Wednesday, December 14, 2011

Absolut Vodka Strategy to increase its sales in the United States

I begin this series of strategic articles by the brand Absolut Vodka, which after some difficult years, decide to react in the U.S. with an aggressive commercial strategy:

To revive a brand for which it has invested $ 8.3 billion, the French group Pernod Ricard has decided to lower its prices while pursuing a policy of premium brand.

To maintain the premium image, Pernod-Ricard has recruited a team of sales representatives who have the distinction of being young, handsome and blond. Their mission: travel to all major U.S. cities (Chicago, Miami, New York and San Francisco) and promote the famous vodka in trendy places, ie bars, nightclubs and hotels.

Their strategy: They offer a free-trip of one week in Sweden, where barmen’s and owners will discover the secrets of the famous grain alcohol. In exchange the VRP requires a good exposure of the brand in their establishments. As you might see the last time you have been clubbing or partying, you can see more and more, Absolut shelves behind the bar.

Finally, to support this new business strategy, the parent company to decide to reduce by 10% the price of his vodka, to become competitive with its direct competitors such as Skyy or Sobieski.

Result: Increased sales by 3% in 2011 after falling by 10% between 2008 and 2010. 

Next Article: The new marketing strategy


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