Strategic Management for Smirnoff Assignment Example | Topics and Well Written Essays - 4000 words

Strategic Management for Smirnoff - Assignment Example Smirnoff is a brand of Vodka used in UK and is own and operated by British Company Diageo however, it has its roots in Moscow Russia. Smirnoff is now distributed in well over 130 countries with a network which is expanding and catering to the needs of different customers all over the world. Being an alcoholic drink, the overall external environment for this brand is relatively challenging considering the fact that many countries have banner alcoholic drinking. Issues like the underage selling, drunk driving and other strategic issues are considered as of significant importance. This is because these issues can actually affect the overall demand of the product. This report will look into the target market, value given by the company to its target market, a closer analysis of the internal as well as external environment including analysis of the industry as well as competition. This report will also look into the SWOT analysis of the firm to unearth strategic issues faced by the firm a nd what strategic options could be exercised to correct the situation. Company Background Smirnoff is a brand name managed by a British Company with the name of Diageo. It is however, important to note that Smirnoff as a brand has its historical roots in Russia when during 19th Century, Smirnoff as a vodka brand was started by Pytor Aresenievich Smrinoff. (Diageo Inc) Over the period of time, brand gained recognition and is now considered as the leading vodka brand in the world. What is also important to understand that Smirnoff was the only vodka available outside the communist countries after the Second World War? This therefore has given an edge to the brand to dominate the European and North American market and become the leading selling brand in the world. The company owning and operating this brand is also selling other brands which are also maintained as the strategic brands. These strategic brands therefore serve as the primary source of growth for the firm across all the ma rkets it operates. Some of the leading brands of Diageo include Johnnie Walker, Crown Royal, J&B etc. Smirnoff is also one of the strategic brands for the firm generating the required growth for the firm in the Spirit market.1 It is important to note that Smirnoff exists as a separate strategic business unit for the firm and it is sold through different channels. Delivery of the product through online market of the firm is also one of the ways firm manages sales for this brand. Target Market of the Company Diageo is considered as the premium drink company offering high worth brands to the individuals all over the world. As such the geographical distribution of the company’s target market is across the whole world with concentration in the European and North American market. It is critical to note that the drink market continuously evolve due to the market innovation and changing preferences of the customers. (ASIMOV, 2005). Though Diageo is a well diversified company with man y brands serving different niches in the drink market, however, Smirnoff caters to a different niche of the market. Though Vodka is famous for its uniqueness as a drink however, firm has been able to introduce new flavored drinks in order to cater to the needs of varying degree. The essential market for the drink comprises of those individual customers looking for ready to drink market with variety offered according to the Season of the year. This is because of