Pernod Ricards different marketing concepts

Pernod Ricard

Executive summary


Pernod Ricard is the world's co leader in wines and spirits. Since its creation in 1975, the company has undergone steady development, founded on both organic growth & successive acquisitions.

Pernod Ricard India takes pride in having an outstanding collection of international and domestic spirits in its portfolio. Pernod Ricard has grown both organically and through acquisitions. The thread of acquisitions started with purchase of a part of Seagram worldwide in 2001, followed by Allied Domecq and Vin & Sprit, makers of Absolut Vodka, in 2005 and 2008 respectively. Seagram had been particularly strong in India for its brand portfolio and as the pioneer of ‘responsible drinking'. In the Pernod Ricard world, the emphasis can only grow stronger.

The focus brands for the study are:

* Seagram's Royal Stag (Made in India)

* Blenders Pride (Made in India)

* Chivas Regal (Made in Scotland)


Seagram's Royal Stag was launched in India in 1995 and within a short span of time, with its product promise of 'No Artificial Flavours', carved a niche for itself in the minds of the Indian whisky connoisseur. The very first whisky to be blended with imported Scotch malts and select Indian grain spirits, when competition and traditional players were offering a molasses based product.

Today, this brand ranks amongst the largest and fastest growing brands in the world and one of the most profitable brands in the Indian market and is on the cusp of smashing through the 7 million case benchmark in the current financial year.

Main Competition


* The main competition is from United Spirits with their brands Mcdowells No.1 and DS Black.

* USL has been a strong player in India for many years, especially in south and west. They are mainly a player in the lower to mid segment of the market and not stretching into the premium segments of the market.

* They have many brands which sell more than million cases a year but are low in terms of profitability.

* They make most of their whiskies from molasses, which is not the ideal way of making whisky but is for rum.

* They have the advantage of volume brands to have a good distribution setup.

* They have huge manpower strength, especially in Karnataka as it's their head quarters.

* They go by the ad line “Cheers to life” for their brand. Have recently started focusing on the communication line of enjoying with friends.

* They have introduced a slight change in the pack design.

* In order to increase the market share, the company is following a strategy of inciting curiosity amongst the potential users.

* The strategy is targeted at pulling customers from the other brands towards McDowell's No.1.

Market Segmentation - The target group is 25-35 years old young professionals in 1st jobs, an aware and well informed individual who appreciates quality.

The brand targets the above as these have just started drinking and are conscious of quality and will be able to afford the whisky. The positioning is more premium than competition and an individual is comfortable showing off his preferred brand to peer group. The pricing for the brand is always at par or above competition.

Marketing Mix

Product - The whisky is grain based and a much superior product compared to competition. The years of effort has got people to try the product and convert.

Their strategy has always been to start with a good product and then grow gradually by gaining acceptance from the consumers. The package of the product was changed recently after an intense study. Most of the brands are in the growth stage as they are constantly growing and gaining from our competition.

Price- The pricing for the brand is always at par or above competition. The higher price may mean slower volumes but the good quality makes people pay more. The price also shows that the product is more premium than its competition.

Promotion - This is the most challenging part of the business. The liquor industry gives the most opportunities for creativity. Royal stag does not directly advertise liquor, but associates with mass driven activities like cricket, movies and music. These are the 3 things which are best suited to Indian masses, and most are able to immediately connect with them. Association with these events gives us the needed PR and visibility.

Our brand ambassadors are Saif, Dhoni, Bhajji, Gambir, Yuvraj, etc.

Our tag line is “Make it Large”. The brand colours shades of burgundy and cream

We do activities at various levels

ATL - TVC, Radio, Print ads, Outdoors

BTL - Consumer offers at retails(like key chains, glasses, bags, pens, etc), Shop signages, banners, posters, free samples, Party sponsoring, Theatre branding, Scratch cards, etc.

Distribution - The distribution varies for different states across the country






















WE in KTK have to follow the 3rd option.


The industry is not growing that fast, the increase is because there was a slowdown last year during this period. The share of Royal Stag has grown at a slow pace as there was a price increase while the competitors did not go for the same. The company is working towards achieving a growth rate of 22% in the coming fiscal year.


12 Years Old

The radiant warm amber of Chivas 12 Year Old, with its honeyed, fruity taste and hints of heather, suffuses a warmth that lingers on the palate and glows brighter as the evening mellows. Wherever you find a few friends and an impromptu celebration, you'll find the Chivas Regal 12. It's a whisky you can enjoy anytime, anywhere because it is easy to share and appreciate.

The blue-blooded lineage of this luxurious whisky is evident in its subtle and complex character that reveals itself with an unhurried grace. Hints of smokiness blend with a honeyed mellowness that is at once spirited and soft. Like a beautifully cut diamond, Chivas Regal 12 Year Old is multi-faceted in flavor. The first taste may be of orchard fruits and spices while the second presents honey sweetness and vanilla notes and the third hazelnuts and creamy smooth richness.

Main Competition

DIAGEO's Johnnie Walker Black Label

* Diageo's JW has over 30% of the global Scotch whisky market, and Chivas Regal now has more than 20%. Chivas Regal is the clear number two, significantly ahead of all the others.

* Chivas is hunting down Diageo's international blended market leader Johnnie Walker Black Label with its Chivas Regal brand, which sells some than three million cases annually.

* The gap between Chivas Regal and Johnnie Walker Black Label has been dramatically reduced. The momentum has been extremely strong, and Chivas Regal is determined it will become the number one premium blended Scotch in place of Black Label.

Market Segmentation: The target group is 30 years and above. They are the affluent lot from the society. They have arrived in life, are either senior management in a corporate or are successful business people. They have high disposable income. They are from the SEC A+ category. They value luxury, drive expensive cars, travel international, etc.

Marketing Mix

Product - The product is made only in Scotland and imported to the rest of the world, therefore it is similar across. The package has evolved over the years and was changed plc, strategy, benefit

Price- In Karnataka the brand is prices at par with competition JW Black label. The price in imported products is determined by the custom duties, local duties and levies. Therefore, it is sold at different prices in different States.

Promotion - The brand is not a mass brand and stands for luxury and premium experience. The communication has to match the positioning and follows Aspirational Marketing. The various ways in which the company does this are:

* Chivas Studio: The association is with premium events like International art, music events, fashion weeks, Best designers of India showcase for Chivas fashion, etc. To achieve this they follow Surrogate Marketing because of the ban on alcohol advertising. Here the company creates an event and markets that event with the liquor brand name. The idea is the companies can advertise freely the extension - thus keeping their banned-from-the-media products in the minds of the customers.

* Chivas At Home: Here the company sets the bar without charging the host of the party and hence sets a premium standard so that the next time a party is organised with the services provided by Chivas Regal.

* Chivas Cocktails: They associate with 5 star hotels for activites and other luxury brands like Mercedes, Audi, Omega, Mont Blanc, sponsor events where the guests belong to the Chivas target group - like invitational dinners by Hotel GMs, celebrities, etc.

* Direct Marketing: This is a personal form of marketing where they separately approach the affluent class and through gifts make them aware of the product quality.

* Tasting Sessions: Here selected people are invited and educated about the product process and aroma. A comparison is made between with the other brands which fall in the same product category.

FUTURE PROSPECTS: The imported brands segment is still in the nascent growth stages in the country. There is a huge potential and we will see further growth in the near future. It is taking all the market from Johnnie Walker Black Label. There is huge pressure from the WTO to reduce the duties to make the products more competitive. This will happen sooner or later.

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