Report on Managing the Guinness brand in the face of consumers’ changing tastes

A Brief Introduction to the Case Study

               The case study discusses the Guinness brand in detail as well as the beer market all around the globe, especially keeping the Guinness brand in the perspective. It is discussed that Guinness is one of the oldest beer brands in the world, and it has enjoyed so much success over the years. In 1997, the brand went to the new strategy as GrandMet and Guinness made a merger, and a new brand was made with the name of “Diago”, which became one of the largest companies in terms of the drinks market. Even after the merger, Guinness remained to be the top-selling brand of the group, and it had so much success especially the brand was more popular and successful in markets such as Ireland, Cameroon, USA, Nigeria, as well as, the UK. One of the famous products of Guinness is dark stout, which has been taken as a tradition in Ireland, and it has been the most premium product among other beer products. Then the case discussed the changing patterns of consumers, who started to show changes in their taste and preferences. That’s why the brand was observing a decrease in its overall sales and revenue. Even the sales went down in Ireland, where the brand has been so prestigious. Then the case discussed different consumers’ elements, changing market trends, and changes made by the Guinness brand. Different solutions were also discussed in the case including innovation in product features.

1. Analyze the problem faced by the company and the reasons?

               It is quite evident that beer has been one of the best drinks being used in Ireland, and it was also revealed that Ireland was on top of the list, which per capita consumption of beer was more than any other country in the world. It was also told that Guinness has been the most favorite beer brand for the Irish people for a long time because Irish people are also fond of drinking beer more than anyone else. But all of these things started to change when new products with new trends began to enter into the drinks and alcohol market. The young consumers began to think that Guinness is an old brand and an old tradition, which does not match with their age, as well as, modern lifestyle. It means that the brand was taken as an old-fashioned brand, and youngsters to lose their interest, rather they started using other brands. That’s why the sales for Guinness went down, and it was revealed that in 2001, the company observed 4% decline in its overall sales as well as sales in its best market, Ireland. The major reason for this problem was that Guinness did not make any innovations in its product, whereas competitors came with new strategies and new products, which looked more suitable for young consumers. It was happening to Guinness because they did not adopt the changing trends of consumers, and did not alter their strategy. If they would have wanted to avoid this situation, then it was important for them to be proactive in their approach, as other companies showed the way to change strategy as per the latest trends.

2. From a marketing perspective, what has Guinness done to ensure its longevity?

               Looking at the problem, it was obvious for the Guinness brand to come up with a new business and marketing strategy based on creativity and innovation. It was important for them to make changes in the design and quality of its products so that they can make sure, their longevity is saved in the beer market. The first important step taken by Guinness was changing the style of their beer bottles. They came up with new and modern design, which looked more relevant to young consumers. Moreover, they also made changes in quality and taste, and these changes were liked by all young consumers, and they started to feel that Guinness has also become a trendy drink. The product innovation was their major course of action to ensure their longevity, especially in the Ireland market. They developed a canned beer product, which had the essence of chilled stout, which made it quite delicious and attractive for youngsters. They also came up with extensive advertising and promotion strategy, which promoted the brand in different places such as musical events, sporting events, as well as cinemas across Ireland.

3. How would you characterize the Guinness brand?

               There is no doubt to say that Guinness has been the oldest beer brand in the world, and its history of success is 241 years long, which shows the success and quality of the brand. However, it was quite shocking to see that a brand having more than 2 centuries’ old tradition went down in its popularity and sales. They have been a tradition and mystique of the Irish people, but still, they also experienced a decline in their sales, which is quite unfortunate to see. It is also a lesson for many brands that even you are too successful for centuries, if you don’t adopt the latest trends and changes, then things can get difficult for you. It was good that Guinness quickly realized the situation, and altered their strategy. They knew that they can go with their old wine, but they will have to change the essence of their product design. So, they changed the design of their bottles and adopted more modern, as well as, innovative trends. They also adopted an aggressive marketing strategy to stay ahead in the competition from its major competitors. Their new strategy was “market-driven policy, keeping customers in view, which benefited them in so many ways.

4. What could Guinness do to attract younger drinkers? And to retain its older loyal customer base? Can both be done at the same time?

               It is vital for Guinness to understand that they can certainly go with an aggressive strategy, which is well thought and well planned, and new strategy will serve both of their purposes; retaining their old customer base, which is loyal; and attracting the new young consumers, who are modern in their approach. They can easily do it by changing the design of their products, and come up with the latest trendy designs, which are in line with the latest trends. They can associate modern celebrities with their brand, which are liked by youngsters, and can make ads featuring those celebrities. They can also bring more innovation and changes in their quality and taste. For instance, they can add little changes to old stout drink, and make it considerable for youngsters.