Direct Marketing Strategy

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What did they do?
Ganesh Iyer
1
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
3
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
4
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
5
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)
Ganesh Iyer
6
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.
Ganesh Iyer
7
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
8
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.
Ganesh Iyer
9
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
10
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
11
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
Ganesh Iyer
12
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).
Ganesh Iyer
13
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
14
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
Ganesh Iyer
15
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).
Ganesh Iyer
16
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)
Ganesh Iyer
17
Trade Promotion

Dealer detailer:
» an attractive and powerful 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
18
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.
Ganesh Iyer
19
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
20
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
21
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