Competitive Positioning Who am I? What is McDowell

1
Competitive PositioningWho am I?What is
McDowells Vintage?

• A whisky which is an alternative to Scotch.
• The meaning of Scotch ???
• A high quality whisky which will be the
  aspirational brand for current Premium Indian
  Whisky consumers.
• Research
• Blind test and as brand test.
• Test whether scotch claim will be accepted as
  brand.
• Real market was
• nouveau riche special occasions drink for
  current PIW drinkers
• but to be able to sell-in as the aspirational
  brand to these consumers you need to be perceived
  as a credible alternative to scotch.

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Positioning Why buy me?Why Should the Consumer
Buy McDowells Vintage?

• 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.
• Because it will have an image/aura which will
  satisfy the aspirational needs which serving and
  drinking Scotch satisfies.
• Because most Scotch whiskies available locally
  (from bootleggers) are spurious.
• Support for creative.

3
Marketing Objectives

• To launch McDowells 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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Iyers Framework for Marketing Analysis
Perceptual mapping
Company Analysis Marketing Myopia
First mover advantages
1. Customer Analysis
2. Competitor
Analysis
Segmentation
Positioning
Marketing Orientation
3.Marketing Strategy
Branding
Product
Pricing process (ODI) Pricing and innovation
Price
Traditional Advertising
Promotion
Non Traditional advertising and promotions BMW Z3
Place
Going to market Goodyear
Direct marketing
Market
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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 launch the Nip(Exclusion)

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Pricing

• Price McDowells 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. 550 - 560.

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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 1980s and 90s was rare
  in Indiaonly 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 MailersPre-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 McDowells 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

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Launch Mailer

• McDowells Brings You a Rare Classic
• To all prospects
• Introduced McDowells 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 MailersPost 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

• McDowells Vintage page
• a regular standard feature column in leading
  national dailies and newsmagazines . 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).
• Note the coordination between direct marketing
  and salesforce activity.

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Trade Promotion

• Brand image window display
• display in all Class A outlets to contain Vintage
• In-shop activity
• 300,000 coasters with the teaser campaign design
  given to bars and pubs for in-shop distribution.
• In store merchandising materials which introduced
  the brand and also linked to the launch mailers.

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Trade Promotion

• Dealer detailer
• dealer detailer developed to aid the salesmen
  during launch distribution.
• Other giveaways
• playing cards
• clocks
• Other Activities
• Event Marketing
• McDowells Vintage Car Rallies.
• McDowells 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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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