Absolut Vodka - Creating Advertising History

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Case Details:

Case Code : MKTG078
Case Length : 17 Pages
Period : 2003
Pub Date : 2003
Teaching Note :Not Available
Organization : Absolut Spirits Company Inc. (ASC)
Industry : Liquor
Countries : Sweden

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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'Absolut Change' - A New Advertising Launch Pad Contd...

As Absolut Vanilia was introduced at bars and liquor stores across the US, analysts stated that the new launch platform represented an entirely new approach to brand communications and a new era in Absolut's advertising history.

However, the original advertising campaign created more than 23 years ago, based entirely on the Absolut bottle and a two word tagline, remained unchanged.

This was not surprising since the Absolut advertising campaign was often regarded by advertising experts as one of the most brilliant, innovative, successful and long-running campaigns ever.

The several prestigious awards that the campaign won since its first ad was launched stand as testimony to this fact (Refer Exhibit I for details of some of the awards).

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

'Absolut History' - V&S Vin & Spirit AB

In the late 1910s, the government of Sweden realized that it needed to take steps to monitor the country's liquor trade. This realization came in the wake of the prevailing trend of excessive alcohol consumption in the society (consumption of aquavit and brandy was increasing alarmingly). The government primarily wanted to combat the social ills caused by alcoholism.

Moreover, it wanted to channelise the revenues generated from alcohol sales towards social activities. In October 1917, the government established AB Vin & Spritcentralen (V&S) to help monitor the country's liquor trade.

Many small and medium businesses owned by private wine merchants were closed down after they were bought by V&S.

Some larger and well renowned businesses were merged with V&S and continued to operate as its subsidiaries. The government also introduced an 'alcohol ration system,' under which every citizen above the age of 20 was given an 'alcohol ration book.'

People were given a fixed quantity of alcohol per month on presenting their alcohol ration book at retail and wholesale alcohol stores. However, alcoholism continued to increase in Sweden and reached epidemic proportions by 1919...

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