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Guinness Guinness Background Statement

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Background Statement
In this case, the major problem was Guinness trying to find the best way to position themselves on a global stage. Guinness struggled with deciding whether diversified or undiversified marketing would be the best fit for them. Guinness’ challenge was to also find a global KBB that would connect with consumers worldwide; as well as making sure that it went with their three values – power, goodness, and communion. “Guinness brings out your inner strength,” was the KBB that Guinness’ newly appointed Global Brand Director decided to go with. Guinness found their marketing calling by using sport as an advertising platform. Using sport had a widespread worldly appeal, showing athletes overcome adversity with their inner strength, because individuals can relate to sporting situations anywhere. Using diversified sport marketing to Guinness’ different global markets was the best decision in company history.

Case Diagnosis
The major issues relating to this case were that, in 1997, Guinness merged with Grand Metropolitan, which created the firm Diageo. Guinness became one of many premium drink brands owned by the firm, including Smirnoff, Bailey’s, and Captain Morgan. Upon the loss of Guinness’ independence, and many of Guinness’ major markets maturing; as well as increased competition from other beer companies, sales stagnated. The Guinness brand had slipped to merely a niche status in most of its markets. With this being the primary problem, Guinness’ first

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