absolut vodka brand audit

Carol Cheong Ray JohnsonChris MaharMarcela Mendez Andrea Salas

ABSOLUT VODKABRAND AUDIT

ABSOLUT AGENDA

• Background• CBBE Model• Four A Model• Summary of Findings• Recommendations

ABOUT ABSOLUT• ABSOLUT VODKA was introduced in the US

in 1979

• Today It is the 4th largest international premium spirit in the world

• It is available in 126 markets. (source: Impact International).

• Since its launch Absolut has achieved significant global sales growth, from 90 thousand litres in 1979 to 96.6 million litres in 2007

• Every drop of ABSOLUT VODKA comes from one source, the village of Åhus in southern Sweden

2009 Aust Alcohol Consumption Per Capita

Source: ABS

ABSOLUT STRATEGY

Core Values•Clarity, simplicity and perfection

Target Market•Primarily urbanites•Men and women ages 25 to 34

Psychographics characteristics• Young, up and coming individuals • Highly conscious of wanting to

succeed in their life both professionally and personally

• Interested in new trends in fashion, music and design and they typically know what’s going on in these areas.

Gender

52%Female

48%Male

2%

33%

50%

7% 7%

>18 19-24 25-30 31-35 35-45

METHODOLOGY

Qualitative• 1 Focus Group• 15 Participants

Quantitative• Responses from 44 Surveys

Age Distribution

FeelingsFeelings

Brand SalienceBrand Salience

ImageryImageryPerformancePerformance

ResonanceResonance

JudgmentsJudgments

CBBE MODEL

SALIENCE IMAGERY PERFORMANCE FEELINGS JUDGEMENTS RESONANCE

B ra n d a w a re n e ss - re c a ll

5 0 %

3 9 %

5 2 %

3 6 %

A b s o lu t S m irn o ff

R es p o n s e 1 R es p o n s e 2

What brands of Spirit come to mind

10%

14%16%

22%

Absolut Smirnoff Johnny Walker Bacardi Rum

Within the spirit Within the spirit categorycategory


We have Top of Mind Awareness!

Within the vodka Within the vodka categorycategory

Brand awareness - recall - Female

65%

30%36% 43%

Absolut Smirnoff

Response 1 Response 2

Brand awareness - recall - Male

27%

53%

73%

27%

Absolut Smirnoff

Response 1 Response 2

•By gender Absolut is less popular within Male consumers than SmirnoffBy gender Absolut is less popular within Male consumers than Smirnoff•Poor depth of awareness comparing with SmirnoffPoor depth of awareness comparing with Smirnoff

•Maintain awareness with females and enhance it within malesMaintain awareness with females and enhance it within males


But…..not as good for Males

Categy swithing

54%50%

88%81%

Bee

r

win

e

Ru

m

Sco

tch

Category switching

88%81%

50% 54%

0,0%

20,0%

40,0%

60,0%

80,0%

100,0%

120,0%

RumVodka

Scotch

Beer

Champag

neW

ine

Others

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

70,0%

80,0%

90,0%

Beer

Champagne

Wine Rum

Vodka

Scotch Gin

Bourbon

Others

Category penetration

77%

95%

66%

93% 95%

Rum Vodka Scotch Beer Wine

•High penetration in Vodka, beer and High penetration in Vodka, beer and wine categorieswine categories

•High number of consumers are High number of consumers are switching between Vodka and other switching between Vodka and other categoriescategories

•Bring beer consumers to vodkaBring beer consumers to vodka


Wine, Beer and Vodka the winners of the category…..

Bee

r

win

e

Ru

m

Sco

tch

Category penetration

Where was the last place you drank vodka?

13% 13%

30% 28%

Ho me BBQ Pu b Ni ght-Cl ub

H ow do you like to drink your vodka?

27%

20%

11%9%

Le m o n a d e Ora n ge Co ke Li m e

•People consume Vodka in Pub People consume Vodka in Pub and night Club (58%) but not as and night Club (58%) but not as much at Home and BBQ (26%)much at Home and BBQ (26%)

•Let’s give them a ready to Let’s give them a ready to drink (RTD) !drink (RTD) !


Vodka is consumed at night…..

•They like it mixed (100%)!!!They like it mixed (100%)!!!•Favourite mixed; Lemonade Favourite mixed; Lemonade (27%) and Orange (20%)(27%) and Orange (20%)

•Increase consumption Increase consumption occasionsoccasions

95% 93% 88% 84% 77% 77%

Li k e i t C las sy U p m a rk e t R e m e m b e r O ri g in a l U n iq u e

Good depth of brand Salience: Brand Name- Logo

•Consumers like the Consumers like the brand name (95%), brand name (95%), easy to remember, easy to remember, recognizable, recognizable, familiar and unique.familiar and unique.

•Also up market and Also up market and classy classy •We have brand We have brand recognition recognition •Important POD, Important POD, worldwide brandworldwide brand

•We should not We should not change the name change the name or logoor logo


Recognition of vodka bottles93%

80%

45%

Absolut Smirnoff StolichnayaBottle

93%88% 86% 86%

81%72% 70%

33%

Recognisable Unique Original Stylish Different Upscale Innovative Old Fashioned

A strong POD Absolut Bottle

•Consumers love it!!!Consumers love it!!!

•Bottle is highly recognizable Bottle is highly recognizable (93%)(93%)

•Strong associations as unique, Strong associations as unique, different, original and stylish.different, original and stylish.

•Represent a strong PODRepresent a strong POD


•Don’t change the bottle!Don’t change the bottle!

80% 77%73% 73%

59%

Likable Unique Remember Different Famil iar Sophisticated

•The consumer recognized that The consumer recognized that the slogan was from Absolut the slogan was from Absolut (because the name is in it); but (because the name is in it); but the slogan was not recalled.the slogan was not recalled.

•Increase slogan recall, recognition Increase slogan recall, recognition and awareness (way of increasing and awareness (way of increasing familiarity). familiarity).


Slogan is good, but do you know it?

Smirnoff PODSmirnoff POD

•Smirnoff IceSmirnoff Ice

•CheapCheap

•RedRed

Absolut PODAbsolut POD

•BottleBottle

•FlavoursFlavours

•AdvertisingAdvertising

•Decrease some Smirnoff PODDecrease some Smirnoff POD

•Compete with Smirnoff IceCompete with Smirnoff Ice

•Enhance the idea of stylish but Enhance the idea of stylish but affordableaffordable


Interesting brand associations.…

OK

0.4

1.1 1 1.1

-1

Sincere Exciting Reliable Sophisticated Tough

Brand Personality

They aren’t just after our looks….

•Customer perceptions of Absolut align well with desired corporate Customer perceptions of Absolut align well with desired corporate image…..Exciting, Sophisticated and Reliable. Not at all Toughimage…..Exciting, Sophisticated and Reliable. Not at all Tough


1.34

0.780.991.16

Quality Value

Attributes

•Absolut is perceived as significantly higher quality, yet Smirnoff is perceived as Absolut is perceived as significantly higher quality, yet Smirnoff is perceived as greater value for the price. The prices are not as different as people think! greater value for the price. The prices are not as different as people think!

•Improve brand perception about the performance (Value)Improve brand perception about the performance (Value)

•Any initiative must be careful not to damage brand equity – tricky!Any initiative must be careful not to damage brand equity – tricky!


High quality, but perceived as expensive!

Absolut $39.50Absolut $39.50 Smirnoff $35Smirnoff $35(Average from 8 stores)(Average from 8 stores)

Att ributes where Smirnoff is Strong

0,520,57

1,03

0,30,38

0,99

Heritage Purity Taste

Smirnoff Points of Difference

Absolut lags behind Smirnoff in the Absolut lags behind Smirnoff in the performance attributes of purity and performance attributes of purity and heritage.heritage.


0.3

0.520.38

0.57

0.99 1.03

•Current campaign is on the right track, focusing on the product, production Current campaign is on the right track, focusing on the product, production process and the key performance attributes of process and the key performance attributes of taste, purity, and heritage. . •Keep the ad campaign!Keep the ad campaign!

“Doing things differently leads to Doing things differently leads to something exceptional"something exceptional"

"Differently""Differently" is woven in wheat and describes the primary ingredient for the vodka, "doing"doing" is carved from a glacier to depict the purity of the water used in Absolut.

This campaign has the ability to increase Absolut's stature as a complete product with brand imagery, leveraging its product quality

Creating Points of ParityCreating Points of Parity

•Current campaign is on the right track, focusing on the product, production Current campaign is on the right track, focusing on the product, production process and the key performance attributes of process and the key performance attributes of taste, purity, and heritage. . •Keep the ad campaign!Keep the ad campaign!

A tt ribute s w he re A bsolut is Strong - PO D

1.02

1.17

0.89

1.040.94

0.36 0.37

0.540.57

0.37

F lavours Style Status Classy Innovati on

•Absolut has done an outstanding job of building the attributes of style, status, Absolut has done an outstanding job of building the attributes of style, status, classiness, and innovationclassiness, and innovation•Absolut scores better in flavours, but why isn’t the brand at more bars/bottle Absolut scores better in flavours, but why isn’t the brand at more bars/bottle shops?shops?

Encourage visibility of flavours, maintain PODs!Encourage visibility of flavours, maintain PODs!


Absolut Points of Difference

Average Attitude Towards Absolut (-3 to +3 Scale)

1.33

1.70

1.52

Male Female All

•Overall attitude towards the Overall attitude towards the brand was higher between brand was higher between females (1.7) than males (1.33)females (1.7) than males (1.33)


Overall attitude is good but much higher with Women

•Absolut needs to maintain their Absolut needs to maintain their superior brand equity over Smirnoff superior brand equity over Smirnoff while complementing their while complementing their marketing and communication marketing and communication strategy to enhance appeal to menstrategy to enhance appeal to men

ABSOLUT AGENDA

• Background• CBBE Model• Four A Model• Summary of Findings• Recommendations

Absolut Consumer Loyalty

Acceptors (10%)

“I drink Absolut but just occasionally”

Adorers (30%)

“Absolut is almost the only brand that I consume“

Adopters (45%)

“Absolut is one of my favourites along with others”

Availables (13%)

“I don’t know much about Absolut ”

Category Loyalty

•Impressive number of committed consumers in Vodka, Beer categoryImpressive number of committed consumers in Vodka, Beer category

•High number of consumers are switching between Vodka and other categoriesHigh number of consumers are switching between Vodka and other categories


•Maintain the brand within the actual consumers of the category, creating more Maintain the brand within the actual consumers of the category, creating more consumption occasions gaining a higher share of overall alcohol purchases, consumption occasions gaining a higher share of overall alcohol purchases, especially from Beerespecially from Beer

Categy swithing

54%50%

88%81%

Bee

r

win

e

Ru

m

Sco

tch

Category switching

88%81%

50% 54%

Category Commitment

10% 13%

34%60% 50%

34%

23% 30%

0%0%

11%0% 20%8%

8%

beer Vodka Scotch

Rejectors Availables Acceptors Adopters Adorers

Not very familiar

Quality & PackageNot a vodka drinkerSame ol same ol. Do you recommend homebrand sugar to your friends?Suits for every occasion

it taste goodthe only brand I tried

Do you recommend Absolut vodka?

25%

39%

32%

Promoters Passives Detractors

Brand Resonance (Loyalty)

•25% can be classified as promoters of Absolut vodka in recommending to their 25% can be classified as promoters of Absolut vodka in recommending to their friends (those scoring 9 and 10 in the scale), 38% as passives, and 33% as friends (those scoring 9 and 10 in the scale), 38% as passives, and 33% as detractors. detractors. •The adorers of Absolut (30%) have a likelihood of recommend the brand 9 out of The adorers of Absolut (30%) have a likelihood of recommend the brand 9 out of 10 while the adopters (45%) have 8 out of 10, and so on10 while the adopters (45%) have 8 out of 10, and so on


•Enhance brand loyalty in the second group of consumers (adopters) and maintain Enhance brand loyalty in the second group of consumers (adopters) and maintain relationship within those consumer that are currently loyalrelationship within those consumer that are currently loyal

9 87

5

0

Loyalty - likelihood of recommendation

Brand Commitment

2% 3% 5% 11%12% 13%

34%

47%

14% 10%

32%

29%

43% 45%

26%11%

29% 30%

3% 3%

Smirnoff Absolut Stolichnaya Grey GooseBrand Commitment

2% 3% 5% 11%12% 13%

34%

47%

14% 10%

32%

29%

43% 45%

26%11%

29% 30%

3%3%

Smirnoff Absolut Stolichnaya Grey Goose


Brand Commitment/ Loyalty by gender

0% 4% 0% 4%0%21%

4%

6%

13%

16%

13%

53%

39%

42%

43%

12%

43%

21%35%

29%

Male Absolut Female Absolut Male Smirnoff Female Smirnoff


Male consumers aren’t as loyal to the Brand!

•83% of the consumers that drink Absolut drink Smirnoff as well (potential market 83% of the consumers that drink Absolut drink Smirnoff as well (potential market share increase!!)share increase!!)•The number of committed males with Absolut are half of the number of Smirnoff The number of committed males with Absolut are half of the number of Smirnoff (12% vs. 21%) and 1/4 compared with females (12% vs. 43%)(12% vs. 21%) and 1/4 compared with females (12% vs. 43%)•53% of Absolut males consumers belong to the Adopter group (2nd)53% of Absolut males consumers belong to the Adopter group (2nd)


•Enhance brand image and performance in order to increase loyalty/ commitment Enhance brand image and performance in order to increase loyalty/ commitment and between adoptersand between adopters•Use potential of 83% brand switching to convert consumers into Absolut adorersUse potential of 83% brand switching to convert consumers into Absolut adorers•Create relationship campaign within Women Adorers and adopters in order to Create relationship campaign within Women Adorers and adopters in order to capitalize their loyalty and create new adorerscapitalize their loyalty and create new adorers

83%25%

13%

Brand Switching – Consumers that drink Absolut + Other brand

•Switching between Vodka and beer•High amount of loyal consumers in Vodka category•Vodka is an “all occasion drink”•Absolut does not have TOMA with male consumers•Men who are committed to Absolut represent only half that are as loyal to Smirnoff (12% vs 21%)•Flavours are a POD but it’s not easy to buy in night clubs or bars.• Consumers can not recall the slogan•53% of Absolut males consumers belong to the Adopter group•Absolut ranked lower than Smirnoff in the purity, taste and heritage attributes.•Absolut ranks higher in quality than Smirnoff but with less value for the price

•Increase consumption occasions- penetrate beer/wine categories•Appeal more to men among adopters and acceptors. •Capitalize on adorers, female loyalty, and create new adorers through a relationship campaign•Increase visibility in the following areas: Availability of Flavours, Value, Slogan

SUMMARY OF FINDINGS

Brand Issues Brand Objectives

1. Maintain, ad campaign, logo, bottle, PODs1. Maintain, ad campaign, logo, bottle, PODsRECOMMENDATION

Classy

Sophisticated

• Absolut Cut (Ready To Drink) launched in AUS, CA, UK in 2004

• Big Hit in Australian Market

• Flop in Canada, UK• Ownership pulled out completely• Shift focus to

“main brand – high-end”

2. Brand Extension: Re-Launch Absolut Cut2. Brand Extension: Re-Launch Absolut Cut

RECOMMENDATION

Why Re-launch Absolut Cut?• New Ownership (Pernot Ricard) - New Goals:

Interest in reaching new markets- wants Absolut to appeal to a larger market

38% of respondents consumed beer/wine but not vodka in the last 12 month

RTDs compete with beer/wine Capitalize on popularity of Absolut Flavours Vodka drinkers were already mixing it Smirnoff Ice considered strong competitor POD Potential of U.S. Market in the future

2. Brand Extension: Re-Launch Absolut Cut2. Brand Extension: Re-Launch Absolut Cut

RECOMMENDATION

Flavours • Absolut Citron Cut (Absolut and Lemonade)• Absolut Mandarin Cut (Absolut and Orange)

2. Brand Extension: Re-Launch Absolut Cut2. Brand Extension: Re-Launch Absolut CutRECOMMENDATION

48% of vodka drinkers already mix with lemonade or orange

3. Increasing Brand Equity (Image) for Men3. Increasing Brand Equity (Image) for Men

Leveraging secondary associations with the brand

– Celebrity endorsement– Clever product

placement in movies (Oceans 11), and in Print Media.

– Enhance Male image without risk of affecting Female market

RECOMMENDATION

EVENTS• Leverage secondary associations in a way

that is appealing to men.

3. Increasing Brand Equity (Image) for Men3. Increasing Brand Equity (Image) for Men

•Party at the ‘Absolut Marquee’ at the following invitation only events.

–Melbourne Cup–Sydney to Hobart Yacht Race

•Launch of Absolut “Cut” at the Melbourne Cup.•PR : Press kits and press releases at each of these events.

RECOMMENDATION

4. Relationship Marketing4. Relationship Marketing

• Include a flashy business card that has:1.The recipe they just tried2.The Absolut website with a link to the Free Drinkspiration iPhone App

Knowledge that signing up for this app will give them access to:• secret Absolut Events•new product samples•the ability to earn points toward great prizes (vintage Absolut posters etc.)

BTL campaign in nightclubs and pubs and relationship marketing campaignHave Absolut marketing staff hand out cocktails inspired by Absolut flavours

RECOMMENDATION

4. Relationship Marketing4. Relationship Marketing

Social Media• Our Facebook link for the

particular flavour to “become a fan”

• Our Twitter handle @ Absolut Australia for more special offers and deals

Absolut CUT• The Absolut “Concoction” Cut• Send product samples to

Opinion Leaders.• Invite Opinion Leaders to teaser

events.

RECOMMENDATION

5. Visibility of Price, Flavours, and Slogan using 5. Visibility of Price, Flavours, and Slogan using RetailersRetailers

• “Win the visibility war”Win the visibility war” contest through the sales channel to generate more visibility and availability

• Large Absolut Bottle Displays• Prominently placed in stores• Large eye-catching pricing • Wide range of Absolut products• Negotiate slotting fees• Use retailers to relay competitive pricing message through

print advertising• Incorporate slogan into displays and ads

RECOMMENDATION

5. Visibility of Price, Flavours, and Slogan using 5. Visibility of Price, Flavours, and Slogan using RetailersRetailers

RECOMMENDATION

Liquorland Flyer

In-Store Display

Pub/Club Display

$39.50$39.50 $39.50$39.50 $21.50$21.50

$39.50$39.50

•Increase consumption occasions

•Increase brand availability and visibility in connection moments for males.

Resonance-Resonance-LoyaltyLoyalty

Performance - Performance - JudgementJudgement

Salience – Salience – AwarenessAwareness Image – FeelingsImage – Feelings

•Enhance brand image in order to appeal more to men

Any initiative must be conscious in not damage the actual positioning and brand equity

•Highlight the taste, purity and heritage attributes of the brand

•Improve brand perception about the performance (price/ quality) of the brand.

•Create relationship campaign within Adorers to capitalize their loyalty

•Campaign appealing to men and women

•Increase commitment between men adopters and acceptors

5. Maintain current current advertising campaignadvertising campaign; focused on the actual product and production process.

•Use distribution distribution networksnetworks to combat price/quality gap though prominent placement in stores and large displays with attention-grabbing pricing

1. Brand extension – Relaunch Absolut CutRelaunch Absolut Cut

2. “Win the visibility war”2. “Win the visibility war” contest through the sales channel3. Increase exposure3. Increase exposure to slogan through multiple channels

BTL:BTL: delivering Cocktail recipes and promotions at bars.

6. Relationship 6. Relationship Marketing.Marketing.

Offline and Online Campaign creating interaction, and awarding loyal consumers

•Events

•Integration of web page, Social Networks and mobile applications.

4. Increase brand equity (Image) for men. Leverage secondary brand secondary brand associations.associations.

•Sport events

•Celebrities

•Product placement in movies, magazines, etc.

RECOMMENDATION

Questions?

Thank You!

absolut vodka brand audit

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