Svedka Vodka Strategy Article Example | Topics and Well Written Essays - 1500 words

Svedka Vodka scheme - Article ExampleHowever in that location was a gap in between the high devastation and the low end, i.e. there was no mid surface segment in the merchandise as of now. In this scenario there was a chance of launching a new product into the vacuum mid sized segment with suitable marketing strategies and outlook. Svedka the to be launched mid segment vodka had many obstacles to encounter for entering into the already established vodka market. Since it was new, new techniques both in the production and marketing levels have to be adopted. The product should be of high drinking quality and should be distinguished for its soft silky drinkability. 1. Branded vodka has its mark in US market. International brands like Smirnoff, Absolut etc have created brand aw atomic number 18ness in the market. The prices offered by both these spark advance brands were in between $20 and $25. Svedka was planned to introduce in the mid sized segment because there were no real comp etitors in the offing. Moreover cost reduction techniques like outsourcing of production which was a major(ip) strength of Svedka enabled the product to be sold on a lower price. The under $10 market of vodka was nearly 80% of the total market lot of the spirit therefore the chances of success of Svedka is bright provided it be introduced in a planned way. A competitive pricing scheme should be adopted for this purpose, may be market oriented pricing or penetrating pricing(Kotler,Keller,Brady,Goodman&Hansen). The real competitor for Svedka would be from Smirnoff which was change vodka a price of $10 per bottle, Smirnoff enjoyed a huge 19.7% share in the market. However by the influence of Absolut, Smirnoff was under pressure. Therefore if Svedka was introduced properly in the mid tier segment, it could really tap the potential and get out a real time competition to Smirnoff. The other brands which are under $10 per bottle are Gordon and Popov, which have only a very little mar ket share. some other important aspect in this scenario is that Svedka due to its cost effective strategy is able to offer of 25% to wholesaler and 30% to 35% to retailers. This is considerably high according to normal industrial standards hence it could provide a boost to wholesalers and retailers to swap Svedka. 2. Marketing strategy is a process by which an organization concentrates on its limited resources and cashes on its superlative opportunities in order to increase sales and achieve a sustainable and competitive advantage. The marketing strategy should be centered on customer satisfaction (Kotler,Keller,Brady,Goodman&Hansen). Customers are more aware of prices of the products they buy along with the quality. Of course, Svedka has quality because it is manufactured raw. Therefore the price segment should be given much importance. The market share of low priced vodka is around 80% therefore Svedka if priced less, I.e, below $10 could command greater respect from its custom ers. Another important aspect that has to be considered is the reach of the product to the customers. For this purpose a brand image has to be created just like Smirnoff used to do. Svedka should appeal to new vodka drinkers along with up graders. It should be a quality for both price driven groups. Target customers who are not brand loyal but new should be tapped and developed. Advertising should be cost effective and appealing like eye shelf