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Marketing management - Guiness case study Free essay! Download now

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Marketing management - Guiness case study

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Downloads to date: N/A | Words: 5529 | Submitted: 26-Dec-2011
Spelling accuracy: 98.0% | Number of pages: 29 | Filetype: Word .doc

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Executive Summary
It is generally agreed today that due to technological changes, database technology and changing buying habits, direct marketing together with e-communications has probably undergone the most drastic changes of all communication mix (Kitchen and Pelsmacker, 2004). Therefore, this proposal provides a detailed marketing plan for Guinness with particular emphasis on direct marketing activities for 12 months from July 2005 to June 2006 based on a budget of £2million and highlights recommendations for activities to be carried out in 2006 to 2007.
The initial stage is based on segmenting existing customers by potential value to Guinness, which can only be achieved by using qualitative and quantitative techniques to develop an understanding of their profiles. This segmentation will permit us to increase average consumption of existing Adopters with the aim of not only showing that Guinness understands their needs but as well as target potentially high value customers more precisely. Kitchen and Pelsmacker (2004), rightly stated that professionally managed direct marketing relies heavily on databases in which useful customer information is stored and on which well targeted and individualized marketing communications and customer contact are based. Indeed the database plays a crucial role in this process and as a result of this campaign will be a sophisticated database with huge amounts of customer information that will be valuable for both future direct marketing and other marketing activities.

Situational Analysis
Company Situation
Guinness is GB’ fifth largest beer manufacturer with 1 million pints sold every day in the UK. It is specialist in “stout” category and holds effective monopoly with a series of popular products, including Guinness Draught, Guinness Draught in a Can, Guinness Original and Guinness Foreign Extra Stout. While the sales between different product categories are not in proportion, the ratio of GD to GDIC is about 1:4 with Adopter group. In terms of channels, Guinness has become the most widely distributed beer brand in this country with a 90% distribution almost double higher than its leading lager competitor.
Competitive Situation
The brewers in the UK beer market have been intensively competing with each other for centuries. Beer is under pressure from other drinks sectors, notably wine. The industry is at last acting to address the poor image of beer. National and regional brewers have teamed with the British Beer and Pub Association and are developing a generic campaign to emphasize beer’s purity and heritage and the health benefits associated with drinking it. Beer is simply less appealing. There is little doubt that stouts continue to fight hard for their share of the leisure pound in the nation's pubs and off-licenses while high street trading conditions remain difficult. In the last 15 years, consumer spending on beer has declined by over 20%, with ales in ...

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