Advertisement

Teaching Note: Case 4: Diageo in Turkey: The Lion’s Milk Versus Global Spirits

  • Deniz TuncalpEmail author
  • Selcen Ozturkcan
Chapter

Abstract

Case starts with a global giant acquiring a local giant company. Both companies own some very strong brands. Post-acquisition era demands a new marketing strategy. The defined market, and the nature of competition need to be revisited. Competitive competencies need to be re-identified, in the face of changing economic, political, and taxation conditions in Turkey and abroad.

In addition to many issues following the M&A, our focus is on the market analysis and related decisions surrounding the marketing of the brand portfolio: Whom to target with what brands? Whether Yeni Rakı should continue its local dominancy or is it about time for Johnnie Walker, Smirnoff and Captain Morgan grand-trio to have the lead role? How can Mey Icki may position and grow in the domestic and the global spirits market?

The instructor should start by directing the question that the two managers are facing in the case: What should be the future direction of Mey/Diageo both in Turkey and internationally? Here some students are expected to favour continuation of the Yeni Rakı marketing investments, while others might favour Johnnie Walker, Smirnoff vodka or Captain Morgan’s. This icebreaker entry would facilitate the discussion of the questions listed in the teaching note section.

Keywords

Marketing Strategy Market Analysis Compound Annual Growth Rate Strong Brand Brand Strength 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Cihan. (2015). Two people die due to bootleg alcohol in western Turkey. Retrieved from http://en.cihan.com.tr/en/two-people-die-due-to-bootleg-alcohol-in-western-turkey-1960348.htm
  2. Cimilluca, D. (2011). Diageo to Buy Turkey’s Mey Içki. Retrieved from http://www.wsj.com/articles/SB10001424052748704271104576156612353607144
  3. Finkel, I., & Buckley, T. (2015). Diageo’s Turkish unit under investigation by competition board. Retrieved from http://www.bloomberg.com/news/articles/2015-08-11/diageo-s-turkish-unit-under-investigation-by-competition-board
  4. Fletcher, C. (2011). Diageo to Buy Turkish Distiller Mey Icki for $2.1 Billion. Retrieved from http://www.bloomberg.com/news/articles/2011-02-20/diageo-said-to-be-close-to-buying-distillery-mey-icki-of-turkey
  5. Harvey, B. (2011). Counterfeit alcohol kills Russian guide in Turkey, Vatan Says. Retrieved from http://www.bloomberg.com/news/articles/2011-05-31/counterfeit-alcohol-kills-russian-guide-in-turkey-vatan-says
  6. Harvey, B., & Fletcher, C. (2013). Diageo seeks Turkey drink limit balance after Mey Icki purchase. Retrieved from http://www.bloomberg.com/news/articles/2013-05-16/diageo-seeks-turkey-drink-limit-balance-after-mey-icki-purchase
  7. Menezes, I. (2013). Increasing our presence in the emerging markets. Retrieved from https://www.diageo.com/Lists/Resources/Attachments/1601/Review of our acquisitions in the emerging markets_transcripts.pdf
  8. Mindreader. (2015). Turkey competition board opens probe against alcoholic beverage company. Retrieved from https://www.youtube.com/watch?v=hC7h6C2Eigk
  9. Morgan, A. (2012). Morgan Says Mey Icki Gives Diageo a Platform in Turkey. Bloomberg Business.Google Scholar
  10. O’Toole, P. (2005). Fake alcohol causes Turkey deaths. Retrieved from http://news.bbc.co.uk/2/hi/europe/4336005.stm
  11. Schweizer, K., & Hacaoglu, S. (2013). Turkey’s liquor market at risk. Retrieved from http://www.bloomberg.com/bw/articles/2013-06-20/turkeys-liquor-market-at-risk
  12. Sonne, P., & Cimilluca, D. (2011). Diageo Takes Gamble on Turkey With Mey Buy. Retrieved from http://www.wsj.com/articles/SB10001424052748704476604576158183882692162
  13. Stock, K. (2013). Diageo’s $2.1 Billion Turkish Hangover. Retrieved from http://www.bloomberg.com/bw/articles/2013-06-24/diageos-2-dot-1-billion-turkish-hangover
  14. Walsh, P. (2011). Diageo Focused on Emerging-Market Expansion. Bloomberg Business.Google Scholar
  15. Walsh, P., Morgan, A., & Mahlan, D. (2011). Diageo to acquire Mey Icki Q&A: Diageo.Google Scholar

Copyright information

© Springer International Publishing AG 2017

Authors and Affiliations

  1. 1.Istanbul Technical UniversityIstanbulTurkey
  2. 2.Bahcesehir UniversityIstanbulTurkey

Personalised recommendations