The big launch party is a strategy used all too often in the liquor industry, but it is like trying to air-condition Yankee stadium with $10 electric fan from Bunnings, yes it creates some ripples and a little movement, but on the whole, nothing has changed. I use to be involved in the liquor industry and have seen this over and over again, the biggest problem is always the same, channel power and user switching costs.Channel power in Australia (Melbourne as small example) is owned by a couple big players, then their are a host of independents who buy most of their stock from Dan Murphies as it is. Sales reps are sent around from various companies to make the sales and if the deal is good enough, they achieve distribution. So even if they jump through these hoops of fire, who is going to buy it?
Advertising alcohol to consumers is both difficult and expensive. Large TVC and radio campaigns very rarely change consumer buying patterns and in store price promotions are very short term in their effect on sales. Instead, the company is looking to raise the their profile by turning up at bottle shops for free tastings and hosting high profile, low cost events. They explain that introducing a new drink product to the early adult market is best done with “touchy feely” marketing. “To convince the uncommitted drinker you need to provide an experience they can see, taste, touch and smell and feel.”*
Josh Strawczynski's Opinion
If the ripples they are making in the blogging world continue, they will enter the mainstream market. However, I can't see the product gaining any real dominance in a very mature market. The brands they are up against are just too powerful in both reputation and economies of scale.
Sam Berringer's Opinion
I am impressed with the amount of user generated media coverage this is getting, but the product would need to be exceptional and well priced to achieve any real market share, and I just can't see that happening.
* Thanks to The Inspiration Room for the info
You can view the ASM Liquore site here, but it's completely valueless.
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4 comments:
yer, it is a very tight market, and pretty full up as well. nevertheless, new zealand vodka brand 42 below has some pretty bold plans, they want to get 10% of the world wide market in the next few years, up from basically nothing. Advertising and pulling stunts to gain news attention are gonna be their main channels I think, you should check em out maybe.
42 below is in a luxury position of recently being acquired by Carlton United Brewery (Fosters), so they have the distribution and marketing strength to do something special. A new comer has very little chance.
I was at the Vodka O party you refer to (it was a while back now).
The marketing channel to be considering in their strategy is PR. (I think the agency behind it is Believe, by the way)
First the reality of the event was irrelevant - it was how it was reported afterwards that mattered.
You describe it as "huge", which shows how perception quickly becomes reality.
In truth it was a bunch of people standing around in a church hall while a few unemployed models waitressed around some nibbles.
One of the oddest moments of the hour or so I stayed before I got bored came when a girl embarrassedly (is that a real word?) stripped down to a bikini for a photographer. Then just as quickly put her dress back on.
Of course, that was the shot that made the social pages of the weekend papers and made everyone think they'd missed a party full of hot bikini babes.
They have fantastic branding, great design and great advertising. It's now in most bars and clubs in Sydney. Maybe the downturn in the global economy may increase alcohol consumption, and may be good timing.
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