Smirnoff produces and distributes a variety of alcoholic beverages including vodka, flavored vodka, malt beverages and premixed drinks. Originally founded in Russia in 1860, Smirnoff is now owned by British company Diageo and produces products in several countries for distribution in over 130 countries. Smirnoff uses various marketing strategies like advertising, promotions, and pricing discounts to promote brand recognition and sales of its affordable yet high quality products. Its product line and marketing have allowed Smirnoff to achieve market maturity and continued success globally despite increasing competition.

1. Smirnoff
Ashley Potter, Gerardo
Paez, Spencer
Howerton, Lauren Ha

2. Product
The need-satisfying offering of a firm

3. Goods
• Smirnoff offers goods to
its customers because its
products are tangible.
• Originally produced in
Moscow, the now British
owned company (Diageo)
produces Smirnoff
products in several
countries including
India, Ireland, Italy, the
United Kingdom, and the
United Stated.

4. Product Assortment
• Smirnoff offers a
large product
assortment that
ranges from
vodka, flavoured
vodka, malt
beverages, and
premixed alcoholic
drinks.

5. Product Assortment
• Smirnoff only has one
product line to sell
which is alcoholic
beverages.
• It’s most popular
individual product is
the Smirnoff No.21 Red
Label Vodka.

6. Branding
• Brand Name:
Smirnoff
• Trademark:

7. Branding
• Smirnoff has successful
branding because: it’s
product is easy to identify, it
still maintains a lower price
than most competitors
without losing quality, it is
widespread throughout
over 130 countries, demand
for vodka will always be
strong as long as higher
education exists, and it
takes up a good chunk of
the alcohol aisle with its
various product
assortments.

8. Brand Familiarity
• Those who purchase
alcohol will have brand
recognition for Smirnoff
products because of its
affordable prices.
• Many have brand
preference because
Smirnoff products
average $11 less than its
competitors.
• Brand Insistence depends
on the customers wants
and bank account.

9. Branding
• Diageo uses individual
brands with Smirnoff
being one of them. A
few other well known
individual brands under
Diageo include, but
aren’t limited to:
Guinness, Jose
Cuervo, Crown
Royal, Baileys.

10. Consumer Product Classes
• Smirnoff best falls under the group of Shopping
Products, specifically homogenous shopping
products. Unless one is a vodka expert, most
customers see vodka as similar and want the lowest
price.
• However, the cheapest vodka on the market is sure
to have further unwanted after effects, so Smirnoff
offers a great balance between quality and
affordability.

11. Product Life Cycle
Market Introduction (1860)
• Pyotr Smirnov founded a
distillery in Moscow. His
company was the first one
to take advantage of
newspaper ads to promote.
Market Growth (1886)
• In 1886, Smirnov was able
to capture two-thirds of the
market.

12. Product Life Cycles
Market Maturity( 1930-Today)
• By the 1930, Smirnoff was
exported to most European
countries and production
began in North
America, though not as
successful as hoped in
America.
• By the 1990, the fall of Berlin
Wall marked a pivotal moment
in the companies dynasty.
Troops turned to the vodka
and it’s popularity grew.
Sales Decline (TBA)
• Today, Smirnoff is still
thriving as competition gets
tougher, so they have not
seen the sales decline stage
yet.

13. New-Product Development
Smirnoff Ice

14. New-Product Process
Idea Generation
• Smirnoff wanted a product
to compete with the
growing market RTD (Ready
to Drink) and provide an
alternative to the beer
market.
Screening
• It was imperative that
Smirnoff could create a
fresh new look for the
product that also gave
instant recognition to the
Smirnoff brand name.

15. New-Product Process
Idea Evaluation
• Watching the success of
“Mike’s Hard Lemonade”
further encouraged the
launch of this product
Development
• The last stage before the
product hits the market is
imperative. This is where
marketers should run
market test to see the
potential of the product.

16. New-Product Process
Commercialization
• Since its launch in
January of
2001, Smirnoff Ice has
been one of the most
successful alcoholic
beverage launces in
history. It is reported to
have already captured
2% of the beer market.

17. Smirnoff- PLACE
• 1860’s Piotr Arsenieyevich
Smirnov started the legacy of
Smirnoff by creating their very
first beverage in Russia.
• Over it time the company
started to outsource and
open new distilleries in other
countries like France, England,
and United states.
• Today the company
distributes its product
throughout 130 countries

18. • The Diageo company who is a merchant wholesaler
now owns Smirnoff as well as other major brands like
baileys, Jose Cuervo, and Captain Morgan.
• Diageo have contractual channel systems with many of
its distributors in order to make Smirnoff conveniently
available to its consumers.
• Depending on the size of the general stores, Smirnoff
intensively distributes their sorted bottles.

19. •Smirnoff marketing penetration has been very
successful in countries like United
States, England, South Africa, Canada, and Ireland.
•At times Smirnoff chooses countries to sample
seasonal products to determine if they would be
successful or not.

20. Smirnoff provides
different events to
reach different
target markets
USA Russia
India Brazil

21. Price
Smirnoff

22. Average List Price
• Smirnoff Vodka 375ml $10
• Smirnoff vodka 750ml $14
• Smirnoff vodka 1.75L $20
• Smirnoff Ice malt beverage six-pack $8

23. Price Flexibility Policies
• One-Price Policy is used by Convenience stores
who only offer Smirnoff at one price for all
shoppers.
• Flexible-price policy is used by Smirnoff
retailers to offer different pricing to customers
who are enrolled in loyalty programs or who
purchase in bulk.
Databases have made flexible pricing even
easier for retailers.

24. Discounts
• Club card members are offered extra saving as part
of a supermarket loyalty program
• Non-cumulative quantity discounts are offered by
retailers to allow customers a one time price break
for purchasing a certain quantity
• Coupons are used by consumers to receive an extra
discount off the list price of Smirnoff
• Sale prices are used to advertise Smirnoff at a
temporary discount to encourage purchasing of the
product

25. Allowances
• Damaged bottles are credited back to the retailers
for accepting less sellable product that was damaged
during the shipment of Smirnoff
• Smirnoff can offer retailers stocking allowances to
get attention and space for their new products
• Push money is sometimes used by Smirnoff to
encourage sales teams and retailers to sell their
newer products aggressively

26. Profit Maximization
• Lower prices expands the market size and
exceeds customers reference price
• This leads to greater sales and profits
• Manufacturers and retailers are able to
receive a rapid return on investment

27. Demand Approach to Setting Prices
• Smirnoff offers customers a product that exceeds their
reference price with its high quality taste at a low price
• Odd-even pricing is used by retailers who sell Smirnoff to
influence their customers psychological process of
purchasing
• Prestige Pricing-Diageo uses prestige pricing to separate
its ultra premium vodkas. Smirnoff’s price is set lower to
help place a higher status on Diageo’s ultra-premium
vodkas

28. Smirnoff
Promotion

29. Personal Selling
• Smirnoff brings their
product straight to their
customers by sampling
there brand at various
events and clubs
• Often they will use their
Smirnoff girls to distribute
their samples and sell the
product to various
customers.
• These events gain Smirnoff
publicity, which is an unpaid
form of presenting their
products.

30. Mass Selling
• Advertising: Smirnoff
uses many forms of
media to advertise their
product including their
website, commercials on
television, magazine print
and billboards.
• This is Smirnoff’s paid
way of presenting their
product.

31. Mass selling cont.
• Sponsorships and
Master of the Mix :
Smirnoff will often
sponsor various events
including the VH1 show
Smirnoff’s Master of
the Mix; which is a DJ
competition in which
the winner receives a
cash prize.

32. Integrated Marketing communications
• Smirnoff’s coordination of all of their promotion
methods seeks to convey the same consistent
message.
• Their message is that they have the most popular
premium spirits with a wide variety of unique
flavors
• These promotion methods follow the AIDA
model, which is to get attention, hold interest,
arouse desire, to obtain action or to buy the
product.

33. Product Demand
• Vodka and other spirits
are typically a product
with a primary
demand, customers want
the product but not a
specific brand
• Smirnoff has created a
selective demand for
their product with there
unique flavors such as
iced cake flavored vodka.

34. Yours for the making campaign
• Smirnoff is the number
one selling vodka by
volume in the world
• They focus on reminder
advertising with their
original vodka, which is
an already established
product.
• With their flavored
vodkas, Smirnoff uses a
more competitive
advertising
• They seek to push their
new and unique vodka
flavors.

35. Yours for the making cont.
• Smirnoff’s latest ad campaign, yours for the
making, focuses on the unique and wide
variety of drinks you can create with the
flavored spirits
• They have many different recipes accessible
on their website for free.