Transcript What is McDowell`s Vintage? - Faculty Directory | Berkeley-Haas

What did they do?
Ganesh Iyer
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Competitive Positioning
Who am I?
What is McDowell’s Vintage?

A whisky which is an alternative to Scotch.
» The meaning of “Scotch” ???
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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.
Ganesh Iyer
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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.
Ganesh Iyer
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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.
Ganesh Iyer
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Iyer’s Framework for Marketing Analysis
Perceptual mapping
Company Analysis
Marketing Myopia
First mover advantages
1. Customer Analysis
2. Competitor
Analysis
Positioning
Segmentation
3.Marketing Strategy
Pricing process (ODI)
Pricing and innovation
Non Traditional advertising and promotions
BMW Z3
Direct marketing
Product
Marketing Orientation
Branding
Price
Promotion
Place
Traditional Advertising
Going to market
Goodyear
Market
Ganesh Iyer
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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)
Ganesh Iyer
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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. 550 - 560.
Ganesh Iyer
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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?
Ganesh Iyer
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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)
»
»
»
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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.
Ganesh Iyer
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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
Ganesh Iyer
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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.
Ganesh Iyer
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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 (invitations for complimentary
drinks at five star hotels) to identify “prospects” from “suspects”
Ganesh Iyer
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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
complimentary Vintage drinks at 5 star hotels. (9% response
obtained).
Ganesh Iyer
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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.
Ganesh Iyer
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Media Advertising
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McDowell’s 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
Ganesh Iyer
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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.
Ganesh Iyer
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Trade Promotion

Brand image window display
» display in all Class A outlets

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.
Ganesh Iyer
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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
 McDowell’s Vintage Car Rallies.
 McDowell’s Vintage Jazz.
Ganesh Iyer
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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.
Ganesh Iyer
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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
Ganesh Iyer
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