory with low involvement of the consumer.

The entertainment theme is here evaluated as a low risk category but with a high

reward. This high reward can be a pleasant, if brief, experience. (Fill, 2013)

3.2 Marketing Communication Mix

Guinness adopted a strong communication strategy in order to lead the market and

making its consumers aware of the brand existence. Being an out of box thinker,

Guinness promoted its product using various means of promotion making its

heritage known to the consumer. Guinness tries to get use of all elements of

promotional mix like advertising, personal selling, direct marketing, internet

promotion and publicity. Guinness has an aggressive sales promotion technique in

order to provide certain incentives to the consumer. It spends lot of money in its

sales promotion and makes new strategies in order to retain its consumer and with

innovative promotion followed by Guinness to reach larger parts of the society.

(Essay UK, 2014)

3.2.1 Advertising

Advertising is one of the important elements of the communicational mix.

Guinness has used aggressive promotional campaigns in order to achieve its

position in the market. All promotion made by Guinness were to take the

competitive advantages over its competitors, a competitive advantage which has

led to an extensive and highly-developed Web presence. Guinness advertisement

focus on its heritage and tries focusing on the young target audience of 20-35

through television, posters and outdoor. Guinness has been one of the few

companies who have understood the need of promotion in order to reach the wide

section of society. (Essay UK, 2014)

Celebrity endorsement have been used by Guinness as a tool of direct marketing

in order to promote its product to younger people and focus on its growth

expansion. Guinness Nigeria Plc. unveiled three of the leading pack of music stars

engaged in a celebrity endorsement in Nigeria. Olamide, Phyno and Eva, all

rappers, became ambassadors of the multinational company in Nigeria for the new

“Made of Black” campaign. Guinness stated that apart from being unique

individuals, the three are made of more, made of attitude and Made of Black.

(Odulaja, 2014)

3.2.2 Social Media and Internet

While maintaining a significant level of advertisement, Guinness gained extensive

PR coverage through being the first UK Company to "advertise" on the World-

Wide Web. Guinness is using the internet promotion in order to reach the mass

society and to make them aware about its different products. Guinness covers the

large section of society and promotes the fact and figure about its product details

through internet. (Essay UK, 2014)

Since Guinness Diageo held the first-ever Arthur's Day event back in September

2009 to celebrate the 250th anniversary of the brewery started by Irishman Arthur

Guinness, the day has become an annual fixture all over the world for Irish people

and lovers of the Gaelic isle to celebrate the best in Irish creativity, music and art.

Diageo kicked off a digital marketing campaign on the likes of Facebook, Twitter,

Drinkaware.ie and the Guinness website to get people thinking of having a pint of

Guinness while enjoying these celebrations in a pub. Furthermore during Arthur’s

Day celebrations in 2013 Guinness announced over 500 artists and musicians via

social-networking platform Facebook and micro-blogging site Twitter. (Doyle,

2013)

3.2.3 Sponsorship and Events

One of Guinness' latest US brand campaigns includes a nationwide effort to raise

a glass to those who make contributions to their local communities around the

country, from soldiers, police officers and firefighters to local community

organisers, volunteers and coaches. Starting in July, the brand started hosting

more than 2,000 events around the country to support and celebrate these

individuals. (Sponsorpitch, 2014) (Hagen & Sais, 2014)

Guinness is not only the main sponsor of the Irish Rugby team PRO12 (BBC,

2014), but also a host of several events.

• The GUINNESS® CORK JAZZ FESTIVAL takes place in late October each

year in Ireland’s Southern capital. It is one of Ireland’s flagship arts and

cultural events, attracting visitors from all over the world. (Guinness & Co.,

2014)

• The GUINNESS® Galway Races is a unique week long sporting event,

drawing all the best runners and jockeys from Ireland and the UK. (Guinness

& Co., 2014)

• The GUINNESS® Listowel Races is one of Ireland’s oldest and most

successful racing festivals and is held in the last week of September. This is

always a great racing and social event attracting race goers from all over

Ireland. (Guinness & Co., 2014)

• The GUINNESS® Amplify is an event that is championing up-and-rising

musicians across Ireland with over 500 live gigs and industry opportunities

kicking off in September and October. (Guinness & Co., 2014)

• The Arthur Guinness Fund was launched in 2009 as part of the Guinness 250

celebrations. It was designed to support social entrepreneurs around Ireland,

and further the legacy of Arthur Guinness. Inspired by the achievements of

the awardees the Arthur Guinness Fund has evolved into the Arthur Guinness

Projects. The Arthur Guinness Projects have been created to celebrate and

champion the people whose ideas, passion and spirit are shaping the Irish

culture and identity. (Guinness & Co., 2014)

4. D.R.I.P. Definition

The DRIP elements can be represented as an important network of the

communication process that has the purpose to achieve optimized exchange

transactions between the business and the customer at a higher level. The

communication process supports the transaction by differentiating, reinforcing,

informing and persuading a product or a service. (Fill, 2013)

4.1 Definition of Differentiation

The differentiation of a brand in the marketing communication shows how the

brand has positioned itself in the market and which brand images it has created to

separate itself from similar products or services. This communication process

enables consumers to make purchasing decisions by differentiating one brand

from another, while developing a positive attitude and purchasing confidence to

one specific brand; in this case the Guinness. (Fill, 2013)

4.1.1 Superiority and Uniqueness

Guinness provides the customer with a high quality stout, the best known stout

worldwide. It addresses mostly young male adults who support a strong taste with

a decisive personality. Moreover Guinness consumers have strong experiences,

moments they want to share with other people. (Carotenuto, Casale, Cascarino, &

D'Ambrosio, 2013)

Therefore Guinness advertisements are very strong and emotional. Trying to

differentiate themselves from other beer brands and clichés they say that men can

not only be strong but also sensitive and loyal to each other, creating a new image

for the modern man. (Altadonna, 2013)

4.1.2 Heritage

Guinness is a 250 years old brand with strong experience in the brewery market.

The Made of More campaign describes Guinness as a special beer. There is more

to the way Guinness looks or tastes like. There is “more to its soul and heritage”.

It is made of roasted barley with a creamy head. Therefore it has a unique surge

and settles power. Guinness stands for communion, goodness, history,

distinctiveness and tradition. It advertises courage of your own convictions like

friendship and loyalty. (Carotenuto, Casale, Cascarino, & D'Ambrosio, 2013)

4.2 Definition of Reinforcement

Reinforcement in the communication process is to remind potential customers of a

need they might have or of benefits of past transactions. Furthermore reinforcing

can be seen as a reassurance or comfort either immediately prior to an exchange

or after a purchase. Reminding customers that their purchase was a good choice

can improve profitability. A positive attitude of customers towards their purchase

can furthermore lead to brand loyalty. (Fill, 2013)

4.2.1 Healthy Guinness

Quality certification for Guinness has been fairly mixed from frequent

disagreements amongst consumers as to which Guinness brand is most

pleasurable. However, it is observed that the undisputed beer of choice in foreign

markets is Guinness Foreign Extra Stout. Associating Guinness with strength and

sexual virility in most African countries especially Nigeria, colloquially known as

'black power' with backing from advertising campaigns like the Michael Power

campaign, has provided quality certification to these consumers as they trust that

Guinness makes them physically and sexually stronger. (Essay UK, 2014)

4.2.2 Strategies

Thus Guinness has aggressive promotion strategies which help it to give an edge

before its competitors in the market. The global heritage helps Guinness to reach

people and major money spend on promotion help consumer to understand the

product better. (Essay UK, 2014)

At the Arthur’s Day celebrations Guinness dropped their prices which led to the

knock-on effect of consumers some who never tried the beer acquiring a taste for

this product, therefore leading to a rise in sales. (Fahy, Esslemont, & Ansor, 2011)

4.3 Definition of Information

Information is an essential part of the communication process. A brand has not

only to inform their potential and current customers about their offerings but also

raise awareness of their products and services. (Fill, 2013)

4.3.1 Guinness Website

Guinness has a great homepage that offers customers different information about

the brand and its products and services. It provides the consumer with the process

how every beer is made and all ingredients that are included. (Guinness & Co.,

2014) Guinness also offers an interactive calorie guide, where consumer can

compare the nutritional value of Guinness to its competitors like Heineken,

Budweiser and Bulmers Cider. (Guinness & Co., 2014) Furthermore it provides

customers with several recipes to combine Guinness with a special meal or

dessert, which can also be seen as part of the reinforcement strategy. (Guinness &

Co., 2014)

4.4 Definition of Persuasion

Communication may attempt to persuade current and potential customers of the

desirability of entering into an exchange relationship. (Fill, 2013)

4.4.1 Guinness Storehouse

In order to reconnect Guinness with younger Irish drinkers, who were switching

more often to lagers and alcopops, the Guinness Storehouse in Dublin was opened

to the public as a brand land in December 2000. Within the concept of event-

marketing, brand lands are immobile corporate theme parks that provide an

interactive mixture of entertainment and information around brand-related themes

to consumers. Located in a former fermentation building the dull industrial brick

exterior leads into a foyer with a modern glass-and-steel interior symbolising a

bridge between the heritage of the past and the demands of the future. Guinness

Storehouse has become the most popular attraction in Dublin. It also includes a

gift shop, where visitors can buy divers Guinness accessories like pens, t-shirts or

Guinness Pint glasses. (Wohlfeil & Whelan, 2007)

5. Conclusion

Innovation is key within any organisation that seeks to challenge convention and

with Guinness it is key within their marketing communications. This especially

can be seen in the variety of campaigns Guinness has launched over the years.

Digitisation has enabled marketers and consumers to develop new forms of

communication. The dramatic impact that these technologies have had on people

does not need any amplification. (Fill, 2013) Guinness has a strong history of

supporting diversity and being an advocate for equality for all. (Barber, 2014)

The main topic of almost every advertisement is the heritage and loyalty that are

always promoted among the customers. (Guinnes & Co., 2014) Guinness has

always been associated as a brand that sought for creatively challenges and

inspiring places. The marketing of Guinness needs to be as distinctive as their

product in order to stand apart.

6. Bibliography

Altadonna, N. (2013, September). Great Ad Analysis: Guinness Brings the

Goodness. Retrieved November 10, 2014, from

http://www.batesmeron.com/great-ad-analysis-guinness-brings-the-

goodness/

Barber, E. (2014, March). Guinness pulls out of NY's St. Patrick's parade over

ban on gays. Retrieved November 13, 2014, from

http://www.reuters.com/article/2014/03/17/us-usa-boston-st-patricks-

idUSBREA2F0HY20140317

BBC. (2014, July). Pro12: Guinness named as league's new sponsor. Retrieved

November 12, 2014, from http://www.bbc.com/sport/0/rugby-

union/28244972

Carotenuto, M., Casale, D., Cascarino, S., & D'Ambrosio, G. (2013). Guinness

Case Study. Retrieved November 12, 2014, from

http://de.slideshare.net/gennarodambrosio3/guinnes-case-study

Dictionary. (2014). Dictionary: target audience. Retrieved November 10, 2014,

from http://dictionary.reference.com/browse/target+audience

Doyle, C. (2013, August). Guinness kicks off digital push for Arthur’s Day 2013:

reveals music line-up. Retrieved November 12, 2014, from

http://www.siliconrepublic.com/new-media/item/33777-guinness-kicks-

off-digital

Essay UK. (2014). Marketing activities of Guinness- Diageo. Retrieved

November 10, 2014, from http://www.essay.uk.com/free-management-

essays/marketing-activities-of-guinness-diageo.php#ixzz3IiF7r5vr

Fahy, A. M., Esslemont, A., & Ansor, B. (2011, February). Guinness Market

Segmentation. Retrieved November 10, 2014, from

http://www.studymode.com/essays/Guinness-Market-Segmentation-

591770.html

Fill, C. (2013). Marketing Communications. Harlow, United Kingdom: Pearson.

Guinnes & Co. (2014). Guinness: The Ads. Retrieved November 13, 2014, from

http://www.guinness.com/en-gb/theads.html

Guinness & Co. (2014). Guinness: Calorie Guide. Retrieved November 13, 2014,

from http://www.guinness.com/en-ie/food-calorie-guide.html

Guinness & Co. (2014). Guinness: Food Starters. Retrieved November 13, 2014,

from http://www.guinness.com/en-ie/food-starters.html

Guinness & Co. (2014). Guinness: The Beer Process. Retrieved November 13,

2014, from http://www.guinness.com/en-ie/thebeer-process.html

Guinness & Co. (2014). Guinness: What's on. Retrieved November 12, 2014,

from http://www.guinness.com/en-ie/whatson.html

Guinness & Co. (2014). The Arthur Guinness Fund. Retrieved November 12,

2014, from http://www.guinness.com/en-ie/arthursday/award_2012.html

Hagen, M., & Sais, J. (2014, October). GUINNESS Pours A Pint Full Of Heart

With Latest 'Made Of More' TV Execution. Retrieved November 12, 2014,

from http://www.prnewswire.com/news-releases/guinness-pours-a-pint-

full-of-heart-with-latest-made-of-more-tv-execution-267013621.html

Hollensen, S. (2008). Essentials of Global Marketing. England: Pearson

Education.

Odulaja, A. (2014, September). Why we signed Olamide, Phyno and Eva –

Guinness MD. Retrieved November 11, 2014, from

http://thenet.ng/2014/09/why-we-signed-olamide-phyno-and-eva-

guinness-md/

Peopalove. (2009). Do Brands Need To Look Their Age? Retrieved November 10,

2014, from http://www.peopalove.com/brandtalk/2006/jun/sense.html

Schoultz, M. (2014). Guinness Marketing Strategy Shifts to Storytelling.

Retrieved November 10, 2014, from

http://www.digitalsparkmarketing.com/creative-marketing/marketing-

strategy-creative-marketing/guinness-marketing-strategy/

Sponsorpitch. (2014). Sponsorpitch. Retrieved November 12, 2014, from

http://sponsorpitch.com/sponsors/855

UK Essays. (2014). Decrease in Alcoholic beverage brand. Retrieved November

10, 2014, from http://www.ukessays.com/essays/marketing/decrease-in-

alcoholic-beverage-brand-marketing-essay.php#ixzz3J3772Ujv

Wohlfeil, M., & Whelan, S. (2007). Event Marketing: When brands become "real-

lived" experiences. Retrieved November 10, 2014, from

http://www.academia.edu/5237284/Like_being_a_drop_in_a_freshly-

poured_Guinness_pint_consumer_motivations_to_participate_in_the_Gui

nness_Storehouse

7. Reflective Diary

7.1. Introduction In my last class of Marketing Communications I received the task to write this report as an

assignment for our Bachelor Program. In this report I investigated, analysed and

presented information that I thought was relevant for the assignment topic. Due to my

studies at the EAM I have to spend a semester abroad in Dublin this fall. This made it

very easy for me to decide which brand I would like to analyse.

7.2. Concrete Experience (Kolb, 1984) During my research for this report I realised how complex the marketing mix can be.

Before I searched for information online I decided to consult my marketing books and do

some research in my library. After reading about the Guinness Storehouse, I decided for

myself to visit this venue and to gain my own experiences and knowledge with the brand I

had to write about. This visit showed me how present and how important Guinness really

is, not only in Ireland but also worldwide. However I was then able to collect enough

essential information to analyse and evaluate the marketing communication mix in this

report.

7.3. Reflective Observation (Kolb, 1984) When I first started my research on the predetermined topic I encountered difficulties to

find the proper kind of business sources. Another relevant issue that occurred during my

research was to collate the whole information that was provided with from several

resources. Furthermore during my visit of the Guinness Storehouse, I was able to collect

some email contacts of the marketing manager of Guinness Diageo. Unfortunately I never

received an answer on my requested information. This made it very complicated to find

the most current information on Guinness marketing.

After receiving my grade for my last assignment in finance, I realised that I had to improve

myself and my work. I started revising my report consecutively and in several stages to

prevent the same mistakes I had done in my previous assignment.

7.4. Abstract Conceptualization (Kolb, 1984) For my next assignment I have to be able to manage my time more appropriate. Also I

think it is very important to use more professional sources in books rather than online.

According to my difficulties understanding a topic I also realised, that I should contact my

supervisor or professor rather than asking my classmates. I hope to improve my English

to a higher level and provide a text that flows in itself and is conjoint.

7.5. Conclusion Having discussed this topic in my assignment, I feel good prepared for my final exam on

this topic. I have now improved not only my Business English skills and knowledge on this

subject, but am also more confident in writing my next report.

7.6. Bibliography

Kolb, D. (1984) Learning is the process whereby knowledge is created through the transformation of experience. New Jersey: Prentice Hall