Companies make strategies of growth and advancement of their products in an attempt to meet the ever growing and changing demand for products. These strategies ought to realign the company according to the market trends by providing viable links between the realized strategy to the unrealized and the intended strategy. Managers always try to formulate plans precisely and then striving towards implementing them with minimal expenditure. The Absolut Vodka faces the new major challenge that has been created by the new entrants into the alcohol market. The change of the drinking characters by the consumers and the awareness about the dangers of alcohol are other challenges that the company has faced. According to the report, very little has been done by the company in the recent past in advertising its products and by the time management realizes its market share is shaky. New brands of vodka are being formed every day and this translates to strict completion in the market share posed every time. This has called for a planning approach to evaluating, analyze, and select the measures to compact the challenges.
- What was the main motive for Richard Pernod’sacquisition of V&S (including Absolute Vodka) in 2008?
2) Which alternative marketing strategies does V&S Absolut Spirits have to increase its market share for:
(a) Absolut Vodka in the USA?
(b) Absolut Vodka in Europe (including Eastern Europe)?
Advertising the product
Promotions and offers to customers
(c) Absolut Vodka in other parts of the world?
The price product so as to maximize profit while building strong customer relationships
Revise the channels of product distribution to ensure it positions itself in the market.
3. In which region (country) of the world would you recommend V&S Absolut Spirits to allocate more marketing resources?
Where the business is of the vodka is low and the company is interested in positioning itself in that particular business. In this case, the company ought to focus on Asia and Europe where itself market share is low due to the completion by other vodka producers.
4. Did Absolut Vodka have the right competences for achieving international success for its Absolut Cut?
Based on the report, the company did not strategies efficiently and if it did, then it did not implement its plans well. The company is sufferingmuch inefficiency in the marketing with some countries such as the Canada lacking its product. TheCompany is also failing in its marketing approaches with the only place where their products sell being the USA. It has also failed in advertisement of products.
5. Should Absolut Vodka relaunch a mixer product in the global FAB market?
The market trends currently are unpredictable due to the drastic changes that are taking place every day. As a result, the company ought to diversify its products and aim at making the available and affordable to the consumer.