Response to a research/strategy question from GapJumpers.me

1. March 2014
Canadian Club
Stromi Lof

2. How can we get women (LDA - 30
years) in Asia (especially India and
China) to try Canadian Club ?
The brief

3. Process
Gather insights into both Chinese and
Indian cultures to find out if Canadian
Club’s approach should be tailored to
each market or generic ?
Uncover the idiosyncrasies of each
culture to better inform the
marketing/communication strategy

4. Chinese
Market

5. CONSUMER INSIGHTS

6. Regulation
18
Legal drinking
age
Sale of alcohol to
minors was banned
in 2006
Source:
http://www.chinadaily.com.cn/english/doc/2006-01/06/content_510002.htm
http://www.who.int/bulletin/volumes/91/4/12-107318/en/#R10
http://apapaonline.org/APAPAnetwork/Meeting_Reports/files/Auckland_Sept04/Alcohol_Marketing_China.pdf
Since 1995
Advertising on alcohol is restricted but seemed weakly
enforced according to the World Health Organization
“Violations are commonplace, alcohol commercials
are still aired during prime time television programmes
and misleading and sensational advertising content is
common.”

7. Regulation
Instead it seems
that Chinese
government
and the
alcoholic
beverages
industry chose
self-regulation
Source:
http://www.eucam.info/eucam/home/news.html/1881/1195/self-regulation-announced-for-advertising-in-china
http://vimeo.com/69868746

8. Chinese drinking culture seems dominated by men
Source:
http://www.who.int/bulletin/volumes/91/4/12-107318/en//
http://www.interfaceasia.com/i-news/news_58.html
http://thinkingchinese.com/alcohol-culture-jiu-wenhua-drinking-as-a-currency-converted-to-friendship-and-successful-business
•15% of Chinese women declared drinking
alcohol vs. 55% for their men counterparts’
• Female respondents in China seem to drink less
frequently than the same gender groups in
other countries; more than 40% of female
respondents in these countries claim that they
drink once every few months.
• Traditionally, it seems that alcohol consumption
is mainly used to strengthen social/business
relationships amongst men/business partners
during business banquets where men are
encouraged to show their drinking skills ‘ganbei or
gambei’.
•During these functions, Chinese women are not
expected to drink like men…
“Alcohol means business and
power, but more directly, alcohol
equals emotions (ganqing) and an
informal (yet formal) long
standing masculine social
tradition of softening social
barriers.”

9. Women are not expected to drink but if they chose to do so
they have to drink like men…
“The social expectation for women to drink
is a lot less. Although women will
sometimes be made (or even teased) to
drink a bit, it’s much less of an obligation
than it is for men.”
http://jennyzhu.com/2010/02/08/drinking-
culture-in-china/
“Chinese women and, by extension, all
women are not required to drink as much.
Or if you remember to pretend from the
beginning that you “just don’t drink” — but
then you you have to stick to it til the end,
so make your choice wisely.”
http://matadornetwork.com/nights/a-
westerners-guide-to-chinese-drinking-culture/
“Generally speaking, when toasted in China men
are always supposed to drink.
Women, on the other hand, have a privilege to miss
a round (or even ask someone to drink instead of
her).
But don’t be deceived by slender looks of Chinese
girls. You might be surprised to reveal that some of
them can make a tough competition to guys in
drinking alcohol.”
http://www.lovelovechina.com/entertainment/chinese-
drinking-habits/
“Though it is socially acceptable for men to
consume high-strength alcohol, the concept of
women consuming high-strength alcohol such as
baijiu is still not fully accepted in Chinese culture.”
http://www.chinabusinessreview.com/opportunities-in-
chinas-alcoholic-beverage-market/

10. There exist opportunities to reach out Chinese women
Source:
http://www.chinabusinessreview.com/opportunities-in-chinas-alcoholic-beverage-market/
http://newzealandtochina.wordpress.com/2011/04/17/wine-and-chinese-women/
• Rise of alcohol consumption in the past five years: Fuelled
by their financial independence, female consumers tend
to consume more alcohol
• According to China Business Review, Wine appears to be
their favourite drink because of its:
• Aspirational lifestyle image. As wine is widely
consumed by western consumers, drinking wine
appears to be a sign of identification and
sophistication/social success among Chinese
women
• Claimed health benefits: “Many consumers believe
that drinking wine is good for one’s health and that
it promotes beautiful skin”

11. Taste /preference and Alcohol
percentage were the most
important factors
when Chinese consumers,
regardless of gender were asked
what were the important factors
they were paying attention to at
the moment of choosing an
alcohol
Taste and Alcohol percentage are important criteria
when choosing an alcohol
Source:
http://www.interfaceasia.com/i-news/news_58.html

12. As a result, Chinese consumers tend to choose lower-
strength alcohol
“More consumers are choosing lower-strength alcohol
following:
• Increased taxes on spirits and high-strength alcohol
• Media and industry promotions on healthier drinking
habits”
Source:
http://www.chinabusinessreview.com/opportunities-in-chinas-alcoholic-beverage-market

13. Further, mixing whisky and green tea seems popular in
China
“Observing that Chinese like green tea as a
mixer in their spirits, Chivas Regal began
promoting canned green tea as a mixer
with its whiskey products instead of
encouraging Chinese consumers to drink
Scotch neat, straight up, or on the rocks.”
This might be something that Canadian Club can
explore/utilize when developing
marketing/communications campaigns for the
Chinese target audience
Source:
http://www.chinabusinessreview.com/opportunities-in-chinas-alcoholic-beverage-market
http://the-fuqua-experience.com/blog/shanghai-day-7-chivas-regal-china-marketing-strategy/

14. MARKET INSIGHTS

15. Baijiu, the traditional Chinese spirit is losing its lusters
Source:
http://www.jingdaily.com/chinese-drinkers-turning-to-imported-spirits-but-baijiu-still-king/17948/
http://www.reuters.com/article/2013/09/10/us-china-baijiu-idUSBRE9891C920130910
"Baijiu is popular among mid- and elder-
aged consumers, but the younger
generations don't show strong interest"
Baijiu still largely dominates the Chinese
liquor market with 900 million cases sold
each year…
but Market leaders, Moutai and Wuliangye
saw weakest sales performances since,
2001 and 2005, respectively.

16. Meanwhile imported spirits are rapidly gaining market share
Source:
http://www.ipsos.com/sites/ipsos.com/files/Drinking-to-the-Future-Trends-in-the-Spirits-Industry.pdf
http://www.chinadaily.com.cn/china/2013-03/05/content_16275613.htm
• Imported spirits
grew by 16% in
China between
2010 and 2011
• Cognac & blended
scotch are the
biggest selling
imported spirits
• Diageo whisky brands grew by
59%
• Pernod Ricard liquor sales growth
reached 18%

17. Premiumisation seems key to succeed in this market
Source: http://www.ipsos.com/sites/ipsos.com/files/Drinking-to-the-Future-Trends-in-the-Spirits-Industry.pdf
Top 3 imported spirits brands in China:
• Hennessey Cognac
• Martell Cognac
• Chivas Whisky

18. CONNECTION
MOMENTS

19. Most popular places to
drink outside of home:
1. Restaurants
2. Friend’s houses
3. Pubs
Not surprisingly, this
leads to believe that the
alcohol consumption is
collective
Restaurants seem to be the favourite places to enjoy a
drink
Source:
http://www.interfaceasia.com/i-news/news_58.html

20. WRAP-UP

21. CULTURAL INSIGHT
Historically, Chinese alcohol culture has been driven
by business banquets where men used to cement
their business relationships. Hence, until today, it
seems that women are not expected to drink ‘like
men’

22. CONSUMER INSIGHT
As Chinese female consumers become more independent,
they tend to enjoy drinking alcohol without any inhibitions.
They favour wine above any other alcohol for its
aspirational aspects and pre-supposed health benefits

23. PRODUCT INSIGHT
Positive sales growth indicates high
enthusiasm for imported spirits in
China, which represents an
opportunity for Canadian Club. But it
seems essential to adapt to local
tastes and highlight the premium
aspect of CC Whisky to be successful

24. Indian
Market

25. CONSUMER INSIGHTS

26. India has one of the highest legal drinking age in the
world…
Source:
http://www.icap.org/Table/MinimumAgeLimitsWorldwide / http://en.wikipedia.org/wiki/Alcohol_laws_of_India
http://articles.timesofindia.indiatimes.com/2011-06-24/mumbai/29698621_1_drinking-age-drinking-age-alcohol
Legal Drinking age: 18-25
years depending on the
state
It’s one of the highest in
the world
Drinking age sits at 25 years
old in Maharashtra, the state
of Mumbai, the financial and
economic center and the
most populous city in India

27. as well as the toughest advertising regulation
Source:
http://apapaonline.org/data/National_Data/India/Alcohol_Policy_India.pdf / https://www.alcoholwebindia.in/content/regulation-legislation
http://www.ias.org.uk/What-we-do/Publication-archive/The-Globe/Issue-4-2001-3-2001/Alcohol-in-India.aspx
Advertising alcohol drinks is prohibited across all
communications channels (TV, radio, print…)
This law is enforced based on The Cable Television Network
(Regulation) Amendment Bill dated from September 2000
Restrictions
on
Alcoholic
beverages
advertising

28. But there exists a grey area around surrogate
advertising
Source:
http://www.freestyle-marketing.co.uk/advertising/what-is-surrogate-advertising.html
Most brands use surrogate ads to bypass these restrictions.
What is surrogate
advertising?
Surrogate advertising
consists in associating
its brand to a product
(soda, mineral water,
CD…) with the
intention of promoting
a product subjected to
advertisement
restrictions (e.g.
Alcohol, cigarettes)
Example of surrogate ad
for Kingfisher

29. A widespread practice that seems closely monitored by
the government
Source:
http://adage.com/article/global-news/advertising-india-s-marketers-evade-alcohol-ad-ban/140509/
http://www.thehindu.com/news/cities/Thiruvananthapuram/liquor-companies-warned-against-surrogate-ads/article5055497.ece
In 2009, surrogate advertising accounted for 5% of the
total ad spending in India, which represents about $4.5
billion
But this common practice has also been under scrutiny of
the Indian government, which regularly releases warnings
to liquor companies

30. Similarly to China, traditions still have a strong impact
on drinking patterns
Source:
http://www.ias.org.uk/What-we-do/Publication-archive/The-Globe/Issue-2-2008/Indian-Alcohol-Atlas.aspx
http://www.ias.org.uk/What-we-do/Publication-archive/The-Globe/Issue-2-2005/India-Alcohol-and-public-health.aspx
http://www.theguardian.com/commentisfree/2012/aug/22/letter-from-india-women-drink
http://meerareflections.blogspot.com.au/2012/10/wine-and-women.html
Low consumer base
‘’India is generally regarded as a
traditional ‘dry’ or ‘abstaining’ culture”
Less than 5% of Indian women are
consuming alcohol whilst one in five
men (21%) regularly drinks alcoholic
beverages
Public opinion seems
judgemental on women who
drink, particularly in public
“Indian girls might drink alcohol, but they
cannot be seen in public buying it.”
“Yes I know times are changing but
generally, in India, women who drink are
viewed in the most suspicious way!”

31. But there is a significant opportunity among the female
market
Source:
http://www.indianalcoholpolicy.org/images/alcohol_atlas/F-Current%20Patterns%20and%20Trends.pdf
http://www.reuters.com/article/2013/03/17/us-india-liquor-women-idUSBRE92G0IF20130317
Existing women drinkers
drink almost as
frequently as their male
counterparts
“While almost 70% of the
male drinkers drink daily or almost
daily, 55 % of women drinkers also
drink at the same frequency”
Consumption among
female drinkers is on the
rise
“This segment is growing more
than twice as fast than the
overall market”

32. Little information exists into female drinking
preferences
Source:
http://www.eucam.info/eucam/home/news.html/1881/2310/india-female-alcohol-consumption-on-the-rise
http://www.reuters.com/article/2013/03/17/us-india-liquor-women-idUSBRE92G0IF20130317
Women appear to drive cocktail consumption
"There is a rise in the cocktail culture and a significant part of that is because of
women"
Restaurants and bars proved to be their favourite places to
have drink
Women who drink in public would typically do so in high-end restaurants or bars in
upscale sections of cities such as Mumbai, New Delhi and Bangalore.

33. Brands have started to tailor their NPD* and
Communications to the female market
Source:
http://www.eucam.info/eucam/home/news.html/1881/2310/india-female-alcohol-consumption-on-the-rise
http://sulawines.com/Newscategory/Newsdetails/Taboo-broken-as-Indian-women-get-taste-for-drink/1/233/
Low-strength & flavoured
alcohol drinks and specific
events
• Remy Cointreau launched the orange
liqueur in India three years ago to tap
the burgeoning women's market.
• Sula Wines developed a wine for
women with low alcohol, slightly
sweeter and sparkling
• Several brands/bars regularly host
event exclusively dedicated to women:
•
“Sensing the shifting culture, big city bars
and clubs are promoting ladies’ nights, with
free cocktails for women and incentives to
wear high heels.”
*NPD: New Product Development

34. MARKET INSIGHTS

35. Spirits lead alcohol consumption
Source: Drinking-to-the-Future-Trends-in-the-Spirits-Industry - IPSOS

36. …and Whisky is King
Source: Financial Times - The Business of whisky
World Leader
India is the world
largest Whisky market
(in terms of volume)
Indians consume
150M nine litre
cases of Whisky each
year
This represents half
of the spirit market

37. Yet, imported genuine bottled whisky consumption
remains low
Source: Financial Times - The Business of whisky
Local Indian Whiskies make the majority of the whisky
consumed in India while Imported Whisky represents
a mere 1%
These whiskies, named IMFL (Indian Made Foreign Liquor)
differ from the Scotch; they are made from a blend of distilled
molasses and imported Scotch whisky
Taxes represent the main barrier to entry for foreign
companies
The low consumption of foreign brands is mainly due to a hefty
price of entry to Indian liquor market, driven by high taxes on
imported alcohol.
150%
Import tariff on foreign spirits

38. The biggest players in the Indian Whisky market
Source:
http://www.euromonitor.com/alcoholic-drinks-in-india/report
http://articles.economictimes.indiatimes.com/2013-03-05/news/37470124_1_pernod-ricard-net-profit-higher-profit
• United Spirits is the largest
liquor company in India.
•
• In 2012, Diageo agreed to
acquire United Spirits
• The company holds 43% of
the spirits market (in terms of
volume)
• Pernod Ricard is
currently the most
profitable spirits firm in
India
This is mainly due to the
strong performance of
local brands (e.g. Royal
Stag and Blenders Pride)
owned by Pernod Ricard

39. WRAP-UP

40. CULTURAL INSIGHT
There seems to exist an ‘untold prohibition culture’
that restrains women to buy and drink alcohol in
public. This is driven by archaic ideas combined with
strong stereotypes (e.g. ‘If she drinks that means she
is ‘loose’ woman) . As a result, women choose
carefully with whom and where they consume
alcohol.

41. CONSUMER INSIGHT
Available data indicates that alcohol drinking patterns are
marginal among Indian women. However, female urban
consumers fuel the rise in alcohol consumption. Upmarket
bars and restaurants are their favourite places to have a
drink; cocktails also seem very popular. Aware of this trend,
companies designed special drinks for women as well as
events

42. PRODUCT INSIGHT
Whisky consumption is already well
established in India and the market is
highly competitive with strong local
brands some of which backed by
international groups.
However, there exists an opportunity to
educate consumers to differentiate CC
Whisky from local brands.
Further, beyond the product attributes,
CC Whisky will need to promote its brand
while respecting the tough restrictions on
advertising in order to prevail in this
market

43. RECOMMENDATIONS

44. STRATEGY
Based on cultural,
consumer and product
insights, the following
themes should feature in
CC communications in
order to successfully
encourage trial of CC
whisky among LDA-30
years Chinese and Indian
consumers
Leisure drink
Present CC whisky as a leisure drink to
differentiate itself from the traditional
Chinese business culture, which is
strongly linked to the male drinking
culture.
Data suggests that restaurants, friend’s
houses and bars are the favourite
places for both Indian and Chinese
women to have a drink.
Explore further, which times, places
and surroundings that can feature in
communications
Sophisticated brand
Research indicates that Chinese
female consumers prefers wine as it
reflects their social status goal.
Meanwhile research suggests that
affluent women living in Indian capital
cities boost the female alcohol
consumption
There is an opportunity to educate
female consumers about whisky
history and culture via whisky tasting,
teach them how to create whisky
cocktails and pair whisky with food
Easy to Drink
Take into consideration the low-
strength/ mixer trend and health
concerns in China and the rise in
cocktail drinking among women in
India, It is not suggested to encourage
drinking CC whisky straight or on the
rocks.
However, CC could be the perfect
base for cocktails and could set
apart the brand from the competition
by introducing new flavours to mix with
its whisky
Empowerment
Given the stereotypes of Indian and
Chinese societies on women who
drink, the communications must
represent Chinese and Indian women
drinking without inhibitions. The CC
woman does not fear what the public
opinion will think.
• Messaging should be narrated from
a female point of view to be able to
have an impact on the target
audience.
• Positioning suggestion: CC whisky
is a drink that women will drink their
own way.
• Key message: There is nothing
wrong with a woman who drinks
Commonalities:
Communication pillars

45. STRATEGY
How CC can connect with
the target audience ?
The bar counter
Due to the restrictions on advertising,
CC cannot use mass communication
(TV,radio, print, Internet) to promote its
whisky.
Although, surrogate advertising is
common in India, it’s not legal and we
would not advise CC to use this
practice.
This might conflicts with the Premium
character of the brand. Moreover,
these ads/products could be banned
under the Indian laws.
Instead, CC could showcase its whisky
during relevant events (fashion
week…) or create its own events in
bars and restaurants.
This second option will enable the
brand to connect directly with its
target audience in an environment
where they are in the mindset to enjoy
a drink and open to discover new
drinks too
Mass media + the
bar counter
In China, CC can use all
communications channels to connect
with its target audience.
Explore further what are the media
consumption behaviours among LDA-
30 years Chinese women.
However, we would recommend to
create special events in restaurants
and bars where Chinese women can
discover the brand
Differences:
Key touch points

46. STRATEGY
How CC can connect with
the target audience ?
One to one communication with messaging
apps
Rationale: Given that CC Whiskey cannot
use mass media in India, there is an
opportunity to use messaging apps (e.g.
whatsapp, viber, line, hike or nimbuzz) to
engage with the target audience.
Activation idea: Seed invitations to private
parties and encourage audience to share
with their girl friends for a free girl night out
organized by CC Whisky
Differences:
Key touch points
Messaging aps in
India – Numbers of
active users:
• Whatsapp: 30M
• Viber: 15M
• Line: 10M
• Hike: 5M
Source:
The Growth Of Mobile Messaging Apps in India: Numbers, Marketing And Challenges - http://lighthouseinsights.in/the-growth-of-mobile-messaging-apps-in-india-numbers-
marketing-and-challenges.html

47. APPENDIX

48. Example of surrogate products
Source:
http://blogs.welingkar.org/index.php/campus-corner/implicit-positioning-and-surrogate-advertising