Essay on Diageo Final

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Diageo Company
Company overview
Diageo is the world’s leading premium drink provider of beverage alcohol brands, founded in 1997 when Grand Metropolitan and Guinness decided to merge. In 2009, the company was supporting over 20,000 workers and operating in over 180 countries around the world, centrally located in London, Unite Kingdom. In 2011, it recorded revenue of 13.232 billion pounds and an operating income of 2.595 billion pounds (Diageo, 2012).
Diageo strategic brands produced are the leading brands across total beverage alcohol across the world. They come in three categories: spirits, wine and beer. The beer brands-which account for 21% of net sales-include: Red Stripe, Tusker, Bell, Serengeti, Kilkenny, Senator Keg and Harp lager. Wines-which represent 6% of the net sale-include: Sterling Vineyard, Beaulieu Vineyard, Justerini and Brooks. Spirits, which form the larger group of their strategic brands includes: Johnnie Walker, Smirnoff, Ciroc, Baileys and Jose Cuervo (Diageo, 2012).

Ciroc Vodka
Ciroc Vodka is super premium vodka rated best among the brands of Diageo Company. Combinations of two French words were used to make the name Ciroc: cime, meaning peak and Roche, meaning rock. Its appearance on the top 100 best alcoholic drinks in the world indicates the level of priority placed on it by alcohol consumers. It is positioned as sophisticated vodka in the market. The brands are distinguished from other brand of Diageo Company because it is the only alcoholic drink derived from grapes giving it distinct flavor. Ciroc vodka is made exclusively from top quality Ugni Blanc and Mauzac Blanc grapes. It originated from France before it was introduced in the United States in 2003. The beverage is distilled five times at 96% before being package for distribution. Flavors are made from French grapes which are cold fermented and distilled using a traditional copper pot still as the as the process in its distillation. It uses cold maceration, cold fermentation and cold storage making it a snap frost alcoholic drink. Ciroc vodka has been able to have a line extension of brands coming up with Ciroc Red Berry and Ciroc Coconut which were launched in 2010. Ciroc has gained popularity in the US and Russian markets after its launch and line expansion of the brand is as a result of more demand for the product by the consumers.
The company has been involved in several global marketing activities to promote the product and stimulate sales over the past years ever since it was introduced in the market. More than 250 Market Watch Leaders voted Ciroc Vodka as the Spirit Brand of the Year in 2010. It recorded organic net sales of 128% and brand volume grew to 124%. Formulations of specific strategies focusing on particular markets have enabled the product to generate a constant return. Acceptance and consumption of Ciroc Vodka in the midst of other existing alcoholic brands provided by competitors has been a major indicator that if the company invested in brand innovation through incorporation of the views of consumers in production of the product, the company will be able to generate more revenue from its sale. Segmentation of its market on the basis of homogeneous characteristics depicted by the customers has enabled the Diageo to cover them fully. Promotional campaigns that have been conducted globally through celebrity endorsements, websites and incorporation in public programs have yielded a greater promotional response. Market studies indicate that loyalty has been developed by customers, evident through the rate of consumption over the past years. In conducting global marketing activities, the marketing programs have been focused on understanding the lifestyles of individuals in segment markets, their motives for consumption of alcohol and personality attached. The United States and Russia have proved to be a viable ground for sale of the brand due to the few restrictions imposed on alcohol consumption and promotional mixes
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