Dewar’s leader in U.S. Scotch whisky industry Essay -- Business and Ma

Dewar’s leader in U.S. Scotch whisky industry 1. Situational Analysis 1.1 SWOT Analysis Strengths - Dewar’s leader in U.S. Scotch whisky industry, with a market share of 15%. - Past success with the advertising campaigns in maintaining a positive image for Dewar’s among Scotch drinkers. - Strong research and development. - Backup from United Distillers, which is an International leader in the Scotch whisky and Gin markets, and one of the most profitable spirit’s Company in the world. - Dewar’s is positioned as a premium and prestigious blend of Scotch whisky. - Schieffelin & Somerst, distributor of Dewar’s within U.S, is the product of a Joint Venture with Moet Hmessy Louis Vuitton, allowing cost reduction. Weaknesses - Lack of promotional strategies to attract new customers. - Targeting a segment market that is not growing. - Slow reactions. Opportunities - US, the largest liquor market in the world (13% market share) with high profit margins. - Young adults’ good attitude towards the consumption of withe spirits. - Social acceptance of mixed drinks. Threats - Sales in Industry of liquor and withe spirits with a negative growth. - Scotch whisky in the declining stage of product cycle. - Mature target market consuming less Scotch whisky. - Growing social resistance and regulations of liquor consumption in the U.S. - Shift of consumer preference towards lighter alcohol beverages, such as wine and beer. - Risk of becoming over analytical and moving to slowly when implementing the repositioning strategy. 1.2 US Scotch whisky Industry Analysis. Both the industry of liquor and the industry of distilled spirits had suffered a reduction in consumption since 1978. This represents 15 years of constant negative growth. Some of the factors that had caused this phenomenon are the growing of social, regulatory and legal restrictions over drinking. Also, drinking preferences have shifted towards lighter alcohol beverages, such as wine and beer. The Scotch industry has suffered an even greater decline due to the fact that its target market is drinking much less. It has become the distilled spirit with lower consumption per-capita. Mature customers are not loyal to a brand, they are lower priced oriented. If all these factors remain the same, ... ...f the campaigns. 3. Analysis and evaluation of options Three strategies have been developed in order to help managers to take the last decisions in the release of the campaign. Strategy 1 Implementation just of the maintenance campaign directed to mature adults. Strategy 2 Implementing truths and maintenance campaigns at the same time. Strategy 3 Line extension 4. Recommended course of action The most realistic, and practical option that I can recommend to the manager is the second one. She already had researched and developed a big campaign that in just two moths is supposed to be released. We just hope that no changes in the perception of the mature audience will be produced due the expose to both campaigns. Also in terms of lees cost and almost immediate effect in profits, the best choice is the second one. But let's say if there is no budget or time constrains the best option for me is the third one. Keeping each segment with different products it makes it easier to target the audiences. When this young adults reach certain age they will immediate cross the bridge to Dewar’s classic bottle, giving a more serious and respectful image.