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

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.