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Absolut Vodka: The Spirit Of a Brand

by

Diana Andreea

on 14 October 2014

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Transcript of Absolut Vodka: The Spirit Of a Brand

2008
Absolut Vodka
in an

Absolute

World...

..Living..
Absolut Vodka
founded in 1879 by Lars Olsson Smith in Sweden

available in over 150 countries

global market in 1979

fourth largest spirit brand in the world
Components of the Macro-Enviroment
Demographics

Global forces

General economics conditions

Market-Size
2013 - total sales of 104,4 million litres
rate of growth
past 2003 7,7 %
past 2009 -5,2 %
current 2009-2012 3,0%
Market leader Smirnoff with 25,8

Absolut market share - 11,5
Porter's 5 Forces
Competition
and it's impact

The forces have a collective
impact on...
long-term industry's growth rate

the target group

product and marketing innovation


Strategic Groups
Demographics

focusing on the same markets
Price segments
United States, Europe,
Asia....
Distribution channels

Industry
Retail-Shop
Wholesaler
most used distribution channel
e.g. Grey Goose, Absolut etc.
via internet
Industry
Customer
Conclusion
Absolut, Svedka and Grey Goose target same markets

use same distribution channels

every production process of vodka is similar
Absolut's KSF
Absolut reaches every age bracket

customers are able to use every distribution channel

e.g. Cross-Channel distribution

vertical integration ( bought an own water well )

significant marketing invesments ( e.g. ice-bars )

STRATEGIC POSITION INTERNAL
Only one factory to serve whole world ‘Ahus’


“Every single drop is made in the same factory in the Southern part in Sweden called Ahus. So we can guarantee that wherever you drink Absolut in the world, it will taste the same and it is of the same quality."


Eva Hedberg, Absolut's director of Asia and the Pacific

Going to America
American dream...


“the cheaper vodka the better”

premium vodka for

well-educated

with a high income

Who like to show of

Presents to VIPs

BRANDING
In the case of Absolut Vodka, vodka is vodka; the only difference is the aesthetic difference.

With careful packaging, advertising and marketing.

Not just vodka, but also a lifestyle.
PACKAGING
Absolut Vodka of graphic identity

it is the image of a lifestyle.

PRICING
higher price strategy

That's right. The product is worth a lot.
ADVERTISING
ABSOLUT WARHOL (1985)
SWOT
Strengths

Premium category vodka
Unique design of the bottle
Own webpage and Facebook profile
Ice Bars in major cities
Different flavours
Sponsorships
High brand recognition
Long-running campaign

Weaknesses

Controversial marketing campaigns in the past

Reaching people drinking “less but better”

Opportunities

Less restrictions or trade barriers

Higher standard of living in developing countries

Appeal to young people

Desire and curiosıty of new advertisements

Threats

Rising cost of labour
Additional costs connected with overseas distribution or production
Stringent advertising regulations
Higher tariffs in import

Possible future strategies
2008 Absolut underbranded FRIS, a lower priced vodka

focusing on promotion for FRIS
to increase their sales and market share in the lower priced segment
Cooperation with Red Bull

Absolut - Red Bull
they will include each other in advertisement

both are premium products in their markets with high market share

the aim is to promote the
Absolut
-
Bull
-Longdrink, cause it's one of the most drunken longdrinks


...why should this be successful ?
Recommendations

focusing on Red-Bull Cooperation because it's cheaper to promote two Global Player's than FRIS Vodka ...( high competitor Smirnoff, Svedka ; it was not so successful in the past )

the risk of this promotion strategy is minimal, because of their market positions and their image
Full transcript