Monday, May 9, 2011

Ch. 7 - Business Marketing







Not only does Svedka participate in marketing to consumers for personal consumption, but a major portion of their marketing energies goes to business marketing.  Through business that purchase large quantities of their products, such as distributors, warehouses, bars, and restaurants, Svedka's revenues are gained only through this method.  Svedka falls into several categories as described in the text book.  Svedka falls under the supplies product type, and is sold to resellers, who in turn do not modify or use the product to make another, but only seek to make a profit by marking up the price the purchase price.  Even thought marketing relationships need to be strong for any successful company, sometimes the consumer market may demand another product.  For example, while purchasing alcohol at Astoria Wine and Spirits in Astoria, Queens the other day - I was told that the store no longer carried Svedka, and that a more popular vodka took it's place.  The demand was obviously higher for Vesica vodka.  The store attendant then told me that their customers were seeking a less expensive product, and that it was problematic ordering cases of svedka because the demand was not there.  This just goes to show that no matter how hard the efforts are of marketing sometimes they are not rewarded.  Furthermore, the store invest in wines, rather than spirits which could explain the phenomenon.  Phenomenon, because everywhere else in Manhattan carries Svedka, and advertises it heavily.




Tuesday, May 3, 2011

Ch. 8 - Segmenting and Target Markets


Svedka's target market can be narrowed down to young adult.  In segmenting this target, they've come up with demographics of 21-mid thirties, male and female, moderate to upper income levels, almost all ethnic backgrounds, and usual singles.  It's mainly isolated the marketing to several geographic locations of large metropolitan cities in the United States, i.e. New York City.  The diversity in these locations is immense and therefore allows Svedka the ability to reach and influence many different audiences, which in turn will give back to the company the maximum benefits of revenue and positive public relations.  To be specific it has been my experience that Svedka aims at a more liberal community with medium to laissez-fare ideas of the world.  An example would be the Svedka showing this ad campaign below in an conservative traditional part of the world such Bagdad.  In short, Svedka's marketing team had positioned their product in the correct place.  They have seen soaring sales and customers returning for their product.  What business could be happier?

www.svedka.com

Tuesday, April 26, 2011

Ch. 11 - Developing and Managing Products


Guillaume Cuvelier began with an idea for a new vodka, that was affordable, appealed to better tasting vodka's like Stoli and Grey Goose, rather than Bowman's or Aristocrat, and also wanted a hip youung vibe to go along with the product.  Several years went by before the product was purchased by Constellation who then employed Amalgamated Marketing to elloaborate on the elements needed to bring the product to life in the eyes of the consumers.  The company who initialy developed Svedka, already had leaders in the food and beverage industries at the helm of the product's creation.  They were aware of business analysis of vodka's on the market and what exactly the market was demanding at the time, as well as the future predictions of demand.  Thus, came what is our present day product of Svedka.  It is clear that market was satisfied by Svedka's developments.  High ratings and awards presented to the product justify great marketing efforts, which were allowed by great product development. 



Ch. 16 - Integrated Marketing Communications

Christopher St. - Sheridan Square Station

NYC

Continuous and diverse promotional strategy by Svedka insures it will not be soon forgotten - through communication modes of advertising to the masses, personal selling, and public relations.  Every chance the company gets, they pounce at the opportunity to emphasis the popularity of their product.  New York City buses, liquor store windows, phone booths, nightlife hot spots, major subway stations, billboards, and many more places are where you will find Svedka's ads drawing you in with seductive and controversial statements and images.

My favorite pre-game celebrity/model studded hotel below Canal St.

Speaks for itself


www.svedka.com

Tuesday, April 5, 2011

Ch. 10 - Product Concept

As you can see from the pictures above and below, Svedka's product concepts are almost too simple.  So simple that Wine Enthusiast in 2010 rated Svedka #2 vodka behind Grey Goose.  As you can see Svedka falls into a simple catergory of vodka type alcohol with only a few choices of vodka to choose from, maybe less than 30 brands.  Svedka's vodkas are considered consumer products.  The product depth is 6 with the line consisting of regular vodka and favors of cherry, citron, Raspberry, Clementine, and Vanila.  The trademark of the company of course is it's name, Svedka.  Very little label advertising is done to the product itself.  The container is made of a stream like glass bottle with the name of the product, country of origin, and the flag of Sweden.  No warranties are associated with this product.  The Svedka product strays very little from the convention and does well as it aims at a younger, purchase powerful target market through emphesis on its price and sexy advertising.


Tuesday, March 29, 2011

Ch. 18 - Sale Promotion and Personal Selling

As you already know, Svedka vodka is a specialty product, and it is not very complex.  The majority sales promotion is done towards the trade sales.  Below is a picture of Svedka's trade promotions at a 2005 trade show.
Svedka will do very little personal selling.  Strict alcohol laws would restrict many opportunities to do so.  Wine and spirit distributors will do the majority of the promotional selling.  As of 2009, Svedka signed into several multi-year contracts with distibutors Southern Wine and Spirits, Republic National Distributing, and National Wine & Spirits.  The details and terms of the deals were not disclosed (http://www.bizjournals.com/sanfrancisco/stories/2009/07/20/daily83.html).  Therefore, little is know on what incentives, promotional deals, and premiums the distributors were offered.  We also do not know what measures are being taken to secure the on going relationship between the two entities.  Svedka also stated that they will continue to work with other distributors to spread their products.  As for the distributors for Svedka, they will then go into the personal selling process.  They will identify, restaurants, bars, and liquor stores as their potential customers, and so on to the last steps until closing occurs.  Below are sevaral Point-of-Purchase Promotions that you may find at liquor stores and bars.




Tuesday, March 22, 2011

Ch. 17 - Advertising and Public Relations


Through the modes of institutional advertising and advocacy, Svedka touches on controversial topics such as "gay rights/gay marriage, stem cell research, colonization of Iraq, Blue State succession, Scientology in Hollywood, etc."  All these issues are important to the young demographic target market that the company wishes to effect.  They of course aim for the positive aspects of these topics or common standing toward these issues that are usually shared with a democratic, less conventional audience.  Svedka's major and continual campaigned was first launched in 2005.  Its first print ad was featured in the September issue of Vanity Fair magazine.  New York based company Amalgamated Advertising Agency was the company commisioned to the promotional task at hand.  Through collaboration efforts of the agency and Svedka they decided on print ads as the main medium for advertisement, and later they will produce a television ad.  As clearly evident in their ads, the appeals would suggest fun and pleasure.  Scene's of sexual appealing men and women, laughing, smiling, and having fun in general are elements that justify the mood/image executional style of advertising.  In addition, Svedka is a sponser for many celebrity studed events, as well as many nightlife parties in New York City and Los Angeles. 







Tuesday, March 15, 2011

Ch. 15 - Retailing

With regards to retailing, Svedka is into many different categories.  Retail operations are usually independent retialers such as liquor stores and bars.  Chain Stores like groceries will also contain Svedka depending on the local and state laws.   Franchises like certain restaurant will also carry Svedka products.  Most of the time when purchasing Svedka products one will find themeselves in a specialty store, i.e., the liquor store.  This store specializes in alcoholic beverages of a wide variety including vodkas - like Svedka. 



Tuesday, March 8, 2011

Ch. 6 - Consumer Decision Making



Svedka's influence on their consumer's decision making encompasses many different factors that lead to the final decision, to buy or not to buy.  First we exam the need/want factor of the vodka product Svedka offers. As you know vodka is more a luxury item.  It is a neccesity of the F&B industry, but not so much for individual buyers making their factor a want one.  With this stated, the buyer in either case still must be stimulated enough by Svedka to even be considered for a future purchase.  That stimulation comes from past experiences, promotion and advertising by Svedka, and weighing disadvantages the benefits of their vodka over others'.  For the target market wishes to affect, routine to limited decision making is needed for the purchase of their vodka.  They are aiming to sell to a younger price savvy consumer, as their price selling price would suggest.  In addition to the low cost of the vodka, the consumer is not willing to sacrifice pruduct quality and flavor which Svedka is able to accomodate.  Furthermore, the consumers making the decision to purchase Svedka are coming from a range of classes.  Mainly the middle class, but some from the lower class who wish to splurge, and very little from the upper class. 



As you can see from Svedka's ads the seem to persuade the consumers into buying their product by creating an image, through their advertisment techniques, by playing on the customer's self image.  The frequently show young, hip, sexy, models partying and having a good time while consuming vodka.  They also play to men's misogynistic views that they too can have beautiful women around them when they consumer vodka.  In addition, they also play to the gay-drum by creating homosexual friendly ads.   

These are just a few factors that influence a consumer's decision making when it comes to Svedka and vodkas in general.



Tuesday, March 1, 2011

Ch. 5 - Developing a Global Vision




In the world of global marketing Svedka has adopted the Global Marketing Standardization, instinctively, by only producing one flavorless vodka, and very few flavored vodkas.  This product area has very little leeway in change otherwise it would not be the same product.  With this stated, Svedka does have to advertise accordingly to the market they are trying to penetrate.  Currently Constellation is involved with the direct foreign investment with the Svedka manufacturing facility in Sweden.  Althought a Swedish brand it is not considered an export method of business because the parent company is American based.  In global promotion Svedka generally aims for the same demographics: age 21+, persons with moderate income, and an overall mainstream pop-culture. 



Svedka Samui, Thailand Ad Teaser

Sunday, February 20, 2011

Ch. 4 - The Marketing Environment



During the not-so-long-ago recession, which I'm still sure that we're in, Svedka was introduced into the market.  Since that time it has gained a significantly large amount of the market share in the alcholic beverage sector.  The company's target consumer ranges from the Generation Y to Generation X to the Baby Boomers.  Of course with current Federal laws that state the legal drinking age of 21 and above, anyone in Generation Y that is under 21 years of age is not a target consumer for the company.  All these generations are part of the market target, because face it, a vast majority of people in the United States, and around the world like to enjoy alcholic beverages.  They've been enjoying alchol for centuries!  Younger person with an ever growing purchasing power are the main focus when it comes to targeting a specifc market.  However, Svedka was introduced into a reccessed market, meaning items such as vodka are considered, more than before a reccession, a luxury item and not a  necessity.  Therefore the product was marketed as high quality vodka, but at a resonable price for today's price consciencious consumer.  It's marketing envirnoment also consists of better known, and well established brands such as Grey Goose, Ablsolut, Belvedere, Skyy, Ketel One, and Stolichnaya which at the time had a leading edge.  Nevertheless, Svedka has gained the upper hand and popularity, by creating a similar high quality vodka as its competitors with a mucher lower asking price.



Saturday, February 12, 2011

Ch. 3 - Ethics and Social Responsibility

As an ongoing effort to maintain Svedka as an ethical and social responsbile brand the parent company Constellation Wines states the follow; "Constellation's ability to integrate the Svedka Vodka business successfully and the continued strength of the relationships of the Svedka Vodka business with its employees, suppliers and customers." As claimed in previous blog posts Svedka is also donates various sums of money to the expansion in the fields of art, education, health, eco-system conservation, thus satisfying its ethical, legal, and philanthropic duties as a social resposibly entity.  In addition, Constellation has recently changing it's own energy source to more eco-friendly systems by consuming wind and solar powered energy, returning and conserving water resources, and building environmentally friendly facilities. 




Monday, February 7, 2011

Ch. 2 - Strategic Planning for Competitive Advantage

Since 2008 Svedka has had some exciting, racey, and eye-catching strategic plans for their vodka and I'm sure there is much more to come.  "Since no one owns the future," sky's the limit for this brand!  In the past, the company has employed several means of growing is brand.  No to long ago Svedka saw a product face lift into its new futuristic, sleek bottle/labeling design.  The effect was a more visually appealing bottle that looks good on any shelf, whether it be on the back bar or at Costco.  In addition to that major product facade makeover was a huge campaign in 2008 to ran alongside the Presidential Elections of 2008.  A huge success, Svedka was a sponser and host at over 800 politcal events where alcohol was poured during that election year.  Many ideas, marketing campaigns, and strategies are being lead by  veteran marketing guru Marina Hahn, which mostly focus on pop culture and hot nation wide topics like the war, and homosexuality.  Hahn, along side with the marketing department at Svedka, have created ads that are strategically placed in significant nightlife corridors, bus stations, bus sides, phone kiosks, and other large mainstream locations such as Times Square billboards.  New York City, Boston, Miami, Los Angeles, San Francisco, and San Diego are the main target cities.  These locations are prominate with adult entertainment, not pornography, but in the sense of nightlife, fun, frolic, dinning, dancing, drinking, and shopping.  All of which Svedka aims to encompass with its brand. 





Friday, February 4, 2011

Ch.1 - Svedka's Mission Statement

Svedka's vodka products offer premium quality at smart  inexpensive prices.  "Cheap Chic" as the company's  motto states, puts the fun back into vodka.  Svedka's owners, the Constellation Wine Co., believe in being an avant garde leader in the old world of vodka, and transitioning towards the future.  These beliefs are, but not limited to, DRINKING RESPONSIBLY, efforts to discourage underage drinking, and returning positive energies to society.  The company is also a positive contributor to the environment and the community; it is recognized for its world wide wetland conservation dedication.  In 2009 a massive solar energy station was placed at a winery to conserve non re-newable resources.  The sustainability efforts of the company are vast ranging from natural farming to recycling to endangered wildlife conservation.  The company also donates large sums of money to organizations that promote health, education, and the arts.  Svedka's ethics and beliefs make it a positive leader in the worldwide community and will continue to do so in years to come.


Ch.1 - Svedka's Brief History


"VOTED #1 VODKA OF 2033" 

Created and launched in 1998 by Guillaume Cuvelier, Svedka is now one of the world's fastesting growing vodkas.  In 2007 Svedka was acquired from its European owners by the Constellation Wine company based in New York.  However, Svedka is still manufactured in Sweden.  Since its American debut in 2008, Svedka has risen to much acclaimed fame world wide.  Svedka offers its original non flavored vodka as well as the flavors of; Citron, Clementine, Raspberry, and Vanilla.  Svedka's current spokesman or should I say spokeswoman is the Svedka Fembot.  A sex icon who you demands your attention! And boy does she get it.  She claims that by the year 2033 "Svedka will be the #1 voted vodka in the world."