Case Study: Smirnoff Vodka
Case Study: Smirnoff Vodka
Market
The drinks market is constantly evolving, with product innovation, as well as brand strength, at the heart of its growth. Doubtless, the root of success of Smirnoff vodka is the consistently high standard of classic vodka that its owner has produced over the years. However, as the market has evolved, so has the Smirnoff brand. With a growing range of flavoured vodkas and pre-mixed cocktails that perfectly tap into the lucrative ready to drink sector, Smirnoff is successfully supplying the constant demand for new products that will target the younger, style-conscious adult drinker.
White spirits are better suited as summer refreshers rather than winter warmers. However, unlike many other alcoholic beverages, the white spirits market is not adversely affected by seasonality. Sales within the white spirits market are not limited to the summer season alone, but are equally included in the general upsurge in alcohol consumption over the festive season which sees around 22% of annual volume sales being made in the Christmas period (Source: Mintel 2000).
Vodka is a drink that appeals to young adult drinkers, partly because of its versatile character. It has benefited from its lack of association with, or limitation to, any one particular mixer, meaning that the different possibilities of consumption are multiplied.
Achievements
In 1877, the Smirnov vodka company in Moscow was awarded the right to use three Russian State coats of arms and in 1886 became Purveyor to the Imperial Russian Court. Between 1874 and 1897 it won numerous awards for quality and variety at international exhibitions.
By the end of the nineteenth century, the Smirnoff vodka brand was generating the equivalent of nearly $20 million a year in revenues.
Since 1975, vodka -- led by Smirnoff -- has outranked bourbon as the US's most popular spirit. In 1978, Smirnoff became the number one spirit brand in the US, its largest market (Source: Smirnoff
Market
The drinks market is constantly evolving, with product innovation, as well as brand strength, at the heart of its growth. Doubtless, the root of success of Smirnoff vodka is the consistently high standard of classic vodka that its owner has produced over the years. However, as the market has evolved, so has the Smirnoff brand. With a growing range of flavoured vodkas and pre-mixed cocktails that perfectly tap into the lucrative ready to drink sector, Smirnoff is successfully supplying the constant demand for new products that will target the younger, style-conscious adult drinker.
White spirits are better suited as summer refreshers rather than winter warmers. However, unlike many other alcoholic beverages, the white spirits market is not adversely affected by seasonality. Sales within the white spirits market are not limited to the summer season alone, but are equally included in the general upsurge in alcohol consumption over the festive season which sees around 22% of annual volume sales being made in the Christmas period (Source: Mintel 2000).
Vodka is a drink that appeals to young adult drinkers, partly because of its versatile character. It has benefited from its lack of association with, or limitation to, any one particular mixer, meaning that the different possibilities of consumption are multiplied.
Achievements
In 1877, the Smirnov vodka company in Moscow was awarded the right to use three Russian State coats of arms and in 1886 became Purveyor to the Imperial Russian Court. Between 1874 and 1897 it won numerous awards for quality and variety at international exhibitions.
By the end of the nineteenth century, the Smirnoff vodka brand was generating the equivalent of nearly $20 million a year in revenues.
Since 1975, vodka -- led by Smirnoff -- has outranked bourbon as the US's most popular spirit. In 1978, Smirnoff became the number one spirit brand in the US, its largest market (Source: Smirnoff