Royal Stag Case StudyIndian-made foreign liquor

Royal Stag

• Launched in India in 1995

• Owned by the flagship company Pernod Ricard

• It enjoys 27% of Indian market

• Offers a product promise of 'No Artificial Flavors‘

• The very first Indian whisky to be blended with imported Scotch malts and select Indian grain spirits

About the parent company

• Pernod Ricard is one of the largest wines and spirits company in the world

• The acquisition of the Seagram, Domecq and Vin & Sprit businesses have propelled the Group to the leadership position

• Pernod Ricard employs a workforce of 18,000 people covering 70 markets worldwide

• In recent years, it has become the industry leader in Asia

• India as an country has emerged as its fourth largest market in the world

Royal Stag

Blenders Pride

Imperial Blue

Nine Hills

Fuel Vodka

Pernod Ricard India

Pernod Ricard Brand Portfolio in India

Chivas Regal

The Glenlivet

Jameson

ABSOLUT

Martel

Havana Club

DOMESTIC

INTERNATIONAL

The Indian Market

• India is also acknowledged as the whisky-drinking nation on earth

• For years, Molasses has been the source for preparing whisky in India due to Government regulations till 1995

• From the roughest to the smoothest, Indian whisky comes in various forms

• As a general truism, the higher up the price ladder , the closer to the real McCoy it gets.

Distribution Models in India

Company Company Company Company

Distributor Private Government Government

Retailer Private Government Private

Consumer Consumer Consumer Consumer

Royal Stag’s Success in India

• Launched in India with a product promise ‘No artificial flavor’ and thus carved a niche for itself in the minds of the Indian whisky connoisseur

• It was blended with imported Scotch malts and select Indian grain spirits, while the competition were offering a molasses based product.

• Highlighted the fact that molasses is ideal for preparing rum not whiskey, thus creating a unique identity and a superior product than its competition

Infrastructure set up in India

• Pernod Ricard set up 22 bottling plants in India

• Two grain spirit distilleries at Nasik (Maharashtra) and Behror (Rajasthan), and a winery at Nasik

• Both the distilleries and the bottling units are as per the ISO standards

• The Nasik unit is one of its kinds with integrated risk management and zero pollution state of the art facility.

Brand Positioning

• 25-35 years old who are aware and well informed young professionals who appreciate quality.

• The brand targets the above as these have just started drinking and are conscious of quality and will be able to afford the whisky.

• The positioning is more premium than competition and an individual is comfortable showing off his preferred brand to peer group.

• The pricing of the brand is always at par or above competition. The relatively high price also shows that the product is more premium than its competition.

Pricing Strategy

Rs. 340

Rs. 415

Rs. 650

Rs. 950

Imperial Blue

Royal StagBlender’s Pride

Rs. 550

A different brand at different price levels to maximize the reach

Note :- To be verified!

Brand Philosophy

The brand message :- Self Evaluate yourself, there’s still a lot to achieve!

"It's your life. Make it large”

Promotional Strategies

• Surrogate Advertising (due to Govt. Regulations)

• Associates with mass driven activities like cricket, movies and music which have build an immediate connect with the Indian audiences

• Uses known Indian ambassadors like Saif Ali Khan, Shahrukh Khan, Mahendra Singh Dhoni, Harbhajan Singh, Gautam Gambir, Yuvraj Singh Robin Uthappa, Shankar Ehsan Loy trio & Parikrama group

• BTL activities like merchandizing (key chains, glasses, bags, pens, etc), Shop signages, banners, posters, free samples, Party sponsoring, Theatre branding, Scratch cards, etc.

CSR Initiatives

• CSR via communication on responsible consumption of alcohol

• Pernod Ricard also supports Indian art, culture and theatre

• PR is one of the active participation in relief efforts in times of natural disasters and calamities

• Thus, through its CSR initiatives in India it has also developed a connect with the Indian audience

Differentiators leading to success

• Different formulation

• Effective Positioning

• Premium pricing

• Global Heritage

• Aggressive advertising & marketing strategy

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