Brand repositioning in the 1900’s
...try Analysis. Both the industry of liquor and the industry of distilled spirits had suffered a reduction in consumption since 1978. This represents 15 years of constant negative growth. Some of the factors that had caused this phenomenon are the growing of social, regulatory and legal restrictions over drinking. Also, drinking preferences have shifted towards lighter alcohol beverages, such as wine and beer. The Scotch industry has suffered an even greater decline due to the fact that its target market is drinking much less. It has become the distilled spirit with lower consumption per-capita. Mature customers are not loyal to a brand, they are lower priced oriented. If all these factors remain the same, there is not a promising forecast for the Scotch Industry: restrictions will continue or even get harder; consumption will go down as well as sales and profits. The table below shows the consumption of liquor and scotch since 1978, and the forecast from 1993 Some important trends in consumers’ preferences can be distinguished as a way to minimize the down slope of the declining cycle of the Scotch whisky. Such trends are the perception of mixed drinks as more enjoyable and fun than the dark spirits, the increasing attractiveness of white spirits to young adults, more social flexible environment. 1.3 Company Analysis Objectives Relucting new customer was vital for the long term planning. Strategies Market penetration strategy. To attract young adults who were occasional, light and new Scotch whisky drinkers. Market segmentation Two types of customers segmented by age, that is, young-adults and mature adults. The young-adults segment is integrated by 24-35 years old males, beyond college, with drinking habits, open to try new things, making choices making choices, and willing to embrace changes with confidence and strength of character. Specifically, we are talking about men who go to bars with regularity, who are involved in sports, and who frequently attend to the movies and theatres. The mature adults segment includes 35 or older males. They represented 30% of the consumer base, but accounted 73% of the category volume sales. Marketing Mix Promotion This is a key part of the strategy. There will be joint activities in order to refresh Dewar’s image, with a consistent model. Truths campaign. A series of print ad targeted to young adults that will be displayed in magazines, newspapers, billboards, kiosk, and taxi/bus shelters in the Northen states of U.S. On-site promotions. Promotional events sponsored by Dewar’s in bars frequented by young adults to try to convert them in scotch drinkers. People will be offered tickets to exchange for one drinks of Dewar’s mixed with a soft drink. With this strategy. This events will be held just in three states, New York, Philadelphia and Rhode Island. Maintenance campaign targeted to mature adults trough print media in all the US. Both maintenance and repositioning campaigns must be consistent and complementary. 2. Problem Definition Now that managers decide to target Dewar’s to two different segments with the same product, they are facing the challenge to communicate to both targets with different campaigns but at the same time complementary each other and congruent with Dewar’s actual ima...