BACARDI – CASE EXAMPLE
Background
The spirits market in India is still at an evolutionary stage and has only emerged from being a regulated market with very few established local players. Indian consumers have not had anywhere near the kind of choice available in the developed markets of the world. India has traditionally been a brown spirit market, which meant that rum and whisky have been the dominant product categories, with brandy claiming some limited share. Until a few years ago, white spirits, wines, liquors, cognacs, etc, where only present on upper and niche markets and all put together were negligible in comparison to browns. This situation was common in many parts of the world as well –but 20 years ago. Those markets have seen developed and white spirits now hold strong category shares.
Under the impact of the economic and cultural liberalization policies that were put in to effect in India during the early ‘90s, the spirit industry also saw a gradual shift towards white spirits and lighthearted drinking, away from the traditionally serious brown spirits
THE BRAND
Brand history
In 1962, Don Facundo Bacardi set up a small tin-roofed distillery in Santiago, Cuba. Here he began manufacturing new Bacardi rum using a formula he had hit upon after many years of experimentation.
Rum was, at that time, a fiery drink used by Caribbean seamen to ward off the cold; Don Facundo’s new formulation transformed rum in to a smoother, lighter, milder drink, called Bacardi. Over the next few years, rum gained popularity all over Cuba, and Don Facundo began expanding his operations. He kept the formula a closely guarded as the Bacardi family’s success story took hold. The product was entered in international exhibitions, where it was acclaimed alongside such wonders as A.G. Bell’s telephone. His sons dreamt of expanding the brand outside Cuba; Cuba was then on the road to independence and was aided by a considerable US presence. Put together, these factors gave Bacardi rum a foot-hold in the US, the first step towards becoming a huge international brand.
Today Bacardi sells in over 170 countries, its popularity the world over has made it the No.1 international spirita brand in the world
The Bacardi Bat
Inspite of 6 generations of the Bacardi family distinguishing itself in business, philanthropy and public service, easily the most recognizable member of the family remains the one with no name. It is the Bacardi Bat, the trademark that appears on the label of every product carrying the Bacardi surname.
Legend has it that Don Facundo’s wife, Donna Amalia Lucia Victoria suggested making the Bat the trademark for the new rum, perhaps because of th colony of fruit bats living in the rafters of the first Bacardi distillery. Donna Amalia, who was cultured in the arts believed bats represented a blessing of good health, fortune and family unity. But this suggestion of hers was also hard-headed and pragmatic. Illiteracy was common in the 90th century, and for a product to get recognized and sell, it needed a memorable graphic logo- a trademark. The bat mythology helped. That is the power of mnemonic.
Word of Don Facundo’s bat spread around the world along with his smooth new rum. The bats, local storyteller attested, brought good fortune and added magical powers to his rum. Today Bacardi Bat is a welcome character in more than 170 countries where Bacardi rum is also sold and enjoyed, Accomplishing everything it was supposed to do for more than century, the bat has elevated its presence to new heights.
BACARDI IN THE INDIAN CONTEXT
Alcohol had never been comfortably accepted by post-independence Indian society. Drinking was generally associated with the darker side of life, with deep and unholy secrets. Dingy bars, seedy-looking characters and drunk villains in hindi movies, in stark contrast with the clean, honest and upright non drinking hero-this typified society’s outward attitude to alcohol drinking. Further the absence of international players in the spirits category, as well as comfortably entrenched local brands, meant that the consumer had never been exposed to the glitzy and slick side of spirits marketing until the 1990’s came along.
The 90’s ushered in the winds of change in the entire social and economic fabric of the country, and like everything else, spirits shifted in to gradual movement away from the traditional perception. Bacardi was positioned to ride on this change. One of the key elements to be built in to Bacardi’s brand character was, therefore its image as the ‘the icon of new age drinking’.Changing attitudes to drinking were already apparent, in that drinking was gradually coming out into the open, and especially in urban areas, gaining acceptance. By associating with, and by accelerating this process of change in a positive manner, the brand immediately gained the relevance in the minds of the consumer.
In India, Bacardi Carta Blanca’s core value was defined as vibrant sensuality. This represents an unaffected pursuit of enjoyment through one’s senses. Vibrant because the character of the brand is passionate, energetic and upbeat. Sensuality, strictly speaking is the appreciation through tactile senses(feel, hear, taste…). (In literal terms, sensuality is the overall sensory experience surrounding Carta Blanca)
Vibrant sensuality therefore means “living life true to your senses” in a style that is energetic and colourful (as opposed to languid or passive pleasure). Within the Bacardi portfolio, Carta Blancas the flagship brand. It is the main image driver of the umbrella brand Bacardi; it is also the Indian consumer’s introduction to the brand.
Selling Strategy for Bacardi Carta Blanca
BRAND/ PRODUCT
What is the brand/ product to be advertised?
A range of rums, under the Bacardi name;historically better known for white rum and associated with the light-hearted Caribbean spirit of fun, frolic and water.
BRAND / POSITION
What is the position the brand currently holds in the consumer’s mind-and why?
An international brand of (exotic) alcohol
BRAND OBJECTIVE
How do we want the brand to be positioned in the consumer’s mind? As an icon of new age drinking
CONCEPTUAL TARGET
What ‘natural’ groupings of consumers, bound by a common set of values, singular outlook, attitudes, aspirations, do we wish to reach?
Post- liberalization young adults
CORE DESIRE
What is the conceptual target’s most deeply held desire, need, want, hope, that the brand best fulfils?
Unshackle themselves
ROLE OF THE PRODUCT
What is the functional/symbolic role of the product category in the lives of the consumer?
Functional: Relaxant
Social lubricant
Gives a high
Symbolic : Let your hair down…. Have fun
REASON TO BELIEVE
What is the most compelling rationale to support the role of the product?
Less intense in looks, hence eminently adaptable to broader drinking occasions.
BRAND ESSENCE
What is the enduring spirit which anchors the brand-and how should it speak to the deeply held values of the conceptual target?
Vibrant sensuality
BRAND ACTIVITIES
TELEVISION ACTIVITY
Around the world Bacardi has a long association with a ‘sun-sea-sand’ imagery which has successfully maintained its brand salience, especially during launch phases. This imagery was also found to lend itself perfectly to the positioning developed for the Indian market. The sun-sea-sand route was researched, and was found to be very well received by consumers. This came through on the concept testing study, as well as on quantitative research parameters. The concept that was tested was “Get away to be relaxed in a carefree world”, via a sun-sea-sand execution. (The first concept in the research section above). Quantitative consumer research showed a strong acceptance of this particular concept, the product and its packaging.
Communication for the brand was led by television advertising, which used to international, ‘Friends’ commercial. The various elements in the theme TV commercial (sun, sea, sand, free spirited interaction between the sexes) were in sync with the new attitudes to drinking, and with Bacardi as an ‘icon of new age drinking’. The commercial represented taking drinking out into the open, far away from the dark atmosphere of illicit pleasures.
BELOW THE LINE ACTIVITY
This was supported by an extensive below-the-line package for the retail channel as well as on premise outlets ( pubs, bars, restaurants, etc.,). The package developed on the sun-sea-sand theme was intended to maintain high salience levels especially during the crucial launch phase.
One critical element of the Bacardi persona was the several promotions that were conducted at pubs and discotheques across the metros in India. The pub-going culture, which is still developing, has got a strong impetus due to Bacardi’s popularization of the concept.
A series of innovative promotion mechanics were designed for these on-premise outlets. The promos served various objectives:
To announce the launch of the brand, and to give the target consumer a feel of its trendy, young and vibrant character.
To generate a sampling of the product- this was a critical role given the fact that while rum was still a new product for the consumer.
To gain substantial incremental volume sales.
Of course the promotions also offered excellent opportunities to develop different elements of the Bacardi brand character. They have now been built in to the long standing properties of the brand. Some of the key properties are:
BATSTAGE WITH BACARDI
The Bacardi core consumer being 18-25 years old and urban, music is an effective medium to use get through to him. The idea was to sponsor live bands to perform on a given night in pubs and disco-theques. This was to be done on a regular basis and branded “ Batstage with Bacardi”.
THE BRAND TODAY
In the first year of launch, Bacardi attained and surpassed its volume targets. This can be gauged from the fact that the first year’s volumes exceeded those of its closest competitor, Smirnoff vodka, a brand that has been established in the market for over 4 years. Initial reports indicate that the volume and its growth are being sustained in the second year of operations. Already, Bacardi Carta Blanca is reported to have garnered over 10 percent of the international spirits market in India.
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