A continued focus on quality and style has resulted in JOHNNIE WALKER BLACK LABEL.

BLACK LABEL retains the authenticity of its creator and currently outsells every other deluxe Blended Scotch Whisky around the globe. That it s stood the test of time is testament to the pioneering spirit and the skills of the Walker family. The Company s Micro Environment:

Suppliers: Global Supply is responsible for the production of approximately 85% of Diageo s products sold globally, for sourcing materials and services through global procurement, for providing consistent technical support through the global technical function and providing logistic and customer services through the global supply chain organisation. A global network of suppliers provides for a wide range of raw materials and packaging items that are necessary to ensure consistency of quality to support the brands. (Diageo Annual Report 2010) Company: Diageo PLC., is the largest multinational beer, wine and spirits company in the world. It sells its products in approximately 180 countries and has offices in 80 countries. With an increasing potential to drive sales in the Asian markets, the Diageo group aims at directing marketing strategies in especially countries with large consumer populations such as China, India and Thailand.

Competitors: In spirits, Diageo s major global competitors are Pernod Ricard, Bacardi, Fortune Brands and Brown-Forman, each of which has several brands that compete directly with Diageo brands. In addition, Diageo faces competition from local and regional companies in the countries in which it operates. In India the major competitors are United Breweries. Marketing Intermediaries: Diageo works with a number of joint venture partners in Asia Pacific. In Singapore, Malaysia, Hong Kong and Macau, the People s Republic of China and Thailand, Diageo distributes the majority of its spirits brands through joint venture arrangements with Mot Hennessy. Diageo also has a wholly owned subsidiary in China for brands not included in the joint venture such as Smirnoff , Windsor and Baileys. In South Korea, India, Vietnam and Taiwan, Diageo s own distribution companies distribute the majority of Diageo s brands. In Japan, the joint venture with Mot Hennessy distributes super premium brands, such as the super deluxe variants of Johnnie Walker, while the joint venture with Kirin distributes Diageo s other premium spirits,like Johnnie Walker Black Label and Smirnoff , as well as Guinness and Smirnoff Ice. Other spirit brands, which are not distributed by either Mot Hennessy or the Kirin joint venture, are handled by third parties. In Malaysia, Diageo s own and third party beers are brewed and distr buted by a listed business (Guinness Anchor Berhad) in which Diageo and its partner, Asia Pacific Breweries, have a majority share through a jointly controlled joint venture company. In Singapore, Diageo s beer brands are brewed and distributed by Asia Pacific Breweries. Generally, the remaining markets in Asia are served by third party distribution networks monitored by regional offices. Customers: Diageo continued to invest to enhance the capabilities of its customer marketing function which now consists of about 500 people in over 30 countries covering over 80% of Diageo s net sales. Diageo made it easier for shoppers to find, choose and buy products in the spirits category, forming partnerships with customers which helped them to offer the right range of products, the appropriate amount of shelf space and providing navigation through signage . Key Issues: 1. Sales Dropping over Summer months. 2. Revenue from Asian markets not yet competitive.

INNOVATION: Innovation remains a key element of Diageo s organic growth strategy, and in the year it delivered another strong performance. The overall approach remains simple: to innovate on core brands, to deliver ideas rooted in deep consumer and shopper insight. Key areas of focus for innovation include: using innovation to bring new premium off erings to consumers, as exemplifi ed by the success of our launches on the Johnnie Walker brand range like The John Walker; using innovation in developing markets to increase consumer accessibility of Diageo brands and to target new occasions, such as canned beer and premix spirits in Africa; and maintaining brand relevance and consumer interest in developed markets through innovation across a broad range of occasions and categories as demonstrated by flavour innovations on Croc Coconut and Red Berry in North America.

Johnnie Walker Black Label aims at a target population between the ages of 25 and 50, from the middle class working backgrounds. With an increasing potential to drive sales in the Asian markets, the Diageo group aims at directing marketing strategies in especially countries with large consumer populations such as China, India and Thailand.. With extensive ad-campaigns as well as an efficient distribution system spanning across 180 countries, the whole world receives an equal opportunity to enjoy the finest scotch that Black Label has to offer. There are several factors that have contributed towards fostering this pole position, such as an aggressive worldwide marketing campaign through advertisements, and joint marketing campaigns. The brand has managed to create a good impression on the Asian m arkets through recent promotional events in Thailand as well as other simultaneous launches and campaigns to target the vast majority of the Asian market. Through a recent Joint Marketing Campaign, Diageo has teamed with Coca Cola to promote sales through radio, print, outdoor and in-outlet point-of-sale (POS) advertising, carrying the strap-line: Together for a Better Summer. The advertising strategies implemented by the brand have given it the unique advantage of reaching out to 95% of the adult population. Key Issues: Sales Dropping over Summer months. Revenue from Asian markets not yet competitive. Remedies: INNOVATION: Innovation remains a key element of Diageo s organic growth strategy, and in the year it delivered another strong performance. The overall approach remains simple: to innovate on core brands, to deliver ideas rooted in deep consumer and shopper insight. Key areas of focus for innovation include: using innovation to bring new premium off erings to consumers, as exemplifi ed by the success of our launches on the Johnnie Walker brand range like The John Walker; using innovation in developing markets to increase consumer accessibility of Diageo brands and to target new occasions, such as canned beer and premix spirits in Africa; and maintaining brand relevance and consumer interest in developed markets through innovation across a broad range of occasions and categories as demonstrated by flavour innovations on Croc Coconut and Red Berry in North America.

Asian markets can be better exploited by improving the distribution channels, and/or enabling the purchase of the brand and its products online.

SEGMENTATION:

Asia Paciffic 2010

India The business in India was impacted by destocking in the first half following inappropriate shipments in the prior year. As a result both volume and net sales were down. Marketing spend as a percentage of net sales was also below last year as the business was rebased. Marketing spend was focused behind Johnnie Walker, Smirnoff and Vat 69 and investment behind sales capabilities accelerated.
TARGETING:

Johnnie Walker Black Label aims at a target population between the ages of 25 and 50, from the middle class working backgrounds. With an increasing potential to drive sales in the Asian markets, the Diageo group aims at directing marketing strategies in especially countries with large consumer populations such as China, India and Thailand.

POSITIONING:

PRODUCT: ENHANCING SALES OF BLACK LABEL AND INTRODUCING A NEW PRODUCT TO CATER TO THE ASIAN AND SPECIALLY THE INDIAN MARKET. PLACE: Asia with most focus on India Price: For the new product we will use Market Penetrating Strategy by setting low price to attract large number of buyers and a large number of market share For exising black label we will use Discount and allowance pricing strategy whereby we will offer a straight reduction in price on purchase during a stated period of time like during Diwali or other festivals. Promotion: Liquor advertising is banned in India but we can take help of Indirect Advertising to reach out to the larger audience by sponsoring events like fashion shows, IPL matches and promoting the same throu A media mix of the follwing:
Newspapers due to the advantages of Flexibility; timeliness; local marketcoverage; broad acceptance;high believability. Television due to the advantages of (jombmes sight, sound and motion; appealing to the senses; high attent ion; high reach. Radio due to advantages of Radio Mass use; high geographic and demographic selectivity; low cost

Magazines with the advantages of High geographic and demographic selectivity; credibility and prestige; highquality reproduction; long life; good pass-along readership and Outdoor having the advantages of Flexibility; high repeat exposure; low cost; low competition Online Marketing: Online media such as the Internet are gainingrecognition and organizations are increasingly investing in this channelgiven its potential to reach a global audience thereby creating a Marketing exchange prcess as follows:

Another important area of focus is the distribution: