This document analyzes a traditional Irish beer brand in the United Kingdom. It provides background on the brand's history since being founded in 1759 and its expansion globally. It then performs a PESTLE analysis looking at political, economic, social, technological, legal and environmental factors impacting the brand in the UK. Finally, it presents a SWOT analysis identifying the brand's strengths, weaknesses, opportunities, and threats.

1. An analysis of a traditional
Irish brand in the U.K.

2. The Team
Noora Al-Abdulla
Panchapha Laochoo
Solar Perera
Joachim Kranzler
Navin Mahaveer
Okwuchukwu Nnajiofor
Birmingham, 13/11/2013

3. Contents
I. Brand & History
II. PESTLE-Analysis
III. 5-Forces-Analysis
IV. SWOT-Analysis

4.  Famous Irish beer brand
 3 main-variations (Guinnes Draught, Extra Stout and Foreign Extra)
 History:
1759 – Arthur Guinness founded the brewery in Dublin
1769 – First export to Great Britain
1824 – First Guinness advertisement printed
1833 – The brewery became the largest in Ireland
1920 – Released their campaign ‘‘Guinnes is good for you“
1950 – Brewery‘s worldwide expansion (e.g. Africa, Canada, Australia, Thailand, etc.
1954 – Guinness Book of World Records
1997 – Merger with Grand Metropolitan to form Diageo PLC
2001 – The world drinks £2bn pints a year
2013 - Highest brand-expenditure in history (£34m)
(Sources: marketingweek.co.uk, 2013; guinness.com, 2013; guinnes-storehouse.com, 2013)

5. Political
Political
Environmental
Economic
Legal




Influence of political system
Minimum price policy
Government‘s tax policy
BBPA guidelines
 Beer duty guidelines
 Alcohol labelling
Social
Technological
PESTLE
(Sources: British beer pub association Brewing, 2013; Guardian News and Media
Ltd., 2013; Sky news, 2013; Conservatives, 2013)

6. Economic
Economic
Political
Social
Environmental




Economic growth
Unemployment
Inflation
Consumer Confidence
Technological
Legal
PESTLE
(Sources: bankofengland.co.uk, 2013; ecb.europa.eu, 2013; epp.eurostat.ec.europa.eu, 2013;
tradingeconomics.com, 2013)

7. Social
Social
Economic
Technological
Political
Legal





Change in Lifestyle
Health Conscious Society
Responsible drinking
Decline in affluent customers
Cross-Channel Shopping
Environmental
PESTLE
(Sources: Joseph, 2012; Joseph, 2013; Chahal, 2013; Young, 2013; Bishop, 2012;
Guinnes & Co, 2013; Mintel, 2010)

8. Technological
Technological
Social
Legal
Economic





Technology in production
Packaging & logistic
Internet & e-commerce
Draught technique
Service & support
Environmental
Political
PESTLE
(Sources: MBASkool.com, 2008; myarticle.com, 2008; guinness.com, 2012; guinnes-storehouse.com, 2013;
ResearchPapers247.com, 2008)

9. Legal
Legal
Technological
Environmental
Social
 Duty on Beer
 Alcohol consumption laws
Political
Economic
PESTLE
(Sources: Gov.uk, 2012; Drinkaware.co.uk, 2013)

10. Environmental
Environmental
Legal
Political
Technological
 Climatic factors
 Pollution
 Packaging & Recycling
Economic
Social
PESTLE
(Sources: Anon, 2008; Benfield, 2012; British Beer & Pub Association, 2011; Clarke,
2006; Jones, 2012; MBASkool.com, 2008; Phelan, 2013; ResearchPapers247.com,
2008; The Environment Agency, 2013)

11. LR
LR
LR
(Sources: MBASkool.com, 2008; myarticle.com, 2008; ResearchPapers247.com, 2008)
LR
FORCES

12. S
trengths



Highest reputation and
consumption in U.K.
Iconic status achieved
due to advertising
Manifested knowhow
and technology (e.g.
widget)
W


eaknesses
Decreasing sales
and market share
Advertising
restrictions
O


pportunities
Youngsters prefer
beer over any other
liquor
Increase in the
numbers of female
drinkers
T
hreats




(Sources: MBASkool.com, 2008; Mintel,2010; myarticle.com, 2008; ResearchPapers247.com, 2008)
New products from
global market
Country-specific
regulations in the
alcohol industry
Rising costs of raw
materials due to
speculation and climate
change
Diageo‘s reputation
could be a negative
factor

13. THANK YOU!
ANY QUESTIONS?

14. Research list (1)
Anon (2008) Guinness. Available at:
http://www.mbaskool.com/brandguide/food-and-beverages/4794-guinness.html
[Accessed 26 October 2013].
Bankofengland.co.uk (2013) Interest and exchange rates data. Available at:
http://www.bankofengland.co.uk/boeapps/iadb/index.asp?Travel=NIxIRx&levels=1&XNotes=Y&H3688XNode3687.x=9
&H3688XNode3687.y=5&C=13T&C=KV&C=P9&C=E32&C=E77&C=E7D&C=E81&XNotes2=Y&Nodes=X3687X3688X3691
X3694X3716X3738X3754X3757X3764X3771X3774&SectionRequired=I&HideNums=-1&ExtraInfo=true#BM
[Accessed 11 November 2013].
Benfield, K. (2012) The greening of Guinness. Available at:
http://switchboard.nrdc.org/blogs/kbenfield/the_greening_of_guinness.html [Accessed 5 November 2013].
Bishop, D. (2012) Lower strength drinks heralded as Stella Artois, Becks and Budweiser switch to 4.8% & 'mid-strength' 2.8% Guinness
announced: Alcohol Policy UK. Available at: http://www.alcoholpolicy.net/2012/01/lower-strength-drinksheralded.html [Assessed 30 October 2013]
British Beer & Pub Association (2011) brewing green/our commitment towards a
substainable future for Britain’s beer. [pdf] London: British Beer & Pub Association.
Available at: http://s3.amazonaws.com/bbpa-prod/attachments/documents/resources/
21206/original/Brewing%20Green%20Report%202011.pdf?1328626886 [Accessed 4 November 2013].
British beer pub association Brewing (2013) Beer duty guidelines. Available at: http://www.beerandpub.com/industry-briefingsfiltered?ib_filter=17 [Accessed 1 Nov 2013].
Chahal, M. (2013) UK beer struggles to raise the bar: MarketingWeek. Available at: http://www.marketingweek.co.uk/trends/uk-beerstruggles-to-raise-the-bar/4007556.article [Assessed 28 October 2013]

15. Research list (2)
Clarke, J. (2006) Ireland: Where Being Stout is a Virtue. Available at:
http://www.starchefs.com/wine/features/html/irish_stouts/html/ [Accessed 5 November 2013].
Conservatives (2013) Taking action to tackle the problems of alcohol abuse. Available at:
http://www.conservatives.com/Policy/Where_we_stand/Crime.aspx [Accessed 8 Nov 2013].
Drinkaware.co.uk (2013) Alcohol and the Law. Available at:
https://www.drinkaware.co.uk/check-the-facts/alcohol-and-the-law [Accessed 2 November 2013]
Ecb.europa.eu (2013) Statistics. Available at: http://www.ecb.europa.eu/stats/html/index.en.html [Accessed 11 November 2013]
Epp.eurostat.ex.europa.eu (2013) Statistics. Available at: http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/themes
[Accessed 11 November 2013]
Gov.uk (2012) HM Revenue & Customs: Alcohol Duties. Available at:
https://www.gov.uk/alcohol-duties#beer-duty [Accessed 1 November 2013]
Guardian News and Media Limited (2013) Coalition to set minimum alcohol price. Available at:
http://www.theguardian.com/society/2012/mar/23/coalition-minimum-alcohol-price40p?guni=Data:in%20body%20link [Accessed 1 Nov 2013].
Guinness.com (2012) The Draught Family. Available at: http://www.guinness.com/en-row/thebeer-draught-bottle.html
[Accessed 5 November 2013].
Guinness-storehouse.com (2013) The Story 1950. Available at: http://www.guinness-storehouse.com/en/thestory-1950.html
[Accessed 5 November 2013].
Guinness & Co (2013) Calorie Guide: Guinness.co.uk. Available at: http://www.guinness.com/en-gb/food-calorie-guide.html
[Assessed 1 November 2013]

16. Research list (3)
Jones, S. (2012) Branding Guinness. Available at: http://www.articlesbase.com/internationalbusiness-articles/branding-guinness-5907801.html [Accessed 5 November 2013].
Joseph, S. (2012) Diageo readies Guinness Mid-Strength UK release: MarketingWeek. Available at:
http://www.marketingweek.co.uk/diageo-readies-guinness-mid-strength-uk-release/3033503.article
[Assessed 27 October 2013]
Joseph, S. (2013) Guinness Launches £12m bid to push quality credentials: MarketingWeek. Available at:
http://www.marketingweek.co.uk/news/guinness-launches-12m-bid-to-push-quality-credentials/4007779.article
[Assessed 28 October 2013]
Joseph, S. (2013) Guinness needs to woo younger drinkers to maintain ‘surfer’ cool: MarketingWeek. Available at:
http://www.marketingweek.co.uk/news/guinness-needs-to-woo-younger-drinkers-to-maintain-surfercool/4007793.article [Assessed 28 October 2013]
Marketingweek.co.uk (2013) Guinness needs to woo younger drinkers to maintain `surfer` cool. Available at:
http://www.marketingweek.co.uk/news/guinness-needs-to-woo-younger-drinkers-to-maintain-surfercool/4007793.article [Assessed 8 November 2013]
Myarticle.com (2008) An introduction of DIAGO company. Available at: http://www.myarticle.com/Business/diageo-company.html
[Accessed 9 November 2013].
MBASkool.com (2008) BrandGuide: Guinness. Available at: http://www.mbaskool.com/brandguide/food-andbeverages/4794-guinness.html [Assessed 4 November 2013]
Mintel (2010) Ales and Stouts: Consumer Usage. Available Through:
http://academic.mintel.com/display/525016/?highlight=true#hit1 [Assessed 2 November 2013]

17. Research list (4)
Mintel (2010) Ales and Stouts: Market in Brief. Available Through: http://academic.mintel.com/display/525003/?highlight=true#hit1
[Assessed 2 November 2013]
Mintel (2010) Ales and Stouts: Consumer Attitudes to Drinking: Strengths and Weaknesses. Available Through:
http://academic.mintel.com/display/541695/?highlight=true#hit1 [Assessed 3 November 2013]
Mintel (2010) Ales and Stouts: Consumer Attitudes to Drinking: *Consumer Usage – What People Drink and How Often. Available
Through: http://academic.mintel.com/display/541697/?highlight=true#hit1 [Assessed 5 November 2013]
Mintel (2010) Ales and Stouts: Consumer Attitudes to Drinking: *Appendix – Consumer – Drinking Behaviour. Available Through:
http://academic.mintel.com/display/541706/?highlight=true#hit1 [Assessed 6 November 2013]
Phelan, A. (2013) FAQ. Available at: http://www.guinness-storehouse.com/en/faqs.aspx#faq60 [Accessed 31 October 2013].
ResearchPapers247.com (2008) An introduction of Diageo company.
Available at: http://www.myarticle.com/Business/diageo-company.html [Assessed 26 October 2013]
Sky news (2013) Beer sales slump blamed on tax policy. Available at: http://news.sky.com/story/1042679/beer-sales-slump-blamedon-tax-policy [Accessed 1 Nov 2013].
Tradingeconomics.com (2013) United Kingdom Calender . Available at:
http://www.tradingeconomics.com/united-kingdom/calendar [Accessed 11 November 2013].
The Environment Agency (2013) Climate Change Agreements Scheme. Available at:
http://www.environment-agency.gov.uk/business/topics/pollution/136236.aspx [Accessed 5 November 2013].
Young, A. (2013) Pub beer sales fall by 50 million pints: The Drinks Business. Available at:
http://www.thedrinksbusiness.com/2013/04/pub-beer-sales-fall-by-50-million-pints/ [Assessed 30 October 2013]