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Vodka a market analysis
Capita Selecta Marketing and Marketing Research
Paolo Biglieri, Jean-Charles Violleau and Linus Gunnarson
Preface
This paper is a part of the course Capita Selecta Marketing, Marketing Research that is given by Rijksuniversiteit in Groningen (RUG), The Netherlands. ...
We decided making a research about Absolut Vodka since we are interested in the success of this brand in the last twenty years. ...
We would like to thank all the foreign students to have been available, to answer our questionnaire seriously and to have tested the three different vodka brands. ... HISTORY OF VODKA 8
2. ... HISTORY OF VODKA 8
2. ... HISTORY OF ABSOLUT VODKA 10
2. ... History of vodka in Sweden 11
2. ... CONCLUSION, HISTORY OF VODKA 15
3. MARKET DESCRIPTION (DEVELOPMENT) 16
3. ... CONCLUSION, MARKET DESCRIPTION 22
4. ... PREVIOUS KNOWLEDGE REGARDING VODKA 23
4. ... Introduction
This paper deals with alcohol consumption and habits in general and peoples opinion regarding vodka in particular. Our intention is to create a holistic picture of vodka as a product when it comes to consumption and preferences. ...
In the last eighteen years the Swedish vodka brand Absolut have had enormous success world wide. ... The first part gives a history of Vodka in general and about Absolut Vodka in particular. Second a market and development description is made presenting the use of alcoholic beverages, spirits and, of course, vodka in the western world market including North America, Eastern and Western Europe. ...
• How does the Alcohol and Vodka consumption look like in the world and in our home countries: Sweden, France and Italy? ...
• When it comes to Vodka, is there any difference in taste between different brands and different price groups?
• Does Absolut Vodka have an extraordinary product or can their success only be explained with excellent marketing achievements? ...
• How, where and how much do people consume vodka?
• How well do people know and what do they think of Vodka?
• Have people noticed advertising of vodka? ...
• Are there any differences between the genders when it comes to consumption and preferences of vodka? ... History of Vodka
2. ... History of vodka
Vodka is far and away the most popular spirit category in America, accounting for more than 20% of all distilled spirits consumption. In Sweden unspiced vodka stands for 43,3 percent of the total sales of spirits. ... Vodka is essentially an unaged neutral spirit that can be distilled from just about anything fermentable. ...
Vodka in most Slavic languages means "water". ... ) The word "Vodka" translates literally as "dear little water", an affectionate diminutive for this clean, tasteless spirit that blends with virtually any beverage.
As with Whiskey, the historic origin of Vodka remains in question. The Russians and the Poles are just two national groups that claim the distinction of discovering how to produce Vodka. There are several others, and as the map of Eastern Europe continues to change, other national groups may lay claim to being the originator of Vodka. One thing is certain, however: Vodka originated somewhere in Northern and Eastern Europe and several sources note its arrival in Russia as early as the 14th century.
On the American continent consumers werent really aware of Vodka until after World War II. ... He was always in need of the support of the nobility, so he allowed them to continue distilling Vodka.
Restrictions and threats of savage punishment didnt dampen the enthusiasm of people for vodka-making. ...
Successive rulers tightened their monopoly on Vodka distilling but continued to curry favor with the nobility, gentry and government officials by granting them distilling rights. Thus, in addition to its social role, Vodka had considerable political and economic significance in Russia.
From the beginning of the seventeenth century it had become customary for Vodka to be served at Russian imperial banquets. All formal meals began with bread and Vodka. Vodka was also drunk ceremonially at religious festivals and in church ritual, and to refuse to partake could be considered impious. ... He served large quantities of Vodka, his favorite drink, at his legendary banquets. ...
The Governor of Moscow trained a large bear to serve pepper Vodka to his guests. ...
Making Vodka was a lot easier in Poland, as fewer official restrictions were imposed. Indeed, in 1546, King Jan Olbrecht issued a decree allowing every citizen the right to make Vodka. ...
Vodka-making and drinking became established at all levels of society in Poland over the next few centuries. Poznan continues to be a major center for the production of Vodka today. ... From that time to the mid nineteenth century all Vodka was made in a pot-still using local natural resources such as wheat, barley, ryes, potatoes and rice. ... Gradually Vodka-making in Eastern Europe was refined. In the beginning Vodka was the product of a single distillation to a relatively low proof, but distillers soon learned the benefits of two or more distillations on product quality. ...
With the invention of the continuous still in the last century, distillers were able to produce Vodka to a very high proof in a continuous operation.
Most Vodka has no color and carries only the clean aroma and character of pure spirit from the still. ... This goes back to the days home distillation, when Vodka was flavored with herbs, spices and fruit. ... History of Absolut Vodka
Absolut Vodka was first exported in 1979 and quickly became one of the best-selling premium vodkas in the world today, ranking as the second most popular brand and the eighth most popular spirit. Swedish vodka originated in 15th century, distilled originally from grain or imported wine as a spirit called `brännvin` (`burnt wine´)Its original uses were medicinal and for making gunpowder, due to a need for this gunpowder the first restrictions on alcohol were introduced which had no bearing on the need for sobriety. By the 17th century vodka as we know it today had become a traditional drink. ... History of vodka in Sweden
A phenomenon in his own right, Lars Olsson Smith was a successful businessman at 10 and an entrepreneur at 14 controlling one third of all the vodka in Sweden, earning the title of ”the king of vodka”. In 1879, with the introduction of ”Absolut Rent Brännvin” using a revolutionary new distillation technique he unknowingly introduced what was later to be known as Absolut Vodka a century later. ... He left his legacy of the Absolut Vodka concept, a purer vodka with a heritage of innovative marketing: Lars Olsson Smith : On every bottle, in every bottle. ...
With the approach of the 100 year anniversary of Absolut Rent Bränvin Lindmark decided to export a new vodka - the finest vodka modern distilling techniques could produce, a new product that was a century old : Absolut Vodka. A marketing team was produced and the search began for an opening in the market. Setting their sights on the US market, the most competitive, and lucrative, vodka market, they were aiming high. The decision was made to market Absolut Vodka as a premium product with a log tradition, meant for a discerning consumer. ... There were a number of early suggestions including “Swedish Blonde Vodka”, with pillaging Vikings on the label and “Royal Court Vodka”, a frosted carafe. ... Marketing surveys showed that the time was right for a premium vodka, but the question of how to package and market it still remained. ... With a very revered and Swedish image, traditionally vodka was sold in pharmacies
V&S Vin and Spirit AB now had a product and a package. ... The original product was called ”Absolute Rent Bränvin” which was modified to Absolute Pure Vodka for legal reasons could not be registered in the US. The slogan ”Country of Sweden” was added between the main elements to stress the vodka origin and its tradition of purity. ... The first consignment of Absolut Vodka was filled at the Åhus distillery on April 17, 1979 and Absolut Vodka went on sale for the first time in the US in Boston two months later. Absolut Vodka consumed in the world today comes from the same place, the distilleries in Åhus in southern Sweden, there is complete control over all the phases of production ensuring a high quality for every individual bottle. This small town of barely 10, 000 inhabitants not only produces, but packs and ships all the millions of liters of Absolut Vodka consumed around the world. ... The Absolut production process
Theoretically, vodka can be made from almost any fermentable organic material - from whey to malasses. Absolut vodka, however, is made solely from grain, which more than 400 years of tradition has proven to produce the best and purest vodka possible. Absolute Vodka uses a special method of distillation that retains a smooth grain character and is extremely low in unwanted by-product. ... These beverages were eventually distilled, giving them dozens of different spirits, one of which is vodka. ... Absolut Vodka, however, is distilled using the second method, continuous distillation. ...
It is here they are faced with the dilemma of vodka production - distillation and rectification technology have advanced so far towards producing an absolutely pure vodka that it has also succeeded in removing trace elements that give vodka the character of the raw material from which it is made. Absolut Vodka has solved this dilemma by, parallel to the main distillation, producing a spirit where the goal is to retain the fine character of the grain. ...
The final stage in producing Absolut Vodka is adding water to bring the vodka to an alcohol content of 40%. All water used in Absolut Vodka comes from its own well; the water’s consistently even quality makes it the ideal water for a premium vodka.
Throughout the production process, Absolut Vodka is subjected to continuous tests. ...
As every bottle of Absolute Vodka sold is produced in the same place- Åhus, a small town in southern Sweden have complete quality control over the entire production process. ...
They take as much care to ensure the quality of our bottles as the quality of our vodka. The Absolut Vodka bottle is made from low iron content sand for maximum clarity to show off its crystal clear contents. Most of the world supply of Absolut Vodka bottles is made nearby at the Limmared factory. ...
The end result is the world famous Absolut Vodka.
Its history dates back to the earliest production of distilled spirits in southern Sweden more than 400 years ago, to a 19th century Swedish entrepreneur’s vision, to Sweden’s modern vodka-making expertise.
Later in this paper we will se if this process of making Absolut vodka will give the beverage a special taste and smell that will make it differ from other brands. ... Absolut sales
When we asked to the Absolut company for information regarding Absolut Vodka they sent us only few pages with only the successes of their commodity. The first document show the rising in sales for Absolut Vodka. ... 1 Absolut Sales Source: Vin & Sprint
Absolut Vodka is the 8th most popular spirits brand in the world and the second most famous vodka brand worldwide. ... In 1979Absulut vodka was introduced in US. Absolut Vodka is the fastest growing spirit brand in duty free.
Absolut Vodka’s award-winning advertising and marketing campaign continues to break new ground in communicating the brand’s core values of clarity, simplicity and perfection. ...
In additional to Absolut Vodka blue label the Absolut Company have diversified their product into four other Absolut Vodkas - Absolut Vodka red label, Absolut Citron, Absolut Peppar and Absolut Kurant
2. ... Conclusion, History of Vodka
Several sources note vodka’s arrival as early as the 14th century in Northern and Eastern Europe. The first consignment of Absolut Vodka was filled at the Åhus distillery in Sweden on April 17, 1979 and it’s now the 8th most popular spirit brand in the world. ... )
The two stories are not in the same era but this is a success for both: Vodka, in general, which is the most popular spirits category in America and Absolut Vodka which is the number two brand of vodka worldwide. ... Market description (development)
In this section we are going to analyze the consumption of pure alcohol in the word. ...
We can see with the table below the declining consumption in established markets and the rise of new market with North America exhibiting the most pronounced decline since 1990. ... The Italian alcohol consumption
The Italian alcohol market has specific characteristics that are different from the Swedish and French markets. ... Instead of spirits Italian people drink local liqueurs like ”amari” and ”grappe”, cheaper than whisky and vodka and produced from grapes. ...
The way of drinking is:
• Apéritifs before the meal
• Wine during the meal, of which the color depends on the menu
• Liquor after coffee at the end of the meal
• If people goes to the discos or to the bars, they usually drink beers or strong alcohol’s like vodka, whisky, tequila and gin.
Approximate Word count = 10657
Approximate Pages = 42.6
(250 words per page double spaced)
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