Case Example of Bacardi


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BACARDI – CASE EXAMPLE

 

Background

 

The spirits market in India is still at an evolutionary stage and has only emerged from  being  a  regulated  market  with  very  few  established  local  players.  Indian consumers  have  not  had  anywhere  near  the  kind  of  choice  available  in  the developed  markets  of  the  world.  India  has  traditionally  been  a  brown  spirit market,  which  meant  that  rum  and  whisky  have  been  the  dominant  product categories,  with   brandy  claiming  some  limited  share.  Until  a  few  years  ago, white spirits, wines, liquors, cognacs, etc, where only present on upper and niche markets  and  all  put  together  were  negligible  in  comparison  to  browns.  This situation  was  common  in  many  parts  of the  world as  well  –but 20  years  ago. Those markets have seen  developed and white spirits now hold strong category shares.

 

Under the impact of the economic and cultural liberalization  policies  that were put  in  to  effect  in  India  during  the  early  ‘90s,  the  spirit  industry  also  saw  a gradual  shift  towards  white  spirits  and  lighthearted  drinking,  away  from  the traditionally serious brown spirits

 

THE BRAND

 

Brand history

 

In  1962,  Don  Facundo  Bacardi  set  up  a  small  tin-roofed  distillery  in  Santiago, Cuba. Here he began manufacturing new Bacardi rum using a formula he had hit upon after many years of experimentation.

 

Rum was, at that time, a fiery drink used by Caribbean seamen to ward off the cold; Don Facundo’s new formulation transformed rum in to a smoother, lighter, milder  drink, called Bacardi. Over the next few years, rum gained popularity all over  Cuba,  and  Don  Facundo  began  expanding  his  operations.  He  kept  the formula a  closely  guarded  as  the Bacardi family’s  success  story  took hold.  The product   was   entered   in   international   exhibitions,   where   it   was   acclaimed alongside such wonders as  A.G. Bell’s telephone. His sons dreamt of expanding the brand outside Cuba; Cuba  was  then on the road  to independence and  was aided  by  a  considerable  US  presence.  Put  together,  these  factors  gave  Bacardi rum a foot-hold in the US, the first  step towards becoming a huge international brand.

 

 

Today Bacardi sells in over 170 countries, its popularity the world over has made it the No.1 international spirita brand in the world

The Bacardi Bat

 

Inspite  of  6  generations  of  the  Bacardi  family  distinguishing  itself  in  business, philanthropy  and  public  service,  easily  the  most  recognizable  member  of  the family  remains  the one with  no  name. It is  the Bacardi Bat, the trademark that appears on the label of every product carrying the Bacardi surname.

 

Legend has it that Don Facundo’s wife, Donna Amalia Lucia Victoria suggested making the Bat the trademark for the new rum, perhaps because of th colony of fruit  bats  living in the rafters of the first Bacardi distillery. Donna Amalia, who was  cultured  in  the  arts  believed  bats  represented  a  blessing  of  good  health, fortune  and  family unity. But this suggestion of hers was also hard-headed and pragmatic.  Illiteracy was  common  in  the 90th  century, and  for a  product  to  get recognized and  sell, it  needed a memorable graphic  logo- a  trademark. The bat mythology helped. That is the power of mnemonic.

 

Word of Don Facundo’s bat spread around the world along with his smooth new rum. The bats, local storyteller attested, brought good fortune and added magical powers to  his  rum. Today Bacardi Bat is a  welcome character in more than 170 countries where Bacardi rum is also sold and enjoyed, Accomplishing everything it was supposed to do  for more than century, the bat has elevated its presence to new heights.

 

BACARDI IN THE INDIAN  CONTEXT

 

Alcohol  had  never  been  comfortably  accepted  by  post-independence  Indian society. Drinking was generally associated with the darker side of life, with deep and  unholy  secrets.  Dingy bars,  seedy-looking characters  and drunk villains  in hindi  movies, in stark contrast  with the clean, honest and upright non drinking hero-this   typified  society’s  outward  attitude  to  alcohol  drinking.  Further  the absence  of  international  players  in  the  spirits  category,  as  well  as  comfortably entrenched local brands, meant that the consumer had never been exposed to the glitzy and slick side of spirits marketing until the 1990’s came along.

 

The 90’s ushered in the winds of change in the entire social and economic fabric of the  country, and like everything else, spirits  shifted  in to gradual movement away  from  the  traditional  perception.  Bacardi  was  positioned  to  ride  on  this change. One of  the  key elements to be built in to Bacardi’s brand character was, therefore its image as  the ‘the icon of new age drinking’.Changing attitudes to drinking were already apparent, in that drinking was gradually coming out into the  open, and especially in urban areas, gaining acceptance. By associating with, and  by  accelerating  this  process  of  change  in  a  positive  manner,  the  brand immediately gained the relevance in the minds of the consumer.

 

In  India,  Bacardi  Carta  Blanca’s  core  value  was  defined  as  vibrant  sensuality. This  represents an unaffected pursuit of enjoyment through one’s senses. Vibrant because    the   character   of   the   brand   is   passionate,   energetic   and   upbeat. Sensuality,  strictly  speaking  is  the appreciation  through tactile  senses(feel,  hear, taste…).   (In literal                    terms,   sensuality  is   the   overall  sensory  experience surrounding Carta Blanca)

 

Vibrant sensuality therefore means “living life true to your senses” in a style that is energetic and colourful (as opposed to languid or passive pleasure). Within the Bacardi portfolio, Carta Blancas the flagship brand. It is the main image driver of the umbrella  brand Bacardi; it is also the Indian consumer’s  introduction to the brand.

Selling Strategy for Bacardi Carta Blanca

 

BRAND/ PRODUCT

 

What is the brand/ product to be advertised?

 

A  range  of  rums,  under  the  Bacardi  name;historically  better  known  for  white rum  and  associated  with  the  light-hearted  Caribbean  spirit  of  fun,  frolic  and water.

 

BRAND / POSITION

 

What  is  the position   the brand  currently  holds  in  the  consumer’s  mind-and why?

 

An international brand of (exotic) alcohol

 

BRAND OBJECTIVE

 

How do we want the brand to be positioned in the consumer’s  mind? As an icon of new age drinking

 

 

CONCEPTUAL TARGET

 

What  ‘natural’  groupings  of  consumers,  bound  by  a common  set of  values, singular  outlook, attitudes, aspirations, do we wish to reach?

 

Post- liberalization young adults

 

CORE DESIRE

 

What is the conceptual  target’s most deeply held desire, need, want, hope, that the brand best fulfils?

 

Unshackle themselves

 

ROLE OF THE PRODUCT

 

What is the functional/symbolic  role of the product category in the lives of the consumer?

 

Functional: Relaxant

Social lubricant

Gives a high

Symbolic  : Let your hair down…. Have fun

 

REASON TO BELIEVE

 

What is the most compelling  rationale  to support the role of the product?

 

Less intense in looks, hence eminently adaptable to broader drinking occasions.

 

BRAND ESSENCE

 

What is the enduring  spirit which anchors  the brand-and  how should it speak to the deeply held values of the conceptual  target?

 

Vibrant sensuality

 

 

BRAND ACTIVITIES

 

TELEVISION ACTIVITY

 

Around the world Bacardi has a long association with a ‘sun-sea-sand’  imagery which  has  successfully  maintained  its  brand  salience,  especially  during  launch phases.  This  imagery  was  also  found  to lend itself  perfectly  to the  positioning developed  for  the  Indian  market.  The  sun-sea-sand  route  was  researched,  and was  found  to  be  very  well  received  by  consumers.  This  came  through  on  the concept  testing  study,  as   well  as  on   quantitative  research   parameters.   The concept that was tested was “Get  away to be relaxed in a carefree world”, via a sun-sea-sand   execution.   (The   first   concept   in   the   research   section   above). Quantitative  consumer  research  showed  a  strong  acceptance  of  this  particular concept, the product and its packaging.

 

Communication  for the brand  was  led  by television advertising, which  used to international,  ‘Friends’  commercial.   The  various   elements   in  the  theme  TV commercial (sun, sea, sand, free spirited  interaction  between  the sexes) were in sync with the new attitudes to drinking, and with Bacardi as an ‘icon of new age drinking’.  The  commercial  represented  taking  drinking  out  into  the  open,  far away from the dark atmosphere of illicit pleasures.

 

BELOW THE LINE ACTIVITY

 

This   was  supported   by  an   extensive   below-the-line  package   for   the  retail channel as well as on premise outlets ( pubs, bars, restaurants, etc.,). The package developed  on  the  sun-sea-sand  theme  was  intended  to  maintain  high  salience levels especially during the crucial launch phase.

 

One critical element of the Bacardi persona was the several promotions that were conducted at pubs and  discotheques across  the metros  in  India. The pub-going culture,  which  is  still  developing,  has  got  a  strong  impetus  due  to  Bacardi’s popularization of the concept.

 

A series of innovative promotion mechanics were designed for these on-premise outlets. The promos served various objectives:

 

To announce the launch of the brand, and to give the target consumer a feel of its trendy, young and vibrant character.

 

 

To generate a sampling of the product- this was a  critical role given the fact that while rum was still a new product for the consumer.

 

To gain substantial incremental volume sales.

 

Of course the promotions also offered excellent opportunities to develop different elements of the   Bacardi  brand  character.  They  have   now  been  built  in  to  the   long   standing properties of the brand. Some of the key properties are:

 

BATSTAGE WITH BACARDI

 

The Bacardi core consumer being 18-25 years old and urban, music is an effective medium  to  use  get  through  to  him.  The  idea  was  to  sponsor  live  bands  to perform on a  given night in pubs and disco-theques. This was  to be done on a regular basis and branded “ Batstage with Bacardi”.

 

THE BRAND TODAY

 

In  the  first  year  of  launch,  Bacardi  attained  and  surpassed  its  volume  targets. This  can be gauged from the fact that the first year’s volumes exceeded those of its closest  competitor, Smirnoff vodka, a brand that has been  established  in  the market for over  4  years. Initial reports  indicate that  the volume and  its  growth are  being  sustained  in  the  second  year  of  operations.  Already,  Bacardi  Carta Blanca  is reported  to  have  garnered  over 10  percent of the  international spirits market in India.

 



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