Article: Spirits Soar on Flavored Liquors INTRODUCTION Diageo PLC is a global company and one of the leading businesses in premium drinks and alcoholic beverages industry sector. Few of its renowned brands include Smirnoff, Captain Morgan, Johnnie Walker, Crown Royal and some other brands of whisky, beer and wine. This company has long been benefited in the business due to its huge brand name, global contacts and the strong position acquired in the global market. Diageo is listed under two stock exchanges, i.e. the London Stock Exchange and the New York Stock Exchange.
The marketing strategy of the company is renowned worldwide, as it focuses on the responsible marketing of the flavored liquors to its customers. It has also captured the attention of the people with its variety of products and effective strategies of marketing in its recent performances (Diageo PLC, “Annual Report 2012”). THESIS STATEMENT This thesis aims to propose the addition of a new flavored liquor brand for Diageo. It also intends to identify the targeted market for the launch of the new product along with the effective strategies for marketing it to a specific targeted group of customers.
CREATION OF NEW FLAVORED LIQUOR Reviewing the varied range of products offered by Diageo to its worldwide customers, the new liquor brand suggested through this proposal paper is a red wine created from blended grapes and avocado extracts. The main ingredients would be organic avocado and grapes with a light essence of Rosemary. All of these ingredients have a special benefit to the human health and thus, can be expected to limit the negative effects of alcohol on the health of its consumers.
Concerning the fact that alcoholic beverages are being negatively promoted on the basis of sustainable and health issues around the world, the promotional campaign for this product will stress on the medicinal benefits of its ingredients. For instance, grapes prevent several diseases such as heart problems, cancer, brain hemorrhages due to stroke, and fights with general illnesses; above all, it helps in burning the unwanted calories from the body (Bioesti, “Rosemary (Rosmarinus Officinalis)”). Another main ingredient of the flavored liquor, i.e.
avocado is full of vitamin E and also helps to get rid of the wrinkles and maintain a healthy and good looking skin. It contains sterolins in high quantity, which also reduces the age spots and prevents from the sun damages (Bioesti, “Rosemary (Rosmarinus Officinalis)”). The light essence of the Rosemary, the third main ingredient in the product, will be effective to provide relaxation to the muscles and body of the consumer (Bioesti, “Rosemary (Rosmarinus Officinalis)”). Assessing the currently available competitor brands for flavored wine, this kind of a flavor would be very new to the consumers as it will be designed keeping in mind the various negative effects of alcoholic beverages and the currently developing health conscious attitude among its consumers, especially women.
One of the reasons behind choosing this flavor is that it contains all the healthy ingredients and the essence of flowers, which are deemed to be specially liked by the women populaces. By keeping in consideration, these reasons for choosing the particular flavor, it is expected that this wine flavor will capture the major portion of the global market in its long-run and also reward competitive benefits to the company on the whole.
TARGET MARKET The proposed flavored wine has been designed in such a manner that it can be targeted in all types of market, irrespective of gender. Wine is often represented as a symbol of sophistication and delicacy of the British culture around the world. Today, wine is preferred by both the males and females belonging from middle to high economic classes. However, at the initial phase of its launch, the targeted market for this brand would be the UK and the US.
It is particularly owing to the fact that these countries are regarded to be the major consumers of wine. The targeted person for this flavor is the adults above 18 years of age. The reason behind it is that the company has adequate knowledge about the negative implications of alcohol in the human life (Diageo PLC, “Annual Report 2012”). This new flavor can be taken by the people of middle and high income group as the cost of this brand is quite expensive due to its ingredients.
In these two regions, there shall be maximum competition existing for Diageo. Nevertheless, advantage that can be derived by targeting these two markets indicates that the consumption of wine is an integral part of the British culture and also that Diageo remains a popular brand in this particular region (Global Business Insights, 2009). Thus, in this situation they can have the pleasure of having wine along with less worry for their health. The new flavor will provide an opportunity for the people to have wine with significantly diminished health hazards.
MARKETING THE NEW FLAVOR OF LIQUOR The sale of a particular product largely depends on the effective ways of marketing it to its customers. The best possible way to promote the product in the targeted market is through the proper channels of advertisement (Marketing made simple, “Promotion and advertising strategy”). In this context, it can be affirmed that Diageo itself is a huge brand of alcoholic beverages functioning in the global market. Thus, the marketing of the product would not be too difficult with the already built brand loyalty by the company.
The market environment of the UK would be favorable for the launch of the new flavor of Diageo, as in a latest report it has been observed that UK acquires a significant position in the wine market and is also among the largest buyers of expensive wine (Berry Bros & Rudd, “UK dominates the World’s fine wine market, says new report”). In such market conditions, the launch of the proposed product would not be a problematic task. In the current market trend, the promotion of the product in the market through social media can be regarded as the most beneficial option.
Diageo has its own official website, where the new product can be introduced to the customers. Apart from this, the company may hold banners to promote the product in various public areas such as shopping malls, super markets and the places, where people prefer to spend their leisure time. The other option that the company can follow for launching the proposed product is the visual display of the brand in various bars and organizing for several wine promoting events.
The display of advertisement in the bars of the targeted locations will further attract the young group of people as they often visit these places. Thus, the promotion of the product in the bar will be helpful for the company to attract the young age customers. The company can also adopt the marketing policy of promoting the product through brochures and cards, which will provide certain amount of discounts on the purchase of the new wine flavor to its first customers and thus raise the popularity of the product since its initial launch.
To be precise, the customers can avail a discount using the card in the stores while purchasing the wine. Brochures will also assist the new customers to have the experience of tasting a new flavor along with obtaining adequate knowledge of the brand in a written form. Therefore, using these specific promoting measures, the company will be successful in promoting the new flavor of wine. CONCLUSION As proposed through this report, the new flavor of wine with a blend of the grapes and avocado along with a light essence of rosemary will target the markets of the UK where the consumption of wine is among the highest and also the US (Berry Bros & Rudd, “UK dominates the World’s fine wine market, says new report”).
During the promotion of the flavored liquor in these markets, Diageo will need to organize for wine events and display it in the bars applying an aggressive promotion mechanism. It will also focus on the distribution of brochures, which will provide complete information of the wine in a creative manner.
Works Cited “UK dominates the World’s fine wine market, says new report”. Berry Bros & Rudd. No Date. Web. 18 Nov. 2013. “Rosemary (Rosmarinus Officinalis)”. Bioesti. 2012. Web. 18 Nov. 2013. “Annual Report 2012”. Diageo PLC. 2012. Web. 18 Nov. 2013. “The Top 10 Spirits Companies Industry trends and growth strategies of leading players”. Global Business Insights. 2009. Web. 18 Nov. 2013. “Promotion and advertising strategy”. Marketing made simple. No Date. Web. 18 Nov. 2013.