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 liters (Pearson, 2014). Considering classification beer is most consumed drink in the world after that spirit than wine. According to Wright (2011) the most top 3 consumed drink in the world in year is Jinro soju (676555000 cases), Ruang Kao Thailand (30000000 cases) and Smirnoff vodka (2441400 cases).
Soju is said to be known or first distilled around 1300 AD during Mongol invasion in Korea. Soju is one of the most popular drink in Korea it captures 97% of spirit market in Korea (Miller, 2013). Soju is distilled spirit similar like vodka or rice liquor and comes often in flavor such as watermelon, lemon and apple. Soju is very smooth and fresh in taste and is mainly made up of rice with the help of other ingredients such as barley, wheat and sweet potatoes. Soju is a drink which is widely consumed with any meal and it is mainly consumed neat Soju has an average ABV of 18%-20% but sometimes it can reach up to 40%. There are many brands of soju such as Chamisul (Jinro), Chumchurum (Lotte Liquor), Chungpoong (Chungbug Soju), 02Linn and Virgina (Sunyang). Chamisul (Jinro) is one of the most consumed and largest manufacturer soju in fact it was the most consumed drink in year 2013 almost about 65 million cases more than double of Smirnoff which sold 25 million cases. It is mostly sold in the 360 ml packed bottled in Korea. Being the most sold alcohol in the world the problem with it is that is mostly consumed in its own country Korea.
Literature Review
Introduction to Korean Drinking Culture and Pattern
Drinking in Korean culture is appreciated it is sometime encouraged by elders, bosses and colleagues. Elder are given utterly respect in Korean culture when receiving a glass of soju from elders one must keep glass above left palm and hold it with right hand and bow the head slightly. There are some guidelines when drinking soju: first not ever pour your own glass and second don’t refill until the glass is empty.
Soju can be said a sit around drink it is generally consumed neat and with meal compared to other spirits.
Korea are considered one hell of a drinkers according to firwefeast.com article written by Cleo Von Sibbenthal Korean consume on an average of 13.7 shots of spirits per week comparatively which is way more than Russians (6.5 shots) and Americans (3.3 shots) in year 2014. According to survey conducted by Korean National Heal and Nutrition Board in year 2009 it is said that 69.3% of Korean population are current drinkers out of which 82.2% men and 56.8% women were regular drinker. Heavy drinkers are mostly consist of middle aged married men between 45 to 65 and in case of women heavy drinker are mostly young and unmarried women.

Introduction to American Drinking Culture and Pattern
U.S. Beverage market is one of the biggest market beverage market in the world, according to U.S. drink conference beverage industry market size 9.4 billion gallons and worth of $197.8 billion in year 2012. Beer was one of the most consumed and valued in year 2012 but its share is continuously declining and there is a 13.3 % growth in spirit and wine industry in U.S in year 2012 (Ginley, 2013).
A study conducted by gallup.com article written by Lydia Saad it says that 66% of U.S. population drinks alcohol age between 18 to 34 drinks most number of times in the week and age between 35-54 are the most people of U.S. population who drink alcohol. Age group of 18-49 of men and women drinks most comparatively to other ages. According to site that population of U.S. consumes alcoholic beverage 4.2 times on an average in year 2012.
Current Trend in Alcohol Industry in U.S.
There are various upcoming trends through which sales of alcohol industry are boosting such as: * Packaging- e.g. Absolut Bottle Ad was huge success * Flavored- Flavored Spirit Growth was 14% in U.S of Vodka and Whisky * Light- A low calorie drink is on demand e.g. Skinnygirl and Budweiser Select 55 * Pre-Mixes or Cocktails – These are on huge demand these days vodka sales are on rise due this particular trend * Interactivity- Doing some events, party which will increase and familiarize the beverage to local consumer. E.g. Smirnoff Midnight Circus.

Marketing Strategies Adopted By Vodka in U.S.
Vodka is most consumed spirit in U.S. it had 34% of share in spirit industry in U.S. itself and it is still increasing. Considering the trends Vodka is trying to emphasize on as many tends they can cover in U.S. such as Pre- Mix and introduction of flavor is one of them currently Absolut has 17 flavors and Smirnoff has 29 flavors. Vodka is trying to increase its market share by various market strategies such as more focusing on design and packaging with the help of iconization, storytelling in case of Absolut bottles so that consumer gets familiar with their product and different design of limited edition bottles. With the help of innovation and different introduction to flavors Vodka has given people a personalized feeling off course with help interactive such as events and parties. Vodka had more advantage to other spirits it is considerately cheap spirit comparatively to whisky or Tequilla or Liquer. Vodka like Absolut entering the U.S. market tried marketing with help of art and musicians to get popular among the people.
Marketing Strategies Adopted By Soju in Korea and U.S.
As we know Soju is one of the most consumed drink in the world but it also capture 97% of spirit market in Korea (Miller, 2013). Jinro Soju has used musician PSY (Gangnam Style) to promote the brand and they also have innovated their packaging to differentiate from its competitor and create ease for customers they have used temperature sensitive paper in their bottles sticky label there is a tab in form of a frog it turn white when bottle of Jinro soju is warm and it turn blue when it’s cold so giving consumer best taste at optimum cold temperature.
As soju is new to U.S. they Jinro has tried to keep contest in dodgers game targeting wider audience through sport and later awarding them with the party and also with the help music with help of PSY. Jinro Soju has also diluted its Soju when entering U.S. market which gives them ABV of approx. 20% per bottle this mean this spirit can be sold under beer and wine license in U.S. thus reaching to wider audience.

Critique
Soju is a drink which usually consumed neat and with meal and Vodka is kind of drink that is considered flavorless drink it gets mixed with any drink thus covering trends happening nowadays. This can be one of the major problem for Soju because U.S. is market which had growth of 14% in 2012 due rise innovation in flavors or due cocktails and pre-mixes. As Soju have chances to overcome the Vodka when considering packaging looking example of Jinro itself it follows temperature sensitive label so it will be easy to new market to know about spirit and how it is consumed.
Considering Vodka has continuously evolved with its innovative flavor thus giving audience wider range of product to choose in then end resulting to brand loyalty when considering Soju it doesn’t have that flavor and limited edition advantage comparatively to Vodka.
As there is excellent marketing strategies that soju can increase its market share in U.S. they have diluted their drink keeping under 25% so the spirit can be sold under beer and wine license so it has wider range of audience to sell its product thus giving advent age to company and bar owner. Generally it is all about money Soju is a very cheap drink comparatively to Vodka and little sweeter than Vodka comparatively.
Soju and Vodka both are trying to give premiumisation to increase its upper scale market too incase of soju it is Jinro Soju Gold.
Soju has one more advantage over Vodka when considering Light as trends in alcohol industry soju is very less in calories comparatively to Vodka thus it can give them huge advantage over Vodka because if we look the case of Skinnygirl has grown its market immensely.
Marketing Strategies that Soju need to work upon in U.S.
Soju has also some weakness that need to be looked upon to acquire Vodka’s market share such flavor plays key role in vodka growth’s soju need to take in under consideration. As U.S. has pre-mix and cocktail trend soju need to work on their cocktail recipes because it generally consumed neat with meal here vodka takes the advantage. Soju can apply market strategy like absolute did in past they made an app which guided there customer to make new cocktail drink with their brand.
As Soju is something new to American market they need to work on their interactivity such as doing events and parties basically promoting and familiarize their brand on wider customer base like Smirnoff did midnight circus which invited 2400 guest, created 4000 likes, posted 8000 photos and reached 800000 friends, promoting their with the help of social media thus making their presence in the market.

Conclusion
I believe Soju can overcome Vodka looking at strength and if they cover up their weakness in U.S. it is already cheaper and sweeter than Vodka. Though there are culture differences between Korea and U.S. market and if look alcohol drinkers in both country have same percentages near about 65%. Considering there marketing that they trying in U.S. can be considered as universal marketing strategy as most selling vodka Absolut and Smirnoff are also doing the same thing but they need to work upon current beverage trends taking place in America. The another problem there are facing is Soju just entered the U.S, market so they don’t have wider distribution channel if they need to increase their sale they surely need to work on this issue. If Soju takes on this weakness seriously such as covering trends and distribution channel I am bet sure it can give hell of a fight to vodka and affect its market share in U.S.

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