Case Study- Absolute Vodka

Topics: Absolut Vodka, Pernod Ricard, V&S Group Pages: 9 (2743 words) Published: March 10, 2011
Absolut Vodka’s Absolute Global Marketing
On a lovely morning of September 2009, with the fiftieth “beep”, Steven scanned the last bottle of the limited edition Absolut Vodka 2009 on the spirits Shelf of Selfridges London. The latest special-edition bottles of Absolut - packaged in a dramatic heavy-metal rock style, wrapped with golden studs and gray leather, rapidly become a spot light among the shelf, the whole spirit of Rock n’ Roll are simple illustrated by the new design, and just as its normal price, the Rock Edition priced at £19.99. Meanwhile, a celebration of Absolut Art was held by Absolut for its 30 years tradition of the company’s creative collaborations, Absolut Vodka also decided to fund an art annual award from 2010 in the world wide. In fact, Absolut Vodka launches the limited edition annually since the famous POP arts guru Andy Warhol volunteered him self in Absolut’s arts campaigns 1980’s (Absolut, 2009). Despite Absolut’s unique brand personality of fashionable and Arts-favourite, Absolute Vodka was also famous from its quality and its original distilling technique. Absolut Vodka is not the oldest Vodka manufacture, not the largest manufacture, and Absolut is not from the two famous Vodka nations (Russia and Poland) as well. But, with no doubt (TIMES, 2009), it is the most famous brand of Vodka’s. Absolut is really a legend. Absolut Vodka has been famous for its sensibility of fashion and its unique brand culture since the brand turnover in 1975. However, unlike Smirnoff (Diageo Plc) and Finlandia (Alko Group Ltd), the traditional technique of distilling and its country of origin are always keeping the same with its origin in Åhus 1879. Every bottle of Absolut is distilled in Sweden with domestic winter wheat which is firmly selected in Åhus. US market, as its first global expanding target, contributes more than around 58% profit for Absolut Vodka every year. And Asia-Pacific Market, as one of the latest markets for Absolut Vodka, is growing fast. Only Main land Chinese market (as a very new market) provided 8 % margin profit for Absolut Vodka in 2008. Also, the sales in Chinese market are increasing fastest on 2008. Just the sales of super premium were raised more than 20% than the previous year. In all, the general growth rate are kept around25% annually from 2004. However, there is a shrink in its western hemisphere market. The market share for Absolut Vodka was decrease in especially its Eastern Europe market, for example, the market share for Absolut Vodka in German was decreased 2.3% in last season and its Poland and Russia market has been smaller to 8.2% and 6.4%. That will be a big issue for Absolut Vodka since the 80% of world spirit consumption is come from Eastern Europe Market. On the other hand, view the global market, Smirnoff is always ahead of Absolut during the decades. As the annual report 2008 shows, Smirnoff obtain more than 2 times market share than Absolut in the US market.


The Brand Story of Absolut Vodka
The Rolling Centenary
Established in 1904 Absolut Vodka has been transferred the distinctive original Åhusstyle fractional distilling technique (founded in 1879, in Åhus, Sweden.) for decades. Time goes by, Absolut still with its hundred years history traditions. It was in 1879 when the founder Lars Olsson Smith invented the new technique of distillation. Instead of the usual three or four times distillation, LO Smith’s vodka was distilled an infinite number of times with fractional distilling techniques. And his philosophy was “uses only local ingredients in Åhus to find brand-new origin of Vodka.” Then with almost two decade’s marketing, Absolut Vodka became a monopoly Vodka in the small Swedish town. And Absolut Vodka was called “Absolut Rent Bränvin” at that time. Unfortunately, in 1917, the Swedish government took over the whole alcohol industry in Sweden. With no doubt, "Absolut Rent Brännvin" was also in the shortlist of taking over. In this period the name of...

References: Absolut Vodka (2009a) Annual report 2008/2009[Online].Available at: (Accessed: 18th May 2010) Absolut Vodka (2009b) ABOUT THE ABSOLUT ART CELEBRATION [Online]. Available at: (Accessed: 7th May 2010) Capell, K. (2006) ’Absolut Makeover: Pressured by superpremium rivals, the Swedish vodka brand is rolling out its first new ad campaign in 25 years, featuring classic moments in history ’, Business Week, 16th Jan[Online]. Available at: 39.htm (Accessed: 18th may 2010) Financial Time (2008). Market Data - Distillers & Vintners[Online]. Available at: ncodedName=Distillers-and-Vintners (Accessed: 12th May 2010) Hollensen, S. (2004). “Case Study IV.1 Absolut Vodka: Defending and attacking for a better position in the global vodka market”. Global Marketing: a decision-oriented approach 3e. Essex: Pearson, pp.594-600 Regan, J. and Pollard, N. (2008) ’ Pernod buys Absolut vodka’ , Reuters, 31st Mar[Online]. Available at: (Accessed: 19th may 2010)
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