Africa has been looked at as a current and a future huge market almost for everything that is required for people to live. The only note about Africa is that although there are many big cities where people have enough money to pay for what they want, most of African areas are poor and people cannot pay much for what they need and like to have. Yet, those poor people are majority and they would still pay to get what they need but probably not too much. So, successful marketing in Africa must consider all customer segments in order to make the highest profit possible. The spirit drinks Diageo PLC has an interesting experience in that regard in Africa that we will go through in the next few paragraphs.
Although it was the Diageo PLC, the world’s largest spirit company based in UK and was supposedly expected to be as successful in Africa, but there were many environmental or circumstantial reasons that affected its sales and hence its profits. The company tried to reach to every customer, even the poorest of them, but there were many local competitor that probably the company could not compete with the very low prices they were selling their products for. International spirit companies were heavily competing in the considered promising big market in Africa.
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Bernstein & Co. Between 2013 and 2017, the continents liquor market is projected to grow by 45%, to $2.39 billion and that what Diageo has told its investors. That was probably the key that made the company searching for alternative marketing methods and strategies to promote its products among the already existing competitors. Diageo sees Africa as Asia in 15 years, which means that it is an assured big market with a guaranteed big profit, especially Diageo has seen how its market worldwide is shrinking and that the future will be in Africa. So, Diageo has invested over $1 billion over the past 5 years, with a market share of 25%, that is much bigger that all other