Diageo has a premium pricing strategy for the high quality Guinness products. GUINNESS is the world’s leading stout giving it a strong, category-defining position. Foreign Extra Stout accounts for 41% of GUINNESS sales and is positioned at a premium to mainstream beer. In Nigeria, GUINNESS is between 40% – 60% premium to mainstream beer.
Diageo practices corporate social responsibility with its responsible drinking campaign and other initiatives, which justifies higher prices for the product. The package design with black as its dominant color is akin to being a premium product. Black is often associated with authority and sophistication in design. The aspirational design and iconic advertising both help to increase consumer purchase intent and preference thereby justifying the premium pricing positioning.