Benchmark is the measure of success of any product in the market. Alcohol industry benchmark is setup to work from small level investors to medium level investors and encourage them to do with quality work. Benchmark set by the industry in comparison with the product of other companies (Robinson, 15-Sep-2009).
We will study three brands in the alcohol industry and their benchmarks.
First we will study the brand named “Absolut Vodka”. This brand is a Sweden brand and is popular for many types of drinks ranging from cocktails to different kinds of alcohol. It is among the top alcoholic brands of the world.
Profile and overview:
This company started by Swedish industrialist in the early fifteenth century. The Sweden industrialist already runs the alcohol on low level. Like there were many producing vodka for their families and friends only. With the passage of time, the Vodka production becomes refined and more tasteful, and the time came that the world now recognizes it among the top alcohol brands of the world.
Competitive advantage:
There are many competitors regarding wines, alcohols and drinks in the market. To view the competitive advantage of the company one should not only look at the opportunities available to the product but the quality is also measured. In a case of this brand, the opportunity has made it rise high but at the same time the quality has also led it to the front. Every company has to keep itself updated to be in the business. The Absolut Vodka knows how to be in market .
Strength:
It is one of most favorable drinks served in special occasions like parties, weddings.
The taste is different from many other available in the market.
This brand has very high dimension advertisement programs. Due to these good quality advertisements, it has won so many international awards
It is fresh and pure. Readily available at all markets is one of its best points.
Weaknesses:
One of the biggest flaws of the company is that the advertisement went against this company in few places.
As the company has spent too much, so the imbalance activities appeared in the financial section.
Threats:
Increase in labor prices all over the world has increased the production cost. But it cannot increase the price of the product at once. So to maintain an equilibrium between profits and loss is the greatest challenge to the company (S.Calhoun, 24-Aug-2012).
Market strategies:
This brand has the best strategy of introducing new and fresh advertisements every year. This strategy keeps alive the products in the minds of the consumer. The initial development was made when the producers realized the importance of advertisements. Large amounts were spent and advertised nationally and internationally (W.Lewis., 15-Oct-1996 ).
Bacardi Rum:
Bacardi Rum was introduced by the country Cuba in the late nineteenth century and till today is one the most favorite Rum of the world (Foley, 2008).
Profile and overview:
This brand, Bacardi Rum, has got so many awards due to its better quality. The taste of this brand is so light and favorite of many that they mix it with any other flavor like mint or lemon. And with the addition of these flavors, the original flavor too remains the same. Bacardi superior is one of its most favorite brands, and now this company is addressing more than 200 types of rums in the world market.
Competitive advantage:
If we look at the competitive advantage of this brand over others, we can find that this Cuban Brand has set a very good position in the market. This brand stands with the notable heights. But in order to be more competitive it should increase its sales and the world nowadays is very much tending towards the vodka. So in line of competition, the Rum should be produced and sold in increased quantity to be most favorable and overcome the Vodka legacy.
Strong points of this Rum:
This rum is used widely in parties and other private functions as one of the most favorite drink.
It has very large number of variety in the field of Rum.
It is one of the most known and loved brand of the world.
The company works in proper collaboration with it’s employees and the level, and working style is very much favorable to the workers.
The production cost is low as it is produced in Cuba and other Caribbean islands where the byproducts are readily available.
Weak points:
This brand, Bacardi Rum, although has some weakness as well.
This brand has limited its distribution worldwide, so paving the chance for other brands to enter the market.
This brand has also not produced many varieties as compared to the recent available many other brands.
Threats:
This brand is facing many threats from other brands in the market.
This brand has spent less on promotional activities, and so many brands have now come in the market and are preferred than this brand.
Social and cultural issues are also a big threat to this brand.
Nowadays the competition is too large, and any company with a small negligence can be out of the market. So staying alert all the time is a necessary item for any company.
Market strategies :
- Increase advertisements and social and electronic media partners should be encouraged and involved highly by providing with good incentives.
- Good and attractive packaging and easy availability at all international markets.
Target market:
This brand should target males and females above 18 years of age.
Bacardi Rum has started one of the good environmental gestures by utilizing the natural resources known as “Good Spirited” gesture. As Bacardi Rum is providing one of the top global alcohols, this company has started
Pinot Grigo:
Profile and overview:
It is a white wine produced by Italy from the special kind of grapes. This wine has variety of flavors ranging from citrus, lemon flavor to chocolate flavor. But the color remains the yellowish or light brown.
Competitive advantage:
This brand is among the top companies of the world. It has many flavors and types.
This product has gained its market in 1990’s and 2000. It has entered the market and now has conquered the marker as well.
Strong points:
The main strong points of this product are:
This product is available in the market with a simple and neat and sophisticated bottling. The labels are written in a very clear mode.
The prices are too flexible and affordable. This tactic has made it one of the favorable products.
The survey conducted has shown that recently this product purchase has increased incredibly high as compared to other products.
Weakness:
As such there is no prominent weakness of this brand. This brand has few weaknesses (Gregett, 2010):
- Has not spent a lot on the promotional level.
- Different varieties are not up to the mark of international standards.
- Many other brands are flexible to change and adapting new challenges.
Market strategies:
This product has studied the market and has set the strategies according to consumer’s taste and nature. This product is named as product that has done miracles in marketing today in the field of wine (Carthy, 14-Aug-2012).
Good quality of grape production and variety of grapes, simple and unique flavors are the main strategies adopted by the producer of this company. Consumer choices are kept in mind while producing such products and wines.
Pricing:
The prices are low as compared to many other brands in the market. Italy being the country with a natural gift of grapes and good soil; the price competition is not very high in the production of wine. This company believes in variety rather than high price target.
References:
Carthy, M., 14-Aug-2012 . Wine For Dummies. s.l.:John Wiley & Sons,.p-23-34
Foley, R., 2008. Rum 1000: The Ultimate Collection of Rum Cocktails, Recipes, Facts, and Resources. s.l.:Sourcebooks, Inc..p-302-303
Gregett, P., 2010. Washington Wines and Wineries: The Essential Guide. s.l.:University of California Press,.p-221
Robinson, S., 15-Sep-2009. Ethics in the Alcohol Industry. s.l.:Palgrave Macmillan.p-76-77
S.Calhoun, F., 24-Aug-2012. Concepts and Case Studies in Threat Management. s.l.:CRC Press.p-56-57
Saul Estrin, K. M., 01-Jan-2004. Investment Strategies in Emerging Markets. s.l.:Edward Elgar Publishing.p-701
Taylor, D., 27-Dec-2012. Grow the Core: How to Focus on your Core Business for Brand Success. s.l.:John Wiley & Sons,.p-56-58
W.Lewis., R., 15-Oct-1996 . Absolut Book.: The Absolut Vodka Advertising Story. s.l.:Tuttle Publishing.p-417-420
