Svedka Case Study Analysis
Svedka Vodka:
Case Study Analysis
Summary In 1998, entrepreneur and MBA Guillaume Cuvelier was preparing for the launch of his new distilled spirit, Svedka Vodka. Cuvelier has decided to start a vodka company after working many years in the spirits industry. Vodka makes up a large share of the spirits American’s drink at 24% of all alcohol consumed (Zuckerman). Vodka consumption is also rising across the US. Svedka is going to be a newcomer in the vodka marketplace going up against many big opponents in products such as Smirnoff, Grey Goose, Stolichnya and Absolut. Cuvelier’s Svedka has gotten rave reviews from many critics for its quality, so a successful marketing campaign will not depend much on this. In order to successfully market Svedka, Cuvelier needs to address the other 3 of the 4 P’s of a marketing mix that aren’t about the qualities of the product. He needs to determine a successful price point at which to sell the vodka, how to promote and brand his vodka, and lastly, how to place and distribute Svedka successfully.
Pricing Options and Solution In addition to being able to see the growing trend in Vodka consumption with his previous work experience, Cuvelier was also exposed to the many fallacies that plagued the market place. Svedka’s competitors are largely split between two market segments: the premium, high-end vodkas for those who like a clean finish and are willing to pay the price, and cheap low end vodkas that provide the same ethanol for a trade off in quality and drinkability.
Cuvelier could try to price Svedka toward the high priced tier of Vodka. The $30+ premium associated with these vodkas is a natural draw, since profit margins could be very high if the brand is successfully established, but there are several drawbacks that prevent this from being a true viable option. Drinkers of high end Vodka tend to be extremely loyal to the spirits that they currently consume (Zuckerman). This means
Case Study Analysis
Summary In 1998, entrepreneur and MBA Guillaume Cuvelier was preparing for the launch of his new distilled spirit, Svedka Vodka. Cuvelier has decided to start a vodka company after working many years in the spirits industry. Vodka makes up a large share of the spirits American’s drink at 24% of all alcohol consumed (Zuckerman). Vodka consumption is also rising across the US. Svedka is going to be a newcomer in the vodka marketplace going up against many big opponents in products such as Smirnoff, Grey Goose, Stolichnya and Absolut. Cuvelier’s Svedka has gotten rave reviews from many critics for its quality, so a successful marketing campaign will not depend much on this. In order to successfully market Svedka, Cuvelier needs to address the other 3 of the 4 P’s of a marketing mix that aren’t about the qualities of the product. He needs to determine a successful price point at which to sell the vodka, how to promote and brand his vodka, and lastly, how to place and distribute Svedka successfully.
Pricing Options and Solution In addition to being able to see the growing trend in Vodka consumption with his previous work experience, Cuvelier was also exposed to the many fallacies that plagued the market place. Svedka’s competitors are largely split between two market segments: the premium, high-end vodkas for those who like a clean finish and are willing to pay the price, and cheap low end vodkas that provide the same ethanol for a trade off in quality and drinkability.
Cuvelier could try to price Svedka toward the high priced tier of Vodka. The $30+ premium associated with these vodkas is a natural draw, since profit margins could be very high if the brand is successfully established, but there are several drawbacks that prevent this from being a true viable option. Drinkers of high end Vodka tend to be extremely loyal to the spirits that they currently consume (Zuckerman). This means
Cited: Henard, David. "Module 's 7A,7B,8A,8B." MBA 560. NCSU. Raleigh, NC. . Lecture. Kim, W. Chan, and Renée Mauborgne. "Blue Ocean Strategy." Davidhenard.com. Harvard Business Review. Web. 22 Oct 2013. . Zuckerman, Ivy. "Svedka Vodka (A)." Darden Business Publishing. (2010): n. page. .