Dewar’s leader in U.S. Scotch whisky industry
1. Situational Analysis
1.1 SWOT Analysis
Strengths
- Dewar’s leader in U.S. Scotch whisky industry, with a market share
of 15%.
- Past success with the advertising campaigns in maintaining a
positive image for Dewar’s among Scotch drinkers.
- Strong research and development.
- Backup from United Distillers, which is an International leader in
the Scotch whisky and Gin markets, and one of the most profitable
spirit’s Company in the world.
- Dewar’s is positioned as a premium and prestigious blend of Scotch
whisky.
- Schieffelin & Somerst, distributor of Dewar’s within U.S, is the
product of a Joint Venture with Moet Hmessy Louis Vuitton, allowing
cost reduction.
Weaknesses
- Lack of promotional strategies to attract new customers.
- Targeting a segment market that is not growing.
- Slow reactions.
Opportunities
- US, the largest liquor market in the world (13% market share) with
high profit margins.
- Young adults’ good attitude towards the consumption of withe
spirits.
- Social acceptance of mixed drinks.
Threats
- Sales in Industry of liquor and withe spirits with a negative
growth.
- Scotch whisky in the declining stage of product cycle.
- Mature target market consuming less Scotch whisky.
- Growing social resistance and regulations of liquor consumption in
the U.S.
- Shift of consumer preference towards lighter alcohol beverages, such
as wine and beer.
- Risk of becoming over analytical and moving to slowly when
implementing the repositioning strategy.
1.2 US Scotch whisky Industry Analysis.
Both the industry of liquor and the industry of distilled spirits had
suffered a reduction in consumption since 1978. This represents 15
years of constant negative growth. Some of the factors that had caused
this phenomenon are the growing of social, regulatory and legal
restrictions over drinking. Also, drinking preferences have shifted
towards lighter alcohol beverages, such as wine and beer.
The Scotch industry has suffered an even greater decline due to the
fact that its target market is drinking much less. It has become the
distilled spirit with lower consumption per-capita. Mature customers
are not loyal to a brand, they are lower priced oriented.
If all these factors remain the same, ...
... middle of paper ...
...f the campaigns.
3. Analysis and evaluation of options
Three strategies have been developed in order to help managers to take
the last decisions in the release of the campaign.
Strategy 1
Implementation just of the maintenance campaign directed to mature
adults.
Strategy 2
Implementing truths and maintenance campaigns at the same time.
Strategy 3
Line extension
4. Recommended course of action
The most realistic, and practical option that I can recommend to the
manager is the second one. She already had researched and developed a
big campaign that in just two moths is supposed to be released. We
just hope that no changes in the perception of the mature audience
will be produced due the expose to both campaigns. Also in terms of
lees cost and almost immediate effect in profits, the best choice is
the second one.
But let's say if there is no budget or time constrains the best option
for me is the third one. Keeping each segment with different products
it makes it easier to target the audiences. When this young adults
reach certain age they will immediate cross the bridge to Dewar’s
classic bottle, giving a more serious and respectful image.
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