Absolut Vodka Case Study

Social media has become an extremely effective tool in regards to advertising; Backbone alone has over 1 billion users. In the United States social media advertising has become the norm, we see it everywhere, Backbone, Twitter, Youth, and Pinsetters.

Social media has become one of the most successful Nays to advertise a product. In facts 80 percent of social media users prefer to connect with brands through Backbone. V&S Absolute Spirits must exploit the benefits of social media and increase their promotion on Backbone in order to increase their market share in the United Sates. Currently Absolute only has 4 million likes on their official Backbone page compared to Sunroof who has 10 million!

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Absolute Vodka in Europe? In Europe there are very few established brands, most prefer locally produced load’s especially in Eastern Europe. The brand leader in Western Europe is Sunroof Inch controls 16 percent of the market.

In Eastern Europe the vodka market is very large and diverse with hundreds of brands on the market. The regional leader Cristal controls only 7 percent of regional sales, with its nearest rival brand, Simenon, holding 4 percent of regional sales.

I think for V Absolute Spirits to increase its arrest share in Europe they must venture to promote Absolute as an established ‘up market’ brand preferred over ‘local vodka’. C) Absolute Vodka in other parts of the Enroll? Ere rest of the world’s vodka market is mostly controlled by Diagnosed Sunroof brand. In Latin America Sunroof controlled over 24 percent of the regional market with its closest competitor holding only 8 percent regional sales. In the rest of the world Sunroof is the dominant brand.

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It led the market in Asia-pacific, Australia, Africa and the Middle East. In order for V&S Absolute spirits to increase their market share in he rest of the world they should educate consumers in these countries on how to mix and consume vodka – something they have already began doing.

They have also began offering prizes to individuals who share pictures of themselves on social media drinking Absolute. Works Cited rhombus, Sine. Swedish brand Absolute teaches Chinese how to drink vodka. Scandal. Com Web 2013. Melanin, Eric.

Social Media Statistics That Affect Your Marketing Plan. Ecclesiastically. Com Web 2013.

In which region of the Enroll would you recommend V&S Absolute Spirits to allocate more marketing sources?

Many believe the United States, which is Absolutes largest market, has reached saturation. It would make little sense to put any more marketing resources onto an already flooded market.

So with little room to grow in the United States V&S Absolute Spirits must develop a plan in which they can gain a large market share in another region.

I believe Eastern Europe presents a massive opportunity to V&S Absolute Spirits which they must utilize. 86 percent of the world’s vodka is consumed in Eastern Europe. The markets of Eastern Europe are distinguished not only by their sigh vodka consumption but also by how much consumers know about alcoholic beverages and their appreciation of quality. However, political uncertainty and the lack of well functioning infrastructure in several Eastern European countries make short-term developments difficult to predict.

In Eastern Europe there are very few established brands with the regional leader Cristal controlling only 7 percent of the regional sales.

Diagnosed Sunroof is the largest international brand on the market. These numbers show that if a brand can separate itself from the competitors there are massive opportunities in Eastern Europe. V Absolute Spirits need to develop a strategy which focuses on Absolute as a higher quality than that of their local vodka’s. As stated earlier Eastern Europeans pride themselves in their appreciation of quality.

If they were to become aware that they were drinking an inferior product they would certainly give Absolute a try. However if Absolute were to employ this marketing strategy they would have to ensure their product was at least on par with the local loads.

If they aren’t consumers will question the validity of Absolute as a brand and never purchase their products again.

Did Absolute Vodka have the right competences for achieving international success for its Absolute Cut?

Absolute Cut was first launched in 2004 and was V first foray into the world of pre-mixed drinks. Absolute Cut is a mix of vodka and tonic blended Ninth a lemon and lime twist. Absolute Cut has the same distinctive bottle shape as its parent brand and was rolled out to both the on and off-trade markets in Canada, Australia and the I-J. However in July 2007 management concluded that Absolute Cut had failed to deliver sufficient volume in Canada, Australia and the I-J, promoting it to be taken off the production line in all three markets.

Clearly Absolute Vodka did not have the right competences for achieving international success for its Absolute Cut line.

When one thinks of ready-to-drink products the first that comes to mind is Sunroof Ice. Very few ready-to-drink products are able to compete with Sunroof Ice, in 2008 6,800 youths were surveyed on what their favorite alcoholic brand of choice Nas and it was found that Sunroof Ice was the brand of choice for 54% of the respondents – making it 2.5 times more popular than its nearest competitor. Sunroof Nas introduced in 1999 so by the time Absolute Cut was introduced; Sunroof Ice was army established leaving little room tort Absolute Cut to be stressful in the market.

‘&S learned the hard way that in a world where manufacturing companies are increasingly looking to cut costs by moving production to cheaper labor markets or constantly looking to secure inexpensive raw materials, Absolutes unique production process is a shining example how quality will always remain top priority. Absolute Cut simply watered down their product, something people were clearly not interested in. V’ should focus on the quality of their premium vodka, which remains their highest Rossini product.