Svedka Case Study Analysis Essay

Blue ocean strategy, as a business method, is about company creating a new market or industry where there is no competitor. Companies play not by traditional rules, never use the competition as a benchmark. They could ether create greater value for customers at a higher cost or create reasonable value at a lower cost. Thus, the name of the program – find a blue ocean, a new ocean to swim in.

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

Having a branded product increases the volume of sales. However, brands also need to have a lasting impression on the clients in order to be appealing.

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

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.

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

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

The purpose of the blue ocean strategy is to focus on making the business itself better without focusing on the competition. Kim and Mauborgne (2005) state that “blue ocean strategy challenges companies to break out of the red ocean of bloody competition by creating uncontested market space that makes the competition irrelevant” (p. x). There are several analytical tools that have been created to challenge companies to become part of the blue ocean.

After gaining experience in the spirit industry for many years and seeing the growth trend in the vodka segment in contrast with most other spirits, Guillaume Cuvelier introduced a new vodka brand called ‘SVEDKA’ in 1988. However, since vodka is considered to be an identical product that has no distinctive attributes between each brand, creating points of difference is the real challenge to SVEDKA. A market analysis showed that vodka made up a 24% share of total spirits consumption and the market was divided into two segments; premium and low-priced tier vodka. Absolute and Smirnoff dominated the premium-price vodka segment and were encountering competition from the superpremium competitors. Low-priced segment, represented 80% of market volume, contained under-$10 vodkas such as Gordon’s and Popov. Cuvelier saw the opportunity for SVEDKA as the mid-priced option between high-end and low-end vodka. He chose to tap into the ‘Blue Ocean’ where there was no competition. Thus, he created a new market called ‘mid-priced’ tier and positioned SVEDKA in this market. He believed that SVEDKA could capture some volume sales from the under-$10 market.

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.

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.

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)

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.

Branding is the way that conveys the message of confidence, quality and reliability to their target market. Branding strategy is altered to differentiate the product from other competitors. The main purposes are product identification, repeat sales and new product sales. The first purpose is to develop a brand name with high brand equity that familiar and easy to indicates. Secondly, repeat sales depend on the development of customers’ brand loyalty to purchase the product again. The third purpose is to facilitate new product sales when introducing a new product to gain more attention and acceptance.