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Absolut Vodka: The Spirit Of a Brand
Transcript of Absolut Vodka: The Spirit Of a Brand
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
General economics conditions
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
and it's impact
The forces have a collective
long-term industry's growth rate
the target group
product and marketing innovation
focusing on the same markets
United States, Europe,
most used distribution channel
e.g. Grey Goose, Absolut etc.
Absolut, Svedka and Grey Goose target same markets
use same distribution channels
every production process of vodka is similar
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
“the cheaper vodka the better”
premium vodka for
with a high income
Who like to show of
Presents to VIPs
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.
Absolut Vodka of graphic identity
it is the image of a lifestyle.
higher price strategy
That's right. The product is worth a lot.
ABSOLUT WARHOL (1985)
Premium category vodka
Unique design of the bottle
Own webpage and Facebook profile
Ice Bars in major cities
High brand recognition
Controversial marketing campaigns in the past
Reaching people drinking “less but better”
Less restrictions or trade barriers
Higher standard of living in developing countries
Appeal to young people
Desire and curiosıty of new advertisements
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
-Longdrink, cause it's one of the most drunken longdrinks
...why should this be successful ?
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