Executive Summary
This report explores Smirnoff; currently number 84 on Interbrand’s global brand 2010 and owned by London
A new two year Communications Plan creates a new segment for Smirnoff to target: the calorie counting, independent female, aged 28-36, living within the UK
2. Brand Analysis
2.1. Context
Smirnoff Vodka is listed as the 84th global brand in Interbrand’s top 100 global brands for 2010; it is also the number one selling spirit in the world. The London
Smirnoff is an umbrella brand and beneath it there are many different sub brands (see Figure 1.1) all with different products attached to them.
Smirnoff No.21 is the original 37.5%ABV vodka which is the most well known and popular of all the Smirnoff products. Smirnoff Ice is one of the better known products under the Umbrella Brand Smirnoff and since its launch in the United States in 2001, Smirnoff Ice has captured 1.8% of the 200 million barrel annual beer market, according to Steinman of Beer Marketer Insights, an industry newsletter, it is the leading drink in a category called "malternatives" which are alternatives to malt drinks such as beer. Smirnoff Ice outsells well-known beers such as Heineken and Corona
product launches in beverage alcohol history and is particularly popular with the young and in particular women.
Since the Second World War, customers have relied on a familiar and trusted brand name as the solution to the risk of a product or service failing to provide its basic functional benefits (de Chernatony and Mcdonnald, 1998). Spirits and by extension “Alco-pops” like Smirnoff Ice are especially sensitive to these issues. As a result alcoholic beverages overtly linked to a leading brand perform particularly well, the success of Bacardi Breezers as well as Smiroff Ice is proof of this. The ease of success experienced with Smirnoff Ice may be the reason for Smirnoff’s recent new product launches, it is now targeting Absolut territory by producing flavoured variants of their vodka with Smirnoff V Twisted and the relaunch of Smirnoff Black.
2.2. Brand Model
1. Competitive Environment
2. Target Audience
3. Consumer Insight
4. Benefits
5. Values and Personality
6. Reasons to Believe
7. Discriminator
8. Brand Essence
These 8 sections have been applied to the brand Smirnoff (figure 1.3)
1. According to Mintel (2009) Smirnoff’s competitors are: Glen’s, Absolut, Chekov, Red Square , Russian Standard and Vladivar, however Smirnoff is the market leader, in 2008 it outsold Glen’s, by double. Vodka in general leads in the UK
2. Smirnoff’s general target audience, judging by its recent campaigns is slightly confused, it is a social, party loving 25-35 year old who drinks vodka on a night out, not at home; however they are currently leaning towards the male consumer due to their alliance with Manchester United and recent re launch of Smirnoff Black (see Current Positioning for further detail). Smirnoff Ice, has a slightly younger female audience, however the focus for this model will be on Smirnoff as an umbrella brand as that is the audience which will be expanded upon in the later communications strategy.
3. The target audience is confused and it is therefore difficult to try and define the consumer insight behind Smirnoff’s current positioning.
4. The Benefits of buying Smirnoff branded vodka is that you are seen to be buying premium vodka but it is at an affordable price. Smirnoff is what makes you have a good night out.
5. Values: Smirnoff values the heritage of the Brand its history and therefore the trust you can put in it. Choosing from Aeker’s (1997) dimensions of Brand Personality Smirnoff’s brand personality consists of excitement and sophistication.
6. Reasons to Believe: Smirnoff have been making vodka since the 1860’s therefore they are an experienced brand this is further supported by the fact that critics have voted that Smirnoff is the best tasting vodka. (Figure 1.3)
7. Discriminator: Triple Distillation process: Smoother tasting vodka
8. The Brand Essence of Smirnoff is that it is a: Sophisticated, Smooth, Trusted, Premium Vodka
The advantage of using the Brand Key (Unilever) is that it profiles almost all the relevant steps in the positioning process meaning that once it is completed one will know the brands’ position within the market place. According to the European Institute for Brand Management the Brand Key model focuses more on the outside-in approach and not enough of the inside-out. However this is appropriate for applying it to Smirnoff as it is not a service provider and does focuses more strongly on the first 4 stages of the brand key.
2.3. Current Positioning
Smirnoff began at a vodka distillery founded in Moscow in the 1860’s by Pyotr Arsenievich, it grew popular throughout Russia
The current operation being run is its ‘Be There’ campaign. The Smirnoff website states:
“Smirnoff, the worlds #1 vodka invites you to be inventive, to be extraordinary, to be able to say ‘I was There’.”
This campaign is trying to get the consumers directly involved with and submersed in the brand. Improving the connective links between the consumer and the brand helps big companies like Smirnoff to eliminate the stigma of being 'faceless' and to appeal to their consumer on a more personal level. The Nightlife Exchange which took place on November 27th allowed different cities around the world to experience a night in the eyes of another culture, which brought all Smirnoff’s consumers from around the world together for one night. The exclusivity of these events provided those who attended with a sense of elite status and fun all courtesy of Smirnoff.
Smirnoff has recently launched an above-the-line campaign in Asia (Campaign, 2010) , featuring three stars of Manchester United; Rio Ferdinand, Ji-sun Park and Ryan Giggs, playing a surreal game of football above and below water. This new campaign along with Smirnoff’s recent re launch of Smirnoff Black implies that the brand is trying to appeal to a more masculine audience.
The New Packaging of their products is concurrent with this masculine feel. “The updated design includes an understated elevation in the quality and craftsmanship of the packaging by integrating contemporary iconography with authentic heritage cues, such as specially created medallions that pay homage to the brand’s history, which extends back to Moscow
3. Recommendations: Communications Plan
This communications plan will increase the reach that the Smirnoff brand currently has by focussing on a new segment which will target the young working female, aged 28-36 living in the UK
3.1. Media Objectives
· To build awareness of how low in calories Smirnoff is among 28-36 year old women
· To increase the on trade sales of Smirnoff by 15%
· To reach 40% of the target audience through billboard and magazine advertisements
· To drive target audience to the Smirnoff Website through its advertising and increase visitation by 25%*
*All objectives are intended to be completed within two years
3.2. Media Selection
Online: Twitter, Facebook and improve Smirnoff Website
An idea and strategy is only worth something to a business when it is properly communicated to its intended audience, and they recognize and acknowledge its value. This means that the process of communication plays a role as important and the value of the product.
Diageo has recently increased the amount of advertising budget spent on the online promotion of its Smirnoff vodka no.21. In 2009 a fifth of its advertising spend was spent digital media - double the percentage that the company as a whole spent on the same in 2008 (Mintel, 2009). It was hoped that this would increase the level of interaction between consumers and the Smirnoff brand – which is consistent with their most recent Be There campaign.
Digital media has rapidly grown to prominence in the past few years, as companies have realized the benefits of a strong online presence. Not only can brands connect with the vast online community, but marketing can be more informative, up-to-date and interactive for consumers than in more traditional areas, such as print. Advertisements, be they on television, radio, billboards or elsewhere, are often now geared to direct consumers to corporate websites, where they can continue to showcase the brand in a more immersive way. This is the reason for the 4th communications objective which has been formed. The current Smirnoff website has a specific section for the formation of cocktails with the use of Smirnoff products, thus in keeping with the rest of the campaign.
By tapping into the popularity of social networks like Facebook, website traffic will increased dramatically, and by tailoring these Facebook pages to the particular campaign and to the target audience then they will also impact upon sales and awareness. According to Smirnoff, the Be There campaign has directed five times as many consumers to the official website than before. Smirnoff website visitors are invited to make suggestions for ideas about their ideal night out. A number of other features on the website, such as video blogging, results in visitors to the websites finding it a more engaging experience than simply digesting an ordinary marketing message. The new campaign can become just as successful by harnessing the consumers need for connectivity. The same techniques can be used during the new campaign with consumers posting their own ideas for cocktails and blogs of their nights out spent with Smirnoff and thus creating a sense of online community which could prove particularly effective during the recession as consumers want to feel that brands understand them. A Twitter page will run along side and in sync with the Facebook page to ensure Smirnoff achieves maximum penetration and resonance within the consumers lives.
Print Adverts: Newspapers, women’s magazines and articles, bus stops, tube stations, and inner city billboards
Print adverts will be the main communication channel and the adverts will be showed in newspapers and magazines as well as in bus stops tube stations and on inner city bill boards. All adverts will direct the viewer to website and will also inform them of how low in calories Smirnoff is as well as the use of Smirnoff vodka in cocktails. The bus stop tube station and billboards have been chosen because this is where the target audience will see them on their way to work.
As one of the intended outcomes of this communications strategy is to increase the on trade sales of Smirnoff one of the ways of advertising will be promotions of Smirnnoff products in cocktails in bars and restaurants.
3.3. Media Rationale
The segment which this communications strategy, as previously mentioned is the young working female, aged 26-36. This is because female consumers are the driving growth in general vodka sales, with women being more likely than men to drink the spirit. Although older adults are most likely to drink vodka- those aged 35-44, a younger demographic is know to be the largest-volume drinkers and represent a key opportunity within the market.
It has been highlighted by Mintell (2010) that there are opportunities within the vodka market among thirtysomethings who have a greater interest in premium vodkas and show more brand loyalty than most. There has also been a greater interest in cocktails amongst women, inspired by TV programmes and films such as Sex and the City, with its vodka-based cosmopolitans. This along with the healthy eating, and figure watching craze which has hit the UK
3.4. Consumer profile
The woman that the communications will be aimed towards is a middle class 30 year old who lives and works in the city. She travels into work each day by tube and has drinks afterwards with friends or colleagues. She often goes out for dinner and nights out on which she would drink cocktails and premium vodka. She is weight conscious and calorie counting but fun and sophisticated.
3.5. Schedule
According to Mintel (2010) it is estimated that the sales of vodka in November and December account for almost a third of the total off-trade spirit sales by volume and half by value. This is the only reason for continued coverage during the winter months, due to the fact that in essence, this will be a summer focussed campaign hence the influx of media prior to and during the summer months. The Media Schedule depicts which media channels will be active during which months.
Print Advertisements: There will be some press coverage during the launch of the campaign for the first two months, and then some more coverage of 12 months into it. The print adverts in women’s magazines and in newspapers will be shown throughout the entire campaign. Newspaper advertisements will start one month after the launch, and the magazine advertisements one month after that, this is to give the target audience time to recognise the campaign.
Billboards:
Bus stop adverts will be shown continuously throughout the campaign and will be supported on intervals by tube station adverts and inner city billboards. The tube adverts will be shown in March April and May of both years to push the brand just before the summer months when cocktails are most popular, and the inner city billboards will be shown on alternative months in the middle of the middle of the campaign when it is at its strongest.
Online and Promotions:
Both the online and on trade aspects of the campaign will run throughout the whole two years. The Facebook and Twitter pages will run in sync with each other from the start to end of the campaign as an online, interactive reminder. The promotions will start a couple of months into the campaign at the beginning of the summer season and then will ease of in the middle of summer. They will then start up again at the beginning of the holiday season as push before Christmas.
3.6. Evaluation
Before the communication plan is set into motion there will be pre testing to ensure the campaign resonates with target audience by showing them draft ideas of the adverts and showing examples of where the adverts would be shown.
During the campaign, concurrent tests will be carried out by looking at the interim results of the campaign such as website visitation and sale figures. A selection of the target audience would be questioned about the campaign and what they thought of it.
After the two year campaign is complete it will be investigated as to whether or not it was successful. This will be achieved by measuring to what extent the media objectives were met. A new market analysis would be carried out, as well as reviewing sales figures to see how the brand has performed as a result of the two year campaign.
4. Reflections
I feel that I have successfully achieved the first two learning objectives set for this assignment by researching Smirnoff thoroughly and providing the relevant information for this report. On the other hand, I believe that I have created a brand communications plan to the best of my ability I do however feel that I was inadequately prepared for it. Having to produce a media plan and schedule without having studied media planning proved rather difficult. Due to my inexperience of the subject I have tried to source as much information as I can and have based what I have produced on the examples provided to produce a media plan that I believe would work in reality. I have not been able to specify particular locations for my bill boards, nor have I provided details of the magazines and newspapers which I would show my print advertisement in and this is because of my inability to source the correct statistics or access readership surveys for newspapers or magazines. I also felt it was inappropriate to speculate and assume which ones would be appropriate.
I feel as though I have benefitted from the MTV live brief that was presented to us within the unit and it was helpful to be able to communicate with and gain feedback from those who work for MTV. I have a greater understanding of the evectional considerations when producing an advert for a well known brand, for example the correct font.
