Analysis of Competitive Advantage in an ‘Absolut’ World

Analysis Of Competitive Advantage In An ‘Absolut’ World
An Illustrated Report

DESIGN 1
ARTD 6058

Aleisha Pillai
MA Design: Design Management
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Winchester School of Art
University of Southampton
ABSTRACT

This illustrative report explores the unique ‘Absolut’ brand of vodka. Currently the fourth biggest brand name in the liquor market, Absolut has managed to sustain their competitive advantage through areas such as innovation, design and branding. Using Porter’s (1985) generic competitive advantage model, this report analyses and critically evaluates how ‘Absolut’ has used the Differentiation Strategy in order to garner competitive advantage in the liquor and spirits industry.

CONTENTS

Absolut – The Story……………………………………………………………………………………………….4 Introduction………………………………………………………………………………………………………4 History of ‘Absolut’…………………………………………………………………………………………….4 Production – The ‘One Source’ Concept………………………………………………………………4 The Absolut Brand………………………………………………………………………………………………5

Competitive Advantage in the ‘Absolut’ World……………………………………………………..6 Types of Competitive Advantage…………………………………………………………………………7 Differentiation Strategy…………………………………………………………………………………………7 Quality……………………………………………………………………………………………………………….7 Product Innovation…………………………………………………………………………………………….8 Design………………………………………………………………………………………………………………..9 Packaging Design…………………………………………………………………………………………….9 Marketing & Advertisement Campaigns ………………………………………………………….10 Brand Value…………………………………………………………………………………………………….11

Conclusion…………………………………………………………………………………………………………….12
Bibliography………………………………………………………………………………………………………….13

ABSOLUT – THE STORY

Introduction
Currently the fourth largest spirit brand in the world, Absolut Vodka is a subsidiary of Pernod Ricard, the world’s co-leader in spirits and wines. (Top Ten Premium Spirit Brands Worldwide 2007, 2007). Considerably

Bibliography: COMPETITIVE ADVANTAGE IN THE ‘ABSOLUT’ WORLD According to Armstrong (2006, p.121), “every organizations faces competition from other organizations that make similar products Armstrong, M. (2006), A Handbook of Management Techniques, Revised 3rd ed., London: Kogan Page Ltd. Giep, F. & Moriarty, S. (2009), The Science and Art of Branding, New York: M.E Sharp, Inc. Gobé, M. (2001), Emotional Branding: The New paradigm for connecting Brands to People, New York: Allworth Press. Gobé, M. (2007), Brandjam: Humanizing brands through Emotional Design, New York: Allworth Press. Haig, M. (2004), Brand Royalty: How the World’s top 100 brands Thrive & Survive, London: Kogan Page Ltd. Hollensen, S. (2007), Global Marketing: A Decision Oriented Approach, 4th ed., Essex: Pearson education Limited. Lewis, R.W. (1996), Absolut Book: The Absolut Vodka Advertising Story, Boston: Journey Editions. Mullman, J. (2007), Why Absolut said bye-bye to the bottle; No longer a top-shelf brand, giant abandons 'perfection ' campaign, Advertising Age, 28 May. Porter, M.E. (1985), Competitive Advantage: Creating and Sustaining Superior Performance, New York: The Free Press. Rectanus, M. W. (2002), Culture Incorporated: Museums, Artists and corporate Sponsorships, Minneapolis: The University of Minnesota Press Schmitt, B Websites Absolute The Story [Online], 2004, V & S Vin & Sprit AB Top Ten Premium Spirit Brands Worldwide 2007 [Online], 2007, V & S Vin & Sprit AB. Available: http://www.absolut.com/uk/About/Corporate-Information/Corporate-Information/, [ Accessed: 10th November 2010] Images