What Are Jack Daniel's Competitors

Your NAme
Class
Final Paper
Dec 14, 2009
Jack Daniel’s When you think about North American whiskey what is the first name that comes to mind? For me it is Jack Daniel’s Tennessee Whiskey. Jack Daniel’s is one of the best selling liquors in the world and has been around since 1875. With it classic look and taste Jack Daniel’s still continues to grow in sales over the past couple of years and still provide for its long time costumers. The product that I will be discussing throughout this paper is Jack Daniel’s whiskey which is considered a good. This good can be purchased at any local Liquor store or were ever your purchase your alcohol. In the generic market Jack Daniel’s has to compete against all other alcoholic beverages, wines,
spirits, beer, etc. In this market there are many products that may satisfy the customer. It is all based on their needs and wants as to what they want to purchase when it come to alcoholic beverages. Where as in the product market Jack Daniel’s serves to people looking for just whiskey specifically, were they have to compete against other whiskey products. The target market would be to anyone who is over the legal drinking age of twenty-one, but specifically they are looking for people who like to drink and enjoy whiskey. So that they know they continue to buy their product again. It is not one of the cheapest whiskeys around so it is more focused towards adults, who can afford to buy and enjoy the whiskey.
For Jack Daniel’s they have a very large market to cover. They distribute world-wide so they have to segment their market to provide for each of their customers. They probably would like to be homogenous within so that all of their costumers have the same likes and dislikes. Also substantial in that they are trying to cover the largest homogenous group, that would be profitable. When competing in their market they need to look at many demographics to help them do this. Age and income are a huge factor in deciding how they are segmented. First of all you have to be over 21 to purchase the product. With a price higher than most whiskeys they are serving people who can afford it and this would be older adults who have a steady income. It is not economical younger adults to be spending all of their money on Jack Daniel’s. Gender also has a lot to do with who is buying whiskey. Mostly men are the whiskey drinkers while women stick to lighter liquors, most of the time. The product that Jack Daniel’s sells comes in many different sizes. It can be from a small as a mini bar bottle or you could buy up to a half gallon. They are a brand name and their product comes in a Glass bottle with white and black labeling. It is a classic design that has been around since they produced their first bottle. The quality of their whiskey is above all else. They have produced the same type of whiskey since they opened their doors. The average price for a bottle of Jack depends on the size that you get. A fifth or normal sized bottle normally coasts around twenty five to thirty dollars, while their half gallon size comes in around forty five dollars. The only place to buy Jack Daniel’s is at a Liquor store or if you are not located in Pennsylvania, anywhere you would buy your alcohol. It can only be purchased at places that can sell alcohol. As for promotion they stick to their old fashioned commercials. They are in black and white, just like the labeling on the bottle, and they try to drive across the point that they are the oldest distillery in North America. Also that they continue to produce the same great whiskey loved by generations before hand. One major uncontrollable factor would be the state of the economy. If it is down people are not going to be spending the money on expensive liquor when they have the option to buy a cheaper brand. Jack Daniel’s objective is to create the highest quality whiskey for their customers.
They want them to enjoy the product and to buy it again. The competitive environment would consist of any other alcoholic beverage. They have to compete worldwide against many different types of liquors and not only that but then compete in the whiskey market throughout the world. In the legal system there are many rules surrounding alcohol. First you need to be over 21 to purchase the product. After you consume it you cannot operate any motor vehicle since it impairs your driving or you will be charged with driving under the influence which is one of the strictest laws in America. They also had to change the proof of the liquor because of a new legislation that changed proofing from the British Method to the 1:1 U.S. conversion system. Culturally and socially Jack Daniel’s has affected many people. The Jack Daniel’s brand has been frequently been but into songs, movies, and books. It also has a strong association with country music and rock and roll. The one big point about Jack Daniel’s is that people who drink it do not consider themselves whiskey drinkers; they consider themselves Jack Daniel’s drinkers. For example Frank Sinatra was buried with his Jack Daniel’s flask and was also a major help in boosting sales throughout the 1950’s and 60’s. Also Lynard Skynard use to use their label for t-shirts and posters. This adds to their competitive advantage by getting their name out there.
Also helping them is the fact that they have been around since 1875. Jack Daniel’s does meet all of the four economic utilities. It comes already for you to consume. It can be purchased when you need it as long as the store is open. It is always in the same place which is at the liquor store, were they then posses it after they pay. For Jack Daniel’s they really do not have to penetrate the market.
They are an established company for over 130 years. Same goes for marketing development. They really are not developing any new strategies. They continue to use the same strategies they have used for years. As for product development they have been making new products. They have recently started producing two other types of whiskey that are even more expensive but offer a higher quality of whiskey. They also now offer malt beverages. It is a pre bottled Jack and Coke basically. As for diversification you can get Jack Daniel’s but on everything you own from a bar stool to a watch. You name a product and they have probably tried to put a Jack Daniel’s label on it somewhere. This help to promote more sales and get their brand name out
there. I would put Jack Daniel’s under shopping product products when talking about consumer product classes. The consumer is looking for that one specific brand of liquor that they want to buy. They are making an effort to buy a special specific type of whiskey. There are many psychological needs, social needs, and situational factors that go in to buying this product. When people are looking to have a good time or are distraught they sometimes turn to alcohol to satisfy their psychological needs. Alcohol is an addictive substance and sometime people need it to satisfy them. People also like to use drinking as a form of satisfying their social needs. They go out and socialize either at bars or parties to meet new people or enjoy the company of old friends. It could be used in all types of situations that satisfy the consumer. It all depends on what the consumer wants to do with the Jack Daniel’s. It is there to satisfy their wants and taste buds.