How do Diageo succeed in a difficult market?

Diageo has a success story every company envies, but how do they keep up sales in an ever-changing marketplace?

Attractive to investors and often at the forefront of innovations within their special corner of the consumables sales marketplace, Diego have developed many ways to ensure they overcome any hardships that come their way.

Diversity

One of Diageo’s main strengths is their readiness to innovate and diversify their product and their business. Moving into areas beyond their initial reach, the company looks to branch out into sectors previously left alone by the alcoholic beverages and consumables markets.

Currently the company are launching a £2000 mixology service to bartenders to bridge the gap between luxury cocktail services and high street retailers and venues.

The service will see bartenders moving from the traditional bar setting to serve drinks in customers’ homes, with five different packages offered: tiki, classic, whisky, craft cocktails made using molecular mixology, and a wild card option where clients decide on the drinks.

The service is offered via Diageo’s premium online drinks shop, Alexander & James and hopes to reel in customers taken in by the current trend for speakeasy and vintage style drinks and events.

Investment

Looking towards the future, Diageo has put aside £5 million to begin a training scheme for young graduates in Scotland.

The company said the scheme will help lower youth unemployment as young people are trained to carve their own way into the hospitality industry, with roles offered to them linked to the Commonwealth Games and the Ryder Cup.

Emerging Market Sales

With a $47,600 million market domination, Diageo still seeks out the right locations to position their products.

Reaching emerging markets in Africa, Eastern Europe, Turkey, Latin America, the Caribbean and the Asia Pacific makes them a leading force in the industry and shows just what potential these areas have for the drinks and consumables industry as a whole.

Huge variation in product

The brands Diageo count as their own run from Smirnoff and Jonnie Walker to Guinness, the biggest selling stout in the world.

Owning six of the 20 best-selling drinks brands in the world, investing heavily in their superbrands keeps them on top of the competition. Diageo know the importance of retaining quality and a standard brand image for each individual brand, no matter how diverse their portfolio is. This is no doubt a huge factor in their success.

So what can we learn from this?

There are a number of principles businesses can understand from Diageo’s continuing global success:

An open mind to the changing tastes of the consumer is key
Retaining brand control is vital
Understanding the wider market is crucial to continue to thrive as a business
Opening up your business to non-standard ideas such as Diego’s graduate training school breathes life into the business while providing an investment for the industry’s future
Knowing what your customer wants and needs and understanding how their minds could be changed is hugely important. Trends rise and fall and can be influenced by companies who understand their market.

There’s more to the drinks industry than meets the eye.

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