smirnoff swot analysis
SWOT analysis
Strength
SVEDKA brand is known to customers due to its taste and unique quality. It has goof brand reputation in the market. It is strong as per its distribution network. Its products are available its customers through liquor stores as well as retail stores. Drinks are available in different varieties. Another important strength is its cheap price. It is available to customers in cheap price and high quality. It has ability to control its cost that is main reason of its cheap price. Its products are packed in glass bottles that are imported from Germany. It has inexpensive and quick production facility. It has achieved different awards. It has achieved awards in 1999, 2004, 2005 and 2006.
Weaknesses
SVEDKA brand has limited financial resources. Its packaging is produced out site from the production plant. There are other competitors in the market like Absolut and Smirnoff.
Opportunities
It has diversified portfolio of products that are providing opportunities of success in future. It has strong campaign based on marketing. It has opportunity to attack young generation because young people are looking towards low price and high quality of alcohol. It has opportunity to move towards bars. Corporate sponsorship of its existing brands is providing opportunities.
Threats
Distilled spirits are taxed heavily by US government. It has low customers loyalty. Market competition is high on domestic and non-domestic level. Out of 4000 distilled brands, proportion of Vodka is only 26%.
Who were target customers?
It categorized target customers on two segments. These were age and behavior consumption. Older males were targeted in first segment. In the second group, customers were attracted as per the consumption. These were between 21 to 35 years. This group represents 40% of Vodka market. Second segment was considered price conscious but less loyal towards brand. Young generation was not targeted in initial phase because it was beloved by CEO that it will attract further population after positioning in market. There was opportunity for SVEDKA to attack young crowd. Both segmented group of target audience was conscious towards price.
Who were/are the main competitors of SVEDKA? How did SVEDKA position itself in relation to its competitors with respect to its branding strategy?
Its primary competitors were Smirnoff and absolute. Smirnoff is providing alcohol is different tastes. It is having good taste and affordable price. It is available in different flavors apple, orange, grapes, berry, perch, and strawberry. Absolut is third largest brand in the world under category of spirit. Stolichnaya is it’s another competitor that was introduced in United States in 1965. It positioned itself with attracting pricing strategy. It also positioned in market with the help of marketing campaign. It attacked customers according to the behavior of consumption. It positioned itself by using different campaigns. It obtained different awards because of its good quality and market experience. It used its packaging and distribution strategy for attracting customers. It extended products into different taste and flavors. It used trade and national campaigns for berating competitors.
Explain how SVEDKA priced its products. What were some of the challenges faced by SVEDKA with respect to pricing and distribution of their products?
In initial phases, SVEDKA provided its bottle in $9. For 750 ml, it offered price between $5 to $9. In 1998, retail stores purchased 23 million below $10 for each bottle. For pricing its products, it used strategy of attracting maximum customers. It was found by founder of the brand that too much prices will question value of brand and too low prices will question its quality. This dilemma was faced by brand for deciding price. This strategy was used to provide and decide fair price for products. He use midrange price for attracting customers at that time. This estimation of price was made keeping in view distribution and packaging cost.
Off and on premium channels are used for distribution of alcoholic drinks. Off-premium channels were retail stores and liquor. On the other hands, bars, restaurants and hotels were on premium channels. Industry of spirit was highly regulated. Importers and producers cannot sell to retailers directly. This was first obstacle that faced by SVEDKA. It was required to find out a liquor wholesaler for distribution. Presence of monopolies in liquor was another problem faced by SVEDKA. State government in United States has monopolies controlled in retail stores and wholesaling of alcohol. Convenience lack was another obstacle faced by the brand. High regulations and lengthy procedures were required for obtaining displays and temporary discounts.
If you were the CEO of SVEDKA would you change the current marketing strategy of SVEDKA? Yes or No? Explain in your own words why this might be the case
Yes, it is recommended for CEO to change marketing strategy. I would change this strategy if I were CEO of company. CEO could advertise on traditional channels. This strategy he could have used to provide awareness in customers before launching of products in the market. He could have used radio and TV as part of his marketing strategies. For communication brand’s positioning, he would use movies and TV shows. It would expand its PR to media outlets and larger publications. It is recommended to sponsor music festivals and concerts. Traditional media is recommended to use as advertising of radio and TV. It was necessary to create brand awareness and recognition in people.
Assignment on SVEDKA Vodka By: ABC Date SWOT analysis Strength SVEDKA brand is known to customers due to its taste and unique quality. It has goof brand reputation in the market. It is strong as per its distribution network. Its products are available its customers through liquor stores as well as retail stores. Drinks are available in different varieties. Another important strength is its cheap price. It is available to customers in cheap price and high quality. It has ability to control its cost that is main reason of its cheap price. Its products are packed in glass bottles that are imported from Germany. It has inexpensive and quick production facility. It has achieved different awards. It has achieved awards in 1999, 2004, 2005 and 2006. Weaknesses SVEDKA brand has limited financial resources. Its packaging is produced out site from the production plant. There are other competitors in the market like Absolut and Smirnoff. Opportunities It has diversified portfolio of products that are providing opportunities of success in future. It has strong campaign based on marketing. It has opportunity to attack young generation because young people are looking towards low price and high quality of alcohol. It has opportunity to move towards bars. Corporate sponsorship of its existing brands is providing opportunities. Threats Distilled spirits are taxed heavily by US government. It has low customers loyalty. Market competition is high on domestic and non-domestic level. Out of 4000 distilled brands, proportion of Vodka is only 26%. Who were target customers? It categorized target customers on two segments. These were age and behavior consumption. Older males were targeted in first segment. In the second group, customers were attracted as per the consumption. These were between 21 to 35 years. This group represents 40% of Vodka market. Second segment was considered price conscious but less loyal towards brand. Young generation was not targeted in initial phase because it was beloved by CEO that it will attract further population after positioning in market. There was opportunity for SVEDKA to attack young crowd. Both segmented group of target audience was conscious towards price. Who were/are the main competitors of SVEDKA? How did SVEDKA position itself in relation to its competitors with respect to its branding strategy? Its primary competitors were Smirnoff and absolute. Smirnoff is providing alcohol is different tastes. It is having good taste and affordable price. It is available in different flavors apple, orange, grapes, berry, perch, and strawberry. Absolut is third largest brand in the world under category of spirit. Stolichnaya is it’s another competitor that was introduced in United States in 1965. It positioned itself with attracting pricing strategy. It also positioned in market with the help of marketing campaign. It attacked customers according to the behavior of consumption. It positioned itself by using different campaigns. It obtained different awards because of its good quality and market experience. It used its packaging and distribution strategy for attracting customers. It extended products into different taste and flavors. It used trade and national campaigns for berating competitors. Explain how SVEDKA priced its products. What were some of the challenges faced by SVEDKA with respect to pricing and distribution of their products? In initial phases, SVEDKA provided its bottle in $9. For 750 ml, it offered price between $5 to $9. In 1998, retail stores purchased 23 million below $10 for each bottle. For pricing its products, it used strategy of attracting maximum customers. It was found by founder of the brand that too much prices will question value of brand and too low prices will question its quality. This dilemma was faced by brand for deciding price. This strategy was used to provide and decide fair price for products. He use midrange price for attracting customers at that time. This estimation of price was made keeping in view distribution and packaging cost. Off and on premium channels are used for distribution of alcoholic drinks. Off-premium channels were retail stores and liquor. On the other hands, bars, restaurants and hotels were on premium channels. Industry of spirit was highly regulated. Importers and producers cannot sell to retailers directly. This was first obstacle that faced by SVEDKA. It was required to find out a liquor wholesaler for distribution. Presence of monopolies in liquor was another problem faced by SVEDKA. State government in United States has monopolies controlled in retail stores and wholesaling of alcohol. Convenience lack was another obstacle faced by the brand. High regulations and lengthy procedures were required for obtaining displays and temporary discounts. If you were the CEO of SVEDKA would you change the current marketing strategy of SVEDKA? Yes or No? Explain in your own words why this might be the case Yes, it is recommended for CEO to change marketing strategy. I would change this strategy if I were CEO of company. CEO could advertise on traditional channels. This strategy he could have used to provide awareness in customers before launching of products in the market. He could have used radio and TV as part of his marketing strategies. For communication brand’s positioning, he would use movies and TV shows. It would expand its PR to media outlets and larger publications. It is recommended to sponsor music festivals and concerts. Traditional media is recommended to use as advertising of radio and TV. It was necessary to create brand awareness and recognition in people.
