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PRESENTED BY SHIVRAJ SINGH RATHORE BHANU PRATAPSANKALP KAUSHIKRAVI SHARMA Headquater : London,united kingdomThey operate in five regions which are North America, Latin America, Western Europe, Africa/Turkey/Eastern Europe, and Asia Pacific. Offer and brand : three distinct categories: Spirits, Beers, and Wines.

Top Selling Spirit Products/Brands Top Selling Beer Products/Brands Top Selling wine Products/Brands

Don julioCrown royalBuchanans Croc Ketel One vodkaTanqueray Bundaberg Rum Pimms Johnny Walker Guinness Harp Lager Kilkenny Tusker Lager Red Stripe Lager

Sterling Vineyards Beaulieu Vineyard Chalone Vineyard Acacia Winery

Organization structureCompetitor of DiageoDiageos main global competitors are Pernod Ricard, Beam, Bacardi, and Brown Forman.In the beer industry, Diageo faces major global competitors such as SABMiller, Anheuser-Busch, Carlsberg, Heineken and Molson Coors Brewing Company. Local craft breweries are becoming a significant trend in developed economies and are acquiring a growing market share in Europe and in the US, Diegos main beer markets .The wine industry mainly consists of local producers and distributors.Various strategies followed by Diageo in international market

North Americalargest region by net sales and operating profit, and the largest market for premium drinks in the world.sell and market products through four operating units within the United States and Canada: US Spirits & Wines; Diageo-Guinness USA; Chateau & Estate Wines; and Diageo Canada.business focuses on four things: using its scale to reduce costs; continuing to grow the on-trade (restaurants, hotels and bars); delivering industry-leading brand innovation; and broadening its reach to the multicultural consumer.

EuropeWestern Europe, Russia and Eastern Europe, Turkey.In Western Europe, our country directors focus is on sales delivery.Invested resources into the remaining emerging European markets to capture the opportunity presented by the growing number of middle-class consumers.

AfricaNigeria, East Africa (Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan), Africa Regional Markets (Ghana, Ethiopia, Cameroon, Indian Ocean and southern African countries), South Africa.producing and distributing Guinness, Africas leading premium beer brand.own many strong local lager brands and are the regions leading international premium spirits company. During the year, acquired Meta Abo Brewery, the second largest beer company in Ethiopia.With 20 operational sites including breweries, glass manufacturing, blending, malting and cider plants aim to create wealth directly through employment, and indirectly through partnerships in our supply chain, such as working with and supporting local farmers.Latin America and Caribbean:comprises Paraguay, Uruguay and Brazil , Andean, Mexico.primary focus is to continue to lead the scotch market while increasing category breadth to include vodka and liqueurs.Diageo also owns a controlling interest in Desnoes & Geddes Limited, the Jamaican brewer of Red Stripe lager.This year expanded production footprint in the region with acquisition of the Ypioca distillery business in Brazil.

Asia pacific:South East Asia (Vietnam, Thailand, Philippines, Indonesia, Malaysia, Singapore), Australia, North Asia (Korea, Japan), Greater China (China, Taiwan, Hong Kong, Macau), India and Middle East, a business unit including duty free sales along with middle eastern markets.strategy is to drive net sales growth by continuing to develop super and ultra premium scotch and to capture the opportunities presented by emerging middle-class consumers.In a number of markets such as China and Thailand, we distribute most brands through an agreement with Moet Hennessey

PROBLEMS FACED BY DIAGEO IN DIFFERENT COUNRTIESRussias troubled economy and a collapsing Rouble gave a hangover to the brewer Carlsberg and drinks giant Diageo, which produces tipples ranging from Johnnie Walker whisky to Smirnoff vodka and Guinness.Diageo, meanwhile, is selling less whisky in Russia, with sales down by 17 per cent in a market where, it admits, consumer confidence is low.A political crackdown on gift giving to officials in China, unrest in Thailand, and inflation in Nigeria, caused net sales growth to slow to 1.8 per cent in the six months to December 31 from 2.2 per cent over the three months before. The shares fell to 1,805.50 down 105.58.Menezes announced a raft of self-help measures aimed at keeping the worlds biggest drinks firm in shape. He set out a plan to cut costs by 200million annually for the next three years that will inevitably mean more job cuts.

A tax increase on one of its beers in Kenya and a steep decline in sales of Chinese Baiju Spirit, due to government-enforced austerity measures.There was a 4% fall in net sales in Ireland during the year, with the company saying a rise in excise duties .Weak spots include China and southeast Asia, where volume fell 20% and 25% respectively, and Venezuela, where a currency devaluation and inflation cut Scotch sales 47%.

PRODUCT STRATEGYDiageo's brands includeSmirnoff - BEST SOLD IN NORTH AMERICAJohnnie Walker(the world's best-selling blendedScotch whisky) -Ayrshire, ScotlandBaileys(the world's best-sellingliqueur) Baileys Irish Creamis anIrish whiskeyandcreambasedliqueur, made byGilbeys of Ireland.Guinness(the world's best-sellingstout) MADE IN IRELAND AND MOSTLY IMPORTED IN AMERICA.Diageo also owns 34% ofMot Hennessy, which owns brands includingMot & Chandon,Veuve ClicquotandHennessyIt sells its products in over 180 countries and has offices in around 80 countries.

The company announced a formalisation process to enable licensing of outlets that previously sold illegal alcohol, making them exclusive Senator Keg outlets. Diageo then trained the staff of its retail outlets - free of charge - how to rotate kegs and wash glasses to maintain freshness and flavour, how to serve and even how to deal with customers who had had too much.

ADVERTISEMENT STRATEGYDiageo developed a sophisticated marketing strategy to reenergize its Smirnoff Vodka brand using 3 key components:Develop a beverage that tasted like soft drinks.Use the Smirnoff Vodka brand name but market the product as a malt beverage to compete effectively with beer in terms of price, availability, and advertising in electronic media.Reorient Smirnoff Vodka itself as a young person's brand by adding new fruit flavors and using other marketing innovations.Diageo placed its Smirnoff Ice advertising in media venues with relatively large youth audiences. The Center for Alcohol Marketing and Youth (CAMY) conducted a series of studies documenting the extent to which alcohol advertising was placed in television programming with disproportionately youthful audiences PRICING STRATEGYIn Kenya, a country where illicit alcohol is thought to account for about half of all consumption, they have worked with the government to introduce a new affordable beer, Senator Keg, which is estimated to have replaced 600 million servings of unregulated drink. Diageo made strategy Providing a safe, ultra low-cost beer to compete with illegal supplies could play a crucial role in both resolving alcohol-related health problems and in achieving the targeted growth for Diageo. The company created a new product - a beer called Senator Keg - to tap the approximately 60 per cent of consumers who drank only illegal alcohol.Diageo wants to build up its luxury portfolio in India as India is the third largest spirits market by volume. Thus, Diageo aimed to implement a strategy called Premiumisation, which means product prices increase and more premium products are introduced into the market. It gives the consumer the option to trade up; better is better

OPERATION STARTEGYDiageo caters its operations to each country for an optimal efficiency. In order to explore this model, they looked at two dissimilar countries: The United States and India.The US is an established, reliable, and highly profitable market. In the US, the worlds most profitable beverage market, Diageo has strong routes-to-market (RTM) which leverage local expertise to optimize sales.Whereas, India is an emerging market of which a large growing middle class is Diageos target market. India has a very large population spread out over numerous states, languages and cultures, all factors that a company have considered when selling a product.FINANCIAL STRATEGYIn response to financial pressures, the company has announced a cost-cutting program which aims to reduce spending by 200 million pounds a year by the end of fiscal 2017 (Bloomberg 2014). CFO Deirdre Mahlan said that most of the savings will be from information systems, procurement of goods and services, and simplification of the organization.

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