How can we get women in Asia to try Canadian Club ?

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Response to a research/strategy question from GapJumpers.me

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How can we get women in Asia to try Canadian Club ?

  1. 1. March 2014 Canadian Club Stromi Lof
  2. 2. How can we get women (LDA - 30 years) in Asia (especially India and China) to try Canadian Club ? The brief
  3. 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. 4. Chinese Market
  5. 5. CONSUMER INSIGHTS
  6. 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. 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. 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. 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. 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. 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. 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. 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. 14. MARKET INSIGHTS
  15. 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. 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. 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. 18. CONNECTION MOMENTS
  19. 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. 20. WRAP-UP
  21. 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. 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. 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. 24. Indian Market
  25. 25. CONSUMER INSIGHTS
  26. 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. 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. 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. 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. 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. 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. 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. 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. 34. MARKET INSIGHTS
  35. 35. Spirits lead alcohol consumption Source: Drinking-to-the-Future-Trends-in-the-Spirits-Industry - IPSOS
  36. 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. 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. 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. 39. WRAP-UP
  40. 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. 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. 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. 43. RECOMMENDATIONS
  44. 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. 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. 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. 47. APPENDIX
  48. 48. Example of surrogate products Source: http://blogs.welingkar.org/index.php/campus-corner/implicit-positioning-and-surrogate-advertising

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