Research Exercise for
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, Ballantine's, Chivas Regal, The Glenlivet Single Malt, Jameson's Irish Whiskey, Martell Cognac, Havana Club Rum, Beefeater Gin, Kahlúa and Malibu liqueurs, Mumm and Perrier-Jouët champagnes, as well as Jacob's Creek and Montana wines.
During the middle of this year, Pernod Ricard announced €5.626 billion takeover of V&S Group from the Swedish
