Diageo: A study on the Market scenario of the spirit maker in USA
"Diageo has been going great guns in the USA (United States of America) market for the past few years. The brand is running high on the success of its premium beer brand, Johnny Walker. The organization faces a lot of challenge from external and internal agencies that tend to define the dynamics of the market. There are more than four thousand brands of distilled spirit in the North American market. The contribution of the distilled spirits towards the economy is an estimated amount of around 26.9 billion dollars. The industry also faces a lot of challenge and cost considerations in the department of taxation, the spirits industry is one of the heaviest taxed departments with excise and sales tax having risen by around 200 percent in the last thirty years. The alcohol industry has shown continual growth in the last few years with the consumption figures having quadrupled. Diageo leads the pack with around twenty percent of the market share, Allied Dimes holds the second position with around eight percent of the market share; whereas Bacardi comes third in the US market
The matter of consternation for most of the major players is the declining sales of the other brands of liquor in the market. Vodka leads the sales in the North American market with sales have trebled to around 26.9 million units over the past few years. The consumer preferences have shown a marked change with white rapidly losing its market share. Vodka accounts for over 26 percent of the market and is the major driver for growth. The other determinant is the rise of the cocktails and other spirits of mixture. The coupling of the cuisine with the food is also important as it determines the choice of the product. This is especially gaining prominence in the wake of the increasing popularity of the Italian and Mexican cuisine. Imported alcohol is also gaining prominence with almost 38 percent of the market share.
Diageo enjoys undisputed leadership of the Whiskey market with around 45.56 percent of the market share. Seagram's leading the field in Gin with around 29.8 percent of the incumbent market share. Bacardi is still the market leader in the field of rums despite the challenge from a large number of competitors. But, the competitive advantage of the company is not of significance as the company rum is losing the coveted position and is no longer considered important in the scheme of things. Give the market scenario; Diageo is bound to lead a spirited march in the North American market. "