42 Below Vodka
In 1999, 42 Below vodka was founded by Geoff Ross, A drinks manufacturing company based in Downtown Auckland, New Zealand. Their flagship vodka is the Vodka 42 Below and Gin South gin as well 420 spring water (still and sparkling mineral water) and the House Quality Vodka brand Still Vodka. It was a family owned business, financed by personal sources. 42 Below vodka is New Zealand’s first premium vodka. The main ingredients of 42 Below vodka are GE-free wheat, water sourced from crystal-clear spring flowing through a position just north of Wellington beneath an extinct volcanic area at 42degree of latitude. The name 42 Below vodka tells a story in itself relates to the 42 degree latitude below the equator and product contains 42% of alcohol. The company has "typical New Zealand" flavors, such as passion Fruit, Feijoa, Manuka honey, and of course, kiwifruit, to its original product line, as well as its 42 South gin.The success of product was its unique flavours and distinctive bottling. Though the company was too small and young, in next couple of years company grew rapidly and started selling the product to 25 countries. In very small tenure company received numerous awards. Macro-Environment Analysis of the world wide spirits industry: Demographic: World Organizational health announced alcohol as a classified drug. Alcohol abuse has dramatic impact on health. Moderate consumption of alcohol also has negative impact that is why industry is facing frequent political interface resulting in restrictive laws and extra taxation. ECONOMICAL: While the recession is over, economic growth has not resume at the same pace in every region of the world. This has significant impact on consumer confident and spending. The purchase of branded alcohol, in particular premium drinks is similar to purchase of luxury goods. SOCIAL: Alcohol consumption is either tolerated to certain extent or prohibited by the world’s most important religions. This is very well reflected in consumption figure of countries such as India and Middle East regions. People tend to moderate their alcohol consumption due to various side effects of alcohol abuse. TECHNOLOGICAL: Spirit industries are using high technology to promote their product in market. ENVIRONMENTAL: Efforts to reduce pollution in advanced countries has resulted in initiatives including bottle bills, a system by which consumer pay an extra fee when purchasing bottles and cans that is returned when bottles are brought back to the purchasing point for recycling. Such systems are sometimes blamed for increasing beverage price and deterring purchase. LEGAL: Limit alcohol consumption due to public order, safety and health. Laws include measures on the legal drinking age, selling point, taxes on revenues, drinking and driving conditions. Limit alcohol advertising. The advertising campaign must comply with country specific requirement, targeted audience and on air time. Effects on Brand Appeal if Bacardi moves production of “42 Below” outside New Zealand. Incremental shift in the next five years
Named after location of company’s original base, company did enjoy many rewards and covered milestones in its success. Major component to its success was to accept change to maintain competitive advantage with implementation of new technology to diverse its business with help of SAP in 2005 which straightway improved its stock control, reconciliation of stock and automatic customer ordering system through e-mail. Company set few new targets for its future growth to remain in its position and beat competition. Main target is:- Innovation: To follow its own success of vodka and gin brands with launch of white rum. There is plan to distilled white rum in Fiji because Fiji got abundant resources of sugar cane and got pacific island credibility. Increase in Export:-42 below is looking for its new business expansions in China, Russia and US. Response...
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