Absolut Vodka-

Creating
Advertising History

Submitted To: Dr. M. R Suresh

Presented By-
Mohammad Jibran :18157
Nishanth M :18160
Prachurya Sarma :18162
Salapu Sravani :18164
Shubanjali V :18168
 • 1910s- The Swedish Govt realized that
it needs to take steps to monitor the
country’s liquor trade.
• Mainly because of excessive
consumption of alcohol in the society.
• So the Govt wanted to combat the
social ills caused by alcoholism.
• At the same time it wanted to
channelize the revenue generated from
alcohol sales towards social activities.
• October 1917 – The Govt established
AB Vin & Spritcentralen (V&S) to
monitor the country’s liquor trade.
• 1923 – The wholesale dealership of
alcohol got completely transferred to
V&S.
• But due to smuggling the consumption
Introduction rose.
Cont.…

• 1920 – V&S launched aquavit (Kron) which

became very popular also.
• 1929 - V&S set up their first laboratory in
Stockholm which marked the beginning of new
product development.
• By the end of 1930s, the alcohol consumption
marked it’s lowest.
• 1950s – Swedish Govt removed some restrictions.
• 1957 – V&S launched a Vodka brand known as
‘Explorer Vodka’.
Cont.…
• A year later it’s launched the company decided to export
to other US market, but it didn’t get succeed.
• It is mainly because worldwide Russian Vodka was in
demand.
• 1979 – V&S again decided to export vodka to USA. And
this marked the birth of ABSOLUT VODKA.
• 1993 – Exports increased by 18%.
• 2003- V&S has become the largest Spirits Company in
Sweden.
Launching Of Product in U.S
• The company came up with different names.
• The country of Sweden Vodka
• The Blonde Swede
• Royal Court Vodka
• Absolute Pure Vodka
• The company went forward with the brand name “Absolut Vodka”
• The research was conducted whether to put label or not
• Later the company had to choose from 5 advertisement
Competitors
• Smirnoff
• Wyborowa (Poland)
• Finlandia (Finland)
• Cossak, Puschkin, Stolichanaya
• Viin and Sochu
4Ps of Absolut Vodka
Product
• Absolut Vodka takes pleasure in
ensuring a classic experience for all
its consumers.
• Cities and Crystal series have helped
the brand develop a unique rapport
with the global audience.
• Absolut 100 and Absolut Magic also
happen to be one of the most
recognized products from Absolut
Vodka.
Price
• Simple understanding of proper
pricing and its exquisite
implementation
• Aims to reach out to everyone with
a love for Vodkas.
• They were quite generous with the
bottle size.
 Place
• The quality product & exquisite taste
have helped them to emerge as one of
the leading brands of alcoholic spirit.
• Always been particular about
campaigning and manufacturing units.
• Absolut has several different brands
through which it distributes its
products.
• Absolut vodka maintains its partly
premium stand.
Promotion
• The unique marketing campaign
designed by Steven Bronstein
• The unique marketing concept has
helped Absolut Vodka stand out of
crowd
• they are not scared of trying new
things.
XAVIER FRAMEWORK
• Environmental Analysis
• Alcohol Ration Book
• Tax Calculations
• Market Analysis
• 1985- Exported to 16 countries
• 1993- 10th largest Premium selling brand
• 2003- 61% revenue from Vodka
• Presence in around 126 countries
• Customer Analysis
• Lifestyle
• Premium Segment
• Older Men, Women and Young
• Competitor Analysis
• Major competitor- Smirnoff
• Non potato vodka
• Company Analysis
• Established in 1917
• Launched Various products like Absolut Vanilla, Absolut Peppar, Absolut Citron, etc..
• 2nd largest premium spirit company in 2002
• Profits growth
• Marketing Mix Analysis
• Product- Absolut Vodka
• Place- USA
• Price- Premium
• Promotion- Absolut perfection, Websites, Radios and other media
• Strategy Formulation
• Different themes
• Painting , Models, Arcticians, etc.
Marketing Strategy Dimensions

• Market Scope Strategy

• Multi Segment
• Market Geography Strategy
• National- Growth, Market share and
higher profitability
• Market Entry Strategy
• Early Entry
• Market Commitment Strategy
• Strong- Increased growth, Profit,
Market share
 Brand Architecture as a
Strategic Marketing Tool

• Competition: First brand for

advertising through Websites
• Customer: Feedback and Test
• Company: Various Agencies,
traditional themes.
• Marketing Mix: Product, Price, Place
and Promotion
1. What were the various issues that V&S have to keep in
mind before coming up with the appropriate brand name
and a brand image, give the fact that Swedish vodka was not
expected to find ready acceptance in the target market, US?

 According to the research it was concluded that sales were

determined by its shelf presence and the bottle design.
• Lars Olsson Smith seal
• Text and design of the bottel
• Usage of colours
• Bottle cap
 Origin of brand did not matter as much as the image it
carried.
2. Discuss the role advertising pays in increasing brand awareness and brand loyalty among
customers, especially for products which have very subtle differentiable attributes? In the above
context, examine the impact Absolut advertisements had on its target audience. Do you think
that advertisements fulfilled their purpose?

Brand Awareness In the context of Absolut

•Consumers’ ability to retrieve the brand Vodka :
from memory when given the product •Absolut Perfection : Positioning
category, the need fulfilled by the category “Simplicity & Purity”
or purchase as a cue shows the brand recall.
•Russian Soldier ad : Challenge
•One of the brand recognition which they to Russian Vodka brand
have been exposed earlier was Consumers’ Stolichnaya
ability to recognise the brand
•Association with Art : Becoming
part of American Culture
•None of the ads were targeted
to consumers below 40
•1986-88 Launch of flavours
Pepper & Citron
Q3. The Absolut advertising campaign is
successful because it is contemporary. How did
TBWA maintain the freshness of the Absolut
campaign? Discuss with respect to the brand’s
association with different media?

Art Fashion

Technology Music
Q4. Even though Absolut ads have been depicted in different media, the central theme of the
campaign has remained unchanged over the years. In light of the above statement do you think
that the campaign will manage to hold its sway or lose its impact in their near future? Give reasons
to support your arguments.

• The profit of V&S was increasing over the period.

• People were influenced by the theme of Absolut vodka.
• Lost monopoly over Sweden’s inclusion in EU.
• Cost of advertisement was high
How V&S can become a
good corporate citizen?
• As a part of the alcoholic beverage industry,
responsibility is of an importance given the
sensitive products the company deal with. The
products are for most people associated with
pleasure, enjoyment and socializing, but can have
quite the opposite effect when not handled
responsibly. Thus, the marketing activities should
be conducted with care for the consumer.
• Regenerative Agriculture.
• Shared knowledge and learning.
Learnings for Indian Companies
• How the firms can differentiate their product from competitors.
• How to promote products using various forms.
• Proper investment in advertising.
• Brand Awareness.