Absolut vodka is one of the top 5 brands in the world involved in selling vodka and spirits.

If
calculated brand wise, then it is the 3rd ranking brand of the alcohol industry and is behind
Bacardi and Smirnoff. Absolut comes from the house of Pernod ricard. Absolut and Chivas
regal are two of the leading brands from the house of Pernod ricard, which has above 30 total
brands.

Environmental Analysis
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Universal brand equity One of the greatest advantages of Absolut vodka is its
distribution across the world, which has brought it universal brand equity. Absolut is most
concentrated in United States, United Kingdom and Asia pacific, three of the largest
continents in the world.
One source of production Quality is paramount in Absolut because of the fact that
all the production comes from their single factory in Sweden. They own a large plantation
of winter wheat which is the single source of creation for their spirits. So it may be any
corner of the world, no one can complain of Absolut being weak or different. It is one
source, one wheat.
The bottle One of the largest and most silent running promotional campaign in the
history of alcohol is the Absolut Bottle. The bottle is unique and has its own heritage and
is being heralded as the face of Absoluts marketing campaign since 1980. The bottle too,
is universally recognized.
Flavours and varieties As of 2016, Absolut vodka in itself has 21 variants (click
link to know each variant). Each of the variants is priced differently, and Absolut is
known to release a series of spirits which sells at high price due to its unique value.
Strong promotions Absolut has strong promotions below the line. It includes the
Ice bar in Stockholm, London and select cities which is a unique concept. Absolut always
communicates and shows itself as hip brand and completely in sync with the times. POP
advertising, sponsorships are some of the ways that Absolut keeps in eyesight at all times.
Heritage Absolut vodka has been established since 1879 (in another name) and
hence has one of the longest presence in alcohol history. It was officially sold as Absolut
vodka since 1979
Clear focus The parent company Pernod ricard has 5 drivers of strategy which has
given them focus till date. Out of the 14 top brands, they focus on 2 to leverage their
brand and the growth of the company.

Weakness
1.

Cost Because Absolut claims one source, the cost is exorbitant and too much
expenses are done on transportation across the world.
2.
Competitive market Smirnoff, Bacardi and Absolut have been at loggerheads since
ages. And all three of them have similar qualities with marketing being their major
difference.
3.
Advertising restrictions One of the weaknesses of Absolut is that it cannot
advertise or differentiate itself. Through no faults of its own, Absolut cannot advertise
alcohol directly on television. However, where Bacardi and Smirnoff CDs are popular,
Absolut has not made the same expenses in surrogate advertising itself. Therefore
the brand recall has dropped as compared to Smirnoff and Bacardi, giving these 2 brands
the leverage.

Opportunities
1.

The world is getting smaller More and more people demand and need alcohol
nowadays. People have accepted drinking as an enjoyable activity and many do it
occasionally to refresh themselves. With such acceptance in the market in developing and
developed countries, the market size is rising rapidly.
2.
Online sales E-commerce is on the rise and although some of the top E-commerce
brands are reluctant to sell the product online, Absolut should take steps to ensure it is
available online in the countries where it is sold. To increase margins, they need to reach
direct to customers.

Threats
1.

Long-time competition Again the threat comes from the fact that Absolut is
continuously taking hits to the bottom line because of its long time competition with
Smirnoff and Bacardi. The only answer is if Absolut increases its distribution to crazy
levels.
2.
Increasing cost of fuel As its distribution depends completely on transportation due
to the one source methodology, the increase in the cost of fuel due to increasing scarcity
of the same will affect Absolut adversely.
3.
Government action against alcohol Many places have actively stopped selling
alcohol due to interference by the government. Wherever alcohol is banned, all alcohol
companies are adversely affected.
4.
Rising costs due to government taxes Government generally increases excise
duties and import duties for foreign brands in many countries. Such taxes ultimately
result in rising cost for the brand itself.

Competition

Super
Premium
Grey Goose
Ketel One
Belvedere

Low
Price
Popov
Svedka
Luksubowa

Premiu
m
Absolut
Stolichnaya

Standar
d Price
Smirnof