Diageo's Guinness Launch in Cuba: A Market Analysis

Desklib provides past papers and solved assignments for students. This project analyzes Diageo's potential in the Cuban market.

MANAGING A SUCCESSFUL BUSINESS PROJECT

Table of Contents
INTRODUCTION........................................................................................................................2
LO1........................................................................................................................................... 3
P1 PROJECT AIMS AND OBJECTIVES.....................................................................................3
P2 & M1 PROJECT MANAGEMENT PLAN..............................................................................4
P3 WORK BREAKDOWN STRUCTURE AND A GANTT CHART.................................................8
LO2......................................................................................................................................... 10
P4 APPLICATION OF QUALITATIVE AND QUANTITATIVE RESEARCH METHODS.................10
M2 EVALUATING ACCURACY AND RELIABILITY OF DIFFERENT RESEARCH METHODS
APPLIED.............................................................................................................................. 12
LO3......................................................................................................................................... 13
P5 ANALYSIS OF THE RESEARCH AND DATA.......................................................................13
P6 CONCLUSION AND RECOMMENDATION.......................................................................18
M3 EVALUATION OF THE SELECTION OF APPROPRIATE TOOLS AND TECHNIQUES TO
SUPPORT AND JUSTIFY RECOMMENDATIONS....................................................................19
LO4......................................................................................................................................... 20
P7 & M4 VALUES OF UNDERTAKING THE RESEARCH TO MEET STATED OBJECTIVES AND
OWN LEARNING AND PERFORMANCE...............................................................................20
CONCLUSION.......................................................................................................................... 21
REFERENCES........................................................................................................................... 22
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INTRODUCTION
Diageo is a UK based multinational alcoholic beverage organisation. The company was
founded in 1997. An outstanding collection of beer and spirits is offered by the company
with around 200 old and new brands in different sizes. It offers different global and local
brands in different countries. It is one of the largest distillers in the world that offer its
products in around 180 countries (Diageo, 2018). This research project is focused on
launching a new product of Diageo Company in the market of Cuba. The project will involve
the setting of a research plan consisting of research aims and objectives, timeframe, cost
and resources to support the successful completion of the project on time. It will support
Diageo in successfully launching its new beer product “Guinness Beer” in Cuba. This
research will support the company in successfully launching its new product in the new
market by analysing and identifying the challenges and opportunities of its new product in
the market of Cuba.
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LO1
“AN ANALYSIS OF THE CHALLENGES AND OPPORTUNITIES FOR DIAGEO IN
LAUNCHING ITS NEW PRODUCT ‘GUINNESS’ IN THE CUBAN MARKET”
P1 PROJECT AIMS AND OBJECTIVES
PROJECT BACKGROUND
With a strong presence in more than 180 countries across the globe, Diageo is one of the
most successful distillers’ organisations in the world. Globalisation has fostered the growth
and development of Diageo in the global beer and spirits market by providing opportunities
to invest in the foreign countries. The reduction in the trade barriers, liberalisation and
development of effective world trade policies has supported the company in the captivating
wider market across the globe. The growth has also reflected in the year-by-year launching
of new products in the different foreign markets. The increasing demand for alcoholic
beverages has also contributed to the growth of the company. The company has also
focused on launching its new product in the Cuban market by identifying higher
opportunities due to increasing travel and tourism in Cuba. This project report will consider
the different aspects of beer consumptions in Cuba to ensure the successful launch of the
product in the country.
PROJECT AIM AND OBJECTIVE
This project is aimed at identifying the challenges and opportunities for launching a beer
Product “Guinness” of Diageo in the Cuban market. The main focus of the project is on
ensuring the successful launching of the product in Cuba so as to gain higher profitability
and increasing the market share of the company. In order to achieve the main aim of the
project, the following project objectives have been prepared:
 To identify the consumption rate of beer in the Cuban market.
 To determine current competitors in Cuba
 To identify and analyse customer preferences in Alcoholic beverages
 To evaluate growth opportunities for the Guinness beer in Cuba.
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5

P2 & M1 PROJECT MANAGEMENT PLAN
As a renowned Beer and spirit manufacturer in the World, Diageo has to maintain its quality
and originality of its brand to make them unique and different from other brands available
in the market. Moreover, being a beer brand the company also has to comply with the
several laws and regulations of international and national agencies to conduct the business
at a global level. In to successfully launch its beer product the company has to maintain a
good image in the new and existing market.
On considering all the above-discussed project points, a proper project management plan
can be effectively developed. The proposed plan will involve all the essential information
that is useful for making and implementing a business project successfully (Kerzner and
Kerzner, 2017). This project plan will provide a proper direction to the project activities and
guide throughout the project implementation. The main elements of the project
management plan have been discussed below:
Cost:
The assessment of project budget supports in having a prior understanding of the cost and
resources that will be required to complete the project report (Quinlan et al., 2019). This
project research is conducted in the Cuban market so it will require a higher cost of
travelling and staying in the Cuba and collection of relevant data in the country. A total
estimation of around £50,000 will be required for this project.
ACTIVITY COST
Project Plan and design £9,000
resource allocation £12,000
designing of questionnaire
and research
£2,000
implementation of the
research design
£17,000
collecting and recording
research data
£1000
planning for project
implementation
£2,000
implementation of the
project
£7,000
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Scope:
This project will support Diageo in identifying the potential of its new product “Guinness”
beer in the Cuban market after its successful launching in the UK and other parts of the
world. This project will also enable Diageo in having a better understanding of the alcoholic
beverages market in Cuba. The research is only limited to the Cuban market and could not
be effectively applied in other countries.
Quality:
A comprehensive quality management plan will also be formulated to make sure that the
quality of the project should never be compromised at any point. The quality of each project
activity will be maintained at every level of the project by adopting quality check and quality
assurance techniques (Quinlan et al., 2019).
Communication:
Communication is the major contributor to the success and failure of any business project.
Thus, a proper communication plan among the project team is prepared to direct the
members in establishing effective communication between them (Bell, 2014). The
communication plan involves some most effective communication tools such as e-mail, and
Smartphone applications like Whatsapp to instantly exchange information among the
members (Lock, 2017). The project team members involve project manager, technical
officers and other team members responsible for doing ground work.
Time:
Time is one of the major constraints that affect the quality and relevance of the project.
Thus, it is very important to make a proper time management plan so as to effectively carry
all the project activities on time. For this, all the project activities are divided in set
timeframe with a total of 12 weeks. A milestone schedule is been prepared to have a better
understanding of the project activities and scheduled time to complete those activities.
S.No. Milestone Date Milestones Deliverables
1. 10th January
2019
project planning a fully developed project
management plan
2. 25th January Resource allocation Providing necessary resources
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2019 to all the team members and
directing everyone about their
roles and responsibilities.
3. 30th February
2019
qualitative and quantitative
research
completing the process of data
collection and recording
through primary and secondary
research methods
4. 25th March
2019
analysis of results Formulating results from the
collected data through research
analysis.
5. 3rd April 2019 completion of the project Obtaining meaning from the
project research to support the
implementation by the
organisation
6. 10th April 2019 quality assurance and control Making sure that the project
activities and tasks are
performed with proper quality
and control.
Risk:
The risk is the inherent part of every project and so this research project has also involved
certain risks and problems that could affect the quality of the project (Lock, 2017). A proper
risk management plan has been formulated to handle the identified risk.
Risk Level Possibility
Of Risk
Details Impact On Project Activates Response To Risk
high medium technological
error
this may delay the
project work and
affected the quality
of the project
at the
beginning of
the project
always keep two
or more copies
of files on
different
systems
low low lack of
response
this may lead to the
irrelevancy of the
research project
during the
data
collection
procedure
the sample
population of
the project will
be kept limited
medium low lack of time due to this, the
project may not be
effectively carried
out
at the
beginning of
the project
by making a
proper time
schedule with
the help of Gantt
chart.
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Resources:
The main resources required in this project are human resource, financial resource and
technical resources. The human resource involved in this project is consisting of a team of
20 people that involving project manager, technical officer, financial analyst, marketing
officer and other members for doing ground work (Lock, 2017). Other than a human
resource, the financial and technical resources are sourced for the research and
development fund of Diageo.
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P3 WORK BREAKDOWN STRUCTURE AND A GANTT CHART
WORK BREAKDOWN-STRUCTURE (WBS)
A WBS supports in effectively organising the tasks and activities of the project by separating
them into diverse manageable sections. This helps in having a clear idea about the project
activities and facilitates effective management and control throughout the project
performance (Kerzner and Kerzner, 2017).
Figure 1: work breakdown structure
 Project Planning: the planning activity involves the formulation of a project plan to
direct the team members throughout the research project.
 Requirements: it involves an assessment of all the essential resources required for
carrying the overall research effectively.
 Resource Allocation: after assessing the resource requirement, the relevant
resources should be allocated to the team members so that they can complete their
task effectively. Thus, the resources must be allocated with a proper assessment.
 Research: here, the developed plan and resources will be implemented to carry the
research by adopting the most relevant research method.
 Analysis: after collecting the data, the next important activity is to analyse the
research outcomes and data to gain an effective result from the research.
 Completion: at the last stage the research is completed and the final research report
is prepared for activating implementation in the actual environment.
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GANTT CHART
the below presented Gantt chart will showcase the research activities against the set time
frame to support the team members in having a proper understanding of their roles and
responsibilities.
Table 1Gantt Chart
2
weeks
4 weeks 6 weeks 8 weeks 10
weeks
12
weeks
Project Plan
Literature
Review
Designing Survey
Questionnaire
Conducting a
Questionnaire
Survey
Data Recording
Data Analysis
Report Writing
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LO2
P4 APPLICATION OF QUALITATIVE AND QUANTITATIVE RESEARCH METHODS
Diageo is launching its one of the most successful brand ‘Guinness’ in Cuba and it is
necessary to collect important information regarding customer choices and the business
environment in the country before launching its full-fledged operations. Information
collection can be done with the help of qualitative and quantitative research methods
(Dezin and Lincoln, 2013). The qualitative data includes the descriptions obtained from the
participants, this data cannot be computed. On the other hand, the quantitative data is
associated with numbers which facilitate mathematical calculation and reaching a logical
conclusion for the data collected.
Qualitative Research
This is a method of gathering non-numerical data which may include definitions, description
of things, concepts and characteristics. Qualitative research is more concerned about the
human aspects of the research where thoughts, ideas and observations of individuals are
collected from different sources. In the current project, the qualitative research can provide
a wide range of data to analyse the present orientation of customers towards Guinness bear
in Cuba. Diageo also needs to identify the major competitors in the business at present and
a strategy needs to be formed to create a differentiation form available products (Polit and
Beck, 2010). In addition, the marketing strategies for the new product also need to be
planned carefully so that brand awareness can be developed. Local newspapers or social
media can be used for the purpose. Billboards on the highways are also an effective medium
to advertise the new beer.
According to Semanal (2016), the domestic beer industry in Cuba is unable to satisfy the
growing needs of the customer with the increase in tourism in the country. During last year
the consumption rate of alcoholic drink in Cuba is 51.5% that is growing increasingly with
the tourism boom. One of the main competitors to Diageo in Cuba is “Cerveceria Bucanero”
it is a brewing company that holds a large market share in Cuba. Jernigan and Babor (2015)
have stated that the beer industry faces a great challenge of complying with several
international and national regulations.
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