...MRKT 5920 Marketing Channel Management with Professor Michael Johns Executive Summary Pernod Ricard acquired ABSOLUT vodka from the Swedish government in October 2008. With considerable 13.45% CAGR growth in vodka segment among the spirit market, vodka is the place to concentrate resources. The strategies are aimed to create demand from consumers (pull strategy) and encourage outlets to sell ABSOLUT vodka products (push strategy) by utilising customer relationship management ("CRM") and below the line event marketing. The proposed plan has objectives of increasing volume sales growth rate to 16 - 18% year-on-year with constant sale price, maintaining and attempting to increase gross profit margin above 50% and net profit margin above 20% and reach 2.92% market share within spirit market by 2010 through creating competitive advantage from entering a comprehensive CRM and below the line marketing programme that no other vodka brands in Australia have done before. Plan is recommended to be executed on January 2009 or as soon as Pernod Ricard Pacific has total control of ABSOLUT vodka. The ABSOLUT launch event should commence during the first quarter of 2009 with series of advertising schemes and customer base building happening throughout the year. Major events are scheduled towards the end of the year. Total marketing expenses budget for 2009 is AU$6.5mil. Company Background Pernod Ricard holds the most prestigious brand portfolios in the sector: ABSOLUT Vodka, Ricard pastis...
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...Absolut Blank. The alcohol industry is an ever-competitive market—from small-batch to the biggest name brands. Founded in 1879, Absolut Vodka could be depicted as classic vodka; but Absolut markets their company to the unique individual pursuing an alternative lifestyle (Bhasin). They provide a diverse range of products that can provide a new twist to a classic experience. Absolut is one of the world’s top five spirit brands—sold in 126 markets (Absolut: Brand Profile). It is one of the few brands that have been able to continuously increase sales even though the market is shrinking (Bhasin). In an industry that is prohibited to advertise on the television, creativity and innovative campaigns are crucial for success. Absolut became one of the...
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...design, Absolut Vodka launched their world famous advertising campaign, using the distinct differences combined with humor to reach out to their clients. Through joint direct sales activities in targeted bars and restaurants (strongly focussed on the “hot spots” within a city) Absolut quickly became renowned as hip brand in this community. Their sales force used high rotation in their sales visits with attractive promotional concepts and incentives, in order to tie in the bartender community into their image statement. Through time Absolut Vodka achieved the status of a lifestyle product, to the extent that it became a brand statement as such, with people ordering “Absolut and Tonic”. Originality combined with consistency in marketing were key elements in the achieved success, leading to repeated two-digit increases in sales, year after year and positioning Absolut as the 5th largest selling spirit brand in the world. In the past few years V&S Absolut Spirits has experienced a strong increase in demand from, among other places, the quickly growing Global Travel Retail market, which, combined, is the second biggest market for ABSOLUT VODKA. Background --: The name "Absolut" was introduced in 1879 by the entrepreneur Lars Olsson Smith. Smith introduced fractional distillation that produces liquor without fusel alcohol in Sweden. In 1917 the Swedish government monopolized the alcohol industry in Sweden. Vodka was then sold nationwide under the name "Absolut Renat Brännvin"...
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...Introduction When local markets mature and opportunities are not coming up as they used to, firms must reallocate their position and their strategy. Entering new markets offers advantages and developing opportunities. In order to achieve profitability Michael Porter established a 4 strategy matrix, three of which might be found very useful to a company that wishes to follow international headway (Michael Porter, 1980). Through this assignment Porter’s matrix and his proposals are about to be presented as a helpful tool for any enterprise that whishes development off its country’s borders. Two major companies, worldwide known for their products in beverage market segment are about to be analyzed as representative examples of their differentiative and cost leadership character. VIN and Spirit, a Swedish firm which was the creator of Absolut Vodka compared with Diageo, Smirnoff’s enterprise. VIN and Spirit Company without the basic knowledge of a global strategy, it managed to obtain one of the leading market beverage segments being also a very representative example of advertising and packaging differentiation (Vin & Spirit Annual report, 2007). The second company, DIAGEO is producing popular products ne of which is Smirnoff Vodka. Because of its well known products worldwide, Diageo does not concentrate on a specific product (DIAGEO Annual Report, 2007).Instead it uses very good organized mechanisms of production, promotion packaging and distribution with lowest cost...
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...Target market chosen by the company Absolut targets at the global spirits market. Being available in 126 countries, the brand has acquired American, Canadian and Finnish market as its main export targets. In these countries, it has leading positions in liquor industry. Along with such broad operations area, Absolut’s strategy is aimed at acquiring specific industry niche worldwide: niche of luxury brands in the liquor industry. Today, Absolut is a leader in production of corporate chic. That is the major reason their product costs $35 per bottle. The efficiency of such strategy is confirmed by the recent fact that even more expensive spirits gain their ground in American liquor market, exclusively due to their price. Therefore, in the first place, Absolut sells a mental image of instant cool (their site with its novel flash technologies, send this message in the most vivid manner). Absolut sells the image of chic and luxury. And naturally their target market consists of people looking for such image in the things they buy. Absolut chosen differentiation and positioning strategy and tactics Positioning strategy refers to how the organization want its consumers to perceive their product. The positioning strategy includes the message the company wants to convey to consumers about its product (Ries, Trout, 1986). The positioning strategy of Absolut is built on differentiating their product from their competitors, of conveying its message through package, through style, though...
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...market are Axe, Gillette and Dove for Men. In recent years there has been a huge hype to social media for means of marketing and advertising for many companies. Old Spice is a perfect example of this. The “Smell like a Man, Man” campaign, featuring the handsome “Old Spice Guy” (former NFL wide receiver Isaiah Mustafa) was launched just prior to the 2010 Superbowl and quickly became a viral video sensation. The ad was one of the most talked about commercials and helped to boost Old Spice sales during a period of intense competitive activity. This campaign wasn’t only about television ads, but involved also social media like Facebook and Twitter, where Old Spice invited customers could submit questions to be answered personally by the Old Spice Guy. Youtube was also in the game, this happened because nearly 200 personalized video responses to the questions were created and posted on YouTube, including those to Ashton Kutcher, Alyssa Milano and ABC anchor George Stephanopoulos, creating new benchmarks for consumer engagement. Old Spice has been singled out as the best practical example of social media marketing. Their campaign taps into the consumer insight that the women are more likely to believe men should spend time and money investing in their appearance, and social media was used to engage consumers in an interactive dialogue with the brand. MARKETING OBJECTIVES...
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...MARKET POSITIONING FOR ICEBERG VODKA EXECUTIVESUMMARY: In this report we seek to help the company, Iceberg find their market positioning for their foray into China, particularly entering the Beijing market. We conducted an assessment of the Beijing vodka market potential, the main competitors, distribution channels, relative price analysis and conducted our own market research by means of a survey. Our research revealed that Chinese consumers are generally brand conscious and have penchant for high end purchasing. We identified four main competitors: Absolut, Stolichnaya, Smirnoff and Finlandia where Absolut holds the lion portion of the market by positioning itself as “the choice” for young, urban professional. With that, we recommend positioning Iceberg as the ‘affordable premium’ and making ‘Iceberg’ the ‘Evian’ in the vodka market by charging the “right” price, to the “ideal” consumer, at the “right” time, the “right” place. TABLE OF CONTENTS: 1. Introduction : Background and Opportunity 1.1. Alcoholic Drinks in China - A Market Analysis 3 1.2. The Vodka Market in China 3 1.3. Iceberg - Company and Product Overview 4 2. Market Research Methodology 2.1. Overview 5 2.2. Survey 5 3. Analysis 3.1. Main Competitors in the Vodka Market in Beijing 6 3.2. Market Share Analysis 6 3.3. Distribution Channels Analysis 7 3.3.1. Supermarkets 7 3.3.2. Online Delivery 8 3.3.3. Retail Liquor Stores 8 3.3.4. Watering Holes 8 3.4....
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...The Situation Analysis - Absolut Vodka Introduction This report will investigate the current marketing environment of Absolut Vodka brand (Pernod Ricard Group) within the wine and spirits industry by combining a SWOT and TOWS analysis to identify and explore key matters surrounding strategic marketing internally and externally of this brand within the UK market. SWOT Analysis – Pernod Ricard SA Pernod Ricard is globally known worldwide for their contribution in manufacturing and supplying spirits and wines. The company’s business model is a decentralized design which is a fundamental principle to their management and control of their business activities. This enhances a platform of competitive advantages. Due to regulations in relations to advertising of alcohol may lead to an impact and reduction of premium brand products and affected sales. Strengths (S) | Weaknesses (W) | * Decentralized business model * Diversified operations reduce business risks * Top 14 brands offer leadership positions to Pernod Ricard * Global status – Abslout | * Decline on advertising affecting the driving force of Absolut (Mintel, 2014) * Lack of brand awareness/brand equity (Mintel, 2014) * High debt burden * Lack of interaction with consumers- detached and no interaction (Graham, 2015) | Opportunities (O) | Threats (T) | * Positive outlook for global spirits market * Premium brands promoting neat drinks – combination of mixability (Mintel, 2014) *...
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...Executive Summary This case study is all about can soju overcome vodka in U.S. market where vodka is already most selling spirit. If we look into soju it is very similar to vodka but little sweeter than it and it is also the most consumed drink in the world and now there are trying to introduce new flavor to it so considering the recent trends plus it is way cheaper than vodka. Soju can faces some problems and challenges it has to work on its marketing strategies and look into current trends to overcome and acquire spirit industry in U.S. and how it can achieve with the help if various references is what I am going to mention in this case study. Introduction Alcohol Beverage can be defined as a drink containing more than 1.5 percent in volume and containing ethyl alcohol can be classified as alcohol beverage (Definitions.uselegal.com.2015).It is said that there is account of alcoholic beverages from 6000-7000 B.C. (Gately. 2008). It is also said Beer is one most oldest and popular drink identify by human civilization (Bellis, 2015). Alcohol Beverage are made up of two process such as fermentation and distillation. There are various classification of alcohol beverages in around the world the most famous ones are wine, liqueur, beer, whiskey, vodka, Tequila, rum, champagne, sake and soju. It was predicted that global alcoholic beverage industry will be comprised of $1 trillion dollar in year 2014 which would be 10% increase in last 5 years with a consumption of 210 billion...
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...Existing approaches of measuring the brand equity 1 Research Background 3 Analysis of findings 4 Awareness 4 Knowledge 5 Familiarity 5 Relevance 5 Image attributes 5 Purchase consideration 6 Preference 7 Satisfaction 9 Perceived Quality 9 Research Limitations 10 Conclusion 10 Bibliography 12 Appendix. Questionnaire 14 Existing approaches of measuring the brand equity Brand equity itself and different methods of measuring it have been highly debated by marketing scholars, especially in the past two decades, when it was admitted that brand could be considered as one of the company’s intangible assets (Kapareliotis and Panapoulos, 2010). One of the most debatable issues was how to define the brand equity, since for different stakeholders brand equity has different meanings (Wood, 2000; Atelgan et al., 2005). Though the scholars rarely agree on the number and the types of the perspectives brand equity can be viewed from, Cobb-Walgren et al. (1995) and Wood (2000) agree that brand equity can be discussed mainly from four perspectives: perspective of investor, manufacturer, retailer and consumer. Feldwick (1996) summarized all of the approaches of understanding the brand equity and gave 3 definitions, which cover all the brand equity’s perspectives: • “the total value of a brand as a separable asset ± when it is sold, or included on a balance sheet; • a measure of the strength...
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...Marketing Audit: Burnett’s Flavored Vodka Over the past decade, the popularity of the spirit vodka has gone through the roof in terms of U.S Consumption. With many consumers looking for healthier, low calorie alternatives to beer, wine, and other dark spirits, Vodkas popularity comes as no surprise. The rise of vodka has also brought about another growing trend in the spirits industry and that is the growth of flavored vodkas. Flavored vodkas allow consumers with particular taste to enjoy an easy-to-drink spirit and also allows consumers to create many different drinks with one base liquor. One of the companies that has seen immense success in this booming market is Heaven Hill Distilleries’ line of Burnetts’ Flavored Vodka. Featuring over 33 unique and distinct flavors, Burnett’s is one of the largest players in the flavored vodka market and continues to lead in innovation of flavors as well as nationwide distribution. Executive Summary While there continues to be new competitors entering the market almost every day, one of the largest, most competitive firms in the flavored vodka market is Burnett’s Flavored Vodka. Burnett’s, widely known throughout the nation by young collegiate aged individuals and young professionals, offers one of the lowest price points for vodka in the entire industry. In addition to this, it features a product line with over 33 different flavors including seasonal flavors such as pumpkin spice vodka. By and large, Burnett’s has seen wide success...
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...Russian Standard Vodka Case Introduction: Roust holding launched the Russian Standard Vodka in 1998. the main goal on launched the Russian Standard Vodka was to set a new standard of world class quality for a new breed of global Russian brands. Brand identity and Strategy: The strategy of creating an Russian Standard brand started with two goal 1- Russian Standard to become a global umbrella brand by having different categories with the same brand . 2- Russian Standard to become the first premium quality brand from Russia. Additionally to create the brand identity, the management team decided to carry out a survey with the consumers and also to have some advices from international advertising experts and brand identity agencies. Expanding Decision: In 2002, Russian Standard Vodka sales achieved the number one position in the premium segment with a 27% market shares. This successful inside Russia encourage the Management to expand externally trying to make Russian Standard Vodka in the first position in the world. The first step was in 10 European Countries such as UK, Greece and Hungary. There was no change in the product or the way of introducing the product in the market. The next step was USA which considered as the biggest premium vodka market in the world. There were three ways to expand. First way is to introduce it with the same product and marketing. Another option is to introduce a global brand which suits the local market. Third option is...
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...Russian Standard Vodka: Strategies for Global Branding and Expansion into the US Market An Individual Case Study Prepared by Yanan MIAO under the Supervision of Pro. Hans MUHLBACHER for International Marketing Course T1-2011-2012 Background Russian Standard vodka, known as Russia’s number one premium vodka brand, was founded by Roustam Tariko and initially launched in 1998. Four years later the sales of this authentic Russian premium vodka surpassed all imported premium vodkas, achieving the number one position in the premium segment with a 27% market share in its domestic market. Brand Identity The first truly premium Russian vodka that “Embraced the past…and inspired progress”. Company’s Objective Equals to the founder (Tariko)’s vision: to make Russian Standard vodka the number one Russian vodka in the world. Assessment of the Current Market Success factors: 1. An evocative brand name. 2. Unmatched product quality. 3. Production Origin. 4. Distinctive premium packaging. 5. Strong distribution networks, commanding merchandising skills. 6. Premium pricing policy. 7. Smart promotional on-premise and off-premise strategy. 8. Strong financial support from brother company—Russian Standard Bank. Failure: Inaccurate domestic advertising compaign—conceived by its consumers as inconsistent with brand image. Issue Encouraged by its rapid success at home as well as driven by the vision of its founder, Tariko wondered whether Russian Standard vodka should be launched in...
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...In the context of the UK’s total ban on tobacco advertising and the potential future restrictions on alcohol advertising, critically review the debate between the strong or weak theories with regard to the effectiveness of advertising bans. The effectiveness of advertising bans has been a debated for many years. There are two dominant theories of the debate regarding the nature of how advertising works: the strong theory and the weak theory. The strong theory coined by John Philip Jones holds the belief that advertising exerts a powerful persuasive influence on consumer’s behaviour (Jones, 1990). In Contrast Andrew Ehrenberg developed the view of the weak theory of advertising. This view suggests that advertising reinforces rather than initiates consumer behaviour (Ehrenberg, 1992). These two theories have been discussed thoroughly by many theorists to understand how advertising works. Many countries have implemented restrictions in advertising for tobacco and have issued potential future restrictions for alcohol, with the objective that introducing an adverting ban would lower overall consumption. However, Studies analysing the effects of advertising being linked to consumption has led to two separate views on how advertising works and have led some to believe that advertising bans have no effect on overall consumption. The strong theory of advertising supports the belief that advertising has the power to persuade people who may not know of a brand or bought a product before...
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...Van Gogh Vodka Copyright © Black Robot Advertising Ltd The contents of this document are confidential and the property of Black Robot Advertising Ltd and the recipients agree by accepting delivery of this document not to disclose or make use of any of its parts in any way whatsoever, to anyone without the prior written consent of Black Robot Advertising Ltd and an agreed monetary exchange for the right to use any or all of its contents. Executive Summary ...................................................................................................................................................................................................... 2 Brand Situation.............................................................................................................................................................................................................. 2 Findings, Insights and Issues......................................................................................................................................................................................... 3 Brand Switching ...................................................................................................................................................................................................... 3 Experience and Lifestyle ...............................................................................................................................................
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