Absolute Vodka: Defending a1.0-Executive Summary V&S group, a Swedish company owned by the government created V&S Spirits to produce market and sell Absolut Vodka which is the company’s strongest brand (created in 1979). To maximise the brand’s market share and strengthen its competitive position, the company established a jointed venture called Future Brands LLC to distribute its products more effectively strictly in the USA, which is Absolut’s strongest market. Although the brand is the second largest premium vodka, its market share is threatened by the constant growth of the market leader Smirnoff. Therefore, V&S Spirits need to take further measures to ensure its brand’s image and market share is protected and advanced. V&S’s …show more content…
Since its launching in 1979, the brand has continued to achieve enormous success with a steady increase in sales volume and is now being sold in 126 markets nationwide, with North America being its top market. In the year of 2001 and in an attempt to be more aggressive in terms of increasing the brand’s market share, V&S Spirits formed a joint venture with Beam Global Spirits called Future Brands LLC to distribute Absolut Vodka strictly in the USA which is by far considered the brands strongest market. Additionally, the company acquired shares in Maxxium Worldwide which became the distributor of Absolut Vodka in 60 other major markets around the world. Although Absolut Vodka retains a strong position in its market segment, the brand is faced by the constant and threatening growth of Smirnoff, its biggest competitor and the world’s market leader. Furthermore, Absolut’s position in its biggest market, the USA has reached saturation and has low brand awareness in major markets like Eastern Europe (which is a strong consumer of vodka) compared to Smirnoff. Therefore, further analysis and action need to be taken by V&S either to preserve or to increase its strongest brand’s market share 4.0-Advantage/Disadvantages of joint venture: The decision of V&S to form a joint venture with Jim Beam brands and establish its own distribution company in 2001 seems to
The author chooses t0 write the report about Anheuser-Busch’s Bud Light because it is the best-selling beer in the world. In this report the author has outlined in detail the current status by using the SWOT and PESTLE analysis of the company Anheuser-Busch
As the manager of Starshine (SS) in the M&A in Wine country, the company has faced a dilemma of merge with a similar size company- Bel Vino (BV) or being acquired by the large industrial corporate- International Beverage (IB). This report valuate the deals and make judgement by evaluation. Finally, it will identify some issues related to the game.
Producing and selling high-quality products is the company’s marketing philosophy. Although Brown-Forman was the fifth-largest distiller in the United States, it spent a lot of money in advertising support in order to build best brands in the world. In a while, the whiskey market was in a depression. Brown- Forman faced a big challenge to overcome this period. In order to expand its product lines, Brown-Forman chose several of products which has fast growth in the alcohol
The premium wine segment is quite concentrated with high barriers to entry making mergers and acquisitions a strong and prevalent growth strategy. With industry analysts forecasting the demand for premium wine to grow at 8% to 10% per year, many former non-rivals are now becoming a threat. Jug wine producers are entering the premium market and beer and spirit producers
The company was recently presented an opportunity by its largest retail customer to significantly increase its share in their private label manufacturing. The prospect of growth was risky, since it
The strategy that Heineken uses is that of differentiation. This strategy gains market share and competitive advantage by distinguishing their products from their competitors through excellent design. A U.S. wholesaler recently asked a group of marketing students to identify a group of beer bottles that had been stripped of their labels. The stubby green Heineken bottle was the only one among the group that showed an instant recognition. This strategy also focuses on high awareness, easy accessibility, and new products. Heineken spent a lot of money on the launch of Premium Light; the first time that brewer had created an extension of its flagship
Vincor does market wine alternatives itself, as a way of dealing with substitute demand. Vincor makes cider and has a wine kit business division (Spagnols) that gives Vincor some product diversification. Partly because of the ease of competition and as part of the differentiation and protection of the Canadian wine industry, Vintners Quality Alliance (VQA), a quality assurance program that identifies Canadian premium grape content, assists in making start-up more difficult for those wishing to emulate Canadian wine brands. The dollars spent on marketing and brand loyalty play a large part in protecting market share and there are certain absolute cost advantages that contribute to establishing some barriers to new competition. Ultimately, there is little cost to the consumer when considering switching brands. Experimentation in wine drinking is often a characteristic of the wine drinking market and thus can contribute to promoting new substitute entry into the market.
Brown-Forman is a leading producer, marketer and importer of wines and distilled spirits. The company was the fifth-largest distiller in the United States. However, the company's success will largely due to the massive amounts of advertising expenditures on their premium brands. The company spent significantly less on low profit brands and as a result the whiskey market declined. Their response was to move into faster growing product lines to alcoholic beverages and this analysis considers a horizontal acquisition of the Southern Comfort brand.
This product is imported from France and is being sold for recreational purposes such as; socializing drinking, enjoyable times, and elegance class. It is said that nothing draws us together more than alcohol. Sitting down and having a drink with fellow peers usually leads to cheerfulness, laughter, and an all-around good time. The people in the visual allow one to remember the stress reliever that alcohol helps sustain. When individuals look at this depiction they receive a constant image of a worthy time running through their mind, so that when they go to the store and see the ultra-premium vodka they remember the advertisement and think about purchasing the merchandise. That then allows the buyer to put themselves in a similar setting, in which they relive the advertisement in their head. The people in the visual are socializing among each other which brings upon another reason to the selling of the product. It is show that this product is appropriate to have during social events as the group is seen with their drinks held high with positive facial expressions shown. The idea of this advertisement is to show that every brand represents something different, especially in the liquor industry. Since Sean “Diddy” combs is an equal share venture, he applies the alcoholic beverage to his lifestyle, which is rich and
In 1998, entrepreneur and MBA Guillaume Cuvelier was preparing for the launch of his new distilled spirit, Svedka Vodka. Cuvelier has decided to start a vodka company after working many years in the spirits industry. Vodka makes up a large share of the spirits American’s drink at 24% of all alcohol consumed (Zuckerman). Vodka consumption is also rising across the US. Svedka is going to be a newcomer in the vodka marketplace going up against many big opponents in products such as Smirnoff, Grey Goose, Stolichnya and Absolut. Cuvelier’s Svedka has gotten rave reviews from many critics for its quality, so a successful marketing campaign will not depend much
As the world’s largest brewer, AB Inbev has the ability to compete in new and foreign markets as a strong threat. Due to their enormous capital and expansion-based strategy, they can enter any market as a challenger and shutdown competition to become the leading brewer in this market. As an aggregated note we can also see this in domestic or already dominated markets because due to economics of scale they can achieve differentiated products at a low cost.
Vodka, an alcoholic beverage believed to have originated in Russia, is one of the most consumed spirits in the world. Vodka that was once rarely consumed outside of Europe before the 1905s has captured the international markets including the United States and by 1975, vodka market has
This report will critically be discussing the marketing strategy, position and the marketing mix employed by LUCOZADE and the use of some principles. Therefore, the analysis will help to identify how brand is positioned in the energy drinks market and how company promotes its product. After analysing existing marketing strategies, recommended future strategies will be given to advice companies of where the brands are leading to and how they will get there.
This report focuses on how the company innocent drinks developed their marketing strategy in terms of brand positioning and marketing mix and with the help of SWOT analysis,
Our project work is focused on external and internal analysis of the Carlsberg Company. The external analysis is meant to cover seventy percent of the work putting less emphasizes on the internal analysis. As well as we will be discussing the position of Carlsberg mostly on the Danish market, but we cannot avoid looking on other markets for comparing company’s performance as Carlsberg Group is an international company. In our BCG matrix we will look to 3 SBU’s that we think are the most important in Carlsberg Company. We are not using all theories and models that we have learned during this semester as long as not all of them are connected to our research and sub questions and would have given us unnecessary information.