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Canadian Club Whiskey

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Justine Trusso

on 2 May 2012

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Transcript of Canadian Club Whiskey

Or Should We Go? Should We Stay? Overview Market
Analysis Problems Alternatives Choice
& Defense Conclusion In 2007, the Senior Brand Director of Canadian Club needed to re-evaluate
his marketing
strategies Dennis Prado inherited the first national CC marketing program the brand had seen in a decade 2005 2006 IMC strategy was to become a major sponsor within the Indy Racing League. Sponsorship of the Andretti Green Racing IndyCar team's racecar #27 driven by Dario Franchitti Canadian Club was aquired by Beam Inc. Canadian Club Whisky was #2 in the world Continued 2nd season because "Continuity is crucial" -Prado Franchitti won the Indianapolis 500 and brand experienced incredible success from that point on Franchitti won 2007 IndyCar Series Championship Franchitti announced he was leaving IRL in exchange for NASCAR 2007 ? $4.95million CC knew that a critical part of an effective marketing strategy was to engage all aspects of the marketing mix When evaluating the situation 3 objectives were kept in mind
Consumer objectives
Trade objectives
Financial/Performance objectives In 2006 when the "Canadian Club Racing" program began the Company focused on the promotion mix
Sales Promotions
Personal selling Long-term continuity is vital for the success of a major sports sponsorship by a consumer brand Franchitti’s 2007 winning season helped build positive brand momentum Program objectives are still relevant to the CC brand Customer Competition 10% budget were one-time expenses IRL popularity is projected to grow especially if the IRL merges with its rival-motorsport, Champ Car In 2007, 36.8mil quality consumers identified themselves as IndyCar Series fans CC gained a great deal of exposure & positive feedback over the last two years due to a 9% increase in IndyCar fan interest. Seeking to grow its brand by reaching demographics of 25-39 without alienating core consumer Core consumer = 45+ males Canadian
Club Core fan = male 25-34 Indy Racing
League 1. Increase budget and follow Franchitti to NASCAR 2. Stick with the IRL & sponsor another star driver from Andretti Green Racing Team 3. Get out of racing all together 4. Start a new program or advertising campaign The Company's Customer Goals Increase top-of-mind awareness and brand relevance among target customers Promote social responsibility through another campaign directed at IRL markets as well "drink smart" Context 50% of Canadian Club's domestic net sales were in the 12 IRL markets ROI for advertising was $36million
The total cost of "Canadian Club Racing" = $4.95million According to our calculations:
Return on Advertising per dollar spent = $7.27 of profit
per every dollar Estimated 650,000 customers either viewed the car or talked to the crew about IRL or "drink smart" promotion. According to our caluculations,
this translates into a $0.19 per person exposed Street legal 2 seater car = $126,000 SOCIAL
EXPOSURE IRL has a significant presence in 80% of Canadian Club's top Markets This further proves the alignment between customers According to Case Study All major Spirits sponsors in motorsports are premium whiskies
Jim Beam (NASCAR)
Jack Daniels (NASCAR)
Crown Royal (NASCAR)
Johnny Walker (Formula 1) Canadian Club needed to be associated with the leaders of the premium whisky category Top Competitors Crown Royal Canadian Mist Seagrams V O 2007
Market Share 29.0% 12.8% 7.9% **Canadian Club market share was 8.8%
with $1.3mil in sales** $4.1mil in sales $1.9mil in sales $1.1mil in sales Economic
Considerations 2003 = 3% change
2004 = 3% change
2005 = -1% change
2006 = -4% change
2007 = -1% change According to Our Calculations *But from 2002-2007 there was only a 0.4% decline in Sales* Sales % Change Compared to the Previous Year's Sales Year brand was aquired Inflated Inventory levels because excessive levels of stocks were being carried by distributors First full year of IRL sponsorship and post Franchetti wins Demographic
Considerations 2007: IndyCar series was broadcasted live to 308.47mil homes 2007: Total cost to advertise in the IRL = $6mil 2007: Advertisting Cost = Average of $0.02 per household Therefore According to Our Calculations Was Franchitti the key ingredient to executing the original IMC plan? Will the IRL continue to grow as expected? Will the possible merger between Champ Car and IRL create more marketing opportunities for sponsors? What are other advertising and IMC approaches? #1 #2 #3 #4 Official
Problem With the loss of Franchitti, the IRL's racing star, should Canadian Club Whisky continue its sponorship for 2008 or develop an alternative IMC strategy? This is the main problem because Canadian Club would not have questioned its sponorship in the IRL if Franchitti was still the racecar driver REASON 2004-2006: IndyCar Series fan base increased by 12% In 2007, media coverage and exposure increased by 43% This was the highest % change of any professional sport Stay in IRL and sponser a new AGR team driver BECAUSE... Majority of Competition is involved in NASCAR
A larger budget is highly unlikely because Beam Inc. would demand results far ahead of projected revenues Millions of dollars have already been invested and the IRL target customers do match the customer demographic Canadian Club is trying to attract Franchitti's victories are what marked the IMC success. There is no guarantee a new driver will be as successful as Franchitti In November 2007 the Company launched an Ad campaign to reach a wider target market. A wider target market could benefit the Company because not all consumers are race car fans "Damn Right Your Dad Drank It" Lets hit
the gas
and cross that finish line TV Ratings in Indiana, Michigan, Illinois, and Wisconsin increased during racing period "Should We Stay
or Should We Go?" Involvement in the IRL increased Canadian Club's brand equity and brand awareness Continue to sponsor AGR racing team Our Market Analysis stressed the alignment of the target markets Canadian Club wants to reach 25-39 year-old male customers

IRL core fans are 25-34 years-old In order to keep up with the competition, involvement in motorsports might be CRUCIAL "Long term continuity is vital to success" To be a top-of-the-mind brand
REPETITION is key IRL growth potential 2004-2006 12% fan increase OUTSIDE RESEARCH: Case Study 3
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