Q1) Market segmentation is the process of dividing a market up into different groups in order to create different products to meet specific needs. Guinness represents several layers of segmentation, youth, gender wealth and lifestyle. We feel that Demographic Segmentation is the most relevant to our chosen product Guinness. Demographic Segmentation divides the market into groups based on demographic variables such as age, gender, family size, family life cycle, income etc. Guinness use age segmentation by using very effective marketing campaigns which manly target the young male population.
They do this because many younger people perceive Guinness as being their ‘Father’s beer’. Their campaigns are young fun and humorous and there s the constant message that Guinness s a uniquely challenging and rewarding beer. Gender Segmentation- although it may be argued we feel as a group that Guinness is primarily targeted at the male population Income Segmentation although Guinness don’t directly segment its product into different segments, Guinness beers are more expensive to the consumer because they target customers may be willing to pay more for what some pensive to be a distinctive taste – a taste which is more expensive to produce.
Recently we seen at the Anther’s Day celebrations Guinness drop their prices which lead to the knock-on effect of consumers some who never tried the beer acquiring a taste for this product, therefore leading to a rise in sales. Although benefit segmentation is also quite relevant we feel Demographic Segmentation is the best approach as it bests demonstrates their target market and way of targeting their product towards them. Q 2) We feel Guinness is targeted towards male’s primary young males, with a sense of cosmopolitanism, but who are down to earth and fairly rowdy. Guinness has been around forever.
The ads are humorous and fun and are targeted towards the young male – humorous, hip young hardcore drinkers. Guinness is a product with an acquired taste. The majority of Guinness sales are to a very small group of very loyal Guinness drinkers. But there is also a long tail of infrequent drinkers and those are the people i. e. young males who are generally are targeted by the Guinness marketing program. The best example of Guinness differentiating itself was its latest campaign, the recent Arthurs Day celebrations all over the world which we seen hundreds of students and tourists drinking pints of Guinness.
Guinness also became the official bear of Irish Rugby which again targeted males of all ages who enjoy sports. This also portrays a good image and boosts its reputation for both the product and the company as a whole. We feel Guinness is targeting this market segment as young males make up the largest proportion of the beer drinking social market. Q3) From our review of the Guinness website put together with our general knowledge of the product, Guinness has most definitely followed a differentiation and positioning strategy.
Guinness is a unique and different product which we as a group found very interesting to research. Differentiation is something every company seeks for its products. When a company differentiates its product from its competitors on the market, the company hence has that edge that one own able attribute that only they have. They differentiation needs to be defined. It must be clear cut. If it is blurred then the company will not see results and profits won’t be made. Guinness’ differentiation strategy we believe is its colour, its background and the perception of the product that they have portrayed to its consumers.
As we all know Guinness is known as the ‘black stuff’, immediately Guinness has separated itself from all its competitors. Guinness beer, is represented by its colour, foam, trademark, and related imagery. It doesn’t blend in with the other beers on the market. Also the product is differentiated because it is Irish. When Guinness comes to mind, Ireland comes to mind. It has has become one of the most recognised national product symbols in the world. When tourists come to Ireland, you’ll always find some people who try it just because it’s Irish.
Guinness is seen as Irish and is therefore seen as the Irish way of life, Irish fun, and the Irish people. People want to experience that and Guinness has done a great job of portraying its product as fun filled. Therefore we believe Guinness has differentiated its product very well. It is completely different from all the other beers on the market. A positioning strategy is decided upon selecting the products target market. The next stage of the process is where it wants to position itself in the targeted market. A positioning strategy refers to how a company wants its customers to see its product.
Guinness have portrayed its product as Irish and also informing us ‘it’s alive inside’. A positioning strategy is trying to send out a message about the product the company is trying to put across. Guinness wants its customers to see its product as a different beer, not only different in colour but it’s the way it portrays its acquired taste. Guinness has made its customers believe that the tart smooth and creamy stout can only be found in Guinness. We believe Guinness has positioned itself very well in its targeted market of beer drinkers.
With Guinness’ acquired taste and its distinctive black and white branding, Guinness has a much larger reputation then its fellow competitors. Guinness’ direct competitors would be the likes of Heineken and Carlsberg big brand names known to millions worldwide. Guinness is known all across the world and has a certain reputation. Everyone knows of Guinness’ origin and its history. However its main competitors, Carlsberg and Heineken, have a much higher sales figure. They position themselves as a simple beer. They have made themselves known as sponsors of many sporting events.
They have targeted a market with an interest in sport. Its customers enjoy a match whilst having a cool refreshing beer at the same time. The legacy of Carlsberg’s advertising campaign still lives on after a number of years by introducing itself to the world as ‘Probably the best beer in the world’. By doing so it’s convincing its customers that Carlsberg is the best beer in the world and customers are obliged to think so. Carlsberg would therefore be Guinness’ strongest competitors. However we feel that Guinness’ differentiation factor is stronger than its fellow competitors. Q 4)
Guinness is positioned as a differentiated strategy product. Guinness uses different marketing mixes for different possible market segments. It recently dropped its prices on Arthurs Day which led to allot of students drinking Guinness some for the first time, when typically its target market is the regular pub goer and the casual drinker. Guinness’s advertising campaigns however are aimed at all its possible markets and this can be seen with their success. Q 5) Guinness uses a Basic Consumer Relationship Marketing process. Guinness is sold to consumers in all different ways such as in a can, on draft and in a bottle.
Once consumed Guinness don’t come after you asking how it tasted etc. Their sales figures are one way that they gather consumer feedback. The more they sell the more likely that the consumer is enjoying their product. Another way I have seen Guinness gain information on their product is on drinkaware. ie. They have tests to see how much alcohol you consume in a week, but in there tests they ask the consumer what drinks they prefer on a night out and how many they would drink on a usual night. This helps Guinness find out how much of their product people use and how often they drink it.
Due to this information that was gathered Guinness was able to adapt its products positioning and try gain more consumers. I feel the recent Arthurs Day celebrations all over the world was an attempt by Guinness to try gain more of the market share from everyday beers like Bud and Miller. Rarely would you see hundreds of students and tourists drinking pints of Guinness, not only that but they didn’t move on to their usual beer after two or three pints they stuck with the Guinness all night. This was the first time allot of people had tried Guinness but the €2. 0 pints was too much of an incentive for allot of people who are now more likely to drink Guinness now that they have tasted it. This was very good Relationship marketing by Guinness and was highly successful. I still feel Guinness could try target its product more towards the student market. Its advertising campaigns on TV seem to be aimed at the younger generation but in pubs and bars there is little advertising and Guinness is never sold at a discount. If Guinness could develop this part of its marketing it could really take control of the whole market.
