Diageo Enters African Market

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The further Diageo reach becomes the greater the risk that Diageo will end up competing against itself with rival products. Results will be minimal if their efforts are too scattered so scaling those efforts with a clear focus on achievable results will ensure that the company remains engaged and aligned.

What are the social implications of Diageo’s actions?

Diageo’s plants and distilleries are mostly situated in semi-urban and rural areas, where communities often lack the basic infrastructure to live. Diageo’s corporate social responsibility activities address the access to clean drinking water, sanitation, healthcare facilities, education and employable skills to bridge the developmental gap. The more success Diageo enjoy brings with it the public’s expectation of giving back to the communities that are behind that success.

Diageo must also understand its responsibility to produce and sell its brands in a socially responsible way. It will be important for Diageo to understand how the company fits in the shared responsibility among individuals, governments, and private industry to address alcohol abuse. Partnerships that focus on preventing drunk driving, underage drinking, and excessive drinking, will be important in foster a corporate image of a responsible social presence. Otherwise, the antagonists, the 50% of the population that do not partake in alcohol, could be compelled to voice their opposition to the negative effects of alcohol consumption.

Diageo appears to have had success with integrating their products within Africa, however, to sustain that success it needs to consider several factors that will continue to challenge any good marketing strategy: unique characteristics of the various developing African countries, an emerging economy that has attracted more competition, brand building, sale execution and product innovation.

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References

Alcohol consumption rising in Africa despite obstacles. (2016, February 08). Retrieved September 26, 2017, from http://africanbusinessmagazine.com/sectors/retail/alcohol-consumption-rising-in-africa-despite-obstacles/

Annual Report. (2015, August). Retrieved September 26, 2017, from https://www.diageo.com/pr1346/aws/media/1429/diageo_interactive_ar2015.pdf

Bell, E., McLoughlin, D. & Shelman, M. Diageo: Innovating for Africa. Harvard Business School Case 514-054, February 2014.

How Diageo is using design to grow its Africa business. (n.d.). Retrieved September 26, 2017, from http://www.thedrum.com/news/2016/03/16/how-diageo-using-design-grow-its-africa-business.

Thirsty for Growth, Liquor Giant Taps African Market. (2015, August 03). Retrieved September 25, 2017, from http://www.parkstreet.com/thirsty-for-growth-liquor-giant-taps-african-market/.