What did they do?

1. What did they do?

2. Positioning: Why buy me?Why Should the Consumer Buy McDowell’s Vintage? • 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. • Because it will have an image/aura which will satisfy the aspirational needs which serving and drinking Scotch satisfies. • Because most Scotch whiskies available locally (from bootleggers) are spurious. Support for creative.

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.

4. Iyer’s Framework for Marketing Analysis Perceptual mapping First mover advantages Company Analysis Marketing Myopia 1. Customer Analysis 2. Competitor Analysis Positioning Segmentation Marketing Orientation 3.Marketing Strategy Branding Product Pricing process (ODI) Pricing and innovation Price Traditional Advertising Promotion Non Traditional advertising and promotions BMW Z3 Place Going to market Goodyear Direct marketing Market

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)

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.

7. Advertising and Promotional Strategy • How do we develop brand image for this “status” product in an environment where mass media communication is illegal?

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.

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

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.

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

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).

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.

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

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).

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)

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.

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.

19. Iyer’s Framework for Marketing Analysis Perceptual mapping First mover advantages Company Analysis Marketing Myopia 1. Customer Analysis 2. Competitor Analysis Positioning Segmentation Marketing Orientation 3.Marketing Strategy Branding Product Pricing process (ODI) Pricing and innovation Price Traditional Advertising Promotion Non Traditional advertising and promotions BMW Z3 Place Going to market Goodyear Direct marketing Market

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