McDowells Vintage Premium Malt Whisky Integrating the Marketing Mix

1
McDowells Vintage Premium Malt
WhiskyIntegrating the Marketing Mix

• EWMBA 206
• Fall 2007

2
Iyers Framework for Marketing Analysis
Perceptual mapping
Company Analysis Marketing Myopia
First mover advantages
Customer Analysis
Competitor
Analysis
Segmentation
Positioning
Marketing Orientation
Marketing Strategy
Branding
Product
Pricing process (ODI) Pricing and innovation
Price
Traditional Advertising
Promotion
Non Traditional advertising and promotions BMW Z3
Place
Going to market Goodyear
Direct marketing
Market
3
1. Consumer Analysis Demographic Profile

• Indias GDP per-capita was 1996(3300 in 2005, 4182 in 2006).
• Approximately 5 mn. upper-upper class, many of
  then nouveau riche with per capita of
  100,000 p.a.
• Adopting the life styles of the old money group
  is an aspiration for the nouveau riche.
• A growing middle class - 200MM (4000 p.a. in
  1996), but in 2006 about 300MM with over 6000
  p.a.
• Adoption of Western lifestyles is a growing
  trend among the middle and upper-middle classes,
  particularly in big cities such as Mumbai and
  Delhi.

4
Demographic Profile (cont..)

• Automobile ownership in 1996 confined to less
  than 5 of the population (the upper-upper
  class).
• Actual ownership may be less than 2.
• An automobile is a luxury product.
• Changing trends2500 car
• http//www.iht.com/articles/2007/10/12/business/12
  cars.php
• Membership in 1) gymkhana clubs 2) racing
  associations etc.
• prestigious institutions which exist from the
  colonial era.
• Membership connotes old money, westernization
  and social elitism.
• is an important part of the social life of the
  establishment and is aspirational for the nouveau
  riche

5
Consumer Behavior SegmentationCultural
Dimensions of Serving Scotch

• Two Segments
• A small group of old money and establishment
  types, with Western lifestyles and with Scotch as
  the preferred drink.
• Why scotch?...a carry-over from British colonial
  days.
• Scotch is therefore a status symbol and an
  aspirational product for the nouveau riche.
• This group serves and consumes Scotch in a
  conspicuous, public manner to make a statement
• you have arrived, you have class
• you can afford it

6
Social Constraints

• Despite the allure of Scotch, Indian society as a
  whole is still quite conservative and there are
  many social and religious barriers to consuming
  alcohol. Consequently
• drinking alcohol has a forbidden pleasure
  element to it for many.
• Barriers rapidly dissolving during the past
  decade.

7
Marketing EnvironmentAvailability of Scotch

• At the time of this case, import of Scotch was
  tightly regulated.
• Permit based system.
• Primary recipients were government organizations,
  five star hotels, and exclusive clubs (e.g.,
  gymkhana clubs).
• This promoted an active market for bootleg
  Scotch which was readily available, but whose
  quality was highly variable.

8
Legal Constraints on Marketing

• Advertising of alcoholic beverages is prohibited
  by law.
• Distillers have devised many ingenious ways to
  circumvent this law
• setting up companies or using distributors to
  sell proxy products (decanters, salt and pepper
  shakers) which mimic the brand name and other
  brand properties of a particular brand e.g.,
  Diplomat Mens Accessories, McDowells Club Soda.
• Event marketing e.g., the No. 1 McDowells Derby,
  
• http//www.clubmcdowell.com/org/events.html
• http//www.clubmcdowell.com/brands/mc_main.htm
• http//www.theubgroup.com/events.html

9
Premium Whisky Market in India

• Locally manufactured Premium Indian Whisky (PIW)
  is an alternative to Scotch. It is a blend of 5
  -10 imported Scotch and good quality ethyl
  alcohol.
• Appropriate blending, flavoring and color are
  used to give it the appearance, taste and flavor
  of Scotch whisky
• Sales are as follows
• Scotch Whisky (permits bootleg) - 200,000 cases
  per year
• Premium Indian Whisky - 200,000 cases per year.

10
Interaction between PIW and Scotch

• None of the Premium Whiskies are able to make a
  dent in the Scotch market due to
• Lack of consistent blend quality
• The aura and the image of Scotch
• Thus PIW cannot satisfy the aspirational needs
  which the serving and consumption of Scotch
  fulfills.

11
The New Product

• A premium whisky containing 15 Scotch blended
  with high proof ethyl alcohol and flavoring and
  color to approximate the taste and flavor of an
  imported Scotch.
• Manufacturing Cost (Including packaging and
  overheads) Rs. 25/- per bottle as opposed to
  Rs. 15/- for a Premium Indian whisky.
• Proposed name McDowells Vintage Premium Malt
  Whisky

12
3. Competitive Analysis Brand Pricing
Information

13
Competitive Positioning AnalysisPositioning
Decision
Position as a superior PIW, or as an alternative
to Scotch? At what price
Premium Indian Whisky
Scotch
Rs 700
Rs 400
??
??