Target market chosen by the company
Absolut targets at the global spirits market. Being available in 126 countries, the brand has acquired American, Canadian and Finnish market as its main export targets. In these countries, it has leading positions in liquor industry. Along with such broad operations area, Absolut’s strategy is aimed at acquiring specific industry niche worldwide: niche of luxury brands in the liquor industry. Today, Absolut is a leader in production of corporate chic. That is the major reason their product costs $35 per bottle.
The efficiency of such strategy is confirmed by the recent fact that even more expensive spirits gain their ground in American liquor market, exclusively due to their price. Therefore, in the first place, Absolut sells a mental image of instant cool (their site with its novel flash technologies, send this message in the most vivid manner). Absolut sells the image of chic and luxury. And naturally their target market consists of ...view middle of the document...
The positioning and differentiation strategy of Absolut relies on the main option: emphasizing the distinctive unique benefit of the vodka concerned. This is emphasized by the price, by the package (uniqueness of bottle), by the unique advertising company, conveying both broadcast and narrowcast messages (Aaker, 2003), by the production method, and, most important, the quality of chic and magnificence attached to the product. Competitive differentiation, thus, is the dimension of such positioning strategy undertaken by Absolut, which provides a strong foundation of building competitive advantage of the brand and drive all future marketing decisions. The differentiation strategy of Absolut enables turn the vision, the image of the company in this particular case, into the reality and manage customers’ perceptions. Apart from the quality of the product, the peculiarity of package, and the exporting country, the main element of differentiation strategy employed by V&S, the producer of Absolut, is its unique advertising campaign aimed at creating the image of intellectual, artful, luxury brand. In the liquor market, there is very little scope for differentiation due to limited taste and quality differences in the product line (Stern, 1990). Therefore, it is vital, notwithstanding of the fact, for a company wishing to establish itself as a corporate leader, to invent viable and unique differentiating strategy of its product. This is done by establishing fashionable and artful image of the company through the means of advertisement. Absolut advertising campaign still follows a carefully elaborated strategy on the basis of variety and continuity. The advertisements are sophisticated, witty and imaginative as they communicate the brand’s values (A Visual Analysis of the Absolut Vodka Advertising Campaign). Since the launch of advertisement campaign, about 1,500 Absolut ads were created. This absolutely innovative advertising helps to create brand recognition and brand awareness among consumers and impact greatly on differentiating product specially when competing in product categories which do not provide considerable scope for differentiation (Kiely, 2003). The following section will focus on marketing mix, revealing product, place price and promotion decision targeted at embodying the company’s branding and positioning strategies.