SMIRNOFF ICE

Smirnoff Ice

Smirnoff Ice

Introduction

Marketing planning is a continuous process. Marketplace conditions are under constant change, consumers are changing their needs, and competitors are always around looking for opportunity to capture a piece of market share. Any plan used in the past will not necessarily work in the future. Therefore, the marketing plan needs to be frequently changed adapting to the environment in which business operates. Marketing planning is also important as concerns budgets providing funds when required for different departments of an organization.

Not only marketers and the marketing department deal with marketing planning is an organization, everyone is ultimately involved with marketing in some way. Marketing decisions correlate with overall objectives of an organization. They affect company's financials, as decisions cost. Only the successful marketing decisions will be of benefit to their organizations. Therefore marketing decisions need to be under constant measurement and control by firm's executives through continuous process of marketing planning (Wood, 2005).

Strategic marketing planning, after Drucker (1974), is an important process that must be followed by every organization to guide its decision makers to set priorities for operational change promoting and improving a firm's performance. The goals of strategic marketing management, are to select reality-based desired accomplishments (goals and objectives), to more effectively develop or alter business strategies, to set priorities for operational change and finally, to improve a company's performance.

A short company introduction will be followed by evaluation of the factors that influence development and implementation of the marketing planning. Finally, a proposal for a change followed with conclusions for further improvement will be highlighted.

Company Background

Diageo plc is a global company operating in over 180 markets around the world. Being focused on premium drinks, the Company operates across the total beverage alcohol sector, owning nine of the world's top 20 premium spirits, ready-to-drink (RTD), wine and beer brands.

Diageo distributes its brands under the geographic organization that comprises North America, Europe and International markets. The European distribution is organized through a network of a number of Strategic Business Units (SBU) across the continent.

Strategic Business Unit out of Greece, Diageo Hellenic, is responsible for maintaining distribution of all Diageo brands on the regional level for Southern and Eastern Europe (SEE).

Di Line, Serbia is exclusive distributor of all Diageo brands for the Serbian marketplace. Di Line maintains and expands an existing distribution network at the same time being supported by Diageo portfolio as the world's leading premium drinks (Vemon & Lamb, 1976).

Marketing Planning Process

Di Line is under direct supervision of Diageo Hellenic, while Diageo Hellenic's principal is the Head Office, out of UK. The UK headquarter is responsible for the worldwide corporative coordination. All corporative-wide strategies and objectives, long-term planning including strategic marketing planning are under direct responsibility of Diageo's Board of Directors.

Mission Statement is the starting point for both corporate and strategic marketing planning as it provides all employees within organization with a clear understanding of core corporative values. It shall be “short on numbers and long on ...