Running head: ABSOLUT VOKA CASE STUDY 1

Absolut Vodka Case Study

Student’s Name

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Absolut Vodka Case Study

It is apparent that in the “Absolut Vodka” case study, the distilled spirit industry soared

despite the numerous hurdles it faced. The industry commenced on a slower note in terms of

profitability, taking into account that in 1982, the total sales for vodka were down by

approximately 4%. This, however, was not until a new game changer in the industry, Absolut

Vodka, came into the picture. Absolut Vodka was produced and owned by the Swedish

government and it was launched in the United States by Carillon Importers in 1979. During its

introduction to the US market, many analysts predicted that it will not succeed easily. However,

considering its sales in the US currently, it is evident that that sales and marketing techniques

used was crucial to its explosion in the market (Pearce & Robinson, 2015). The marketers mainly

targeted the youth and marketed the vodka as a premium drink, which captured the attention of

many buyers in the US. Even though there were challenges facing the brand during its

introductory stages, such as new drinking laws, the product still managed to penetrate the

market. Despite the wrong initial strategies used, for instance wrong target marketing and high

competition, Absolut Vodka still managed to make a name in the American liquor market.

There were numerous factors that contributed to the success of Absolut Vodka in the

United States. Even though its introduction met numerous hurdles, it is obvious that the use of

unconventional yet effective strategies of marketing were crucial to ensure the product gained

the recognition it deserved in the industry (The Dangers of Vodka, n.d.). The various ethical

concerns including uncanny marketing approaches, as well as otherwise unprofessional means of

marketing ended up being the key weapon for the company in terms of profitability. Also, it is a

fact that these strategies were a huge component for the takeoff of the company in the United

States.
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Various branding and marketing strategies separated Absolut Vodka and their

competitors in the US market. The marketing team used a mix of geographical and demographic

segmentation strategies to make Absolut Vodka appeal to the right consumers. Another different

thing that cannot be compared to their competition was the new experiences of their personnel

who understood the market they were venturing well. One of the main persons who pushed the

Absolut brand into the market acceptance was Michel Roux, who welcomed new marketing

ideas. Roux believed that inspiration was the primary ingredient for the success of a new brand

in a new market (Beverages and Health, n.d.). However, the advertising techniques used

encountered various ethical issues, including the use of minors in the adverts and the issue of

high cost advertising. Moreover, the company was accused of encouraging alcoholism through

its advertisements. To correct this concern, the marketing team changed their tactics and

introduced civic education and disclaimers warning against excessive consumption of alcohol.

This enabled the company to avoid unnecessary lawsuits and other complaints that may arise

from uninformed consumers.

In essence, it is apparent that Absolut Vodka made a very significant impact on the

American market. Through the use of numerous modified marketing tactics and experiments, the

brand became a widely accepted and recognized brand. Despite the numerous hurdles, such as

ethical issues and other marketing mistakes, Absolut is still one of the most popular brands in the

United States and also in the global market.

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References

Beverages and Health. (n.d.). Retrieved from https://beveragesandhealth.com/negative-effects-

of-vodka/

Pearce, J. A., & Robinson, R. B. (2015). Strategic management: Planning for domestic & global

competition. New York: McGraw Hill Education.

The Dangers of Vodka. (n.d.). Retrieved from https://www.livestrong.com/article/496328-the-

dangers-of-vodka