WAC 4

DEWAR’S(A):BRAND REPOSITIONING IN THE 1990s
CHITHRA P.G. BL.BU.P2MBA09010 11/21/2010

LBC suggested two strategic opportunities: 1) maximize penetration among existing and lapsed Scotch drinkers or 2) attracting young adults who are occasional light and new Scotch drinkers. Case Analysis: A 1993 Simmons Marketing Research Report revealed that the 18 to 35 age group represented less than 28% of all Scotch drinkers but accounted for 36% of the population. integrate and measure the various components of the campaign. pricing and advertising.S. the U. Jamie Prusak. In the mid-1980s there was a slowdown in the growth which forced the company to come up with aggressive marketing strategies in the growing intensity of competition for a stagnating market.was the leading International producer of both Scotch whisky and the gin and the most profitable spirits company in the world. The main questions to be answered are 1) how to allocate resources between the recruitment and maintenance campaigns 2) how to implement. sales has been declining due to a number of reasons including the general liquor consumption trends. sales and U.Introduction: In 1994. U. Senior Marketing brand manager for Dewar’s Scotch whisky is facing the challenge of making a final recommendation on the repositioning strategy for Dewar’s.S distribution regulation. Dewar’s distribution was moved from Schenley to S&S as the latter enjoyed a good trade reputation as an importer. Problem statement: The U. United Distillers (UD)-the spirits company of Guinness PLC and the owner of Dewar’s Scotch Whisky.K.S. To reposition Dewar for the more youthful . Dewar’s management decided to focus on the new occasional drinkers.

two current attitudes needs to be removed. These two negative perceptions need to be addressed separately. From exhibit 14. the consumption per adult for Scotch whisky has gone down over the years while Tequila‘s consumption per adult has gone up.4 million adult population which is the target market to be focused. So a small decision -making authority was established within the agency. Also the new Dewar management which was quite autonomous and not comfortable with LBC’s “big agency” style. juice and sour mix. One is the notion that Scotch represented the “my dad’s drink” and second is that it “tastes horrible”.71 million and the advertising expense per . Scotch whisky accounted for 17% of distilled spirit advertising that constitute ($163 million in 1992) $27.9 million ) 25.In the age group of 25 to 34. the annual revenue per drinker is highest from the heavy drinkers and also the number of heavy drinkers has increased in 1990 than in 1986. From exhibit 15.7)% of 42. such as soda.adult target group. From exhibit 3. The harsh taste concept could be removed by promoting the drinking of Dewar’s with mixes.3+3. The new target group aged from 25 to 34 striving to achieve the goals of individuality and independence.8million adults and heavy drinkers of age group 35 to 44 accounts for 18. The early 20s are not viable because they are not ready to embrace Scotch values and mid-to-late 30s found it difficult to overcome the barriers to adopt Scotch. These “young transitionals” were consumers seeking to take control of their lives by developing their own identities and preferences. staffed with experienced personnel recognizing the support needed by S&S and also to increase the speed of response. the combination of light and heavy drinkers constitute ((2.

So they could pitch in the campaigns that heavy drinkers need to avoid lower-price brands and drink more of premium Dewar’s Scotch Whisky which has more quality and is lesser harmful to health. This kind of pitching will also help in increasing the number of drinkers in general and attract those who are health conscious.69. So coherence between the maintenance and repositioning campaigns needs to be achieved through a creative strategy for both to design and place the ads appealing to both the segments. From exhibit 10.case is $3. Recommendations: 1) A new set of product lines could be brought up wherein the mixing is already done and the campaign could be “Remember When” and so the message will not be conflicting with that of older drinkers and it will also help in removing the two negative notions of Scotch whisky as perceived by the younger generation. So the resource allocation between recruitment and maintenance campaign can be shared equally.34 is 9million adults and for age group 35-44 is 9. heavy users tended to be drinkers of lower-price brands. the customer base under age group 25. .6million adults for Scotch whisky. 2) Prusak was intrigued by the fact that within Scotch category.