Johnnie Walker

UNIVERSITY OF THE PHILIPPINES[pic 1]

College of Business Administration

[pic 2]

Case # 10 – JOHNNIE WALKER

Group Name:

        Oceans 11

Members:

        Ancuna, Joyce

        Castro, Markheel

        Charpentier, Laurane

        Dela Cruz, Valerie Mae

        Le Marchand, Sybille

        Ong, Erwin Donavan S.

        Paz, Edaine Joyce

        Sison, Aleli

        Tan, Jihan

Program/Course/Section:

        MBA/BA230/THP

Submitted to:

        Prof. Arturo Benedicto Ilano

Date:

        March 21, 2013

Case Context

Johnnie Walker has been in the industry since 1800s and has managed to keep up with stiff competition over the years. It is owned by Diageo PLC, the largest multinational alcoholic beverage producer in the world holding a large portfolio of premium drinks in the spirits, wine and beer categories. Diageo operates a total of 180 markets worldwide with the North America region as the main contributory of the total revenue registering 42% of the overall sales performance.  It is followed by Europe at 30%, International at 23% and the Asia Pacific region at around 5% of the total. In 2009, the Asia Pacific market’s sales performance declined which results to a decrease in marketing spending by 5%.

Diageo Philippines is the local distributing and marketing arm of Diageo, PLC. It currently carries imported brands such as Johnnie Walker, Smirnoff and Bailey’s and other locally produced liquor such as Gilbey’s.

Jill, the Marketing Manager of Diageo Philippines, manages a portfolio including Johnnie Walker, Smirnoff and Baileys. As the one responsible for marketing these products, she finds herself in a most challenging situation as most Filipinos love beer products. Bailey’s and Smirnoff are experiencing tremendous decline in their popularity as reflected in their sales performance.  Among the 3 brands, only Johnnie Walker seems to be performing in the industry and still capturing considerable market share in the whiskey market. However, Jill still has to be proactive in coming up with good marketing strategies while working with a very limited budget to maintain or expand its market share and to prevent Johnnie Walker being just a remnant of the past.