The document is an extensive brand audit of Absolut Vodka, detailing its market position, consumer demographics, and brand perception. It highlights the need for improving brand loyalty, particularly among male consumers, and suggests strategies such as enhancing advertising efforts and launching new product lines. The findings recommend maintaining brand identity while increasing visibility and awareness to compete more effectively with rival brands, particularly Smirnoff.

2. Carol Cheong Ray Johnson Chris Mahar Marcela Mendez Andrea Salas ABSOLUT VODKA BRAND AUDIT

3. ABSOLUT AGENDA Background CBBE Model Four A Model Summary of Findings Recommendations

4. ABOUT ABSOLUT ABSOLUT VODKA was introduced in the US in 1979 Today It is the 4th largest international premium spirit in the world It is available in 126 markets. (source: Impact International). Since its launch Absolut has achieved significant global sales growth, from 90 thousand litres in 1979 to 96.6 million litres in 2007 Every drop of ABSOLUT VODKA comes from one source, the village of Åhus in southern Sweden 2009 Aust Alcohol Consumption Per Capita Source: ABS

5. ABSOLUT STRATEGY Core Values Clarity, simplicity and perfection Target Market Primarily urbanites Men and women ages 25 to 34 Psychographics characteristics Young, up and coming individuals Highly conscious of wanting to succeed in their life both professionally and personally Interested in new trends in fashion, music and design and they typically know what’s going on in these areas.

6. METHODOLOGY Qualitative 1 Focus Group 15 Participants Quantitative Responses from 44 Surveys Age Distribution

7. CBBE MODEL Feelings Brand Salience Imagery Performance Resonance Judgments

8. Within the spirit category We have Top of Mind Awareness! Within the vodka category SALIENCE IMAGERY PERFORMANCE FEELINGS JUDGEMENTS RESONANCE

9. By gender Absolut is less popular within Male consumers than Smirnoff Poor depth of awareness comparing with Smirnoff Maintain awareness with females and enhance it within males But…..not as good for Males

10. High penetration in Vodka, beer and wine categories High number of consumers are switching between Vodka and other categories Bring beer consumers to vodka Wine, Beer and Vodka the winners of the category….. Beer wine Rum Scotch Category penetration

11. People consume Vodka in Pub and night Club (58%) but not as much at Home and BBQ (26%) Let’s give them a ready to drink (RTD) ! Vodka is consumed at night….. They like it mixed (100%)!!! Favourite mixed; Lemonade (27%) and Orange (20%) Increase consumption occasions

12. Good depth of brand Salience: Brand Name- Logo Consumers like the brand name (95%), easy to remember, recognizable, familiar and unique. Also up market and classy We have brand recognition Important POD, worldwide brand We should not change the name or logo

13. A strong POD  Absolut Bottle Consumers love it!!! Bottle is highly recognizable (93%) Strong associations as unique, different, original and stylish. Represent a strong POD Don’t change the bottle!

14. The consumer recognized that the slogan was from Absolut (because the name is in it); but the slogan was not recalled. Increase slogan recall, recognition and awareness (way of increasing familiarity). Slogan is good, but do you know it?

15. Smirnoff POD Smirnoff Ice Cheap Red Absolut POD Bottle Flavours Advertising Decrease some Smirnoff POD Compete with Smirnoff Ice Enhance the idea of stylish but affordable Interesting brand associations.… OK

16. They aren’t just after our looks…. Customer perceptions of Absolut align well with desired corporate image…..Exciting, Sophisticated and Reliable. Not at all Tough

17. Absolut is perceived as significantly higher quality, yet Smirnoff is perceived as greater value for the price. The prices are not as different as people think! Improve brand perception about the performance (Value) Any initiative must be careful not to damage brand equity – tricky! High quality, but perceived as expensive! Absolut $39.50 Smirnoff $35 (Average from 8 stores)

18. Smirnoff Points of Difference Absolut lags behind Smirnoff in the performance attributes of purity and heritage. 0.3 0.52 0.38 0.57 0.99 1.03 Current campaign is on the right track, focusing on the product, production process and the key performance attributes of taste, purity, and heritage . Keep the ad campaign!

19. “ Doing things differently leads to something exceptional" "Differently" is woven in wheat and describes the primary ingredient for the vodka , " doing" is carved from a glacier to depict the purity of the water used in Absolut. This campaign has the ability to increase Absolut's stature as a complete product with brand imagery, leveraging its product quality Creating Points of Parity Current campaign is on the right track, focusing on the product, production process and the key performance attributes of taste, purity, and heritage . Keep the ad campaign!

20. Absolut has done an outstanding job of building the attributes of style, status, classiness, and innovation Absolut scores better in flavours, but why isn’t the brand at more bars/bottle shops? Encourage visibility of flavours, maintain PODs! Absolut Points of Difference

21. Overall attitude towards the brand was higher between females (1.7) than males (1.33) Overall attitude is good but much higher with Women Absolut needs to maintain their superior brand equity over Smirnoff while complementing their marketing and communication strategy to enhance appeal to men

22. ABSOLUT AGENDA Background CBBE Model Four A Model Summary of Findings Recommendations

23. Absolut Consumer Loyalty Acceptors (10%) “ I drink Absolut but just occasionally ” Adorers (30%) “ Absolut is almost the only brand that I consume“ Adopters (45%) “ Absolut is one of my favourites along with others” Availables (13%) “ I don’t know much about Absolut ”

24. Category Loyalty Impressive number of committed consumers in Vodka, Beer category High number of consumers are switching between Vodka and other categories Maintain the brand within the actual consumers of the category, creating more consumption occasions gaining a higher share of overall alcohol purchases, especially from Beer

25. Brand Resonance (Loyalty) 25% can be classified as promoters of Absolut vodka in recommending to their friends (those scoring 9 and 10 in the scale), 38% as passives, and 33% as detractors. The adorers of Absolut (30%) have a likelihood of recommend the brand 9 out of 10 while the adopters (45%) have 8 out of 10, and so on Enhance brand loyalty in the second group of consumers (adopters) and maintain relationship within those consumer that are currently loyal

26. Male consumers aren’t as loyal to the Brand! 83% of the consumers that drink Absolut drink Smirnoff as well (potential market share increase!!) The number of committed males with Absolut are half of the number of Smirnoff (12% vs. 21%) and 1/4 compared with females (12% vs. 43%) 53% of Absolut males consumers belong to the Adopter group (2nd) Enhance brand image and performance in order to increase loyalty/ commitment and between adopters Use potential of 83% brand switching to convert consumers into Absolut adorers Create relationship campaign within Women Adorers and adopters in order to capitalize their loyalty and create new adorers 83% 25% 13% Brand Switching – Consumers that drink Absolut + Other brand

27. SUMMARY OF FINDINGS Switching between Vodka and beer High amount of loyal consumers in Vodka category Vodka is an “all occasion drink” Absolut does not have TOMA with male consumers Men who are committed to Absolut represent only half that are as loyal to Smirnoff (12% vs 21%) Flavours are a POD but it’s not easy to buy in night clubs or bars. Consumers can not recall the slogan 53% of Absolut males consumers belong to the Adopter group Absolut ranked lower than Smirnoff in the purity, taste and heritage attributes. Absolut ranks higher in quality than Smirnoff but with less value for the price I ncrease consumption occasions- penetrate beer/wine categories Appeal more to men among adopters and acceptors. Capitalize on adorers, female loyalty, and create new adorers through a relationship campaign Increase visibility in the following areas: Availability of Flavours, Value, Slogan  Brand Issues Brand Objectives

28. 1. Maintain, ad campaign, logo, bottle, PODs Classy Sophisticated

29. Absolut Cut (Ready To Drink) launched in AUS, CA, UK in 2004 Big Hit in Australian Market Flop in Canada, UK Ownership pulled out completely Shift focus to “main brand – high-end” 2. Brand Extension: Re-Launch Absolut Cut

30. Why Re-launch Absolut Cut? New Ownership (Pernot Ricard) - New Goals:  Interest in reaching new markets- wants Absolut to appeal to a larger market 38% of respondents consumed beer/wine but not vodka in the last 12 month  RTDs compete with beer/wine  Capitalize on popularity of Absolut Flavours  Vodka drinkers were already mixing it  Smirnoff Ice considered strong competitor POD  Potential of U.S. Market in the future 2. Brand Extension: Re-Launch Absolut Cut

31. Flavours Absolut Citron Cut (Absolut and Lemonade) Absolut Mandarin Cut (Absolut and Orange) 2. Brand Extension: Re-Launch Absolut Cut 48% of vodka drinkers already mix with lemonade or orange

32. 3. Increasing Brand Equity (Image) for Men Leveraging secondary associations with the brand Celebrity endorsement Clever product placement in movies (Oceans 11), and in Print Media. Enhance Male image without risk of affecting Female market

33. EVENTS Leverage secondary associations in a way that is appealing to men. 3. Increasing Brand Equity (Image) for Men Party at the ‘Absolut Marquee’ at the following invitation only events. Melbourne Cup Sydney to Hobart Yacht Race Launch of Absolut “Cut” at the Melbourne Cup. PR : Press kits and press releases at each of these events.

34. 4. Relationship Marketing Include a flashy business card that has: 1.The recipe they just tried 2.The Absolut website with a link to the Free Drinkspiration iPhone App Knowledge that signing up for this app will give them access to: secret Absolut Events new product samples the ability to earn points toward great prizes (vintage Absolut posters etc.) BTL campaign in nightclubs and pubs and relationship marketing campaign Have Absolut marketing staff hand out cocktails inspired by Absolut flavours

35. 4. Relationship Marketing Social Media Our Facebook link for the particular flavour to “become a fan” Our Twitter handle @ Absolut Australia for more special offers and deals Absolut CUT The Absolut “Concoction” Cut Send product samples to Opinion Leaders. Invite Opinion Leaders to teaser events.

36. 5. Visibility of Price, Flavours, and Slogan using Retailers “ Win the visibility war” contest through the sales channel to generate more visibility and availability Large Absolut Bottle Displays Prominently placed in stores Large eye-catching pricing Wide range of Absolut products Negotiate slotting fees Use retailers to relay competitive pricing message through print advertising Incorporate slogan into displays and ads

37. 5. Visibility of Price, Flavours, and Slogan using Retailers Liquorland Flyer In-Store Display Pub/Club Display $39.50 $39.50 $21.50 $39.50

38. Increase consumption occasions Increase brand availability and visibility in connection moments for males . Enhance brand image in order to appeal more to men Any initiative must be conscious in not damage the actual positioning and brand equity Highlight the taste, purity and heritage attributes of the brand Improve brand perception about the performance (price/ quality) of the brand . Create relationship campaign within Adorers to capitalize their loyalty Campaign appealing to men and women Increase commitment between men adopters and acceptors 5. Maintain current advertising campaign ; focused on the actual product and production process. Use distribution networks to combat price/quality gap though prominent placement in stores and large displays with attention-grabbing pricing 1. Brand extension – Relaunch Absolut Cut 2. “Win the visibility war” contest through the sales channel 3. Increase exposure to slogan through multiple channels BTL: delivering Cocktail recipes and promotions at bars. 6. Relationship Marketing. Offline and Online Campaign creating interaction, and awarding loyal consumers Events Integration of web page, Social Networks and mobile applications. 4. Increase brand equity (Image) for men. Leverage secondary brand associations. Sport events Celebrities Product placement in movies, magazines, etc. Resonance-Loyalty Performance - Judgement Salience – Awareness Image – Feelings

39. Questions? Thank You!