The History Of Absolut Vodka

Absolut created a luxury market for reduced vodka and has since end up being the thirdmost popular soul brand on the planet. Targeting middle age group consumers, Absolut vodkacompetes on the market with selling the lifestyle image that is associated with the brand, Utilizing the iconic bottle shape and witty adverts, the company can chargea higher price. Absolut, which is owned or operated by the Swedish company Vin & Sprit, is incontrol over the complete product process, including circulation and promotion. This Marketing plan can look in to the marketing of product by diving its market portion through geographic parts between Europe and America and also to create a new product for both the regions and examination of market for your product using Swot examination and 4p's model.

Company Description

Pernod Ricard was made in 1975 by the link-up of two French anise-based spirits companies, Pernod that was founded in 1805 and Ricard founded by Paul Ricard in 1932. Pernod Ricard is a French company headquartered at Paris, France is today the planet co-leader of Wines & Spirits. Pernod Ricard has built a unique portfolio of High quality brands on an international size. Pernod Ricard has one of the industry's biggest marketing expenditures, which signify 19% of its net sales. The Group's expansion model is based on five pillars. Pernod Ricard has built a unique portfolio of High grade brands on international size. It acquisition of Vin & Spirit, for 5. 6 bn euros which is owner of the Absolut Brand 'Absolut' and a leader in the PremiumVodka category makes the Pernod Ricard a co-leader of the Global Wine and Spirits Industry

It collection of brands include, Global Icons - Absolut Vodka and Chivas Regal. Top quality Spirits brands-Ballantine's Scotch whiskey, Havana Club Rum, Jameson Irish whiskey, Beefeater Gin, Malibu, Ricard pastis and Kahlua liqueurs. Prestige Spirits- Martell Cognac, The Glenlivent and the Royal Salute Scotch Whiskey.

Pernod Ricard is made around 6 Brand companies with 75 Market Companies and 98 Development sites spread across the European countries, Asia, and the Americas. The business uses around 19, 000 employees across all the continents. Pernod Ricard had a turnover of 8. 215 billion Euros during 2011/2012 period.

The Absolut History

In 1979 a swedish vodka company was about to take the largest steps so far as to start out exporting vodka to the United states of America, The making of vodka is dependant on 400 many years of tradition, a tradition around 200 years more than the traditions of Usa. In the overdue 1800's Lars Olsson Smith revolutionised the vodka industry is sweden with a new technique for purifying vodka with constant distillation, he called this Vodka - AbsolutRent Bravinymersholms that's Swedish for Absolut pure vodka. Lars Olsson Smith registered the brand in 1879, over the next 100 years the vodka was processed and improved upon until it is ultimate substantiation. Absolut vodka was ready for the export market in 1979, but before the international launch the merchandise need a appropriate container, which is dependant on a normal 18th century pharmacy bottle found in the classic shop in old town of stockholm when created in 1979 absolut vodka redefined the vodka category and challenged the establishment, In 5 short years absolut vodka was available in 18 countries and by 1985 absolut vodka was No 1 among vodka's imported in america. Today it is one of the leading spirits brands on earth. Over the years Absolut has extended the brand to encompass art work, fashion, an interactive website and even an ice bar.

The Absolut Product

The consumer takes one look at the Absolut vodka brand and understands that there issomething different about the brand in comparison with others. Absolut's main competition is Smirnoff and inorder to possess product differentiation, Absolut needed to create unique andmemorable advertising campaigns and introduce flavored vodkas onto the market. It had been not a simple job, convincing the American market, 60% of the world's vodkadrinkers, that they must stop buying cheap vodka and start purchasing Absolut vodka, which got a much higher price tag. The company created an extravagance goods market for vodka, plus they did this by first selecting the iconic bottle shape. The overall theme of the campaigns is art work and humor. Absolut promotes itssuperior part with cunning and unique means of getting their communication across. There isalways a clean and modern day feel to these ads. With crisp lines and little distractions, these advertisements separate this brand from the rest of the competition. Two types of thiswould be found on the Absolut internet site where two surprise packages are featured. One is named "Absolut Disco" which shows an eye-catching container protected in little mirrors made to look like a disco ball. It motivates people to venture out, dance and also have a goodtime. Another surprise package is named "In an Absolut World EVERY EVENING Would be aMasquerade". This product is protected in sequins and it is putting over the message to be mysterious and enchanting. These two topics of disco and a masquerade evidently how the glamorous and artsy area of the merchandise. Absolut desires to be looked at as stylish, yet affordable vodka in order to contend with other high-end brands such as Gray Goose, Sky, Belvedere and undoubtedly Smirnoff. The vodka, the product itself, is just a simpleclear and odorless drink, but Absolut becomes it into a lifestyle, so that it is fun and exciting

Swot Analysis


No. 1 among superior vodkas around the world

No. 4 in spirits worldwide

Strong position in European countries and Asia markets

Robust development capabilities


Depleting market talk about in America

Lack of suppliers who could work face to face with the clients to generate brand and product awareness

All of the advertisement campaigns are captivating only to the ladies.


Growing global spirits market.

Well positioned to capitalize on loan consolidation in American markets

Capitalize the loyalty of the adorers.


Regulations regarding liquor trade in several countries

Increase trade in counterfeit alcohol

Rise in cost of labour

Economy downturn leads to negative influence on people's spending

Market Segments

Out of two wide-ranging group of variables used to segment consumer markets that happen to be Descriptive characteristics - Geographic, Demographic Marketplaces and the other is Behavioural Characteristics of the buyer market. Regardless of which which type of segment is employed the main element for the marketing plan is to recognise consumer differences which may be profitabilly adjusted With this marketing plan the marketplace segment hired was of Geographic characteristics between Europe and Americas

Analysis of business activity by Geographic area

11. 4 Million conditions of 9 litre were sold which is a 3% upsurge in volume a in comparison to last year. Absolut know the characteristics of its clients by its demographics section of the countries


Market Situation

Challenging Financial situations were the key factor for Absolut to deplete by 1% in america market in terms of progress in volumes, No. 1 Position in among imported Vodka;s brand. US market is recovering with absolut depletions back again to growth at 2%. 4. 6 Million cases were sold in America with a growth of 6% in Sales quantity. Americas has been the largest and highly competitive market for Absolut

Product Information

Produced, Distilled and bottled in Ahus, Sweden

Imported by Abosolut Spirits Co, USA

40% Alcohol Size ( 80% Proof)


Pernod Ricard - Absolut is creating its own market in the US, although there are quite a few diffrent indirect opponents who also produce american vodka with their unique brands. But these companies have yet to become the direct competitors Absolut is really the only brand which presents and launches diffrent flavours of vodka through its continious procedure for Innovation.

According to International overview of spirits there is a staggering no of 49 New entries representing from Russia, Poland, Ukraine New Zealand and Canada in the vodka category.


V&S brands are distributed in america by Future Brands (a jv kept 49% by V&S and 51% by Lot of money Brands) via a distribution agreement currently set up until start of 2012. From an operating stand point, V&S controls the marketing and A&P technique for its brands.

Travel Retail business

On Premises - Institutional markets - Pubs, Restaurants, Cafes, Pubs.

Off Premises - Retail Marketplaces - Super Marketplaces, Discount Market segments, Off License Stores, Convenience Stores

Swot Analysis

Innovation and Creativity and Product initiatives strengthens its position among key players

Forever popular or Forgettable Fad

Flooding the market with diffrent flavours of vodka confuses away customers


Potential for Absolut remains high both among established and appearing markets

Changes in its advertising campaigns to promote the brand on the list of men, as of this moment the brand has generated an image which is only for ladies.


A downturn in the economy graph might well have a negative impact on the clients spending

Fierce competition from already founded and and future opponents in the market

Financial Objectives

The Objective of of Absolut company is to raise the profit 2 % pr quarter through efficiency and economy of scale increases. And Maintain a substantial development and research budget for future product improvements. As compared to europe's dual digit growth last year, it must achieve the same results in the Americas.

Marketing Strategies


Location is everything. It's important for Absolut to be in the appropriate place that is convenient to the customer. Every drop of Absolut vodka that is used in theentire world comes from only 1 location which reaches their distilleries in Ahus, southSweden. This region is well known for making high grade vodka. From this one small town, Absolut packages millions of liters of vodka annually. Absolut has 100% control over every part of the production and circulation with their product When increasing into the United States market in 1979, Absolut put its containers in bars, clubs and pubs, specially concentrating on hot spots such as New York, Chicago and LosAngeles. The merchandise became instantly identified by the bottle form and for the actual fact that it had no label. Absolut imprinted most of its information immediately onto the container, which stood out from what the rest of the opponents were doing. Blue lettering was chosen because explored confirmed that it was the most attention catching and it was the most attractive. Despite the fact that Absolut now changes their term colouring to match the flavour of the vodka, blue continues to be the iconic coloring used for the original


Absolut vodka has an element of artwork to it. Everything started out when the famous artist Andy Warhol becoming intrigued by this bottle of vodka. Most famous for his paintingsof the Campbell's Soup can, and also Marilynn Monroe, Warhol began to coloring Absolutin the middle 1980s. It had been this new talent of appearance that started Absolut down its street of fine art like advertising. Warhol had not been the only one to make fine art out of this fashionable container, other artists started to coloring their renditions too and publicly submitted them. Today, several paintings by over 400 performers are presented in museums round the world. That is a distinctive form of your advertising campaign, but this brand is notone to think inside the container. The Absolut brand offers about its marriage to the arts. Itis a shared benefit for both brand and modern artists since it provides


Market Situation

Despite the continuation of an challenging economical situation Absolut vodka supplied solid growth in some of its key marketplaces in the europe region It acheived a strong progression displaying accelerated demand for international spirits. Increase digits development 36% in russia, 32% in Poland and france compensated the results from south eastern countries in europe facing financial downturn, 4. 9 Million cases were sold in Europe with a rise of 16% in online sales volume when compared with last year

Product Information

Produced, Distilled and bottled in Ahus, Sweden

Imported by Abosolut Spirits Co, USA

40% Alcohol Size ( 80% Confirmation)


As compared to Americas, Absolut has some serious direct competitors in the Europe region from Smirnoff Vodka, which is a brand leader owned by the Diageo Group, and High quality brand vodka - 'Stolichnaya Elit', 'Orginal Luxury' from Poland and 'Grey Goose' from France


V&S' brands are currently distributed through Maxxium, a jv between V&S, Fortune Brands, The Edrington Group and Remy Cointreau, each partner developing a 25% shareholding. Pernod Ricard will leave Maxxium within 2 years from closing for a minimal contractual cost.


Potential for Absolut remains high both among founded and emerging markets

Changes in its advertisement campaigns to promote the brand on the list of men, as of now the brand has created a graphic which is merely for females.


A downturn in the economy graph might well have a negative effect on the clients spending

Fierce competition from already established and and future rivals in the market

Financial Objectives

The Objective of of Absolut company is to raise the revenue 2 % pr one fourth through efficiency and economy of scale increases. And Maintain a substantial development and research budget for future product trends. As compared to europe's two times digit growth last year, it must achieve the same results in the Americas.

Marketing Strategies


the absolut 'drink' campaign saw further trends during the 12 months in the Western region, and included amazing out-of home advertising and the discharge of two new creative refreshments interpretations for absolut outdoors tea and absolut orient apple. the related drinkspiration software was launched for the iPad, including

features to permit new options for cocktails.

Through focus on innovation and creative imagination across marketing and product initiatives, the brand will continue to further bolster its position between the key players, to be remembered as the quantity1 spirit worldwide in value


The marketing strategy will seek to first create awareness about the new product in the offering and then give attention to developing the buyer base, the note that Absolut looks for to offer is the fact that Absolut to provide most realistic and the absolut vodka by varying its products to different types of consumers through variety of methods and offer the consumers an possibility to purchase its products through varience in prices The first strategy would be its website which is a rich source of information on its products with a notion of total professionalism and reliability of its new product. The next will be using its new ad campaigns and liquor related various periodicals which is helps with its shiny publications and designs to promote it and last but not least through a number of small retail outlets, and value string hyper marketplaces pubs, and restaurants that will generate a demand for the new product and the cost will me very nominal as it includes launched its earlier products through the similar channels

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