Svedka Vodka:
Case Study Analysis
Summary 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
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The risks associated with this pricing option are heavily outweighed by the benefits that can be found with establishing a new market and, therefore, this option should be pursued. This strategy matches the pricing objective Cuvelier had in mind; to optimize market share (Module 8A). However, it is critical to the success of the establishment of this new market segment that Svedka successfully brand themselves.
Promotion Options and Solution Branding is critical to a successful new product launch because brands better allow a customer to identify a firm and judge the product’s quality. Brands benefit the firm in that they secure competitive advantage, allow for a price premium over competitors and create strong brand loyalty (module 7A). All of these factors are critical to a product’s final identity and the connections that consumers will associate with it. Consumers also tend to associate an added benefit with successful brands. This is known as brand equity (module 7A). Svedka had established their brand identity early on. They wanted to be known as high quality vodka at a relatively inexpensive cost.
A successful branding technique that Svedka could employ would involve piggy backing off of the success of one of their main competitors: Absolut vodka. Prior to this time, Absolut has been the sole distiller of Vodka that is exported from Sweden, and is considered to be extremely high in quality. By branding themselves as the other Swedish vodka, Svedka
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
Absolut vodka is based on 500 years of tradition originating in Sweden. Under the original name “Absolut rent branvin,” which means “absolutely pure vodka,” Absolut was introduced in the United States in 1979 and since has become one of the world’s most famous spirits. The advertisement campaign, In an Absolut World, was just another successful entry in the company’s advertising history, and Absolut advertising continues to be recognized as pure genius (cite). The purpose of the In an Absolut World campaign was to convey the idea that Absolut is indeed in a world of its own. The campaign challenges customary view points by presenting a
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
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 strategy seem challenging since this strategy focus on capture new market and new demand, which it’s required extra efforts in term of innovation of products and promotion in order to make customers realize about their product. Even there are some discussions about the blue ocean strategies; however, based on my review on customers comment said that the practical guidance on how to create them is limited. Therefore, without usual analytic framework which can be used as guidelines to create blue oceans as well as effective principles to manage risk, creating blue oceans viewed as too risky for managers to pursue as strategy for their company.
However, there is still the question of why and how the success of this company was brought. It offers the same products with Absolut, yet it had much more success and fame. The similarities of the two companies are quite striking. An example of that the flavors of vodka that can be found in both companies are berry, vanilla, citrus, orange, peach and melon. If we were to use Marketing terminology we could refer to it as the “Me-too-product”. If we take into consideration us, meaning the customer, it does not make any sense to buy a new and unknown vodka that offers the exact same flavors as Absolut. Thus, in order to do so, the SKYY Company had to change the way it was presented as it had lots of competition in the market. As the Absolut Vodka established itself with the “universal shape of the
These days all major global organizations are focusing towards the latest concept of Strategic Management, "The Blue Ocean Strategy". This concept, which seems new, is actually hundreds of years old. It gives the idea of creating Blue Oceans by building a new market space and making the competition irrelevant. This paper will discuss in detail the concept of Blue Ocean Strategy, its evolution, principles and its practical application in the real world.
Blue ocean strategy is a marketing book by W. Chan Kim and Renee Mauborgne in the year 2005. The book mostly borrows from a range of over 140 strategic marketing moves within a period of over a century. The book succeeds in showing how businesses, can outdo their competitors. Not because of battling them, rather, because of what the authors refer to as blue oceans, which consists of uncontested market space.
Russia has recently seen a decline in vodka sales. For Beluga Vodka Company, this is the right time to consider expanding to another region where they can enter the premium market to sell their luxury brand of Vodka. Beluga Vodka is the top vodka producer in Russia, with only one existing direct competitor in the UK. Their super premium brand has been highly successful in Russia and it is now the right time to expand the brand geographically. The UK is the target region for this report as there has been increase in premium brand spirits following the recession. This report will cover a brief situation analysis followed by a strategic marketing plan that will aim to introduce a BELUGA Vodka into the market.
The blue ocean strategy flies in the face of the traditional competition based strategies that are taught to most MBA students. Despite acknowledging that competition based strategy is necessary for red ocean companies to survive, the authors contend that they are not enough to maintain high performance.
Give one example of a company pursuing blue ocean strategy and one example of a
Diageo is a global leader in beverage alcohol with an outstanding collection of brands across spirits and beer – a business built on the principles and foundations laid by the giants of the industry. Diageo picked Africa as a potential market using Global Branding strategies. I am going to explain their strategies and early mistakes and their success in this essay (Trefis Team, 2015)
Since an increasing number of people focus on brand names instead of product, brands become important elements for customers to choose products (Carroll, 2008). When customers trust the brand, the benefits for the manufactures are generated. In the first place, brands can be used by products as the tool to identify and differentiate themselves from various products. Secondly, brands are helpful for companies to build a competitive advantage (Bick, 2009). Therefore, organisations take more attention to branding.
The authors of the book 'Blue Ocean Strategy' are two friends who dedicated the book to their friendship, loyalty and belief in one another. They are: W. Chan Kim and Renée Mauborgne. They met twenty years before publishing the book, in a classroom – one as a professor, the other as a student. And since that time they have been working together seeing themselves like two wet rats in a drain.
Recognition is a powerful driver of preference (Hollywood et al., 2013) as consumers like to buy the brands they know and trust (Oeusoonthornwattana and Shanks, 2010). However, with large spirits companies moving their focus towards premium products, new tonic water products meeting the market have been designed to enhance premium gins and vodkas (Fever Tree, 2016). Several brands have marketed themselves by focusing on this growing demand for high quality spirits, emphasising the importance of “the quality of those you mix with” (1724 Tonic, 2016). If consumers perceive an alternative product’s value to be greater than their usual brand, perhaps they would change their purchase behaviour.