Case Svedka essay

Premium brands like Absolute and Grey Goose dominate he nightlife market because people are proud to order them (Proof 66, 2008). Shaved deserves to be one of those brands. It’s been rated higher than both Absolute 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. Shaved doesn’t have a problem with brand awareness. Its current marketing efforts are reaching the right people, but they carry the wrong message.

The suggested campaign strategy during initial roll-out could have improved Shaved’ s brand image as a premium product offered at a value price and improved market segment positioning. The objective of the suggested campaign is to alter perception of the brand and ultimately lead to an increase in on-premise sales. This will allow Shaved to pick up market share from the declining nightlife staple Absolute (Gondolier, 201 1). Introduction Established in 1998, Shaved was launched as the first mid-tier vodka marketed to 21 – 35 year olds.

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Shaved was originally launched in states across North America. The expansion of vodka brands increased the desire for high priced liquor and awareness of the quality and appeal of vodka. Cavalier believed customers were willing to stretch their wallets in the mid-market odds industry to pay a higher price for a better quality, reasonably priced product. SHAVED vodka launched with a brand vision: to put fun back into the vodka category.

As the first brand to introduce a “cheap chic” market positioning, SHAVED became the one brand to let consumers have it all: a high-quality, premium import with a hip, fun brand image at an affordable price (Liquor. Com, 2015). Shaved Vodka, a young but promising brand in the adult beverage industry is a crowd favorite accepted by connoisseurs and occasional drinkers alike. It has been named a gold medal winner in many intentions, including the World Spirit and International Spirit Awards in 201 0, and the Exceptional Taste and Best Buy Competition in 2008 and 2009 (Shaved Imported Vodka, 2003-2015).

Despite success in competitions and overall ratings, Shaved has not yet reached its potential in terms of building a large market share. By redefining Shaved as a premium yet affordable vodka, it can successfully appeal to a broader market. Aiming simultaneously for audiences that like to socialize and enjoy life on a budget as well as more premium minded consumers, Shaved can be accessible to both because it continually offers a high-quality product. Market Segment Perception Sheave’s current brand image is plagued by a perception as an inferior budget spirit.

Young adults are a highly image-conscious, and they are hesitant to order a budget spirit when they’re out at a bar or nightclub with friends. Almost a third of 21-25 year-olds report that bars and nightclubs are the primary place where they consume spirits. Almost a third of young adults also say that they would not drink value-brand spirits around their friends. Shaved suffers in on premise sales compared to competitors like Absolute and Grey Goose primarily because it is seen as a cheap, immature brand rather Han the premium brand that it really is (Chris Hack, 2008).

Fundamentally, Shaved needs to communicate itself as a top-shelf brand at an affordable price point and make it known that it’s not just vodka for college students. If Shaved continues to be positioned as a cheap college spirit, its drinkers will quickly outgrow it. More mature positioning will allow Shaved to cultivate a generation of loyal drinkers. More premium positioning will subsequently lead to an increase in on-premise sales. This will also ideally position Shaved to claim market share from the declining Absolute (Gondolier, 2011 Suggested Marketing Strategy

Without the flexibility of a larger budget, Cavalier needed to allocate his budget carefully and was limited to selecting only a few areas and vehicles to deliver his message. At inception, the middle-tier market had not been capitalized on. Supplier’s vision was to persuade new vodka drinkers who are not brand loyal and the “upgrades” who sought something better than the basic is the key. Suggestions that may have improved branding and awareness would have included product placements in T. V. Shows such as Friends, Sniffed, and 90210.

These shows were targeted towards the 21-35 audience and were fun, citing, and trendy. Pop culture was heavily influential in the 1 9905. In retrospect, it would have been highly recommended that Cavalier spend some of his marketing budget in traditional media. At a minimum, he could have advertised on affordable radio stations that his target market was listening to. Media Strategy The outlook for vodka remains optimistic, but the category is more crowded than ever. Ad spending is consequently vital; particularly for high-end brands.

Although their key audience is comprised largely of tech-savvy young adults, research shows that social media advertising is considered to be the least important medium and consequently proves less effective. To reach the target market utilizing today’s resources, the media strategy should include media appearances in influential publications such as Nylon Magazine, Rolling Stone, and GO as well as popular cable television channels like E! , MAC, and FIX .

Alternative Strategic Option If we ignore Supplier’s initial budget, we could expand his initial public relations media strategy to include larger publications and media outlets. In addition, Cavalier could have sponsored concerts and music festivals. Cavalier could also have increased his geographic focus of on-premise channels, night clubs and bars, and hotels and restaurants missed in his initial roll-out. The benefits would have been a quicker national awareness and acceptance of the brand. The cost would have been a substantial increase to the planned budget.

The risk would have significantly Increased if the brand was not quickly accepted that the added expense may have put the brand in jeopardy of bankruptcy without immediate revenues to replenish cash flows for additional marketing and production. Product Concept Shaved needs to be depicted as the premium yet affordable spirit that it is. Shaved is differentiated by its extraordinary quality in relation to price and its Swedish origin, which it has in common with other stylish low-cost brands like H and Kea (N.

Frank, 2012). Shaved needs to be shown as a social spirit to proudly enjoy with friends, not a cheap “at home” brand to keep secreted away. Positioning Statement For 21-25 year old spirit drinkers, Shaved is the only vodka that delivers high quality taste for an inexpensive price, because only Shaved is made from the finest wheat and freshest spring water found in Sweden (Shaved. Com, 2003-2015). Target Audience Shaved targets 21-25 year-old spirits drinkers across North America.

This group is largely made up of students and young professionals, so budget is a major consideration. Young adults are looking for a low cost way to enjoy homeless, which intersects perfectly with Sheave’s brand values. Despite their budgetary constraints, young adults spend a greater proportion of their money on alcohol than other age groups do and are always looking for a new favorite brand or drink. Because of this, young adults are easy to win over as trial buyers, but significantly more difficult to earn as brand loyal customers.

In order to do so, Shaved needs to be clearly portrayed as a spirit that is both affordable enough to buy regularly and premium enough to use in a wide variety of settings. Shaved can easily be the vodka for every occasion. Many of the occasions when young adults will be drinking are social and the presence of friends and their choices strongly affect brand choices. 70% of young adults report using spirits primarily as a way to socialize and 40% (compared to 21% in other age groups) base their brand selection on what everyone else is drinking.

Additionally, 30% of 21-25 year-olds refuse to drink non-premium brands when they’re with their friends, which create a serious problem with Sheave’s current sub-premium positioning and prevent Sheave’s success as a nightlife brand (Chris Hack, 2008). Demographic Segmentation Chirography’s refers to dimensions that segment consumers in terms of personality, values, attitudes, and opinions. While demographics can divide people along specific (often quantitative) dimensions, chirography’s captures the reasoning and emotion behind people’s decisions.

This information also enables advertisers to capture the themes, priorities, and “inside meanings” that a specific taste culture identifies with. For example, Shaved Vodka targets urban party people who are out drinking until three o’clock in the morning three nights a week (Rutledge, 2015). Shaved requires a strong connection to the target audience’s cryptographic references including tech-savvy, trendy, image and budget conscious and social qualities.

This should include a focus on popular nightlife locations, creative that promotes a trendy and relevant atmosphere, as well as a steady loyalty to the brand belief in high quality and high value. An increase in Sheave’s presence in bars and lounges would take advantage of wavering competition and allow Shaved the opportunity to build a larger market share. Pricing Shaved is a product that should be perceived as high quality and high value. Pricing too low questions its quality and pricing too high makes consumers question its value.

Distribution 1 8 states or “control states” were impossible to distribute liquor to due to state government control. In addition, selling on-premise or off-premise had both advantages and disadvantages. S. W. O. T. Strengths: High quality at mid-level pricing Soft, smooth taste associated with finer vodkas Large target market Unique Swedish product Cheap to produce with low inventory cost Fun, unique and cool Weaknesses: Unknown market Vodka market is cluttered with other established brands Target market has low loyalty toward vodka brands Low marketing budget Opportunities:

Vodka consumption represents 24% of all total spirits consumed Target market estimated to represent 40% of the vodka market Younger crowd can be persuaded to become lifelong brand enthusiasts No other vodka products are positioned at mid-range The reads: Spirits industry is highly scrutinized and regulated Cannot sell to retailers, distributors must be on board Pricing too low can perceive product as low quality while pricing too high weakens the brand positioning Unknown market is a risk as a whole Conclusion Vodka makes up a quarter of U. S. Purists sales by value, and the slowdown is starting to eat into profits at liquor companies. Total U. S. Vodka sales increased 1. 9% in 2013, compared with 2. 7% growth in the wider spirits industry, according to industry body SIRS–the first time since 2000 that vodka has underperformed the sector average. Analysts expect a similar result when 2014 figures are released (Evans, 2015). Part of the problem for vodka has been attracting younger drinkers. Once seen as an exciting alternative to the brown spirits favored by their parents, vodka is now viewed as too mainstream for newly legal drinkers in the U.

S. Who are instead turning to whiskey for its perceived greater depth of flavor (Evans, 2015). Since its creation in 1998, the Swedish vodka has only known steady, sometimes explosive, growth; becoming the second largest imported vodka brand in the U. S. It has universal appeal, with a consumer base split evenly male/female. While many vodka brands rely on flavors for growth, Shaved maintains an enviably strong AD-proof business, with close to 93% of business coming from the unfiltered base brand where the U. S. Arrest consumes 90% of Sheave’s 4 million-plus annual cases (Belier, 2013). Shaved was built on finding holes in the marketplace. “Sheave’s founder Cavalier saw a white space: There were low-end domestic vodkas, and high- ND imported vodkas, but no low-end imported options. The one area Shaved has not met its potential is in breaking the perception barrier that cost does not equate to quality. Value perception still rates Shaved as a high quality budget option, when in reality Shaved beats many of the higher priced premium vodkas in desired qualities to include taste and smoothness.

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