Preview

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

Good Essays
Open Document
Open Document
5048 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
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
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 strategic step of establishment Future Brands LLC in the USA yielded several advantages and disadvantages. On the one hand, main advantages are avoiding profit margins from intermediaries, maximization of sales, having more control over the value chain, and obtaining better market feedback. On the other hand, disadvantages are concluded to be potential drop in profits at the beginning, risking technology flow, having a high level of commitment, and suffering cultural differences. The market position in major markets for Absolut Vodka was identified and marketing strategies were proposed. In the US, the brand’s position was classified as ‘’Challenger’’ and a strategy of product differentiation of luxurious products was proposed. In Eastern Europe, the position is classified as ‘’Follower’’ while a Flanking attack strategy and intensive advertising were proposed to break customer loyalty to domestic brands. In Australia, Africa and the Middle East, the brand was classified as a ‘’Follower’’ and a Focused strategy on FABs was proposed. Finally, in Asia Specific, the brand was identified as a ‘’Challenger’’ and a differentiation/Focused strategy was proposed. In terms the branding strategies employed
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Best Essays

    AMBA 660 Dream Team Paper Week 10 Final

    • 3447 Words
    • 11 Pages

    AMBA 660 Dream Team Paper Week 10 Final

    Upon entering into the alcoholic beverage industry in South Africa, Heineken encountered several key issues including legal concerns regarding a contract with SAB Miller, a struggling subsidiary, outdated infrastructure, fragmented retail landscape, ever-changing government laws and regulations, and limited access to a skilled work pool. Since Brandhouse, Heineken’s subsidiary, has been able to establish a local production facility, it has been able to grasp 12.8% of the South African beer market. Strategies and business practices attributing to their success are strategic joint ventures (most notably the DHN JV) with industry giants, re-evaluation and realignment of business practices and organizational goals, innovation, rapid response, and strong CSR practices. Heineken’s entry into South African through the Brandhouse joint venture provides a successful entrance example for adult beverage companies to consider when planning to access to the market. It is highly advised that entry is not done alone. The market is established and highly competitive, leaving little chance of new companies succeeding. Pooling resources is the best strategy in this situation.…

    • 3447 Words
    • 11 Pages
    Best Essays
    Read More
  • Powerful Essays

    Marketing Strategy of Bud Light
    • 3673 Words
    • 15 Pages

    Marketing Strategy of Bud Light

    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 which is the producer of Bud Light. The Legal issues have been shorted because the discovered fact does not fit in the US market area. The following section shows briefly about the unique selling proposition and segmentation targeting. A short illustration of Bud Light segmentation is demonstrated in the appendix. With the limit of words, the author excludes a detailed illustration of the product life cycle and the Boston Consulting Group analysis. A critique is mentioned in the USP section.…

    • 3673 Words
    • 15 Pages
    Powerful Essays
    Read More
  • Best Essays

    Case Svedka
    • 2671 Words
    • 9 Pages

    Case Svedka

    Despite its many accolades, in 2008 Svedka was still viewed as a budget-brand spirit, which ultimately inhibits its success among the targeted 21-25 year-old market. Young adults are unwilling to compromise on either price or quality and want premium spirits that are affordable. Young adults also see drinking principally as a social event, so their regular complexes about fitting in and projecting a strong self-image factor into the brand selection process (Chris Haack, 2008). Premium brands like Absolut and Grey Goose dominate the nightlife market because people are proud to order them (Proof 66, 2008). Svedka deserves to be one of those brands. It’s been rated higher than both Absolut and Grey Goose, but its brand positioning is not living up to the originally intended position as a high-quality product offered at a value price.…

    • 2671 Words
    • 9 Pages
    Best Essays
    Read More
  • Good Essays

    Absolut Vodka Advertising
    • 1024 Words
    • 5 Pages

    Absolut Vodka Advertising

    Other considerations such as the image of the brand often come into account, and shows that brand equity is driven by brand image (Chen, 2010). Brand image could be defined as 'the perception about a brand as reflected by the cluster of associations that consumers connect to the brand name in memory' (Rio, Vazquez, & Iglesias, 2001). In order to get a positive image of the brand, it was vital for V&S to have Absolut Vodka advertisements work well with the American consumer and their society; but without diminishing the original Spanish identity from the…

    • 1024 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Global Household Brands Case
    • 1668 Words
    • 7 Pages

    Global Household Brands Case

    BMF consulting has evaluated the structure of Global Household Brands, in order to give recommendations for possible growth and stability for the future of the company. In this analysis, I have gathered information regarding financial statements, internal and external factors in Global Household Brands competitive structure, and strategic priorities in order for the company to grow in the household product industry.…

    • 1668 Words
    • 7 Pages
    Good Essays
    Read More
  • Better Essays

    New Product Launch Marketing Plan Part 1 Team B
    • 1240 Words
    • 6 Pages

    New Product Launch Marketing Plan Part 1 Team B

    The Absolut Company grew from the success of Absolut Vodka, a unique Swedish vodka that conquered the world on its own terms. In a little more than 30 years, Absolut Vodka has become one of the world’s best-selling spirits and has created a unique legacy of quality, creativity and originality that lives on to this day. At Absolut it is believed that greatness isn’t so much about what you leave behind you as what you see in front of you. The past is inspirational, future is aspirational. Greatness is all about vision (The Absolut Company, 2012). Through our vision and creativity we have created an all new organic vodka that we will introduce into both the domestic and international market. With our reputable brand, easily recognized packaging, and solid business model that has brought great success, Absolut Element will quickly become a best seller amongst both health conscious consumers and those follow trends and fads.…

    • 1240 Words
    • 6 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Easyjet
    • 1021 Words
    • 5 Pages

    Easyjet

    1. What are the main sources of equity for the brand? Brand equity helps the customers to recognize the brand among other brands quickly and to simplify the buying decision process. It is the differential effect of brand knowledge on consumer responses to the marketing of a brand. The two components of Brand equity are Brand awareness and Brand image. The main goal is to make sure that the way the consumer perceives the brand and the way the brand owner defines what the brand stands for overlap as much as possible. EasyJet derives the most from the perceived quality. “The perceived quality refers to; A customer’ opinion of a product’ value to him or her. It may have little or nothing to do with the product’s market price and depends on the product’s availability to satisfy his or her needs or requirements”1 Easyjet is really focusing on this aspect because they are expanding and they are already flying to 129 destinations mainly in Europe. The second source is loyalty, they try to exceed or meet the passengers expectations to make sure they will fly with EasyJet. They control whether the passengers enjoyed their flights by sending a questionnaire to the passenger several days after they have flown with EasyJet.…

    • 1021 Words
    • 5 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Branding, Pricing, and Distribution
    • 1512 Words
    • 7 Pages

    Branding, Pricing, and Distribution

    Branding, pricing, and distribution are all integral parts of a strategic marketing plan. Each segment of the plan needs to be developed individually with the entire culmination of the plan in mind. In other words, each segment should be a link in the chain to a completed marketing strategy. The ultimate goal is to reach a successful culmination of all three tiers that will have a successful impact in introducing the brand, pricing it correctly, and forming a distribution model that will maximize the competitive advantage to the company or service in question. This report will outline the steps in developing a local branding outline as well as an international branding strategy .The idea behind branding is to differentiate your product, value, quality or service from your competitors, and make it more readily identifiable to the end user. There are at least four questions that need to be asked before implementing a branding strategy. The first of course is whether to brand the product vs, a no brand decision. The second decision would be to use a manufacturers brand vs. a private label strategy. The third question entails whether to go with a single brand vs. multiple brands. The final decision is to decide whether to brand in a local market or a global market or a combination of both. Branding in a global market is much more complicated than branding in a local market. When branding in a global market. Culture becomes a major consideration. It is generally wise to chose countries that have similar or closely related cultures and, or language skills to expand your brand globally. International marketing is the last frontier of the marketing discipline. International marketing is yet to be fully explored but is being increasingly tested to reach an ever growing sea of future consumers.…

    • 1512 Words
    • 7 Pages
    Better Essays
    Read More
  • Good Essays

    Absolut Vodka’s Absolute Global Marketing
    • 320 Words
    • 2 Pages

    Absolut Vodka’s Absolute Global Marketing

    On a lovely morning of September 2009, with the fiftieth “beep”, Steven scanned the last bottle of the limited edition Absolut Vodka 2009 on the spirits Shelf of Selfridges London. The latest special-edition bottles of Absolut - packaged in a dramatic heavy-metal rock style, wrapped with golden studs and gray leather, rapidly become a spot light among the shelf, the whole spirit of Rock n’ Roll are simple illustrated by the new design, and just as its normal price, the Rock Edition priced at £19.99. Meanwhile, a celebration of Absolut Art was held by Absolut for its 30 years tradition of the company’s creative collaborations, Absolut Vodka also decided to fund an art annual award from 2010 in the world wide. In fact, Absolut Vodka launches the limited edition annually since the famous POP arts guru Andy Warhol volunteered him self in Absolut’s arts campaigns 1980’s (Absolut, 2009). Despite Absolut’s unique brand personality of fashionable and Arts-favourite, Absolute Vodka was also famous from its quality and its original distilling technique. Absolut Vodka is not the oldest Vodka manufacture, not the largest manufacture, and Absolut is not from the two famous Vodka nations (Russia and Poland) as well. But, with no doubt (TIMES, 2009), it is the most famous brand of Vodka’s. Absolut is really a legend. Absolut Vodka has been famous for its sensibility of fashion and its unique brand culture since the brand turnover in 1975. However, unlike Smirnoff (Diageo Plc) and Finlandia (Alko Group Ltd), the traditional technique of distilling and its country of origin are always keeping the same with its origin in Åhus 1879. Every bottle of Absolut is distilled in Sweden with domestic winter wheat which is firmly selected in Åhus. US market, as its first global expanding target, contributes more than around 58% profit for Absolut Vodka every…

    • 320 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Innocent Drinks Case Analysis
    • 862 Words
    • 4 Pages

    Innocent Drinks Case Analysis

    Innocent Drinks (“Innocent”) should start the European expansion because it has the largest growth potential and best leverages the core competencies of the company. The structure of the chilled drink business in Europe, especially for smoothies seems to be an oligopoly. A few large players take the lion’s share of the market. As such, Innocent has the potential to achieve similar market share as in the UK by expanding to new European markets and using its strengths in dynamic marketing, branding, and delivering a high quality product.…

    • 862 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Russian Standard Vodka Case Study
    • 1615 Words
    • 7 Pages

    Russian Standard Vodka Case Study

    Given the success of Russian Standard Vodka in the Russian and European Market, following the global branding vision, expansion strategy for US market needs to be defined. This case study will provide in-depth analysis to focus on evaluating expansion strategies and offering market entry recommendations.…

    • 1615 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Marketing Principles of Louis Vuitton
    • 4328 Words
    • 18 Pages

    Marketing Principles of Louis Vuitton

    Abstract: By systematically breaking down the strategy of the single Louis Vuitton luxury brand into the four Ps (Product, Price, Place, and Promotion), our aim in this paper is to extract the rules or principles of its brand marketing that differ from that of general consumer goods. In other words, the object is to distill the rules and principles of success strategies for luxury brands as well as to derive a business model for success. Showing that the current rise of Louis Vuitton is not a coincidence but rather something achieved through strategy will surely be of interest to firms struggling with lack of brand power or those looking to boost brand power. 1. Introduction Headed up by the Louis Vuitton (hereinafterreferred to as "Louis Vuitton") fashion label, the colorful array of over 50 brands managed by LVMH Moet Hennessy. Louis Vuitton S.A. (hereinafter referred to as "LVMH") includes Christian Dior, Givency, Celine, Fendi, Donna Karan, Loewe, jeweler Chaumct, Fred, watchmaker Zenith, Tag Heuer, alcoholic beverage maker Moet & Chandon, and the premium champagne Don Perignon, as well as DFS and Le Bon March€-the world 's first department store. The management and history of the company 's development were elucidated in the author 's previous book (Nagasawa2002). * Shin 'ya Nagasawa is a professor of MOT (Management of Technology) at Waseda Business School, Graduate School of Commerce, Waseda University,Tokyo, Japan, and also a visiting professor of ESSEC BusinessSchool, Cergy, France (2008-2009). He holds a Doctor of Engineering from Waseda University. This paper is revised from the paper presented on the International Conference on Management Engineering 2008, Kitakyushu,March 2008.…

    • 4328 Words
    • 18 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Saku Hbs Case Analysis
    • 1198 Words
    • 5 Pages

    Saku Hbs Case Analysis

    Sales of Saku Originaal, the company’s trademark product, has been declining. Saku want to determine if the profit from exporting the product to neighboring countries such as Finland and Sweden will outweigh potential loss of domestic sales of this product to tourists from these countries. Since the growth of cider and long drinks markets is reaching saturation point, the company has to decide if it should reposition or discontinue these product lines. The company also has to take steps to increase its market share in the growing bottled water, soft drinks and imported beer segments.…

    • 1198 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Good Essays

    Heineken Brand Value
    • 9441 Words
    • 38 Pages

    Heineken Brand Value

    Table of Contents Abstract ............................................................................................................................... 3 Disclaimer ........................................................................................................................... 3 Introduction......................................................................................................................... 4 What Branding is not .......................................................................................................... 4 Importance of Branding ...................................................................................................... 5 Branding and Advertising ................................................................................................... 6 Brand strategy ..................................................................................................................... 7 Branding commodities ........................................................................................................ 8 Brand extensions or brand stretching.................................................................................. 8 Global Branding.................................................................................................................. 8 Backlash against Brands ................................................................................................... 11 Brand Equity…

    • 9441 Words
    • 38 Pages
    Good Essays
    Read More
  • Good Essays

    What Serves the Customer Best
    • 284 Words
    • 2 Pages

    What Serves the Customer Best

    The case study is about the issues regarding the Scotch Whiskey firm, Glenmeadie. The Whiskey market is generally targeted at middle-aged consumers with a disposable income, as whiskey is considered as luxury product. The key issue in this case study lies upon which part Glenmeadie should invest more in product innovations or the front-end of its business. Glenmeadie is an accomplished Scotch Whiskey Company that proved its superior quality in the International Wine and Spirits Competition by winning four gold medals. The company’s Tastemakers programme which assists to improve interactions with customers and the Glenmeadie’s marketing performance had expressed in ‘Corporate Events’ magazine; which has proven that the company’s marketing is getting some recognition. For instance, the Glenmeadie made several marketing activities, not only a tastemakers programme in twenty-five different cities. The company also developed new interactive capabilities (Web site) and software such as gift card printing and label making and a new customer information phone service. The aim of the marketing plans by Glenmeadie’s CMO, Nevin Wallace, is “making customers feel a more personal connection with the brand” which encourages sales to rise quite dramatically. In spite of the fact that Glenmeadie has apparently made considerable efforts in its marketing, the whiskey company still has significant matters to cope with. According to a long-run view of the company’s successful future, Glenmeadie should make marketing or production innovations a priority. In order to do this, experts’ advice will help to get broader views.…

    • 284 Words
    • 2 Pages
    Good Essays
    Read More

Related Topics