2. Step 1: Primary Target Market
Primary Target Market for Absolut
• Men and Women between 21 – 35
• Urban-based individuals who hail from AB and Upper C socio-economic
classes, employed or has sources for funds
• Individuals conscious of success, social standing, style and trends, and
their circle of friends
• Groups of those who go out during the weekends or have nightcaps after
a workday
3. Step 2: Needs, Wants, Demands
The party is ABSOLUT fun!
I am happy when I am
acknowledged and
accepted by friends
while we share the
same fun activities
I want to be with
friends and have a fun
time with them.
4. Step 2: Needs, Wants, Demands
Needs
• PTM needs to belong to a group or social circle and gain self
esteem with the confirmation these friends
Wants
• PTM prefer a brand that’s popular, affordable and known for
its position in the market (prestige levels)
• PTM prefers a nice looking and exclusive bottle with great
content
Demands
• PTM demands premium quality for their money
• PTM demands that that they will be acknowledged / bonded
when friends all go out, have fun, and drink together.
5. Step 3: Competition / Competitive Position
Competition:
Direct
• Belvedere, Grey Goose, Smirnoff, Stolichnaya, Skyy
Indirect
• Beer, Wine, Whisky, Rhum, Tequila
Variables
• Price, Packaging, Availability, Brand Promise of
Quality, Number of options to use mixers
6. Step 3: Competition / Competitive Position
Price / Age Matrix
Price / Age Matrix 18-20 20-25 26-30 31-35
Grey Goose
High Price
Belvedere
Mid Price Absolut
Stolichnayya
Low Price Skyy
7. Step 3: Competition / Competitive Position
Functional Benefits vs. Brands
Functional Benefit Absolut Grey Goose Stolichnaya Belvedere Skyy
Brand Appeal X X
Appealing Price X X X
Odorless & Tasteless X X X X
Alcohol Content X X X X
Party Appeal X X
Ready Availability X
The Absolut brand due to its popularity (price and availability) makes it a
standout among competition.
Note: Vodka should naturally be odorless, colorless and tasteless. Flavors are added to
make it acquire flavors.
8. Step 4: Gap / Opportunity / Position
Where is the marketing opportunity?
- Absolut is the leading brand in the market already and the opportunity
lies in gaining or increasing its market foothold. (Maintaining
Market Share)
- The Vodka Industry is already considered in its mature phase with a
high brand loyalty so gaining new patrons would be in the brands
best interest.
- There are too many competitors in the market but the population is
growing at a steady pace and Absolut has to capture the new
potential patrons year on year. (Extending Volume Growth)
9. Step 4: Gap / Opportunity / Position
What Need Wants Desires are not being addressed?
- The needs and wants not being addressed are those that pertain to self-
actualization
- rather than focus on that, the brand must focus instead on its key
strengths where they are able to answer the needs in the social / esteem
areas.
What can be the unique selling proposition for the new
product
- The brand is popular and on its own, it is its own USP and has the innate
capacity to attract new customers provided it maintains the same or
even greater level of marketing campaigns towards the fulfillment of the
same.
10. Step 5: Market Size
Market Size
• US and European data suggests that the Philippines has a $3 billion
market for liquor.
• WTO rulings will force Philippines to lower the duties and taxes levied on
all imported spirits
• Total recorded per capita consumption of Filipinos is 3.75 litres of pure
alcohol for those 15 years and above and increases by 10% every year
(Filipinos only third to Thailand and Japan)
• Local manufacturer Emperador sold 96 million bottles when the Philippine
population was only less than 90 million a couple of years back.
11. Step 5: Market Size
Market Size
• Liquor is one of the most profitable industries in the Philippines
• Middle & Upper Class spend more money on alcohol (higher
discretionary income)
• More Filipinos expected to move to urban settings
• Philippine alcohol sales were stable in 2011
• 1997 Family income expenditure shows they spend approximately 1% of
their income on alcohol. Filipinos drink more than their South East
Asian counterparts.
12. Step 5: Market Size
• 1994 UP studies indicate that 60% of Filipino
youths drink alcohol (legal age)
• Philippine growth is 2% per year, thus there is a compounding effect
on the demand for this beverage product
• Total volume and sales is expected to record and drive stable growth
from 2012 – 2016
• Even with economic downturn, consumption of alcohol remained
constant because they were driven by more affluent customers
• Filipinos drink to socialize (45%) to remove stress(24%) and to just be
happy (18%)
13. Step 6: Product
Product Info and Variants
• Vodka is the most popular drink with countless number of brands
• Absolut is the 4th largest international premium spirit producer in the
world
• Manufactured in Sweden in 1897 and made available globally in 1979
• Available in 126 countries and is ranked among the top 10 premium
spirits since 1994
14. Step 6: Product
Product Info and Variants
•Variants available in the Philippines:
Original Ruby Red
15. Step 6: Product
Product Info and Variants
•Variants available in the Philippines:
Raspberri Vanilia
16. Step 6: Product
Product Info and Variants
•Variants available in the Philippines:
Citron Mandarin
17. Step 6: Product
Product Info and Variants
•Variants available in the Philippines:
Kurant Pears
18. Step 6: Product
Product Info and Variants
•Variants available in the Philippines:
Apeach Mango
20. Step 6: Product
Product Look vs. Competitors
• Absolut is has a bold and high recall name
- From the word Absolute – dropped final E to avoid
legal complications and denote the purity in vodka
•An iconic bottle
- Shaped like a Swedish medicine bottle
• The brand is known for its quality taste and unique
advertisements
22. Step 7: Price
Absolut’s price is up to 65% lower than the high end
brands and up to 40% higher than the lower end
vodka competitors.
It has a value based pricing scheme since the
primary price is based on the consumers thoughts on
its value. Absolut offers consumers a premium feel
with a cost that’s not going to hurt their wallets.
39. Step 8: Promo
POD (points of difference)
- Absolut offers more flavors
- Absolut has an iconic bottle design
- Absolut stretches creativity when it comes to advertising material
POP (points of parity)
- Brands are clear and true to form when it comes to vodka
- Brands can all be incorporated with the same mixers
- All brand almost share the same alcohol content
40. Step 9: Place
Easily distributed and readily available in almost all
bars and restaurants in all urban environments
Widely distributed from duty free shops to liquor and
convenience stores (with or without licenses)
Also available at non-traditional outlets like
hotels, gas stations and the like.
41. Step 9: Place
Philippine retail channel for liquor is highly
fragmented but among all vodka brands, Absolut is
the one present in majority of the retailers.
Key points of sale remains to be bars, supermarket
and convenience store chains.
42. Step 10: Generic Winning Strategy
Which of the 4 strategies are being used? (bold and
underline to most dominant strategy)
Low Cost Producer
Supply and Distribution Leverage
Differentiation
Niche
43. Step 10: Generic Winning Strategy
Differentiation
- The brand itself, its ads, the bottle
and the premium quality liquor inside
represents a unique selling proposition already.
- Absolut brand reputation and the customer value it
delivers, is perceived to be better than the 2 spectrums of
competition either in price or in quality.
- Most vodka manufacturers try to differentiate their products
by offering line extensions – Absolut has done so better
than its contemporaries.
44. Summary
Primary Target Market
1. Target Market: Men/Women 21-35 years who have the flair for having stylish
fun together.
2. NWD: The need to be accepted and acknowledged by the social circles and
the need to be with people / friends in similar activities
3. Choices: There are varied vodka alternatives but the price point and the value
delivered by the Absolut brand is the best option the PTM has.
4. Opportunity: Year on year, there are new potential clients entering the
market. As the population grows, Absolut should make sure it gains a foothold
on these individuals through increased marketing efforts.
5. Market Size: The Philippines has a sizable market for liquor sales. With a
projected growth from 2012-2016, and with new “drinkers” year on year, there
is no chance for a downtrend in terms of the potential market.
45. Summary
Marketing Mix & Strategy
6. Product: The product is widely known the world over with its distinctive brand name,
their iconic bottle and the premium quality vodka housed inside it. This
differentiates it from the rest of the other vodka alternatives.
7. Price: Absolut is competitively priced offering the best value for money the PTM can
afford.
8. Promo: Marketing campaigns that span a variety of mediums are utilized in order
to maintain brand loyalty and to gain new customers. In the liquor industry, brand
loyalty is constant and does not easily change.
9. Place: Absolut and its variants are readily available in almost all distribution channels
for liquor. They are present in both traditional outlets and non traditional ones.
10. Generic Winning Strategy: Differentiation is the winning strategy here. With such
a broad market and a product that is marketed to be unique, the Absolut brand will
surely stand out among the rest of the competition.
