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.

www.svedka.com

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. 

http://www.svedka.com/

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. 

http://www.svedka.com/

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.

http://www.svedka.com/

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. 

http://www.svedka.com/

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