Smirnoff Vodka

Brand AnalysisBy Lulu Yang

Introduction: The Smirnoff brandSmirnoff is a vodka brand owned and produced by British alcoholic beverages company, DiageoFounded in Moscow in 1860s by Pyotr SmirnovIt is the number one selling vodka in the U.S.It is distributed in 130 countriesIt is produced in several countries including India, Ireland, the U.K., the U.S., and ItalySmirnoff products include vodka, flavoured vodka, and malt beveragesMost well known are Smirnoff Red Label and Smirnoff Ice (which spawned the drinking game called icing)Smirnoffs target audience is young adults aged 21-34

Source: Smirnoff websiteWhy Smirnoff?I chose this product because alcohol is very prevalent in college communities and I wanted to learn more about my favourite type of alcohol (vodka)I also find alcoholic beverage advertising (especially some of Smirnoffs old campaigns) interesting and decided to take this opportunity to explore how the most popular vodka brands market themselves and how they differentiate themselves from their competition in a competitive category where all of the products are quite similar

Vodka category: OverviewVodka sales grew 34% between 2007-12Vodka is the most popular segment in the larger white spirits and RTD (ready-to-drink) category it represents 55.7% of total sales

Sales of9-liter casesYear000% change200752,518-200855,246+5.2200958,505+5.9201062,100+6.1201166,470+7201270,600+6.2Figure to left shows U.S. volume sales of 9-liter cases of vodka from 2007-12 and the %change in sales between 2007-12Source: Mintel/The Beverage Information GroupProvide a brief category overview, noting specifically sales, market share and trends. Short and to the point. Two to three slides should suffice.Mintel/The Beverage Information Group4Vodka category: Overview contVodka category is experiencing growth, and is very crowded and highly competitiveRecently theres been a big expansion of flavoured vodka products contributing to the growth of vodka categoryVodka is also a highly compatible and popular mixer, used extensively in cocktails (another reason for the continuing growth of the market)Number of vodka drinks consumed per month increased from 3.81 to 4.05 from 2007-12 (measured by Experian Simmons NCS/NHCS)

Source: MintelProvide a brief category overview, noting specifically sales, market share and trends. Short and to the point. Two to three slides should suffice.

5Vodka category: Market shareFollowing figure shows market share of top four brands in 2010 and 2011Category leader (market share) is Smirnoff, followed by Absolut, then Svedka, then Grey Goose

CompanyBrandMarket share 2010Market share 2011DiageoSmirnoff15.514.6Pernod Ricard USAAbsolut7.56.9Constellation SpiritsSvedka5.35.6Bacardi USAGrey Goose5.55.2Source: MintelChief competitorsSmirnoffs (14.6%) chief competitors by market share are Absolut (6.9%), Svedka (5.6%), and Grey Goose (5.2%)

Source: MintelIdentify your chief competitors, three to four is ideal, based upon your category analysis. Your competitors should be the leaders within the category.

7Smirnoff analysis

Brand name: SmirnoffHeadline: Pure SmirnoffSlogan: The difference is clearBenefit: Smirnoff is pure and clean, original and quirky it will make you see things in a different and more interesting wayDetails: This ad is part of a larger campaign that depicts how random scenes viewed through a bottle of Smirnoff are different from their surroundings. The campaign is surprising and emphasises quirkiness, being different and fun, as well as creativity.

Analyze each competitor-be sure to include the headers:State the brand nameHeadline of the executionSlogan for the campaignIdentify the single benefit within the advertisement8Competitor analysis: Absolut

Brand name: AbsolutHeadline: Absolut PerfectionSlogan: NoneBenefit: Theres nothing better than Absolut, its so perfect its angelicDetails: The Absolut campaign is iconic now, and is more about awareness, creativity, and art than promising a benefit. The focus of the ads is the distinctive shape of the Absolut bottle.

Analyze each competitor-be sure to include the headers:State the brand nameHeadline of the executionSlogan for the campaignIdentify the single benefit within the advertisement

9Competitor analysis: SvedkaBrand: SvedkaHeadline: NoneSlogan: Voted #1 vodka of 2033Benefit: Svedka is the drink of the futureDetails: Svedka is known for provocative and edgy advertising that centers around the future and uses the Svedka femme-bot as its mascot. The slogan is a reflection of the futuristic theme.

Analyze each competitor-be sure to include the headers:State the brand nameHeadline of the executionSlogan for the campaignIdentify the single benefit within the advertisement

10Competitor analysis: Grey GooseBrand: Grey GooseHeadline: Discerning tasteSlogan: Worlds best tasting vodkaBenefit: Grey Goose is classy, elegant, and tasteful drink

Details: Grey Goose ads are understated and sophisticated like the brand itself. The discerning taste campaign positions Grey Goose as the perfect drink for a variety of elegant and more luxurious activities like golfing, tennis, and sailing.Analyze each competitor-be sure to include the headers:State the brand nameHeadline of the executionSlogan for the campaignIdentify the single benefit within the advertisement

11Competitor analysis summary

BrandHeadlineSloganPositioningSmirnoffPure SmirnoffThe difference is clearPerformance excellence: Smirnoff tastes more pure than other vodka and is of a higher quality. The difference between Smirnoff and its competition is clear.AbsolutAbsolut PerfectionNoneLeader: Absolut positions itself as the most well-known vodka (and vodka advertiser) in the world through its creative campaign that speaks to people in many cultures and places.SvedkaNoneVoted #1 vodka of 2013Innovator: Svedka is forward thinking, out-there, edgy, and the vodka of the future.Grey GooseDiscerning TasteWorlds best tasting vodkaPerformance excellence: Grey Goose is the most luxurious and most elegant vodka in the category. It is classy and exclusive.Close this section with 1) what you believe to be the positioning of each brand based on position discussion from NMTC. 2) how does this compare to your brand? You must identify the position of your brand and compare and contrast within the category.

12Smirnoffs target audience21 to 34 year olds (younger adults)This demographic is 138% more likely than the average American to drink shots of spirits, 34% more likely to drink spirits on the rocks, and 29% more likely to drink mixed drinks

Source: GfK MRIs Survey of the American Consumer, Fall 2010 (Adults 21+In summary state the brands target. This can be done with a combination of MRI demographics and/or application of Goodsons movement description. Be sure to note some insightful aspects of your brand based on your consumer insight research.

13Smirnoffs target audience cont.Cultural movement marketing builds brands by leading or aligning with an idea on the rise (Scott Goodson)Smirnoff did this recently by supporting gay rightsAd below was posted on Smirnoffs Facebook pageAligning with the current trend in support of gay rights further establishes Smirnoffs target audience of young adults who are more open to the idea of gay rights

In summary state the brands target. This can be done with a combination of MRI demographics and/or application of Goodsons movement description. Be sure to note some insightful aspects of your brand based on your consumer insight research.

14Brand as a productPlace of origin: Moscow, RussiaSmirnoffs functional benefits:Premium vodka for a decent priceReliable and trusted product and brandUnique triple distillation process which leads to a cleaner and more pure tasteSmirnoffs emotional benefits:The product and its users are unique, youthful, and vibrantIt is a forward thinking and bold brand that stands for what it believes inUsers of Smirnoff are young adultsUses:Mixed drinksDrinking on the rocksShots

Product Attributes, functional, emotionalAssociation with product classQuality versus ValueUses of product (Clorox)Users, perceived and actual (REI, Pampers)Country of Origin

15Brand as an organisationThe Smirnoff brand is a global organisationSmirnoff supports:Having funBeing young at heartBeing unique, special, differentEquality and gay rightsBrand values:Originality and boldnessIndividuality and freedom

Organization attributes: Innovator? Trustworthy? Consistency? Consumer concerns?Local vs global? Starbucks, organizational associations

16Brand as a personalitySmirnoff is:Youthful and contemporary (as illustrated through its Facebook page, target audience, and wide variety of flavoured vodkas and RTDs)Fun and different (as illustrated through its quirky ad campaigns and the bright and colourful pictures posted on its Facebook page)About individuality and being unapologetically who you are

Describe the presumed personality: rugged, feminine, sensual, tough?Brand/Customer relationshipsA self-expressive benefit that becomes a vehicle for the customer to express his or her own personality

17Brand as a symbolSmirnoff has a rich brand heritage:Founded in 1860s in MoscowLong history, high quality standards throughoutStill produced using the same triple distillation process and still filtered ten times (just like it was when it was first founded)Visual imagery associated with Smirnoff:Eagles symbolising freedom, pride, and authorityRed symbolising power and activity

Source: Smirnoff websiteVisual imageryMetaphorBrand heritage

18Social mediaSocial media is a combination of the interactions between people online and the medium through which they interactIt is used to share and exchange ideas, keep in touch with people, and meet new peopleMain things that differentiate social media from traditional media are:Immediacy: everything happens instantly and in real timeInteractivity: brands can directly engage with consumersSocial media can be a great place to advertise, gain earned media, and have messages spread through word of mouthSocial media sites include: Twitter, Facebook, Tumblr, and Pinterest

Provide a definition that illustrates your understanding of social media.

19Smirnoff in social mediaAs a youthful brand, Smirnoff has a solid presence in social mediaFacebook page which is updated dailyOver 9.4 million likes226,000+ people talking about brandTwitter which is also updated dailyOver 4,000 tweets and over 13,500 followersBut audience on Twitter is not very engaged

Describe the social media campaign of your brand. Include screenshots whenever possible. Be sure to note the platforms your brand is using. Analyze the social media campaign of your brand using Jennifer Aakers Dragonfly Effect model. Be sure to include the headers.

20Smirnoff in social media cont.every pairing is perfect ad (mentioned earlier) Aired on Facebook while an estimated 2.7 million people changed their profile pictures to the red equals symbol in support of gay marriageAd received overwhelmingly positive comments (very few negative responses)Mixhibit (March 2013)Social utility that takes social media activity from all your social networks and turns it into a video with personal soundtrack

Sources: Facebook and convinceandconvert.com

Describe the social media campaign of your brand. Include screenshots whenever possible. Be sure to note the platforms your brand is using. Analyze the social media campaign of your brand using Jennifer Aakers Dragonfly Effect model. Be sure to include the headers.

21Smirnoff & the Dragonfly EffectNamed after dragonfly which is able to move in any direction with its four wingsFour wings to the modelFocus: The goal of Smirnoffs social media campaign is to showcase its products and different ways in which they can be used (as evidenced by the posts Smirnoff makes marketing its products and different mixed drinks recipes) in a way that engages its audienceSuccess can be measured through views, shares, and comments on photos posted by Smirnoff or retweets of its tweets on Twitter

Describe the social media campaign of your brand. Include screenshots whenever possible. Be sure to note the platforms your brand is using. Analyze the social media campaign of your brand using Jennifer Aakers Dragonfly Effect model. Be sure to include the headers.

22Dragonfly Effect cont.Grab attention: Smirnoff grabs attention by using bright colours and vivid photos, and sending tweets that are highly relatable (see right)Engage: Smirnoff engages its audience effectively through its Facebook pageIts authentic in its interactionsIt builds a common ground with audience around appreciating a good drink and in general just having a fun timeIt responds in a quick, friendly, and still professional manner to commentsTake action: Smirnoff makes it easy for its fans to take actionImages marketing a product or promoting articles have links to where the article can be read or the product purchasedA lot of open-ended questions and statements inviting discussion are used on its Facebook and Twitter pages

Describe the social media campaign of your brand. Include screenshots whenever possible. Be sure to note the platforms your brand is using. Analyze the social media campaign of your brand using Jennifer Aakers Dragonfly Effect model. Be sure to include the headers.

23ConclusionOverall, I feel Smirnoff has done a great job with its advertising. TV spots, print ads, and its social media campaign are all consistent with its positioning as a fun-loving, youthful brand, that celebrates being different and having a great time. They have been able to connect with their target audience effectively which I think is because Smirnoff was very good at finding the emotional link between their brand and their target (a step from the New Marketers Tool Chest on how to build a better position). They saw that young people just want to have fun and be themselves and made Smirnoff a product that is conducive to that and supports it.

In terms of social media, their Facebook page grabs attention right away with bright colours and lots of eye-catching photographs while further solidifying the brands position. With 9.4 million likes, Smirnoff is way ahead of its competition: Absolut has 1 million likes, Svedka has 500,000, and Grey Goose has 1.3 million. This is probably due in part to how well Smirnoff implements the four aspects of the Dragonfly Effect model (as covered earlier) and also how active and relatable their page and posts are.

Conclude with your recommendation of how all platforms and strategies used by the brand are influencing the development of this brand. This is a critical step and challenges your analytical ability to link what is being done by the brand from a communications perspective. It is critical that you link your analysis to various aspects of the branding content covered during the semester. This last point should be in narrative format and at least two to three slides.24Conclusion cont.TV spots for Smirnoff (which I havent covered in this analysis) mostly depict fun scenes at clubs and parties made even more fun by the presence of Smirnoff drinks once again very much in support of Smirnoffs positioning and very appealing to their target audience. Smirnoffs print ads are generally fun and quirky (some examples shown below).

Smirnoffs other marketing efforts which help them effectively connect with their intended target include cultural movement marketing where they aligned themselves with the current trend in support of gay rights, their mobile app Mixhibit, and an event they created called the Nightlife Exchange Project which was about the experiencing and sharing of different nightlife cultures.

Conclude with your recommendation of how all platforms and strategies used by the brand are influencing the development of this brand. This is a critical step and challenges your analytical ability to link what is being done by the brand from a communications perspective. It is critical that you link your analysis to various aspects of the branding content covered during the semester. This last point should be in narrative format and at least two to three slides.25Conclusion cont.All of Smirnoffs marketing strategies are well integrated and present a consistent image of the brand. They speak effectively to Smirnoffs target audience and take advantage of a variety of different types of marketing (movement marketing and event hosting for example) and also platforms (print, TV, social).

A suggestion I would make for improving their social media campaign would be to either focus more on their Twitter account or to abandon it altogether. With 13,500 followers, as opposed to the 9.4 million likes it has on Facebook, Smirnoffs Twitter presence is relatively weak. Tweets they send are only retweeted or favourited a handful of times and very few people tweet at them. Having a very active Twitter account that doesnt appear to be reaching many people might be a waste of resources and also make the brand seem far less popular than it actually is.

Conclude with your recommendation of how all platforms and strategies used by the brand are influencing the development of this brand. This is a critical step and challenges your analytical ability to link what is being done by the brand from a communications perspective. It is critical that you link your analysis to various aspects of the branding content covered during the semester. This last point should be in narrative format and at least two to three slides.

26Conclusion cont.This contest could be one where users have to retweet, follow, or favourite to have a chance of winning. It could also be a more creative contest, for example, having people take artsy pictures of their favourite Smirnoff drink or responding creatively to a question posed by Smirnoff and hashtagging Smirnoff in the tweet (e.g. #SmirnoffContest or something similar). Twitter contests have proved successful in the past for brands like Starbucks (#myFrappuccino, #freestarbucks), Uniqlo (#luckycounter), and Dominos Pizza (#letsdolunch).

Conclude with your recommendation of how all platforms and strategies used by the brand are influencing the development of this brand. This is a critical step and challenges your analytical ability to link what is being done by the brand from a communications perspective. It is critical that you link your analysis to various aspects of the branding content covered during the semester. This last point should be in narrative format and at least two to three slides.

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