Absolut's Marketing Strategy in the U.S. Market

To support its business strategy, Pernod Ricard has decided to refresh the brand Absolut Vodka. Indeed Grey Goose, Bacardi group, won the heart of consumers compared to the Swedish brand. Often placed with celebrities and Hip Hop music videos , Grey Goose has become the most famous Vodka in consumers mind.

 

To become more "trendy", Absolut looked in the past. Andy Warhol and Helmut Newton had signed some of its old commercials, nowadays more famous than before, the brand decided returned to the arts. The target? New York City, where everything "DOPE" come from. The Swedish Vodka  has also partner a huge charity concert held by rapper Jay-Z at Madison Square Garden, to benefit families of firefighters and police officers disappeared in Sept. 11, 2001.

Another notable initiative: the inauguration last year, of "Thirty Days New York", a gallery open to the public where ephemeral thirty artists - painters, musicians, videographers ... - presented their work online. Nearly 70,000 New Yorkers have been visited this gallery and 15 million "followers" have followed the various performances on Twitter.

 

This repositioning in terms of image has been matched by a commercial shift to 180 degrees. To adapt to new behaviors,  more Home consumer-oriented  than going out, Pernod Ricard has launched a massive publicity campaign called "Cocktails Perfected" combining display, print campaign and television commercials.

 

A free application for iPhone and iPad, Drinkspiration, offering 500 recipes for cocktails, has also emerged. A success : it totals more than 500,000 downloads since 2009.

Absolut gondolas were even installed in the middle of the Fruit section of some supermarkets where hostesses were serving fresh cocktails. The Sales Representative did not have great difficulty in imposing these animations to sign because they had regular new flavors to offer. Brazilian açai berry, black tea, elderflower, coffee almond: the brand, which usually release only one novelty per year, has significantly expanded its range in only few months. Besides limited editions as Absolut Brooklyn (taste apple and ginger), designed by director Spike Lee, or Absolut San Francisco (papaya, dragon fruit, grape), concocted, among others, by Kevin Rose, founder of social network Digg.

Recently, the brand also tested Absolut Elyx, a luxury vodka of 35 dollars, distilled in a copper still and presented in a square bottle. Sold actually in Canada, Mexico, Greece and Turkey, it is not yet available in the United States. But it will be release soon, to compete with the queen of the segment: Grey Goose.

 

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

Source: Capital.fr