Case Svedka
Svedka
Case Study – Marketing Strategy
Executive Summary
Despite its many accolades, in 2008 Svedka was still viewed as a budget-brand spirit, which ultimately inhibits its success among the targeted 21-25 year-old market. Young adults are unwilling to compromise on either price or quality and want premium spirits that are affordable. Young adults also see drinking principally as a social event, so their regular complexes about fitting in and projecting a strong self-image factor into the brand selection process (Chris Haack, 2008). Premium brands like Absolut and Grey Goose dominate the nightlife market because people are proud to order them (Proof 66, 2008). Svedka deserves to be one of those brands. It’s been rated higher than both Absolut and Grey Goose, but its brand positioning is not living up to the originally intended position as a high-quality product offered at a value price.
Svedka doesn’t have a problem with brand awareness. Its current marketing efforts are reaching the right people, but they carry the wrong message. The suggested campaign strategy during initial roll-out could have improved Svedka’ s brand image as a premium product offered at a value price and improved market segment positioning.
The objective of the suggested campaign is to alter perception of the brand and ultimately lead to an increase in on-premise sales. This will allow Svedka to pick up market share from the declining nightlife staple Absolut (Giandelone, 2011).
Introduction
Established in 1998, Svedka was launched as the first mid-tier vodka marketed to 21 - 35 year olds. Svedka was originally launched in states across North America. The expansion of vodka brands increased the desire for high priced liquor and awareness of the quality and appeal of vodka. Cuvelier believed customers were willing to stretch their wallets in the mid-market vodka industry to pay a higher price for a better quality, reasonably priced product.
SVEDKA vodka launched with a brand vision: to put
Case Study – Marketing Strategy
Executive Summary
Despite its many accolades, in 2008 Svedka was still viewed as a budget-brand spirit, which ultimately inhibits its success among the targeted 21-25 year-old market. Young adults are unwilling to compromise on either price or quality and want premium spirits that are affordable. Young adults also see drinking principally as a social event, so their regular complexes about fitting in and projecting a strong self-image factor into the brand selection process (Chris Haack, 2008). Premium brands like Absolut and Grey Goose dominate the nightlife market because people are proud to order them (Proof 66, 2008). Svedka deserves to be one of those brands. It’s been rated higher than both Absolut and Grey Goose, but its brand positioning is not living up to the originally intended position as a high-quality product offered at a value price.
Svedka doesn’t have a problem with brand awareness. Its current marketing efforts are reaching the right people, but they carry the wrong message. The suggested campaign strategy during initial roll-out could have improved Svedka’ s brand image as a premium product offered at a value price and improved market segment positioning.
The objective of the suggested campaign is to alter perception of the brand and ultimately lead to an increase in on-premise sales. This will allow Svedka to pick up market share from the declining nightlife staple Absolut (Giandelone, 2011).
Introduction
Established in 1998, Svedka was launched as the first mid-tier vodka marketed to 21 - 35 year olds. Svedka was originally launched in states across North America. The expansion of vodka brands increased the desire for high priced liquor and awareness of the quality and appeal of vodka. Cuvelier believed customers were willing to stretch their wallets in the mid-market vodka industry to pay a higher price for a better quality, reasonably priced product.
SVEDKA vodka launched with a brand vision: to put
Cited: Bieler, K. W. (2013, November 5). Brand Profile: Svedka, Building Strength on Strength. Retrieved July 6, 2015, from Beverage Media Group: http://www.beveragemedia.com/index.php/2013/11/brand-profile-svedka-building-strength-on-strength/ Chris Haack Evans, P. (2015, February 4). Vodka sales fall as drinkers switch to whiskey. Retrieved July 6, 2015, from http://www.marketwatch.com/story/vodka-sales-fall-as-drinkers-switch-to-whiskey-2015-02-04?page=2 Giandelone, E Liquor.com. (2015). Svedka Vodka. Retrieved July 3, 2015, from Liquor.com: http://liquor.com/brands/svedka-vodka-2/#oqf7sr1FGjVLPh9v.99 N.Frank, J Proof 66. (2008, September 09). INAUGURAL VODKA TASTING RESULTS! Retrieved July 4, 2015, from Proof 66: http://www.proof66.com/liquor-articles/inaugural-vodka-tasting-results.html Rutledge, T Svedka.com. (2003-2015). About. Retrieved July 3, 2015, from Svedka.com: http://svedka.com/#!/about-svedka