1 Examining the Vodka Industry: Smirnoff vs. Absolut BIA Presentation By Blair Coward and Mollie Jo...
-
Upload
george-carr -
Category
Documents
-
view
222 -
download
0
Transcript of 1 Examining the Vodka Industry: Smirnoff vs. Absolut BIA Presentation By Blair Coward and Mollie Jo...
1
Examining the Vodka Examining the Vodka Industry:Industry:
Smirnoff vs. AbsolutSmirnoff vs. Absolut
BIA Presentation By Blair Coward and Mollie Jo Holman
2
Company and ProductCompany and Product• Owned and produced by
Diageo, a British company.
• Brand began with a vodka distillery founded in Moscow.
• It is now distributed in 130 countries.
• Smirnoff products include vodka, flavored vodka, and malt beverages.
Smirnoff No 21 Vodka: The world's leading vodka.Results 2008-25.1 million 9-litre cases-8% volume growth-12% net sales growthTop five markets1.US2.Great Britain3.Canada4.Brazil5.South Africa
Situational AnalysisSituational Analysis• In 2006, vodka was the largest growth category of any
major international spirits sector.• Total global consumption in 2006 increased 1.6%, or over
8m cases, to top 513.5m cases, according to the International Wine and Spirit Record estimates.
• Recession-weary U.S. vodka drinkers are switching to lower-priced rivals such as Smirnoff, Skyy and Svedka, this has hurt Absolut.
• Smirnoff is the largest vodka in the U.S. by volume Absolut is the second-largest, according to research firm Beverage Information Group.
Competition AnalysisCompetition AnalysisBrand Producer Ad Campaign Summary
Smirnoff Diageo
Used to emphasize purity and its premium-status, now markets interactive “Be There” campaign focusing on sharing special moments in life.
AbsolutPernod Ricard
Long running ad campaign based on the distinctive bottle shape and the phrase “Absolut_____.” Currently “In an Absolut World.”
Grey Goose BacardiMarketed as a premium brand vodka and has luxurious lifestyle brand to correspond, for those who value refined subtleties in all aspects of life.
SvedkaConstellatio
n Brands
History of overt sexual ads, newest campaign set in 2033: introduces futuristic, party-going fembot Svedka_Grl, “Voted #1 vodka of 2033.”
SkyySKYY Spirits
LLC
Focused on Skyy Infusions with bold ads highlighting the blue bottle and the colors of the infusion and sexualized art.
5
Competition AnalysisCompetition Analysis
• “Diageo's Smirnoff -also lower-priced than Absolut- has been outperforming its rival.”
◦(David Kesmodel. (2009, September 4). Corporate News: Absolut's U.S. Sales Fall, Pressuring Its New Parent --- Pernod Ricard Bet Big on Brand Last Year, but Recess.ion Has Led Some Americans to Turn to Less Expensive Vodkas. Wall Street Journal)
• Smirnoff's volume in North America rose 1% in Diageo's fiscal year ended June 30. The company has been offering mail-in rebates for Smirnoff and other brands this year in U.S. newspaper ads.
• It also for the first time rolled out new flavors of Popov, one of its discount vodkas, whose sales have risen in the economic slump.
Smirnoff Campaign Smirnoff Campaign ObjectivesObjectives
• To provide a platform for brand and consumer content around “Be There,” while using an engaging interface to communicate the brand’s tone.
““Be There” PositioningBe There” Positioning• “The campaign marks a shift away from a traditional marketing approach and aims to inspire consumers to experience and create exceptional, unexpected and inexplicable there moments for themselves,” said Anita Robinson, marketing director for Smirnoff.
• Focus on being there in the moment• Emphasizes having fun and sharing it with friends• Focus on being social , friendly, and lifestyle
based, as opposed to previous positioning emphasizing purity and its premium-status
““Be There” Messaging StrategiesBe There” Messaging Strategies
Target Audience Target Audience SegmentationSegmentation
Smirnoff “Be There”• New campaign focuses on
men and women 18-35.• Looking for a cheaper option
but still high quality.• Found mostly on the web.• Enjoy having a good time,
good sense of humor.
• New take on and continuation of “In an Absolut World”
• Recovery from Spring campaign.
• Emphasis on tradition, creativity, being genuine, classic yet modern and ready for the future.
““In an Absolut World” In an Absolut World” Messaging StrategiesMessaging Strategies
In An Absolut World• Men and women 21–50.• Looking for a high-
quality, reasonable vodka
• Wish to savor and enjoy beverage
• Enjoy perception of class
Target Audience SegmentationTarget Audience Segmentation
• “Be There” Campaign (7/13/09)• Commercials and online videos• Promotional Parties• Contest: suggest moment• Interactive Website• Media Tie-in • Facebook• Print and interactive ads (which
have not been released yet)
Smirnoff’s TacticsSmirnoff’s Tactics
• First TV spot• Making of TV spot• Print Ads• Interactive Website• Online Ads• Utilization of Facebook
and Youtube• Share your inspiration
feature• iphone application
Absolut’s TacticsAbsolut’s Tactics
• Smirnoff sales are increasing due to the economy
• Too early to tell direct impact from campaign• Mixed reviews from Critics• Success to be based on level of interaction and
response from possible consumers
Results of Smirnoff’s “Be There” Results of Smirnoff’s “Be There” CampaignCampaign
• Clean up the website and make it more navigable, since so much is website-based.
• Tie back in the purity factor.
Suggested Ways to Improve Suggested Ways to Improve Smirnoff’s IBPSmirnoff’s IBP
• Stick to the classic Absolut values
• Emphasize clarity and purity - “classic yet modern” nature of the brand
• Tie commercial to print endeavors as part of more cohesive campaign
• Reincorporate the bottle
Suggested Ways to Improve Suggested Ways to Improve Absolut’s IBPAbsolut’s IBP
• Website hard to navigate• Approach is very different from
previous efforts-will it resonate? Isolate part of market?
• Difference between being in the moment and sharing the moment.
• Very reliant on online media/events
• Emphasis on social media, yet no visuals of phones, cameras, etc.
• Campaign grows out of smaller marketing project in 07-08-will consumers find it hackneyed?
Smirnoff Weaknesses that Smirnoff Weaknesses that Suggest Opportunity for Suggest Opportunity for
AbsolutAbsolut
Suggestions for AbsolutSuggestions for Absolut• The U.S. accounts for more than half of the
brand's retail revenue and the majority of its profits, according to the industry journal Impact and analysts.
• Restoring volume growth in the U.S. will be "key," even though Absolut enjoys healthy growth in countries like Brazil and Mexico, said Laetitia Delaye, an analyst with Kepler Capital Markets in Paris.
• Absolut should stay the course• Smirnoff campaign great
concept but flawed in its deviation from its core values and a poor execution
ConclusionsConclusions
• Absolut can take advantage of Smirnoff’s deviation to present itself as the pure, classic, and innovative choice for consumers