Diageo is a company that produces alcoholic beverages. It is operational in numerous countries across the world especially the US, Australia, Italy and India. It is recognized for its alcoholic beverages especially Guinness and Smirnoff. The company is successful as evident in its listings in the stock exchange especially in New York and London. The subject of my focus is the product life cycle of Smirnoff and associated products and what the Company has done to manage the product through the various stages of the cycle (Brands 2009).
The product life cycle revolves around the introduction of Smirnoff into the market, its growth, maturity and subsequent decline. Diageo as a company has facilitated the introduction of several Smirnoff products into the market; these include Smirnoff Vodka and Smirnoff ice. The introduction is characterized by carrying out market and consumer research, this has resulted in better management as evident in brand positioning and dynamic market entry strategies. Market research led to the production and introduction of superior brands offered at favorable prices in relation to their competitors. The pricing of the Smirnoff products especially upon their introduction in the US market was characterized by analysis of the market for similar beverages; this necessitated a change in tactics (Night 2009).
The growth stage of the Smirnoff beverages especially Smirnoff ice is characterized by an increase in the volume of sales and number of consumers. It is important to note that it is at this stage that government control and interference take shape. This, therefore, makes it appropriate for the management to increase awareness of its products both in the government quarters and private sector. This is a continuous process that entails a series of events such as the Smirnoff experience run by the consumers upon the instructions of the company through the promoters. Advertisements are also a critical part of managing the growth of Smirnoff; it entails the use of radio, television and the print media (Night 2009). Diageo thus Smirnoff has utilized social groups and associations in a bid to effectively manage its products and ensure high-profit levels. It is important to translate this into their current involvement with social networking sites such as Facebook and Twitter; this serves to indicate how the company conforms to the needs of the consumers thus changing their strategies especially in terms of communication (Weekes 2008). The growth stage is also managed through alteration of the spending characteristics as necessitated by the market condition; this is evident in the increased levels of the market spending in an effort to ensure the longevity of the products.
The maturation stage of the Smirnoff products is characterized by a decrease in the number of sales as a result of the entry of new products. The company has engaged in promotional activities compounded with the continuous introduction of new Smirnoff products an aspect that is closely associated with brand differentiation. The results are seen in the continuous proliferation of their products into the market. The management strategy utilized in this stage is launching and re-launching of products. Corporate clients are considered more stable and reliable in comparison to other irregular clients, in a bid to contain a decline in sales; the company has engaged such clients/ consumers in their marketing processes (Diageo 2005).
Diageo has put in place strategies to curb against potential losses once their products reach the saturation stage; this involves stabilization of sales through the reintroduction of products into the market, continuous consumer research and awareness. The major reason behind such strategies is establishing the needs of consumers.
In as much as Diageo has done well with the introduction of several alcohol brands into the market, it is appropriate that the Company puts in place extra measures necessary for growth sustenance, even if management puts in place strategies to curb against loss of product uniqueness, the life cycle has to run its full course, success will therefore depend on the management practices.
References
Brands. (2009). Diageo. Web.
Diageo. (2005). Smirnoff. Web.
Night. (2009). Smirnoff gets creative. Web.
Weekes, C. (2008). Diageo Ups ad spend on Smirnoff Black. Web.