McDowell’s Vintage Premium Malt Whisky
Integrating the Marketing Mix
XMBA 206.1
Summer 2008
Ganesh Iyer
1
Iyer’s Framework for Marketing Analysis
Perceptual mapping
Company Analysis
Marketing Myopia
First mover advantages
Customer Analysis
Competitor
Analysis
Positioning
Segmentation
Marketing Strategy
Pricing process (ODI)
Pricing and innovation
Non Traditional advertising and promotions
BMW Z3
Direct marketing
Calyx and Corolla
Product
Marketing Orientation
Branding
Intel Inside
Price
Promotion
Place
Traditional Advertising Planning Process
Going to market
Goodyear
Market
Ganesh Iyer
2
1. Consumer Analysis
Demographic Profile

India’s GDP per-capita was < $1500 p.a. in 1996…($3300 in 2005,
$4182 in 2006).
» Approximately 5 mn. upper-upper class, many of then “nouveau riche” with
per capita of > $100,000 p.a.
» Adopting the life styles of the old money group is an aspiration for the
nouveau riche.

A growing middle class - 200MM ($4000 p.a. in 1996), but in 2006
about 300MM with over $6000 p.a.

Adoption of Western lifestyles is an established trend among the
middle and upper-middle classes, particularly in big cities such as
Mumbai and Delhi.
Ganesh Iyer
3
Demographic Profile (cont..)

Automobile ownership in 1996: confined to less than 5% of the
population (the upper-upper class).
» Actual ownership may be less than 2%.
» An automobile is a luxury product.

Changing trends…$2500 car
» Tata_Nano
» Nano_IHT
» Tata_Jaguar

Membership in 1) gymkhana clubs 2) racing associations etc.
» prestigious institutions which exist from the colonial era.
» Membership connotes “old money,” westernization and social
elitism.
» part of the social life of the establishment and is aspirational for the
nouveau riche
Ganesh Iyer
4
Consumer Behavior & Segmentation
Cultural Dimensions of Serving Scotch
Two Segments
 A small group of “old money” and establishment types, with
Western lifestyles and with Scotch as the preferred drink.
» Why scotch?...a carry-over from British colonial days.

Scotch is therefore a status symbol and an aspirational product
for the nouveau riche.
» This group serves and consumes Scotch in a conspicuous, public
manner to make a statement:
– you have arrived, you have class
– you can afford it
Ganesh Iyer
5
Social Constraints

Despite the allure of Scotch, Indian society as a whole is still
quite conservative and there are many social and religious
barriers to consuming alcohol. Consequently:
» drinking alcohol has a “forbidden pleasure” element to it for many
middle-class families.
» Barriers rapidly dissolving during the past decade.
Ganesh Iyer
6
Marketing Environment
Availability of Scotch

At the time of this case, import of Scotch was tightly regulated.
» Permit based system.
» Primary recipients were government organizations, five star hotels,
and exclusive clubs (e.g., gymkhana clubs).

This promoted an active market for “bootleg” Scotch which was
readily available, but whose quality was highly variable.
Ganesh Iyer
7
Legal Constraints on Marketing

Mass media advertising of alcoholic beverages is prohibited by
law.

Distillers have devised many ingenious ways to circumvent this
law:
» setting up companies or using distributors to sell “proxy”
products (decanters, salt and pepper shakers) which mimic
the brand name and other brand properties of a particular
brand e.g., Diplomat Mens Accessories, McDowells Club
Soda.
» Event marketing e.g., the No. 1 McDowell’s Derby,
» http://www.clubmcdowell.com/org/events.html
» http://www.clubmcdowell.com/brands/mc_main.htm
» http://www.theubgroup.com/events.html
Ganesh Iyer
8
Premium Whisky Market in India

Locally manufactured Premium Indian Whisky (PIW) is an
alternative to Scotch. It is a blend of 5% -10% imported Scotch
and good quality ethyl alcohol.

Appropriate blending, flavoring and color are used to give it the
appearance, taste and flavor of Scotch whisky

Sales are as follows:
» Scotch Whisky (permits + bootleg) - 200,000 cases per year
» Premium Indian Whisky - 200,000 cases per year.
Ganesh Iyer
9
Interaction between PIW and Scotch

None of the Premium Whiskies are able to make a dent in the
Scotch market due to
» Lack of consistent blend quality
» The aura and the image of Scotch

Thus PIW cannot satisfy the aspirational needs which the
serving and consumption of Scotch fulfills.
Ganesh Iyer
10
The New Product

A premium whisky containing > 15% Scotch blended with high
proof ethyl alcohol and flavoring and color to approximate the
taste and flavor of an imported Scotch.

Manufacturing Cost (Including packaging and overheads): Rs.
25/- per bottle as opposed to Rs. 15/- for a Premium Indian
whisky.

Proposed name: McDowell’s Vintage Premium Malt Whisky
Ganesh Iyer
11
Iyer’s Framework for Marketing Analysis
Perceptual mapping
2. Company Analysis
Marketing Myopia
First mover advantages
1. Customer Analysis
3. Competitor
Analysis
Positioning
Segmentation
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
12
2. Competitive Analysis
Brand Pricing Information
Scotch
Price ($ equiv)
Chivas Regal
Johnny Walker Red
Cutty Sark
Vat 69
Rs. 820/- ($23)
Rs. 740/- ($21)
Rs. 640/- ($18)
Rs. 640/- ($18)
Indian Premium
Peter Scot
Royal Challenge
McDowells Premium
Rs. 430/- ($12)
Ganesh Iyer
13
Competitive Positioning Analysis
Positioning Decision
Position as a superior PIW, or as an alternative to
Scotch? At what price
Premium
Indian Whisky
Scotch
Rs 750
Rs 400
??
??
Ganesh Iyer
14
What did they do?
Ganesh Iyer
15