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Alejandra HC

on 7 May 2013

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Transcript of ABSOLUT VODKA

Product and Market Characterization
Absolut Vodka Sales
Pernaud Richard House of Brands
SWOT Analysis
Market Positioning
Analisis of the offer
Selling Absolut Vodka
Consumer Behaviour and Demand

- Introduced in the United States in 1979.
- It is the forth largest international premium spirit in the world.
- You can find it in 150 different markets.
- Absolut is the number 2 brand of premium vodka.
- Every bottle of Absolut is produced in Åhus, Sweden.
- More than 80 thousand tons of grain is used to produce Absolut per year
- In the production of Absolut Vodka, a process called distillation is used The Absolut Company Analysis of the offer Advertising market: 163 millions of euros. IMPORTANCE OF THE SPIRIT DRINKS SECTOR Consume of tourists: represents 12.65% of the total. Economy impact: about 5.639 millions of euros. Analysis of the offer Division of the market Whiskey: the leading spirit drink: 31,8% Rum: 14,1%
Brandy: 13,1%
Gin: 11,7%. Anisette: 6 %.
Vodka: 4,3 %
Fruit liquors: 3 %.
Creams: 2,4 %.
Punch: 1,7 %.
Tequila: 0,3 %. Analysis of the Supply Evolution of the market Rum has been the most dynamic drink.

Brandy has reduced its demand.
The traditional brandies: 67%
The reserve brandies: 26%
The brandies grand reserve: 8%. Black rum represents the 80% of the total of the rum consume. Analysis of the Supply Evolution of vodka in this market Rising of Vodka: facility to combine it in cocktails and another mixtures: PREMIUM SELECTION.

Grey Goose, Citadelle 6C, Karlsson's,Belvedere

“Vodka tonic”:a new way of mixing premium vodkas.

“Drinks less but brinks better”.

Elaboration costs: inferior than darker alcohol

Money for marketing strategies. Selling Absolut Vodka Since October of 2008, the French company Pernod Ricard distributes freely Vodka Absolut.

Strong wire of distribution: accelerating the growth of the brand.

Strategic alliances with local organisms:American group Fortune Brand.

Absolut Vodka is sold in bottles of 700 ml, 1000 ml and special packs. Selling Absolut Vodka It was of vital importance creating a good campaign of advertising and communication: TBWA.

Every campaign of absolute vodka is considered a piece of art.

Fundamental in the development of the selling of the product. PRODUCT AND MARKET CARACTERIZATION Facts: STP: ABSOLUT VODKA FAMILY (SUBPRODUCTS):

Absolut Peppar 1986 Absolut Apeach 2005
Absolut Citron 1988 Absolut Ruby 2006
Absolut Kurant 1992 Absolut Pears 2007
Absolut Mandrin 1999 Absolut 100 2007
Absolut Vanilia 2003 Absolut Berri Açai 2010
Absolut Wild Tea 2011 Absolut Orient Apple 2011 PRODUCT AND MARKET
VODKA: Absolut Vodka Company: The Absolut Company is a company within the Pernod Ricard group.
Composed by: ABSOLUT VODKA, Malibu, Kahlu Wyborowa, Luksusowa and Frïs.
The head office is located in Stockholm, Sweden.
Every bottle of ABSOLUT VODKA is produced in Åhus in southern Sweden.
MALIBU is the number one coconut-flavoured rum in the world, sold in more than 150 countries.
KAHLÚA coffee liqueur is the world leader in its category. SWOT ANALYSIS A SWOT analysis or SWOT matrix is a planning method with a fix structure which is used to evaluate the Strengths, Weaknesses, Opportunities and Threats involving a product, a place, a person or an industry. SWOT STRENGHTS Premium category vodka. Offers a unique taste and flavour.

Unique shape bottle. Bottle ads have won over 350 awards in the past.

Active in new media: Absolut website is extremely popular among the masses.

You can find it in 150 different markets. Absolut is the number 2 brand of premium vodka.

Absolut Flavours: more than 20 satysfies any customer

Ice Bar designed by international artists and sculptors In Stockholm, London and Tokyo.
Sponsorships: major events and programmes. PRODUCT AND MARKET CARACTERIZATION Absolut VodkaMarket Competition:
Top 10 Premium Spirit Brands Worldwide: 1. Smirnoff
2. Bacardi
3. Johnie Walker
5. Jack Daniel’s
6. Captain Morgan
7. Jose Cuervo
8- Jagermeister
9. Baileys
Location: Tres Cantos, Madrid MARKET POSITIONING Specialised Alcohol Store:
Located at Nuevos Ministerios, Madrid Lidl SuperMarket
Location: Tres Cantos (Madrid) Situated in accessible shelf.
Competitors (Smirnoff/Eristoff) just beside.
Variety of brand products not very wide; only basic flavours (rasberry, ruby red and apeach).
Absolut situated in the middle shelf at one side.

Vodka products were in the same shelf.

No product variety; only Absolut Classic. One whole section dedicated only for
Absolut Vodka.
Incredibly wide variety of products.
All 2012/13 flavours available.  
- Men and women 21–50.
- Looking for a high-quality, reasonable vodka
- Enjoy perception of class
- Target audience: youthful, active and urban
Focuses on upscale consumer who values art and fashion
Celebrated two years ago their 30th anniversary marketing to the LGBT community. one of the first ones to target to that audience. TARGET AUDIENCE TARGET AUDIENCE by COUNTRY - The United States accounts for more than half of the brand's sales revenue and the majority of its profits.
- Unsuccessful in Latin American market SALES
- Controls roughly 0.4% of the spirits market.
- In 2004, Absolut Vodka sold its billionth bottle
-In 2007, 96.6 million liters of Absolut Vodka were sold.
- In 2007, US is Absolut’s largest market where over 5 million cases are sold. INFOGRAPH OF SALES TRENDS in the INDUSTRY - Forecast from 2005 to 2015 annual growth of 13.3% every 5 years in tobacco and alcohol.
- Growing young drinking population are exposed to drinking ads in their teens. Source: Quantcast WEBSITE DEMOGRAPHICS EVOLUTION OF PRICE LIMITATIONS OF PRICE
- Absolut Vodka is a premium alcohol drink

- The flavored Absolut Vodka vary from the standard price range

- Limited editions are more expensive than the usual Absolut Vodka EXTERNAL INFLUENCE IN PRICE - As money grows in value through the years so does the price of commodities
- Improving the design of the exterior of the bottle
- Specific legal restrictions or taxes that are imposed on alcoholic beverages
- Keep up the status of being regarded a premium alcoholic drink Consumer Behaviour and Demand Introduced in America with SCEPTICISM No label in it and the bottleneck was considered as “very short”. V&S (Vin & Sprit) discovered the growing demand of white liqueur. Absolut Vodka has a 24% Brand Loyalty face to 12% of Smirnoff OUR SUCCESS OUR VODKA Have an ABSOLUT day. ABSOLUT success Won over 350 awards for“Bottle Ad Campaign” More than 1000 adaptations to the original Partners like Jean Paul Gaultier, AndyWarhol that brought followers of their own AkjoaB A USP is their brand image- Creating Brand Equity Overexposure in the media Product Placement Our success
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