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The strategy marketing of Guinness, Irish beer

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case study
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  1. Introduction
  2. The Nutella brand and market analysis
    1. The market spreads
    2. A presentation of the company
    3. Nutella chocolate spread: a unique product
  3. How the brand Nutella has conquered the market spreads
    1. The product: a generational phenomenon
    2. The distribution and communication of Nutella for its flagship product
  4. Nutella's strategy to stay on top
    1. A strategic shift in communication to reach more consumers
    2. Close to consumer marketing
  5. Conclusion

Guinness stout is a beer that is highly roasted and whose drinking is normal for the beer loving crowd, contrary to what many think. This beer is brewed from a mash characterized by its content of highly roasted grain that gives it a dark color and the taste of coffee. Also note the crown of thick white foam formed by bubbles of nitrogen. In Ireland, Guinness was founded in 1750. It is not the only beer of its kind in Ireland, and the company knows the competition. Arthur Guinness, the founder of the famous beer, built its first brewery in Leixlip in 1750, and acquired another one in Dublin in 1759. It was later dubbed as the Gate Brewery St. James that became the headquarters of the group.

Guinness was served, in its infancy, in the pubs of Ireland, its success was rapid and in 1769, Guinness was exported for the first time in England. Guinness became the sole business of the brewery. As a leader in the beer market in Ireland, the brand consumed a market share of 50% for beer and 87.2% for only stout. The company owns five breweries and produces more than one billion liters per year, benefiting from breweries that are among the most technologically advanced, thanks to a major investment policy.

Guinness produced a huge impact on the Irish economy, employing over 2000 people across the country and 30,000 others indirectly, and spends about 200 million lire per year to operate. Guinness is also one of the largest exporters of the country, performing with stout for about 75% of beer exports abroad. Guinness is consumed at a rate estimated at 10 million pints per day in no less than 150 countries.

The company boasts a number of important forces that explain its leadership. Very few weaknesses and threats can darken the picture, and the opportunity to develop more overseas can be very interesting.

Depending on the model of Michael Porter, one can identify five competitive forces in a market, namely the market for stout beers, whose importance is measured by a score of one to ten. These competitive forces allow us to appreciate the attractiveness of a market over a business: the bargaining power of customers: customers are the pubs and final consumers. Their bargaining power is relatively low, as far as the company will practice reasonable prices for the same quality, they will be satisfied and continue to eat the same way.

The bargaining power of suppliers: the constituents of Guinness are not uncommon and not under the influence of any specific vendor. The threat of substitute products: Guinness is a drink very similar to beer, substitute products are the other beers, and of course other stouts. But their taste is very different, their service is faster and the bitter taste is present, and their cost is sometimes slightly lower depending on the brand. In a context of celebration products that can substitute are then all forms of alcohol, which, as we have seen above are a threat, but in a relatively small extent.

Tags: Guinness; Irish beer; marketing strategy of Guinness

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