Guinness 4 ps + History (Detailed assignment) * History of Guinness * What is The Marketing Mix * The 4ps of the Marketing Mix * 4ps on Guinness * Bibliography * Acknowledgments The history of Guinness The history of Irish Guinness Stout began with Arthur Guinness who was born in Celbridge, County Kildare on the 17th of September 1725. Beer already ran in his family as his father is said to have brewed beer for the Archbishop’s estate workers. Arthur had big ideas and dreamed of having a brewery under his own name in the big city. In 1759, he purchased a dormant brewery in Dublin with ? 00 that had been left to him from his godfather the Archbishop. In the 1770’s, Arthur Guinness was brewing ale however he decided to try his hand at the new Porter, which resulted in more of a success than other Dublin brewers. Before the close of the 19th century, the Guinness brewery was the largest in the world. By this time, Guinness was introduced into markets as far as America, Australia, the Far East and Africa, often with cooperation from local brewers, making the brand the global icon it is today. The specific recipe of this world famous product is still a closely guarded secret.
It is made from a combination of water, barley, malt, hops and yeast. Despite myths the water does not come from the River Liffey. It is from Lady’s Well in the Wicklow Mountains. In 1998, The Guinness Storehouse opened as a visitor attraction. It is now Ireland’s leading site and welcomes over 750,000 visitors every year and has recently celebrated its three millionth visitor. Guinness Draught is available as Guinness Original, Extra Cold, Extra Smooth and, most recently as Guinness Red. Made from the same raw ingredients as Guinness Draught, Guinness Red uses lightly roasted barley to create a substantial beer with a distinctive red colour.
The legacy that Arthur Guinness left behind was the most popular and well known stout in the world and it’s most important secret ingredient was Arthur Guinness himself. The Marketing mix What is the marketing mix? The marketing mix is one of the most Famous marketing terms there is. The marketing mix is also called the 4Ps. The 4Ps are price, place, product and Promotion. The concept is simple, the offer you make to your customer can be changed by varying the mix elements. So for a high profile brand, increase the focus on promotion and desensitize the big price tag on these products. Price
Price Price is the amount the consumer must exchange to receive the product. The company’s goal in terms of price is really to reduce costs through improving manufacturing and efficiency, and most importantly the marketer needs to increase the perceived value of the benefits of its products and services to the consumer that is buying the product. Place Place Place refers to having the right product, in the right location, at the right time to be purchased by consumers. This proper placement of products is done through middle people called the channel of distribution. How manufacturers store, andle, and move products to customers at the right time and at the right place is referred to as physical distribution. Product Product A product is any combination of goods and services offered to satisfy the needs and wants of consumers. Therefore a product is anything tangible or intangible that can be offered for purchase or use by consumers. A tangible product is one that consumers can actually touch, such as a computer. An intangible product is a service that cannot be physically touched, such as computer repair service. Promotion Promotion Promotion is a communication process hat takes place between a business and consumers through advertisement. Therefore in order to be effective, businesses need to plan promotional activities with the communication process in mind. There are four basic promotion tools: advertising, sales promotion, public relations, and personal selling. Each promotion tool has its own unique characteristics and function. Price The price of any product nowadays is very important to a consumer. This is the same for Guinness, now that the country is in one of the worst recession it has seen in decades people now watch every cent that goes through their pocket.
Instead of going out for a social drink in a pub, people now go to an off license to buy their beverages at a cheaper rate and just invite people to their home to socialise to save money. Sales of Guinness fell by 6% compared to the figures of January 2011. It said that Guinness remained the best selling beer in Ireland, but sales declined due to the lower sales in pubs. Diageo (the company that own Guinness) said that despite the low sale of Guinness in pubs, their packaged bottles and cans have increased dramatically due to the off license trade. It is said that Guinness & Co. akes almost €2 billion annually. According to the Central Statistics Office, In 1947 the average price of a pint of Guinness was, in today’s terms, just 4 cent a pint. The average price in January 2011 was €4. 10 across Ireland. Depending on what part of the country you are in the price of a pint of Guinness can go dramatically up or down, for example the price for a pint of Guinness in ‘The Country Squire’, a small pub on the outskirts of Cork city, is €3. 90 while I have personally discovered on a recent trip to Dublin, in some pubs near the city centre the price went up to as much as €5. 0 a pint. Place Guinness is sold in over 150 countries all over the world, and is brewed in over 100. Despite Guinness being associated mostly with Ireland, a staggering 40% worldwide sales of Guinness is sold in Africa. In Ireland Guinness is brewed in the famous St James’s Gate in Dublin, this is one of Ireland’s most popular tourist attractions. The first delivery of Guinness outside of Ireland was 6 and half barrels that were shipped to England back in 1759. Back in 2000 overseas sales overtook sales in Britain and Ireland for the first time, accounting for 50. 6% of total worldwide sales.
The ideal distribution strategy for Guinness would be that of a retailer channel i. e. from the manufacturer to the retailer, to the consumer. This will ensure competitive prices in the market place, due to distribution savings been handed down to the consumer. Another advantage would be using a push distribution strategy, where the manufacturer may use aggressive personal selling and trade advertising to convince a wholesaler or retailer to carry and sell their merchandise. The wholesaler will then convince the retailer to stock the goods. The people that do this for Guinness are called ‘reps’.
Guinness has reps that go around to pubs all over Ireland, their job being to convince them to buy products off of Guinness and to buy as much stock as they can possibly sell. Product Most people have the same perception of Guinness as being just a pint of black stout you buy in a pub. The fact is that there are many different varieties of Guinness. Some of which include: Guinness Special Export| Guinness Foreign Extra stout| Guinness Extra Smooth| Guinness Draught| Guinness Extra Cold| Guinness Extra Stout| Guinness Bitter| Malta Guinness| Guinness Mid Strength|
Guinness Red| 250th Anniversary Guinness| Guinness Black Lager| Known popularly as the ‘black stuff’ many people are surprised when they hear that Guinness is not actually black at all but more a ruby red color. This is because of the method used to prepare the Guinness, the barley is roasted in much the same way as coffee beans are roasted and this is what gives it that unique shade. We are all familiar with the famous creamy white head that comes with each pint of Guinness. This smooth creaminess is achieved y the tiny bubbles created by nitrogen as the beer surges from the tap and slowly rises from the bottom of the glass as the pint settles. According to Diageo the “perfect pint” of Guinness should take 119. 53 seconds. This is due to the ‘Double pour’, On the way to the tap, the beer is passed through a chiller on the tap and is forced through a five-hole disc restrictor plate which is at the end of the tap, this increases the fluid pressure and friction which forces the creation of small bubbles that form a creamy head.
The glass is then rested until the initial pour settles, then the remainder of the glass is then filled with a slow pour until the head comes over the top of the glass creating a mushroom like effect. Guinness insists that having the right glass is essential to get the perfect pint, which is why they have had the same shaped glass for over a decade. In April 2010 Guinness redesigned the Guinness glass, the new glass is taller and narrower than the last one. As Guinness is not aware of how the public will react to the change it is not a quick process, it is planned that the new glasses will gradually replace the old ones.
Promotion Without communications with customers it would be hard to keep a product ‘alive’ in other words what could happen is that that product would reach the decline stage in the product life cycle or the company would not get any profit. Guinness has strong communications with its customers. Obviously the Guinness target market is to everyone who is over eighteen years old, but in fact Guinness is more popular between middle age and old people groups. It is reported that one third of 18 to 24 year olds have never tried Guinness before, it is strongly associated as being an “old man’s drink”.
Guinness has a very strong advertising campaign. Guinness sponsors a lot of campaigns, they sponsor the RBS Six Nations which hundreds of thousands of people tune into every week. They also sponsor such events as the Guinness Jazz festival which is held in Cork every year. The Gaa have teamed up with Guinness in a part of an advertising campaign, which in the All Ireland final in 2010 between Kilkenny and Waterford drew the biggest audience in any RTE sporting event. Even while the American president Barrack Obama visited Ireland he sampled the famous Irish stout which did not hurt the promotion for Guinness.
Perhaps the biggest promotional event held by Guinness commemorates the famous Arthur Guinness. In every city in every country all over the world on the 23rd of September at 17:59pm, the world lifts a pint of Guinness in memory of Arthur Guinness. On this day people flood bars to catch the atmosphere that surrounds the day. Usually on this day Guinness is given away at a very cheap rate, Guinness may not profit from giving away their product so cheaply on the day but due to the television programmes, ad campaigns and simple word of mouth this form of promotion, in the long run, is phenomenal.
