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What did they do?

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Positioning: Why buy me?Why Should the Consumer Buy McDowell’s Vintage?

1. Because it will offer a blend quality equal to a regular Scotch (Johnnie Walker Red, Vat 69) and distinctly superior to all Indian Premium Whiskies.

2. Because it will have an image/aura which will satisfy the aspirational needs which serving and drinking Scotch satisfies.

3. Because most Scotch whiskies available locally (from bootleggers) are spurious.

Support for creative.

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Marketing Objectives

To launch McDowell’s Vintage Premium Malt Whisky and sell 30,000 cases in the first year. (in 4 metros)

To provide a direct alternative to Scotch whisky drinkers.

To capture and upgrade drinkers of premium whisky segment from competing brands.

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Iyer’s Framework for Marketing Analysis

Market

1. Customer Analysis2. Competitor Analysis

Company AnalysisMarketing Myopia

3.Marketing Strategy

Product

Price

Promotion

Place

Marketing Orientation

Perceptual mapping

Segmentation Positioning

First mover advantages

Branding

Pricing process (ODI)Pricing and innovation

Going to marketGoodyear

Direct marketing

Traditional AdvertisingNon Traditional advertising and promotionsBMW Z3

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3. Marketing Strategy

Product Strategy Launch a blend distinctly superior to any PIW and a taste and

appearance similar to Vat 69. The brand name connotes something rare and precious to support the alternative to Scotch claim

The package design the like of which has not been seen in the country and of truly international class.

Launch in Quart (750ml) and Pint (375ml) (and no Nip (180ml)).

Why not use the nip…(Exclusion)

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Pricing

Price McDowell’s Vintage as the most expensive product in the (PIW) market to complement its image.

Need to achieve substantial distance from other premium Indian whisky prices.

Retail Price chosen is Rs. 540 – 550.

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Advertising and Promotional Strategy

How do we develop brand image for this “status” product in an environment where mass media communication is illegal?

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Direct Marketing Strategy

A direct mail campaign, addressed to the “old money” and establishment group as well as the nouveau riche as identified from: (200,000 mail ins)» gymkhana clubs

» racing associations

» lists of guests from 5-star hotels

» automobile associations

What was the rationale for using direct marketing in a mass market consumer product category?» Direct marketing in the 1980’s and 90’s was rare in India…only

done by a few industrial and durables sellers.

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Direct Marketing Strategy

Tightly defined market in terms of geography» 6 major metros (with population of around 55 mn) are the major

markets.

p.u. contribution very high

Using DM for an image product. This is different from the U.S. experience.» The direct marketing campaign itself became a social thing

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Direct Marketing Strategy

Use direct mail to: » create launch awareness and excitement. (because of social

dimensions of direct marketing in India)

» build a core group of vintage consumers.

» maintain a continuing dialogue with this group and track their behavior

» Focus on lifetime consumer value.

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Teaser Mailers…Pre-Launch

A sequence of 2 provocative teaser mailers to generate awareness and interest 2 weeks before physical launch.

» teaser 1: “take a walk johnnie”» teaser 2: “what an answer for 69” » teaser 3: “she was regal” (not chosen)

The mailers will introduce McDowell’s vintage as an alternative to Scotch.

Teasers have a response device built in (coupons for free drinks at a five star hotel) to identify “prospects” from a “suspects”

Prospects that survived 150,000

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Launch Mailer

McDowell’s Brings You a Rare Classic To all prospects:

» Introduced McDowell’s vintage premium malt whisky as an alternative to Scotch

» presented the total product package, together a response device. Response to a questionnaire earns privilege coupons for free Vintage drinks at 5 star hotels. (12% response obtained).

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Theme Mailers…Post launch

3 theme mailers.

Build around antique/priceless/rare items and subjects and relate it to Vintage.

» “the what is what of crystalware” » “distinguished decanters” » “vintage time pieces”

The mailers give prospects the expertise to talk about the fine things in life and to contemplate purchases in exclusive and expensive product categories. (making DM a social phenomenon...small company executives solicitation)

Communicated that this will be an ongoing relationship.

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Media Advertising

McDowell’s Vintage page:» a regular & standard feature column in selected press.

Feeds off the information on vintage subjects in the theme mailers.

» to break 3 months after brand launch.

» Note the coordination between direct mail and media advertising

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Consumer Promotions

To 350 selected opinion leaders:» a velvet wrapped bottle hand delivered to the individual.» tied to the direct mail campaign.

Tie ups with all five-star bars for a special “vintage weeks” when “privilege drinks” can be served (sampling related to the response device).

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Trade Promotion

Brand image window concept and point of purchase» display in all Class A outlets to contain Vintage

In-shop activity:» 300,000 coasters with the teaser campaign design given to retail &

bar for in-shop distribution.

» classy tent cards with “vintage story” and pack shot to all bars. To be used along with “vintage week” promotion (link to launch mailers)

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Trade Promotion

Dealer detailer: » an attractive and powerful dealer detailer developed to aid

the salesmen during launch distribution.

Other giveaways:» playing cards» clocks

Other ActivitiesEvent Marketing McDowell’s Vintage Car Rallies. McDowell’s Vintage Jazz.

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Key Learning

Marketing strategy for the launch of an image product in a developing market from the perspective of a domestic firm.

Launching an image product requires an Integrated strategy with every element of the marketing mix should working together.

Tactics and execution matter a lot.

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Iyer’s Framework for Marketing Analysis

Market

1. Customer Analysis2. Competitor Analysis

Company AnalysisMarketing Myopia

3.Marketing Strategy

Product

Price

Promotion

Place

Marketing Orientation

Perceptual mapping

Segmentation Positioning

First mover advantages

Branding

Pricing process (ODI)Pricing and innovation

Going to marketGoodyear

Direct marketing

Traditional AdvertisingNon Traditional advertising and promotionsBMW Z3

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Postscript

Vintage created the super premium segment in India.

The super premium market has exploded.» Consumers wanted even more distance from the PIW and were even more

willing to pay for Scotch quality

McDowell and other firms started pushing up this ladder and McDowell launched Signature and Single malt

The presence of Vintage constraining the super premium brands and Vintage phased out.

The entire direct marketing database asset and the Vintage strategy transported to Signature.

» http://www.signature.indiatimes.com/» http://www.clubmcdowell.com/brands/signature_main.htm