MKTG 111 Group Portfolio Assignment Canadian Club Whisky December 9, 2011 Table of Contents Introduction3 Overview3 Strategic Analysis4 Recommendations5 Competitive Analysis8 Target Market Analysis9 Positioning Statement and Positioning Map10 Marketing Communications Analysis15 SWOT Analysis17 Bibliography18 Introduction The popularity and worldwide success of Canadian Club can be attributed to more than just its great flavour. Review of key marketing components has given an all around understanding of the thought process involved in ensuring the success of this company.
These components include, the analysis of the product, pricing, competition, target market, position within the market, distribution, marketing communications, strengths, weaknesses, opportunities, and threats (SWOT). Overview Overall, Canadian Club’s marketing operation is effective, drawing from its classic image. The product’s target market is primarily males, aged 25-35, living in urbanized regions, with an $80,000 to $100,000 salary. Canadian Club offers a smooth taste with the industry standard potency in comparison to its competitors. The product is priced slightly below average at $24. 0 for 26 oz (LCBO, 2011). In Canada, it is mainly distributed through Crown corporations and is available at any licensed establishment, along with its competitors. Canadian Club has promoted itself as a classic beverage for mature, yet adventurous adults and has focused a great deal of attention on its unique history, in advertising and promotions. The marketing efforts of Canadian Club are unique to their competitors and have resulted in world records, including the world’s longest running international advertising campaign, and the world’s longest running promotion (Canadian Club, 2011) (Hide-A-Case, 2011).
As a result of this, Canadian Club has seen an increase in sales and attention in the media. Strategic Analysis The face of Canadian Club has changed drastically over the past number of decades. It has fallen from its position as premium liquor to a cheaper alternative. The distribution of Canadian Club does not differentiate from its competitors due to legal restrictions and is available anywhere that liquor is sold in Canada. What sets Canadian Club apart from its competitors, however, is the price. Canadian Club is of high quality, yet their prices are set low.
This gives the impression that it is of poor quality, which is damaging to the brand. Whiskies like Jack Daniels and Jameson have been successful with marketing their brands as the “cool” whiskies. Jack Daniels gained popularity after it became the drink of choice by the men of HBO’s Entourage, a show that depicts the glamourous lives of current celebrities. Canadian Club is beginning to see a comeback as a result of their sponsorship with motorsport events and illuminating their history as the whisky of choice in the 1920’s (Canadian Club, 2011).
In addition to this, Canadian Club has also had the world’s longest running international advertising campaign (“The Adventure Series”) as well as the world’s longest running promotion (“Hide-A-Case”), which make their marketing efforts unique to their competitors (Canadian Club, 2011). Recommendations Canadian Club is on the right track with their recent work, highlighting their history. With television shows like Boardwalk Empire and Mad Men (both of which have promoted Canadian Club), past era themes are at the height of their popularity.
This promotion can spark a new interest in people seek a similar image of old-time class (Kent, A, 2011). In the “Damn Right, Your Dad Drank It” Campaign, Canadian Club has promoted the whisky as the preferred drink to the consumers’ fathers. This promotion was very successful in bringing Canadian Club back into the spotlight in advertising. On the whole, their approach to bringing “old-school” back, has proven to be very successful and should be continued (Damn Right, 2009). Originally marketed as a premium liquor, Canadian Club now sets their pricing below average of liquor industry.
In taste tests, Canadian Club has surpassed competitors like Crown Royal and Jack Daniels and its price should reflect this. By Marking up its price from $23. 40 for a 26 oz bottle to approximately $30. 00, consumers will observe Canadian Club to be of higher quality and value. It is highly recommended that nothing be changed about the product itself. In order to maintain its classic status, the bottle, labeling, flavour, and production process should remain true to its original state. Changing the bottle and labeling of Canadian Club may also result in being poorly received by current customers and Canadian Club may lose sales.
As a result of strict Canadian liquor distribution laws, there is very little that can be done or can be recommended in terms of determining the placement of Canadian Club. Canadian Club is available in any licensed store and most bars across Canada (LCBO, 2011). To establish a future customer base, creating and promoting a unique new cocktail menu featuring Canadian Club as the cocktail base would be effective. There have been many Boardwalk Empire inspired cocktails created with Canadian Club Whisky, that can be made up into a small booklet, sold with a 26 oz bottle of Canadian Club.
Some of these drinks include the Boardwalk Manhattan, the Tea-Totaller Teaser, and the Top Hat (Loughlin, C, 2010). Teaming up Canadian Club and HBO’s Boardwalk Empire with a new contest promotion would work beneficially for both parties. A four-day trip to Atlantic City, the setting of Boardwalk Empire, as well as the location where Canadian Club was smuggled into America during Prohibition would be an excellent promotion. This would encourage fans of both, the television show and the whisky, to participate, while also reaching out to potential customers.
While it is common to find winter bundles, Canadian Club should make summer themed bundles as a way of promoting it as more than just a “cold weather” beverage. With new mixed drinks that are incorporating Canadian Club, it is recommended that they create bundles that include merchandise like t-shirts, baseball hats, and aviator-style sunglasses. Canadian Club has been granted royal warrants of Queen Victoria, King Edward VII, King George V, King George VI, and Queen Elizabeth II (Canadian Club, 2011). Creating an advertising campaign, reflecting on this would be effective.
The campaign could go in one of many directions. For example, they might choose to use classic imaged with Canadian Club bottles superimposed nearby, or by using attractive, royal-themed artwork, depicting Canadian Club as a drink fit for royalty. Canadian Club has received a great deal of attention from their unique and long-running Hide-A-Case promotion. With still a number of cases that have been hidden around the world, still unfound, there should be more marketing efforts to draw attention to this with more clues, and possibly, additional hidden cases. Competitive Analysis Target Market Analysis
Target Market Profile| Categories| Variables| Typical Breakdowns| Geographics| Region| Ontario, British Columbia| | City or census metropolitan area (CMA) size| 1,000,000-4,000,000| | Density| Urban| | Climate| Cold, warm| Demographics| Age| 25-35| | Gender| Male| | Family size| 1-2, 3-4| | Stage of family life cycle| Adult single, adult married, no children, young children| | Income| $80,000-$100,000| | Occupation| Professional, managerial| | Education| College/university graduate| | Ethnic background| Caucasian, Asian, African-American, Hispanic| | Home ownership| Own home, rent home|
Psychographics| Personality| Adventurous, mature, extraverted| | Lifestyle (Goldfarb Segments)| Fun, social, easy-going, friendly| Behaviouristics| Benefits sought| Entertainment, relaxation, socialization| | Usage rate| Medium user| | User status| Regular user| | Loyalty status| Medium-strong| Positioning Statement and Positioning Map Canadian Club Whisky is positioned in the alcoholic beverage market as smooth, pure, high quality whisky. This product is ideal for those who enjoy an adventurous and sociable lifestyle. It focuses on its revolutionary length of aging, bringing a higher quality of whisky. | | | | | | | | | | | Potent| | | | | | | | | | | | | | | ???? | | | | ????? | ????? | ??? | | | | | | | | | | | | | | | | | | Smooth| | | | | Harsh| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ? | | | | | | | | | | | | | | | Weak| | | | | | | | | | | ?| Canadian Club Whisky| | | | ?| Jameson Irish Whiskey| | | | ?| Crown Royal Whisky| | | | ?| Jack Daniel's Tennessee Whisky| | | | ?| Smirnoff Vodka| | | | ?| Budweiser Lager| | | | Product Analysis Core product| Actual product| Augmented product| * The consumer may experience a feeling of relaxation and excitement, which creates an atmosphere of enjoyment. * A branded product; a liquid beverage within a bottle, covered with a label. | * Able to be exchanged bottle for a recycling refund. | Pricing Analysis Pricing Strategy Price: $24. 40 750 ml bottle Demand-Oriented Pricing Bundle – For seasonal holidays, Canadian Club sells bottles bundled with rock glasses for a higher price than a regular bottle, however the glasses offer a greater value to the bundle. Penetration – The average price of a 750 ml bottle of spirits is $26. 00. Canadian Club is sold at a cheaper rate to be more appealing to consumers. Competition-Oriented Pricing
Below Market – Most spirits are sold for a higher price than Canadian Club. This gives Canadian Club an edge against the competition. Competitive Pricing Analysis | Canadian Club| Jameson| Jack Daniels| Crown Royal| Smirnoff| Budweiser| LCBO| 24. 40| 30. 30| 29. 85| 34. 45| 24. 45| 23. 50| SAQ| 21. 99| 30. 25| 29. 99| 29. 99| 23. 25| 22. 50| Liquor Mart| 24. 99| 27. 85| 27. 25| 26. 99| 22. 99| 22. 32| BC Liquor| 23. 75| 32. 99| 29. 99| 27. 99| 24. 99| 27. 29| NSLC| 26. 98| 30. 99| 29. 99| 29. 99| 26. 98| 25. 79| Liquor World| 23. 85| 32. 95| 27. 25| 34. 85| 22. 95| 23. 85|
Distribution Analysis Distribution Strategy Canadian Club is distributed in all provinces/territories exclusively. This is due to strict laws set out provincially that control the sale and distribution of alcoholic beverages. Most provinces and territories have kept total or near-total control over the sale of liquor. Quebec and Alberta have managed their own municipal liquor stores, yet have allowed liquor sales in some retail stores. Distribution Channels Government-Owned Liquor Store (LCBO) Producer (Beam Inc. ) Producer (Beam Inc. ) Consumer Consumer Retailer (LCBO) Retailer (LCBO)
The most popular distribution channel in Canada is the number of government-owned liquor stores, province-to-province. Few provinces have alternative channels for distributing hard liquor. Because this channel is strictly controlled by the government, the product goes directly into the retail stores from the producer. It is then available to the consumer. This retail store also acts a wholesaler to private retailers and businesses. Private Liquor Store (Liquor Mart) Producer (Beam Inc. ) Producer (Beam Inc. ) Wholesaler Wholesaler Very few private liquor stores are in operation in Canada. The liquor goes rom the producer to the wholesaler which is also the government-owned retail stores like LCBO. The private retailer must purchase their liquor from their provincial liquor wholesaler for resale to the consumer. Private retailer Private retailer Consumer Consumer Private Online Retailer (Whisky Exchange) Wholesaler Wholesaler Producer (Beam Inc. ) Producer (Beam Inc. ) Similar to private retail stores, online stores must go through the same distribution process. This means purchasing from the government-controlled wholesaler before direct resale to the consumer online. Online retail Online retail Consumer
Consumer Private Business (Fox and the Fiddle Pub) Producer (Beam Inc. ) Producer (Beam Inc. ) Government-controlled retail Government-controlled retail The distribution of Canadian Club to business is strictly controlled by the government. As such, businesses are only entitled to purchase their liquor from government-controlled retailers. Industrial user Industrial user Marketing Communications Analysis Public Relations The public relations in The Canadian Club Whisky is approached in a variety of ways. For example the fourth season premiere of Mad Man was the first episode that involved Canadian Club whiskey.
Cumulative results of that product placement across the season: * Overall Placement Value: $495,200Audience * Reach: 13,755,960 * Overall Audience Retention: 8,671,500 * Positive Feeling from Placement: 933,984 * Influence to Purchase from Viewing: 36,040 They also hold special events such as Canadian Club® Whisky Historic Treasure Hunt; where truly unique treasure hunts, starting in Windsor, Canada at the Canadian Club Heritage Centre, participants will learn more about Canadian Club's rich heritage and could possibly win $100,000.
The last method they use is through their website at www. thecanadianclubwhisky. com , where show you the history behind and all there advertisement. Advertising Canadian Club has multiple advertising tools that are used to promote their product. Canadian Club is advertised in a number of ways on television. This includes television commercial advertisements, occasionally running them in movie theatre previews and product placement in hit series like Mad Men and Boardwalk Empire. Magazine advertisements are used as well as posters in subways and billboards.
Canadian Club is also connected on online social networking sites such as Facebook and Twitter to allow people to hear news about the product and also voice their opinion. Canadian Club is also involved in motorsport sponsorship including the Molson Indy, which allows the brand name to get out to thousands of spectators. Advertising is also seen in private business to which Canadian Club gives free merchandise. This merchandise includes coasters, shot glasses, shot glass pads, matts, signs, and clothing.
Direct Response Canadian Club sends out sales representatives to bars and clubs in order to promote their product as well as convince the bar/club owner make a purchase or continue purchasing from Canadian Club. The LCBO offers catalogues, based on the season, which establishes a link between the consumer and Canadian Club. On the Canadian Club website, they have a micro-site that divulges their history during Prohibition in connection with the currently airing hit tv-show Boardwalk Empire.
On the website, they provide links to cocktails a consumer may make using Canadian Club, educational videos, as well as photos of some of the most prominent Prohibition players. Sales Promotion Canadian Club received its first royal patronage from Queen Victoria and her husband Prince Albert. Canadian Club has a micro-site that educates customers on its role during the Prohibition. Canadian Club also sponsors F1 driving. Starting in 1967, Canadian Club held a promotion that included hiding cases of Canadian Club all over the world.
The public were given clues and to this day, still three cases remain unfound, one being in the North Pole. Location of Factor| TYPE OF FACTOR| | Favourable| Unfavourable| Internal| Strengths * Prominent brand awareness in over 150 countries * Bartenders have been using CC in their drinks since its early years * Legendary, smooth flavor * Flavours are flexible and vary for different preferred tastes| Weaknesses * Price of product(s) may be more than that of competing companies * Monopolies may create high barriers that are hard to overcome, for new companies/products wishing to enter a market (ie.
Expanding) * Indirect competition from other companies that sell other alcoholic products may take away consumers | External| Opportunities * Growing demand for new flavours and/or access to the brand in more countries around the world * Increasing demand for Whiskey over other alcoholic beverages due to changes in preferences (socio-cultural forces)| Threats * Cheaper products with a similar taste to that of CC * Competition with other alcoholic beverages * Socio-cultural forces may influence consumer preferences| SWOT Analysis
Bibliography Official Canadian Club Website. (2011). Canadian Club Import Company. Deerfield, IL. Retrieved December 8, 2011, from www. canadianclubwhisky. com LCBO Retail Website. (2011). Liquor Control Board of Ontario. Retrieved December 8, 2011, from www. lcbo. com Hide-A-Case. (2011). Canadian Club Import Company. Deerfield, IL. Retrieved on December 8, 2011, from www. hideacase. com Canadian Club – Damn Right. (2009). The Arf. Retrieved on December 8, 2011, from http://thearf-org-aux-assets. s3. amazonaws. om/ogilvy/cs/Ogilvy-09-CS-CanadianClubWhisky. pdf Kent, A. (2011, April). Canadian Club – The Unofficial Whisky of Prohibition. Good Food Revolution. Retrieved on December 8, 2011, from www. goodfoodrevolution. wordpress. com/2011/04/19/canadian-club-the-unofficial-whisky-of-prohibition/ Loughlin, C. (2010). Explore Prohibition Cocktails with Canadian Club & Boardwalk Empire. The Intoxicologist. Retrieved on December 8, 2011, from www. intoxicologist. net/2010/10/exploring-prohibition-with-canadian-club-cockt