marketing of absolut Vodka
Pernod Ricard whom had a limited knowledge or portfolio for the world’s well known liqueur, Vodka. A risk was taken by Pernod Ricard in 2008 to invest 8.9 billion dollars to acquire V&S. Although this beverage is made from an economy raw product, potato, however with the strong brand awareness and reputation Absolut Vodka as a world’s leading premium vodka. It is conveyed that this acquisition of V&S was due to the existing Absolut Vodka. The phrase of acquisition allow Pernod Ricard to enhance his portfolio and diversify risks, also to be compatible with Smirnoff by increasing market share with a goal to move up from the rank of twentieth to the second largest vodka producer. The success is given that Pernod Ricard had bought an established brand instead to develop a new brand with risk of failure, it saved sunk cost and increases good will, in the same time developed a new market segment for Pernod Ricard.
2.
Absolut Vodka in the US market has reached saturation point, the potential for a significant market share is minimized. The exportation is dominated by US with 50 per cent, however a new trend of consumer behavior is identified as US has developed for drinking ‘less but better’. In order to maximize its sales in the US, The Absolut Company should focuses on sales promotion with stronger advertisement and media campaign to bring along a message that Absolut Vodka is a clearer and better quality vodka in comparison to others. In addition, re-pricing can be considered to sell super-premium product at premium price, meanwhile increasing both brand awareness and reinforce brand image. Moreover push and pull strategy in supply chain should be integrated, also negotiate with ‘off-premise’ retailers to stock product in an obvious place. Additionally, mass media promotion can use to target the general public, it is expected that word of mouth referral is an effective way to attract potential customers by will be referrals by friends to attract customers to
2.
Absolut Vodka in the US market has reached saturation point, the potential for a significant market share is minimized. The exportation is dominated by US with 50 per cent, however a new trend of consumer behavior is identified as US has developed for drinking ‘less but better’. In order to maximize its sales in the US, The Absolut Company should focuses on sales promotion with stronger advertisement and media campaign to bring along a message that Absolut Vodka is a clearer and better quality vodka in comparison to others. In addition, re-pricing can be considered to sell super-premium product at premium price, meanwhile increasing both brand awareness and reinforce brand image. Moreover push and pull strategy in supply chain should be integrated, also negotiate with ‘off-premise’ retailers to stock product in an obvious place. Additionally, mass media promotion can use to target the general public, it is expected that word of mouth referral is an effective way to attract potential customers by will be referrals by friends to attract customers to