Absolut Vodka

Taking Brands Global

Group 5
 ABSOLUT Flow
• Brand Identity
• History
• ABSOLUT in the US
• ABSOLUT in India
• Global Strategies
• Key Learnings
• References
 Brand Identity
• Core Values
– Clarity
– Simplicity
– Perfection
• Established through
– Advertising
– Fashion
– Art
– Music
 Brand Personality
• Product is associated with being
– Smart
– Stylish
– Creative
– Witty
 ABSOLUT in Sweden
• Overnight success since 1879
• Lars Olsson Smith – The King of Vodka
• The ABSOLUT Hero
• The name Absolut
• Åhus, Sweden
• Absolut Ice Bar
Global Facts
Absolut vodka sales till date
Absolut in USA
Distribution System for spirits in USA
 Product Segments
The different product segments are as follows:

• Platinum

• Super-premiumf

• Premium

• Standard priced

• Popular priced
 Reasons for entering USA
• In the last fifteen years since its introduction in the US markets, the
consumption of alcohol in the USA has decreased by 20%
• Health trend
• Tendency to drink ‘less but better’
• More pure alcohol

• 1970's – American consumers accounted for 60% of the vodka purchased

worldwide

• The gross margin on imported vodka represents about 40 per cent of the
total gross margin

• The biggest single market is the U.S., where growth happened @ 30%
(approx.)
 “It’ll never sell”
Absolut faced big challenges during launch in the U.S market
in 1979:

– Insignificant brand name

– Association with a country that has no vodka-producing tradition

– Absence of a label and packaging

– Results of primary market research

 Background
• Biggest vodka market & highly competitive

• The destination for the first shipment of vodka was Boston

• In its first year on the US market, only 10,000 nine-liter cases of

Absolut Vodka were sold

• By 1985 – leading imported vodka

• Till 1994 – Absolut Vodka distributed by Carillon Importers

• In 1994 – agreement with Seagram Co.

 Despite the challenges

Today, Absolut:
– commands 70 percent market share. Design was a major factor
in this success

– Design contributed to the five asset categories of brand equity:

• Brand awareness
• Brand loyalty
• Brand personality
• Brand quality
• Brand associations
 Art-Supportive Marketing

• Andy Warhol/Keith
Haring
• Partnership with the
Artist
• Integral Part of
Absolut Image
 Absolut Statehood
• Absolut commissioned one artist from each of the 50 states

• Artwork included icon

• Artists signed 300 lithographs

• Partnered with USA Today

• Full page advertisement

• Lithographs sold for 300 dollars each

• Unveiling in a state every other week

• 2 year campaign
Statehood
 Communication
• Absolut Insight

• Absolut Access – CRM efforts

• Predominantly print ads

• Global branding, local touch

Absolut Fashion – DKNY
Facts about the current US market
• Absolut grew by 7% in 2007 as compared to 2006

• Full distribution and 98% brand awareness in the (U.S.)

consumer (market)

• Growth rate faster than the market in general

• Market share 10.5% – 11% of the total US vodka market

• Sales rose to 4.9 million nine-litre cases in 2006, up from 4.7

million in 2005
ABSOLUT in India
 Reason to enter India
• Growth rate of the white spirits market is
25 – 30%
• Whiskey was looked upon as a “mature”
drink
• Preference towards cocktails
 Absolut in India
• Distribution
– Kyndal
– Bonded warehouses (Mumbai and Delhi)
• Fashion
– Absolut Fashion is entering India
– Plans to do the Metropolis act
 Background
• No discounts
• Smirnoff is the most popular brand.
• Competitors having strong distribution network.
• Challenges
– communicating in a regulated market.
– Import duties levied
• Associated itself with Manna art
• Events
– Class of ’84
– Drink mixing sessions by celebrity bartenders
– “Mulit Cocktail Lounge”
• Vrinda Gokhale
• Cory Walia
Global Strategies
 Events
• Sampling program
– Magic cards
– 1000 events, 18 magicians
– Take away gifts (t-shirts, deck of cards…)

• Gay events
– Tom of Finland
 Global Distribution
• Ships it to 126 markets
• Maxxium and Future brands are the major
distributors.
• Strategic holdings
– Maxxium (25%)
– Future Brands (49%)
• Streamlined operations
 CRM
• Components
– Inside information to the world of Absolut
– Invitations to events
– Gifts
• Inside information
–  Stories about the world-famous ads
– In-depth product features, especially about
new flavours
– An ever-expanding collection of recipes
 CRM
• Invitations
– Tasting and sampling events 
– Parties presented by ABSOLUT
– Concerts, films and other performances presented by
ABSOLUT
• Gifts
– Reproductions of noteworthy ads
– Coffee-table style drinks book personalized with
ABSOLUT <YOUR NAME> on the cover
– The ABSOLUT DECK playing cards
 Worldwide Communication
• The first ad was “Absolut
Perfection” which came in
1980.
• Criteria
– The bottle should occupy
the centre stage
– No particular lifestyle to be
considered
• 15ft high sculpture – Ice
Hotel
• Has created campaigns
for the gay market
• Absolut Pictures
• Absolut Road Trip
 Worldwide Communication
• In an Absolut world
• Presents a bold and optimistic world view
– Rickshaw rides
– Music downloads
– VIP treatment
• Associations:
– Fashion
– Art
– Music
• Only alcoholic brand advertised on Ftv
• Music
– Absolut DJ site – 1998
– Absolut Tracks – 2003
– Lenny Kravitz – Breathe
 Art
• Eminent artists
– Andy Warhol
• In 1985 after getting convinced by Andy Warhol
– Laurence Gartel – Digital Art
– Hans Godo Frabel – Glass
– Gianni Versace – Fashion Designer
• ABSOLUT GLASNOST (1990)
• ABSOLUT EXPRESSIONS (1997)
• ABSOLUT ORIGINALS (1998-1999)
• ABSOLUT GENERATIONS exhibition at the
Venice Biennale in 2003
 Fashion
• David Cameron's dress debuted in 1988.
• ABSOLUT NEWTON
• ABSOLUT VERSACE
• ABSOLUT RUIZ DE LA PRADA
• ABSOLUT TOM FORD
• ABSOLUT GUCCI
• ABSOLUT GAULTIER.
 Website
• Three websites
– www2.absolut.com
– www.absolut.com
– www.absolutdrinks.com
• Interactive
– Visions
– Games (82 bottles)
• Global feel
• Newsletters and memberships
Absolut - the Essence of Vodka
Purity

The Icon Evolving strategy

Local variations Through “leverage” to

“collaboration”
Events

Association
with art,
fashion, music
 Elements of Success in Global
Branding – Alcohol Industry
• Associate with fields which do not have any
boundaries
• Product profile
– Clarity
– Consistency
– Quality
– Responsibility

• Become a brand-driven organization and culture

• Implement a measurement system
• Market research results need not always be true.