Absolut Marketing
“Absolut Marketing”
Erika Lin Chow
Management 345-01
Term Paper
Catholic University of America
Fall 2013
Presented is a marketing case study of Vin & Sprit 's product, Absolut vodka. Decades ago, it was their goal to succeed in the U.S market, as a sort of gateway into global marketing. Outlined below is a demonstration of their marketing strategy. Detailed are the challenges they faced, and the marketing and advertising strategies used to overcome them. Their core strategy to obtaining a sustainable competitive advantage was through product excellence. V&S knew they had a high-quality spirit, but they would need to utilize effective branding and positioning to get consumers to perceive their value (4). Through their use of effective marketing, Absolut vodka has become not only one of the highest selling and most widespread vodkas, but No. 3 out of every spirit on the globe(3).
Vin & Sprit was founded in Sweden in 1917, where it operated successfully, selling vodka and other spirits (1). The Absolut vodka distilleries are, even today, located in Sweden. Vin & Sprit decided to begin sales on the global market through exporting. In 1979, Absolut vodka entered the U.S market, with it 's debut in Boston, Massachusetts. Launching a successful product in America presented Vin & Sprit with a challenge. Their first hurdle was finding a distributor, as American firms were doubtful that Absolut would survive in the North American market. Eventually, a Manhattan-based company, Carillon Importers Ltd. took the challenge, and began working on the marketing and distribution plan for Absolut vodka(2). Vin & Sprit 's attempt to spread their product globally began in the United States. Their goal entering this market was export their product to compete with the leading brands of vodka, which were already well known and widespread. Luckily for Vin & Sprit, they already had a high-quality product, but their challenge would
Erika Lin Chow
Management 345-01
Term Paper
Catholic University of America
Fall 2013
Presented is a marketing case study of Vin & Sprit 's product, Absolut vodka. Decades ago, it was their goal to succeed in the U.S market, as a sort of gateway into global marketing. Outlined below is a demonstration of their marketing strategy. Detailed are the challenges they faced, and the marketing and advertising strategies used to overcome them. Their core strategy to obtaining a sustainable competitive advantage was through product excellence. V&S knew they had a high-quality spirit, but they would need to utilize effective branding and positioning to get consumers to perceive their value (4). Through their use of effective marketing, Absolut vodka has become not only one of the highest selling and most widespread vodkas, but No. 3 out of every spirit on the globe(3).
Vin & Sprit was founded in Sweden in 1917, where it operated successfully, selling vodka and other spirits (1). The Absolut vodka distilleries are, even today, located in Sweden. Vin & Sprit decided to begin sales on the global market through exporting. In 1979, Absolut vodka entered the U.S market, with it 's debut in Boston, Massachusetts. Launching a successful product in America presented Vin & Sprit with a challenge. Their first hurdle was finding a distributor, as American firms were doubtful that Absolut would survive in the North American market. Eventually, a Manhattan-based company, Carillon Importers Ltd. took the challenge, and began working on the marketing and distribution plan for Absolut vodka(2). Vin & Sprit 's attempt to spread their product globally began in the United States. Their goal entering this market was export their product to compete with the leading brands of vodka, which were already well known and widespread. Luckily for Vin & Sprit, they already had a high-quality product, but their challenge would
References: 1. "Vin & Spirit AB History." FundingUniverse.com. N.p., n.d. Web. 01 Dec. 2013. . 2. Chumash, Michelle. "The Story." Absolutad.com. N.p., n.d. Web. 01 Dec. 2013. . 3. Elliott, Stuart. "In an ‘Absolut World,’ a Vodka Could Use the Same Ads for More Than 25 Years." The New York Times. The New York Times, 27 Apr. 2007. Web. 01 Dec. 2013. . 4. Grewal, Dhruv, and Michael Levy. Marketing. New York: McGraw Hill/Irwin, 2013. Print. 5. Elliott, Stuart. "Absolut Ads Salute States." The New York Times. The New York Times, 13 Jan. 1992. Web. 02 Dec. 2013. .