Global Marketing

STUDENT EXAMINATION NUMBER Y0918235

MODULE NO: MAN00015M

MODULE TITLE: Global Marketing

Module Tutor: Teresa da Silva Lopes

Essay Title: Case Study: Absolut Vodka

Word Count: 1490

Q 1

From the case study, we can come up with the assumption that Pernod Ricard acquired V&S (including Absolut Vodka) in 2008 mainly based on four motivations. Initially, Absolut Vodka has a high popularity (it is the world’s second-largest vodka brand) and a good reputation worldwide (it is the world’s leading premium vodka brand). By acquiring Absolut Vodka, Pernod Ricard can not only occupy a bigger market share of vodka globally, but also gain the loyalty and confidence of Absolut’s customers. Besides, the eyesight catching acquisition, together with the fame of Absolut Vodka, may help Pernod Ricard to spread its name more widely, which can save a great amount of advertising cost for Pernod Ricard. Apart from that, acquiring Absolut Vodka can remarkably enhance the sales and revenues of Pernod Ricard, which would bring more capital for Pernod Ricard to undertake further development. Fourth, the purchase of Absolut Vodka may provide Pernod Ricard’s consumers with more selections of premium vodkas when buying spirits (Absolut is the fourth-largest international premium spirit worldwide). In other words, the product variety of Pernod Ricard can be improved after the acquisition.

Q 2

According to the case study, vodka markets have different features geographically. Taking American vodka market as an example, STP (Segmenting, Targeting, Positioning) strategy may be useful for Absolut Vodka to obtain more market share. Concretely speaking, consumers’ desire of purchasing spirits in the US decreases these years due to the concern of health. Therefore, segmenting vodkas into pure alcohol segment and FAB (flavored...