(The Absolut Company, 2018)

Daniel Hernández Cote

 Outline
▧ Background
▧ Descriptions of markets and customer needs
▧ Analysis of strategy (Segmentation)
▧ Analysis of strategy (Targeting)
▧ Target consumer
▧ Analysis of strategy (Positioning)
▧ New business model
▧ China
▧ Analytical instrument
▧ Reasons /drivers for success
▧ Conclusions
 Background
CONTINUOUS What to put it in?
1836 (Sweden)
DESTILATION

Clarity
Simplicity
Perfection
(Medina, 2013)

Lars Olsson Smith

(Absolutregis,
2009)
Long D, 2018)

Apothecary (Stockholm)
Vin and Spirit
Ahus (Sweden) Bartenders hate, short neck
Bottle that disappear in the
background
(Palouse Absolut . (22 March, 2012). The Story of ABSOLUT -
Brand, 2015) History. Retrieved from
https://www.youtube.com/watch?v=4hEO-Pm-K-M
Absolut . (24 July, 2014). The Story of Absolut | 178 years
in under six minutes. Retrieved from
(Miragliotta, 2015) (Opengameart, 2015) https://www.youtube.com/watch?v=TMPLmYnSut8
 Background
Geoff Hayes (1980)

1979 New York

(RPubs, 2007)

Increase revenue

(AdsoftheWorld, 2005)

PRODUCT IS ALWAYS THE HERO

Party into an form of art
Absolut . (22 March, 2012). The Story of ABSOLUT - History. Retrieved from
https://www.youtube.com/watch?v=4hEO-Pm-K-M
Absolut . (24 July, 2014). The Story of Absolut | 178 years in under six minutes. Retrieved from
https://www.youtube.com/watch?v=TMPLmYnSut8
 Background
SELF-EXPRESSION
1986 Andy Warhol

Challenging
ART topics and
TO ideas
CHA
NGE
PER
SPE
CTIV
E

MOVE
(Artnet, 2018)

(National Galeries Scotland, 2017)

Absolut . (22 March, 2012). The Story of ABSOLUT - History. Retrieved from
MENTS
https://www.youtube.com/watch?v=4hEO-Pm-K-M
Absolut . (24 July, 2014). The Story of Absolut | 178 years in under six minutes. Retrieved from
https://www.youtube.com/watch?v=TMPLmYnSut8 (The Absolut Company, 2018)
Background
Pernod Ricard 2009

(Pernod Ricard, 2017)

Pernod Ricard. (2017). Absolut . Retrieved from https://www.pernod-

ricard.com/en/brands/our-brands/absolut-vodka/
Markets and customer needs

(Lamagna , 2016)

(The Economist, 2017)

The Economist . (13 June,2017). Around the world, beer consumption is falling. Retrieved from
https://www.economist.com/blogs/graphicdetail/2017/06/daily-chart-8
Lamagna, M. (24 May, 2016). The world is drinking less alcohol — except Americans. Retrieved from https://www.marketwatch.com/story/the-
world-is-drinking-less-alcohol-except-americans-2016-05-19
Markets and customer needs

(Vinepair, 2014)
Markets and customer needs
Super-premium Premium

Low-price Standard
Vodka customer needs
LUXURY FLAVOURS
Vodka is a
premium Versatility
drink

REFERENCE GROUP
PRICE PACKAGING
Sophistication
Should not be and class
cheap
Time relation of
image-consumer
Analysis of strategy (Segmentation)

Geographic

(InfoScout , 2015)
Analysis of strategy (Targeting)

Urbanities and convenience

stores

(Lima A, 2017)
Analysis of strategy (Segmentation)
Demographic (Age, Education and income)

(InfoScout , 2015)

(Ke Kelly, S., Mazzilli, C., Reznichenko, A., &

Rodrigues , 2014)
Demographic (Age, Education and income)

(Ke Kelly, S., Mazzilli, C., Reznichenko, A., &

Rodrigues , 2014)

(Ke Kelly, S., Mazzilli, C., Reznichenko, A., &

Rodrigues , 2014)
Analysis of strategy (Targeting)

Educated
High income (35000 +)
18-34 years old
 Analysis of strategy (Segmentation)
Behavior
(Buying patterns)

(InfoScout , 2015)

(InfoScout , 2015)
Analysis of strategy (Targeting)
• Mainly bought from 14:00 to 00:00.
• Bought with Marlboro and Red bull
• Loyal

(Le Vrai n.d.)

Analysis of strategy (Segmentation)
Physiographic
& income

(Strategic Business Insights , 2015)

 Analysis of strategy (Targeting)
• Taking information
• Want to experiment
• High amount of financial
transactions
• Receptive to new ideas (open
minded)
• Variety of interests and
activities
• Self-directed
• Follow trends
“Urban creative millennials target
group” (1980-2000) 18-38 years old
(Center for Customer Insights, 2014)
Jonas Tåhlin
“Vodka consumers are adventurous, and are very
willing to try new flavors and innovations” (Ke Kelly,
S., Mazzilli, C., Reznichenko, A., & Rodrigues , 2014)
Euromonitor 2013 (Strategic Business Insights , 2015)
FINAL TARGET CONSUMER
Urbanities and convenience stores
Educated
High income (35000 +)
Male or female
18-34 years old
Innovators (Follow trends and various
interests)
Open minded
Bought from afternoon to night
 Analysis of strategy (Positioning)
FOR SOMEONE THAT WANTS TO TRY NEW THINGS

(Green Saffron,
n. d.)

(The Absolut Company, 2018) (Gilman, 2011)

(The Absolut Company, 2018) (The Absolut Company, 2018)
 Analysis of strategy (Positioning)
VERSATILITY FOR MALE/FEMALE AND
DIFERENT TASTES

38% value
total flavoured
vodka
category UK
(The Absolut Company, 2018)
(The Absolut Company, 2018)
 Analysis of strategy (Positioning)
City editions enhance product appropriation

(The Absolut Company, 2018) (Skal, 2014) (Bridgeman, 2012)

Analysis of strategy (Positioning)
Inspiring, comic and provoking.
30 years marketing
campaign

(Macleod, 2007)

(AdsoftheWorld, 2005)
Analysis of strategy (Positioning)
(Absolut, 2017)

“We’re looking to make sure that this concept of

creative transformation is experienced in events more
than in traditional advertising”
Jonas Tåhlin, VP Global
Marketing at Absolut.

(Absolut, 2017)

“the future is not a given, it is (Absolut, 2017)

what you create”• Ellet, j. (9 September, 2013). Absolut Vodka Launches New Campaign, Breaks With The Past. Retrieved from
https://www.forbes.com/sites/johnellett/2013/09/09/absolut-vodka-launches-new-campaign-breaks-with-the-past/#594553792b21
 New business model
“Less time trying to keep positioning and more
time trying new business models and ways of
doing business”
“Act at the speed of internet”
“Beta world and the world as a testing ground”
Transform today Jonas Tåhlin

(MALEVA, 2014)

“Inspire them to create their future.

Graphic novels through Facebook.
Reinvent the future and bar
experiences”
Jonas Tåhlin
Center for Customer Insights at Yales SOM. (22 May, 2014). The New
(Morodan, 2013) Business Model of Absolut, Jonas Tahlin, Absolut . Retrieved from
 New business Model
“Sacrifice yourself to thrive
Change or let the change happen to you”
Jonas Tåhlin
Build micro distilleries and hand the keys to
local entrepreneurs 20% Our Vodka profits
Berlin, Detroit, New York, Seattle, LA, Miami,
Johannesburg, Cape Town, Melbourne

Jonas Tåhlin

(OUR/VODKA, 2018)
Center for Customer Insights at Yales SOM. (22 May, 2014). The New
Business Model of Absolut, Jonas Tahlin, Absolut . Retrieved from
 New business model

Absolut Elyx
Handcrafted in copper
Much more expensive

r for Customer Insights at Yales SOM. (22 May, 2014). The New
ess Model of Absolut, Jonas Tahlin, Absolut . Retrieved from (The Absolut Company, 2018)
 Challenge CHINA
Potential market: fast growing
population and economy

Collaborating with an artist GAO

YU Chinese legend called “The
Monkey King and its 72
transformations.”

First limited edition

(MarketingToChina, 2013)
Jing Daily. (25 May, 2011). Absolut Gets Creative To Stand Out In China Spirits
Market . Retrieved from https://jingdaily.com/absolut-gets-creative-to-stand-out-
in-china-spirits-market/
 The company’s marketing goal in
the China market is to “being the

CHINA most creative brand.” Richard Cotton

“Consumer base is typically
younger and lives outside of the
mainstream.” Richard Cotton
Absolut’s 100 nights event on New “Spread of new communications
Year’s Eve technologies” Richard Cotton

“Engage with China’s young

people, “the hyper-social, open
and positive with an
entrepreneurial spirit” by
“connecting peers to the new and
the next in experiences and local
culture.”” Oscar Danielsson
Long, D. (15 January, 2018). 10,000 Chinese millennials attend Absolut's
100 Nights events. Retrieved from
http://www.thedrum.com/news/2018/01/15/10000-chinese-millennials-
attend-absoluts-100-nights-events (Long D, 2018)
Analytical instrument
• Well known and easy recognized
• Attractive packaging • Too much variation
• Installations are centralized (quality) • Cost can cause low-income
• In between of the best selling spirits consumers to buy competitors
• Strong advertising
• Marketing reinforcement with well known
artists (Andy Warhol)
• Different flavours
• Low operational cost

• Continue to collaborate with known • Competitors such as Smirnoff

artist • Craft made vodkas
• Growth of cocktail mixing • Competitors are beginning to have
• Increasing alcohol consumption by flavours
females
• Change and create new business
models
Reasons or drivers for success
• Quality (Made in one place)
• Invest great part in ads
• Diversification (different flavours)
• Unique image (loyalty)
• Innovation (Change of bottles image)
• Collaborating with artist and culture
• Transformation
 Conclusions
Know your market very well (strengths and
weaknesses, competitors)

Try to connect your product how people

really use it.

Experiment endlessly and innovate fast as

the internet evolves (globalization).

Change or let change happen to you

 THANKS
FOR YOUR
ATTENTION
 References (Information)
• Absolut . (22 March, 2012). The Story of ABSOLUT - History. Retrieved from
https://www.youtube.com/watch?v=4hEO-Pm-K-M
• Absolut . (24 July, 2014). The Story of Absolut | 178 years in under six minutes. Retrieved from
https://www.youtube.com/watch?v=TMPLmYnSut8
• Berruecos, P. (2013). Absolut presenta su nueva campaña Trasnform Today. Retrieved from
http://monchitime.com/2013/11/absolut-presenta-su-nueva-campana-transform-today/
• Center for Customer Insights at Yales SOM. (22 May, 2014). The New Business Model of
Absolut, Jonas Tahlin, Absolut . Retrieved from
https://www.youtube.com/watch?v=gTsIaaLsBqg
• Dreide, R. (14 April, 2016). Slideshare. Retrieved from
https://es.slideshare.net/DeirdreRyan3/absolut-marketing-plan
• Ellet, j. (9 September, 2013). Absolut Vodka Launches New Campaign, Breaks With The Past.
Retrieved from https://www.forbes.com/sites/johnellett/2013/09/09/absolut-vodka-launches-
new-campaign-breaks-with-the-past/#594553792b21
• InfoScout. (2015). Absolut Consumer Insights. Retrieved from
https://infoscout.co/brand/absolut#
• InfoScout. (2015). Absolut Impulse Purchases. Retrieved from
https://infoscout.co/brand/absolut/survey
• Jing Daily. (25 May, 2011). Absolut Gets Creative To Stand Out In China Spirits Market .
Retrieved from https://jingdaily.com/absolut-gets-creative-to-stand-out-in-china-spirits-market/
• Kelly, S., Mazzilli, C., Reznichenko, A., & Rodrigues , S. (2014). Consumer Research Case:
The Vodka Market in the United States and Canada. Retrieved from
https://anastasiiarn.files.wordpress.com/2014/04/vodka-report-for-portfolio.pdf
References (Information)
• Lamagna, M. (24 May, 2016). The world is drinking less alcohol — except Americans.
Retrieved from https://www.marketwatch.com/story/the-world-is-drinking-less-alcohol-
except-americans-2016-05-19
• Long, D. (15 January, 2018). 10,000 Chinese millennials attend Absolut's 100 Nights events.
Retrieved from http://www.thedrum.com/news/2018/01/15/10000-chinese-millennials-
attend-absoluts-100-nights-events
• MarketingToChina. (21 May, 2013). THE VODKA MARKET IN CHINA. Retrieved from
https://www.marketingtochina.com/the-vodka-market-in-china/
• Pernod Ricard. (2017). Absolut . Retrieved from https://www.pernod-
ricard.com/en/brands/our-brands/absolut-vodka/
• Pernord Ricard UK . (2016). ABSOLUT BRINGS A FRESH CITRUS TWIST TO THE
FLAVOURED VODKA CATEGORY. Retrieved from https://www.pernod-ricard.com/en-
uk/download/file/fid/8608
• Strategic Business Insights. (2018). Innovators . Retrieved from
http://www.strategicbusinessinsights.com/vals/ustypes/innovators.shtml
• The Absolut Company . (2017). OUR/VODKA. Retrieved from
http://www.theabsolutcompany.com/borttagna-sektioner/our-products/our-vodka/
• The Economist . (13 de June de 2017). Around the world, beer consumption is falling.
Retrieved from https://www.economist.com/blogs/graphicdetail/2017/06/daily-chart-8
• UK Essay. (March, 2015). ABSOLUT Vodka: SWOT, BCG Matrix and Strategy Analysis .
Retrieved from https://www.ukessays.com/essays/marketing/absolut-vodka.php
• UK Essays. (23 March, 2015). Absolut Vodka Brand Positioning . Retrieved from
https://www.ukessays.com/essays/marketing/absolut-vodka-branding-and-image-overview-
marketing-essay.php
 References (Images)
• Absolut . (2017). Retrieved from https://www.youtube.com/user/absolut
• Absolutregis. (2009). Very old absolut bttles. Retrieved from
http://absolutregis.xooit.com/t34-Very-old-Absolut-bottle.htm?start=36
• AdsoftheWorld. (2005). Absolut Perfection. Retrieved from
https://www.adsoftheworld.com/media/print/absolut_perfection
• Artnet. (2018). Past Auction. Retrieved from http://www.artnet.com/artists/keith-
haring/absolut-haring-absolut-vodka-87i6_9M4FsPjJbC0YTBwOg2
• Bridgeman, D. (2012). Pash-ion for Vodka #12 - Absolut Orient Apple. Retrieved from
http://instituteforalcoholicexperimentation.blogspot.de/2012/03/pash-ion-for-vodka-12-
absolut-orient.html
• Gilman, R. (2011). Kari Moden Illustration. Retrieved from
http://rachelgilmannyc.blogspot.de/2011/10/kari-moden-illustration.html
• Green Saffron. (n.d.). Cardamom, green, whole . Retrieved from
http://www.greensaffron.com/shop/whole-green-cardamom.html
• La Coctelera de Gabrielo. (2015). Retrieved from
http://lacocteleradegabrielo.blogspot.com/2013/10/absolut-vodka.html
• LE VRAI BORAT. (n.d.). Soclmage. Retrieved from
http://www.socimage.net/user/diplobockus/270313822/850216398800796699_270313822
• Lima, A. (2017). nesta. Retrieved from The clubbing map: What has happened to London
nightlife?: https://www.nesta.org.uk/blog/clubbing-map-what-has-happened-london-
nightlife
• Macleod, D. (2007). Advertising In An Absolut World. Retrieved from
http://theinspirationroom.com/daily/2007/advertising-in-an-absolut-world/
 References (Images)
• MALEVA. (2014). MALEVA. Retrieved from http://malevamag.com/fiesaabsoluttransformtoday/
• Medina, G. (2013). ABSOLUT VODKA. Retrieved from
http://lacocteleradegabrielo.blogspot.de/2013/10/absolut-vodka.html
• Miragliotta, J. (2015). Joes Daily. Retrieved from 12 Photos of the Absolut Distillery in Åhus,
Sweden: https://joesdaily.com/travel/12-photos-of-the-absolut-distillery-in-ahus-sweden/
• Morodan, A. (2013). Absolut Transform Today. Retrieved from http://www.anamorodan.com/absolut-
transform-today/
• National Galeries Scotland. (2017). Andy Warhol Absolut Vodka. Retrieved from
https://www.nationalgalleries.org/art-and-artists/93233/absolut-vodka-
1985%3Fpage%3D4%26artists%5B15176%5D%3D15176%26search_set_offset%3D137
• Opengameart. (2015). Stone well. Retrieved from https://opengameart.org/content/well-2
• OUR/VODKA. (2018). OUR/VODKA. Retrieved from http://ourvodka.com/
• Palouse Brand. (2015). Hard Red Winter Wheat Berries. Retrieved from
https://www.palousebrand.com/products/hard-red-winter-wheat-berries
• RPubs. (n.d.). Many Markers – Select NYC Points of Interest. Retrieved from 2007:
https://rpubs.com/steveduboi/335735
• Skal. (2014). grandprixracing. Retrieved from
http://grandprixracing.blogg.se/2014/december/skal.html
• The Absolut Company. (2018). Absolut. Retrieved from https://www.absolut.com/en/products/
• Vinepair . (2014). The 30 Most Popular Liquors In The World. Retrieved from
https://vinepair.com/world-top-30-liquors/
• Vinwood. (2018). Vinwood. Retrieved from https://www.vinwood.co.za/
 Background
2000 invented Grey Goose Super Colaborate with EDM Swedish hous
premium vodka mafia
2006 Sweden new government SHM video and they placed the
product
LOOK FOR TRENDS Just because is cool doesn’t mean it
is insightfull