Advertising Principles and Practice
Advertising Principles and Practice
Wu Xin Ying
0328708
Jan 2018 - Feb 2018
Advertising Principles and Practice
Wu Xin Ying
0328708
Jan 2018 - Feb 2018
Advertising Principles and Practice
Module Outline
Lectures
Week 1
Lecture 1 : What is Advertising?
For the first class of this module, Mr Vinod gave us an introduction of this module. He brief us on our project and exercises that we need to done throughout the whole semester. After that, he gave us the first lecture.
First, Mr Vinod asked us the meaning of advertising. He told us to break the words in a long sentences to understand the meaning of it. What is Advertising? Advertising is a means of communication with the users of a product or service. Advertisements are messages paid for by those who send them and are intended to inform or influence people who receive them. Advertising uses every possible media to get its message through.
The purpose of advertising is to:
- Make customers aware of a product or service
- Convince or persuade customers that a product or service is right for their needs
- Announce new products or services
- Create a desire for a product or service
- Enhance the image of your company
10 Principles Of Advertising by Bill Bernbach
1. Go to the essence of the product.
2. Make your product an actor in the scene; not just a prop.
3. Art and copy must be fully integrated.
4. Advertising must have vitality.
5. It is little less than useless to employ a so-called gimmick in advertising unless the gimmick itself tells the product story.
6. Tell the truth. If the product is good, tell the truth; if the product is not really good, don't tell the negative and enhance the good of the product.
7. Be relevant.
8. Be simple.
9. Safe ideas can kill you.
10. Stand out.
Lecture 2 : Advertising and Marketing
For today's lecture, Mr Vinod explained about the relationship between advertising and marketing. Advertising is only one component of the overall marketing process. Advertising is that part of marketing that involves directly getting the word out about business, product, or service to those who want to reach most.
Marketing originates from the Latin words; Mercari and Marcatus, which means “buy or trade”. “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Advertising is but one component of the marketing process. Therefore marketing is “the management process through which goods and services move from concept to the customer.
Advertising practices in support of marketing
1. Understanding the target audience
2. The planning process
3. The creative process
4. Reaching the target audience
5. Integrated marketing communications
4 P's of marketing :
1. Identification, selection and development of a product
2. Determination of its price
3. Selection of a distribution channel to reach the customer's place
4. Development and implementation of a promotional strategy.
Week 2
Lecture 3 : Roles and function of an art director
Art director is someone who is responsible for the visual style and images of a product packaging, magazines and newspaper. In the advertising industry, an art director is responsible for generating visual concepts in response to clients’ briefs. This covers all media platforms, including digital communications, marketing materials, press advertising, television and video, logos and branding.
Often working in partnership with a copywriter who produces the written content, the art director will seek to influence changes in audience behaviour through ideas, creativity and the use of media.
Job scope of an art director:
1. working closely with the copywriter to generate creative ideas and concepts
2. producing sketches or drafts to communicate ideas to the client
3. gaining an understanding of the target audience
4. meeting with the creative director and account managers before presenting ideas to clients
5. Pitching ideas to clients
6. Briefing other members of the creative team
7. Commissioning photographers, artists or film-makers to work on projects
8. Visiting and assessing locations for potential shoots
9. Working on location
10. Attending meetings at production houses and with other directors
11. Working in editing suites
12. Advising new creatives
Moreover, Mr Vinod also explained about what is creative ideas.
A product proposition (USM/SMP) + Something unrelated = Creative ideas
Week 3
No lecture on this week.
Week 4
Lecture 4 : Creative and effective advertising message for a specific target audience.
What is creative?
Creativity is the act of turning new and imaginative ideas into reality. Creativity is characterised by the ability to perceive the world in new ways, to find hidden patterns, to make connections between seemingly unrelated phenomena, and to generate solutions. Creativity involves two processes: thinking, then producing. If you have ideas, but don’t act on them, you are imaginative but not creative.
Why do we create?
1. Need for novel, varied, and complex stimulation
2. Need to communicate ideas and values
3. Need to solve problems
What is creativity in the context of advertising?
1. Make a relevant connection between brand and its target audience.
2. Present a selling idea
3. Be unexpected
Market segmentation means developing products to meet the needs and wants of a particular market segment.
Market Segmentation:
1. Behavioristic Segmentation
2. Geographic Segmentation
3. Demographic Segmentation
4. Psychographic Segmentation
Lecture 5 : Advertising message and choice of media
Media refers to main means of mass communication. It is the communication channels through which news, entertainment, education, data, or promotional messages are disseminated. Media includes every broadcasting and narrowcasting medium such as newspapers, magazines, TV, radio, billboards, direct mail, telephone, fax, and internet.
To get the message in front of the people who will view or hear it receptively, we must go where we can reach our target audience. Once we know the demographics of our target population, choose an appropriate media and methods with proven appeal to that audience.
Advertising message & media strategy
Media strategy describes how advertisers will achieve the stated media objectives which media will be used, where, how often and when. Media strategy is a process of analyzing and choosing media for an advertising campaign. There are instances where the medium is the message, whereby the type of media chosen has a significant role in relaying the advertising message significantly.
The five M’s:
1. Market
2. Money - Based on intuition and budget size
3. Media - Don’t rely solely on one media
4. Mechanics - Planning out the mechanics is important
5. Methodology - The overall media strategy of selecting media channels
Week 5
Lecture 6 : Roles and Responsibilities of an Art Director File
Art directors are responsible for the visual style and images in magazines, newspapers, product packaging, and movie and television productions. They create the overall design and direct others who develop artwork or layouts.
Art directors work in a variety of industries, and the type of work they do varies by industry. However, almost all art directors set the overall artistic style and visual image to be created for each project, and oversee a staff of designers, artists, photographers, writers, or editors who are responsible for creating the individual works that collectively make up a completed product.
Ad design considerations
1. Make sure the idea is on strategy.
analyse the brief ( read the brief every week)
2. Set up cooperative action between words and image. Words and image are independent.
3. Determine specific relationship between words and image.
4. Check the quality of typography. It is important to come out with headines.
5. Apply all principles of design
6. Guide the viewer through the composition using arrangement
7. Ensure clarity of communication
Lecture 7 : Influence of social, cultural, economic ethical and political factors on/in advertising
“Advertising promotes choice, and simply reflects existing cultural values”
So advertising not only reflects culture it also promotes and normalizes what would be considered foreign cultures.
What is culture?
1. The ideas, customs, and social behaviour of a particular people or society
2. The arts and other manifestations of human intellectual achievement regarded collectively
How does politics influence advertising?
In most countries there is often a nemesis in the form of another country. In Malaysia, it is Singapore. In Japan its China. In India it is Pakistan.
How does economic influence advertising?
Economic factors always influence advertising as advertising cost money. The larger the pockets the larger the advertising campaign and the longer the duration of the campaign.
Ethics in advertising is a contentious issue. There are pertinent arguments on both sides of the divide.
Exercises
Exercise 1 (Week 1)
For the first exercise, Mr Vinod asked us to search for "D&AD New Blood Awards 2019" and get into the website. He asked us to sign up and download the briefs. After that, we have to read through, understand the brief and choose a brief that we wanted to do. After that, Mr Vinod told us to understand the brief and find out the keywords of the brief and roughly think about our ideas and draft and told him.
Exercise 2 - Decoding Exercise (Week 1)
For this exercise, Mr Vinod asked us to find a campaign advertising and list down their proposition, creative ideas, elements, strategies and target audiences.
Product's brand : Adidas
Messages : Encourage audience to buy original product instead of the fake product as the fake product is not good in quality and it will hurts the foot.
Proposition: Fake hurts real. Imitations are poorly made, giving you no protection.
Elements: The famous brand, Adidas's logo
Strategies: Fears, the images illustrate the damage that caused by the fakes product and eventually shows the three stripes which is pointing towards the adidas signature logo
Target Audience: Teenagers / Brand's enthusiast
Exercise 3 - Market Segmentation (Week 4)
For this exercise, we were separated into 4 groups and each of the group were give a different segmentation and we have to find and explain the definition of the topic given. For our group, we have to find the definition of psychographic segmentation.
Definition of psychographic segmentation:
Psychographic segmentation has been used in marketing research as a form of market segmentation which divides consumers into sub-groups based on shared psychological characteristics, including subconscious or conscious beliefs, motivations, and priorities to explain and predict consumer behavior. Psychographics is to look past who your customers are towards your company and see them as individual people living in the real world. By learning about their personality, lifestyle and social classes and how our brand fits into their personal life.
Project
For our project, in a group of two, we have to select a topic from the website called "D&AD New Blood Awards 2019". My teammate is Jane, after we read through all of the briefs, we selected Bacardi as our topic.
Project Brief
After reading through and understand the brief, we find out all the keywords and do some research on the brand and the campaign.
Research
About Bacardi
February 4, 1862. The Bacardí family, led by Don Facundo Bacardí Masso, buy a distillery in Santiago de Cuba. They throw away the rule book and make their own unique blends with a revolutionary rum-making process that would change the way rum was made forever.
Parent Company: Bacardi Limited
Category: Beverages
Sector: Food and beverages
Tagline/ Slogan: #Dowhatmovesyou
USP: The unique selling proposition for Bacardi is their mixable nature of rum. Bacardi is known for its premium mixable rum that influences cocktail making all around the world. The result is a light taste and balanced nature which sets a new standard for future rum production.
Positioning: Bacardi’s brand positioning is, first, defined by its target audience which are young professionals. Secondly, it is flexible as the ease of using the alcohol as a mixer to conjure different cocktails. For Bacardi rum, it is usually mixed to create different cocktails, including the legendary Mojito Cocktail, but it can also be taken neat.Bacardi is white in color and has a mild flavor, and both attributes contributes to Bacardi’s flexibility as a mixer.
POD: Bacardi is known to be flexible which able to be mixed with different mixers to concoct a good cocktail, moreover, with its mild flavour, this supports its performance as a mixer. Aside from the main attributes, on the level of benefits, Bacardi is able to highlight its tradition and reputation as a rum producer through awards and its years of history. This provides consumers reasons to believe.
Bacardi also has an extensive range of flavored-rum products to cater to different tastes and preferences, in an attempt to reach out to as many consumers as they can. This clearly sets Bacardi apart from its competitors, where line extension is rare or limited in the spirits category.
In addition, Bacardi is widely marketed as well, which further highlights its position in the market. This allows the benefits and attributes of Bacardi to be communicated to the public, thus creating greater awareness in its brand.
POP: Bacardi is able to set itself as leader in the rum industry, one that produces superior rum. This is due to the top-grade manufacturing. It is a good mixer, especially known to be one of the main ingredients in cocktails. For instance, rum and Coke is set to be a “Bacardi drink”, known as the Cuba Libre. In terms of competitive position-of-parity,this differentiates Bacardi from its competitors as a cocktail which is refreshing, and the number one choice as a mixer.
Bacardi's Logo: Bat
In Cuba, bats are considered lucky. When Doña Amalia Bacardí spotted fruit bats in the distillery, she insisted that a bat should appear on every bottle.
Location: Santiago de Cuba, Cuba (1862)
Bacardi drinks
Its light taste and unique balance meant that it could be mixed with light flavours such as mint and lime without dominating nor disappearing in them. The result was a new style of light, clean, crisp and refreshing cocktails such as the Original Mojito and Daiquirí.
About the campaign
Bacardi is taking a new creative direction with its largest-ever integrated campaign, which is themed around self-expression.
It launches in the UK this month with digital out-of-home ads placed in key cities and university campuses to reach the 18-25 age group. Bacardi is also teaming up with Spotify to make customised playlists this summer and collaborating with musicians such as Bugzy Malone, Stefflon Don and Giggs for videos representing the "sound of rum." Each artist will host a Casa Bacardi live show in their home cities of Manchester, Birmingham and London, followed by additional gigs by more artists during the autumn and early 2019. Later this year the brand will also advertise on TV for the first time since 2015. The campaign was created by Greg Farringdon and Julia Merino at Abbott Mead Vickers BBDO.
Campaign Hashtag: #DoWhatMovesYou
Keywords: summer, dance, freedom, self-expression, music, festival, fun, enjoyable, inspire
Target Audiences: 18-24 ages
How to inspire?
Bacardi gets people to dance, move, get inspired and share to bring people together
How to let people experience the brand?
1. Casa Bacardi - A bespoke tented performance and bar area. CASA BACARDÍ is a permanent brand home dedicated to the most Awarded Rum in the world, located in Sitges, the birth town of creator Don Facundo Bacardí Massó. A visitor center located 40 minutes from Barcelona, in the historical modernist building Mercat Vell (an old food market) constructed in 1890 by the architect Gaieta Buigas, in the old city center of Sitges on Plaça de L´Ajuntament 11. The CASA BACARDÍ Sitges experiences such as the Guided Discovery Tour and Mixology Masterclass are intended for the general public to enjoy as well as corporate employees and clientel.
2. Bacardi Rum Truck - A roving bar
Target Audiences
A target audience is the intended audience or readership of a publication, advertisement, or other message. In marketing and advertising, it is a particular group of consumers within the predetermined target market, identified as the targets or recipients for a particular advertisement or message.
In advertising, it's imperative to know who our "target audience" is, and how to reach them. In order to understand our target audiences, we decided to conduct a survey to our target audiences which are young generation with group ages 18 - 24. In our survey questionnaire, we included Demographic(Question 1, 2, 4, 5), Psychographic(Question 6, 7, 8, 9) Behavioural(Question 12) and Geographic(Question 3) based question in order to understand the target audiences in this 4 crucial aspects which is directly affecting the outcome of the project.
These are the PDF copy of the google form responses of the survey conducted:
Competitors
Competitors are person or entity which is a rival against another. In Advertising, a company in the same industry or a similar industry which offers a similar product or service. Competitive advertising is an effort by at least one company to create a contrast between its product and the same or similar product offerings by competitors. By establishing a contrast for the consumer and trying to influence the consumer's buying choice, this company hopes to obtain a larger market share.
It is important to understand who your competitors are, and what they are offering, can helps to make your products, services and advertising stand out.
Who are the competitors?
According to our research, we found that the biggest competitors of Bacardi are Diageo, Pernod- Ricard, Suntory, Remy Cointreau.
1. Diageo (1997)
The company Diageo was created in 1997 as the product of the merger of two well-established drinks companies – Guinness and Grand Metropolitan. Its name was conceived by branding consultancy Wolff Olins as a nod to the Latin words for “day” and “the world” to convey the idea that the company’s products bring joy everywhere, every day.
Diageo is the biggest producer of spirits globally, as well as a leading manufacturer of beers and wines. Its brands include some regulars in the average British drinks cabinet: Johnnie Walker, Smirnoff, Tanqueray, Guinness, Baileys, Bell’s and J&B, to name a few.
Diageo is famous for its relentlessly innovative culture, particularly when it comes to creative thinking in advertising and marketing, winning Campaign’s advertiser of the year accolade in 2014. One reason it received this award is that the company encourages experimentation, with new formats such as short films and more edgy, content-driven approaches, while also remaining faithful to the heritage of its brands. Guinness, in particular, has a long and celebrated tradition of boundary-pushing marketing.
SWOT analysis of Diageo
Strength
- A highly recognized brand which has a market presence in 180 countries.
- The world’s largest whiskey producer with almost 30 malt distilleries and two grain distilleries.
- Strong brand positioning has developed through global associations and tie ups.
- Presence across multiple price points and deal in various types of liquor like vodka, rum, whiskey and beer ensuring that they have something for all types of customers.
- Out of the world’s top 20 brands of spirits 8 brands are owned by Diageo. Some of these popular brands include Smirnoff Vodka, Johnnie Walker, Baileys, Guinness, Captain Morgan, Crown Royal etc.
Weakness
- High costs, challenges in managing costs since procurement of licenses, legal formalities as well as distribution demand high levels of investment from the company.
- Insufficient market resources in the wine’s portfolio of the brand comparatively to its spirit business.
Opportunity
- There is a growing awareness regarding various types of alcohol across the world and people are more aware of global brands and prefer to serve well-known brands of alcohol
Threats
- Laws and regulation can threaten the establishment and advertisement of the wine business.
- The customers of alcohol are concerned about the ill effects of consumption of the drink and this is likely to affect the sale of hard liquor in future.
2. Pernod- Ricard (1975)
Pernod-Ricard became the world's 2nd spirits and wine company behind Diageo in 2005, following completion of a takeover of larger rival Allied Domecq. It became bigger still three years later with the acquisition of Vin & Sprit, parent group to Absolut vodka and other brands.
Pernod Ricard launched the first TV campaign for the brand in seven years next week. The £1.2m campaign includes a 40-second ad, created by TBWA Dublin, that shows the story of a robbery in Johannesburg where only crates of Jameson. Based on a true story, the spot will be aired for the first time next Thursday (6 September) and will run for four weeks. The campaign is aimed at a younger male audience and will also comprise social media, online video and print advertising in The Metro. The campaign launch follows Pernod Ricard’s pledge to spend 50% more on its key brands in the run-up to Christmas.
SWOT analysis of Pernod- Ricard
Strength
- Pernod- Ricard was the 2nd biggest Spirits company in the world
- It was recognized as a brand-builder
- Most of Pernod Ricard’s marketing strategies are aimed at connecting to the customer in a way that is different from the competitor. The company has around 34 million followers on social media and more than 35 % of their advertisements happen in digital media.
Weakness
-Focus on premium liquors: In growing markets like India and China as well as in the US the company is harping on its premium liquor brands to give it profitability. However, the margins are low on these brands and the company will need to increase volumes for achieving the necessary profitability.
- Inability to target mass: Pernod Ricard is a seller of premium brands of alcohol.In countries like India where there is a growing market most of the volumes come from the sale of economy brands of alcohol and the masses are not willing to spend on premium brands. This will affect the future profitability of the businessU
- Unrealistic sales growth expectations: Pernod Ricard is focusing on accelerated sales growth in most of its markets. While in the USA the sale of its popular brand of Vodka Absolut has been on a steep decline, in China the slump has made people conscious about their spending and thus they are unwilling to spend on luxury brands of alcohol. This makes the sales growth dream an unrealistic one for Pernod Ricard.
Opportunity
- Great opportunity for the organization to grab a strong hold on the upcoming whole new generation of drinkers and get a virtual first mover advantage in emerging economies
Threats
- Consumer health concern (switching to non-alcoholic beverages).
- Laws and regulation can threaten the establishment and advertisement of the wine business.
3. Suntory (1899)
Suntory of Japan is best-known as a leading beverage producer, controlling an extensive collection of alcoholic and non-alcoholic beverages. The company first introduced whisky into Japan in the 1930s, and now controls some 70% of the huge domestic market, importing around 70 spirits as well as 1,500 wines from 21 countries.
In terms of marketing and promotion Suntory concentrated its huge marketing and advertising budget on wine, whisky, beer and soft drinks. The advertising and marketing campaigns for wine and whisky focused on the arts and culture since the 1920s when the Torii family began supporting educational and social welfare programs. As the years progressed, Suntory’s patronage came to encompass the full-fledged funding of the arts and literature and wildlife conservation.
Corporate identity is immersed in a potpourri of cultural activities and Suntory’s philosophical theme “Enjoyment of Daily Life,” together with its advertisements, cleverly exploited its corporate identity to promote its products.
SWOT analysis of Suntory
Strength
- Sound soft drinks business – Suntory has a strong position in the global soft drinks market despite the increasing profile of Chinese companies. The company is the largest Japanese soft drinks manufacturer.
- Established brand – the eponymous Suntory brand is a very valuable asset of the company as it is still Japan's second best-selling soft drinks brand, and in China, the brand’s market share is increasing year-on-year.
- Healthy external relationship – the company’s business relationships with PepsiCo, Nestlé and Unilever have helped it cushion the sluggish growth in soft drinks in the Japanese domestic market and increase its revenue streams.
- Asian expansion – further expansion China and Southeast Asia may help Suntory to increase its market shares in Asia-Pacific in the long term. The development of the RTD coffee business in the region is expected to bear fruit in the medium term.
- Proactive to market trends – Suntory is proactive in responding to consumer trends and this is reflected in the introduction of new products in dynamic sectors such as RTD tea and the direct importing of Nestlé’s water brands from France to Japan when imported water brands are becoming popular.
Weakness
- Reliance on domestic market – Suntory’s heavy reliance on the Japanese domestic market has made it susceptible to the sluggish growth of the country’s soft drinks business.
- Heavyweight business relationship with PepsiCo – some reliance on Pepsi bottling business makes Suntory vulnerable to any decline in PepsiCo’s global soft drinks business.
Opportunity
- Imported water brands – imported bottled water is becoming increasingly popular in Japan and with imported brands also growing in popularity, the company's agreements to import and distribute Nestlé’s brands should prove a positive move in the short to medium term.
- Online retailing – the growing popularity of online shops can be used to leverage the intense competition in the regular retail channels.
- Stronger relationship – the strengthened alliance with PepsiCo in Southeast Asia will help Suntory to be a more serious player across the region.
- Acquisitions – over the past six months, Suntory has made a few acquisitions, showing that the Japanese player is becoming bolder in terms of acquisition particularly for expanding overseas business and domestic channel development.
Threats
- Increases in marketing spending to maintain interests – Japanese consumers are characterised by short interest in certain products, and the constant need to launch new products could be a costly business, potentially affecting margins.
- Company brands to be under pressure – increased selling of imported brands increases the revenue stream, but Suntory’s own water brands could potentially be pressured.
- Rising input costs – high commodity prices and energy costs will increase significantly the production costs and put margins constantly under pressure.
4. Remy Cointreau
Remy Cointreau is France's third largest spirits business (behind Pernod-Ricard and LVMH). It controls a small selection of prestigious brands of which the best-known are Remy Martin cognac and Cointreau liqueur. Despite its well-respected portfolio, Remy Cointreau is something of a minnow in the fast-consolidating global drinks industry. Its departure in 2009 from Maxxium, a worldwide distribution joint venture with three other partners, led to widespread speculation that the company was preparing the ground for merger with another group.
The first global campaign of Remy Cointreau Launched in the UK in 2105, the campaign’s slogan ‘One Life/Live Them’ aims to highlight that today’s consumers are not defined by one talent or skill and should be applauded for their many passions. These multi-talented millennials are labelled by the brand as “the slash generation”.
The campaign includes a 60 second ad featuring US actor Jeremy Renner, who also claims to be a producer, singer and renovator. It will include a print and OOH campaign, digital display, as well as behind the scenes footage that will be promoted on the brand’s social media channels. The brand is launching an ad in China under the same umbrella, featuring actor Huang Xiaoming, in a bid to appeal to the Asian market.
SWOT analysis of Remy Cointreau
Strength
- First mover advantage in the increasingly crowded market place. The new products are rapidly increasing Remy Cointreau market share in the Beverages (Alcoholic) industry.
- Remy Cointreau has a strong market leadership position in the Beverages (Alcoholic) industry. It has helped the company to rapidly scale new products successes.
- A wide geographical presence - Remy Cointreau has extensive dealer network and associates network that not only help in delivering efficient services to the customers but also help in managing competitive challenges in Beverages (Alcoholic) industry.
- Talent management at Remy Cointreau and skill development of the employees - Human resources are integral to the success of Remy Cointreau in Beverages (Alcoholic) industry.
- Brands catering to different customers segments within Beverages (Alcoholic) segment - Remy Cointreau extensive product offerings have helped the company to penetrate different customer segments in Beverages (Alcoholic) segment. It has also helped the organization to diversify revenue streams.
Weakness
- Business Model of Remy Cointreau can be easily imitated by the competitors in the industryname industry. To overcome these challenges companyname needs to build a platform model that can integrate suppliers, vendors and end users.
- Low investments into Remy Cointreau's customer oriented services - This can lead to competitors gaining advantage in near future. Remy Cointreau needs to increase investment into research and development especially in customer services oriented applications.
- Loyalty among suppliers is low - Given the history of Remy Cointreau coming up with new innovations to drive down prices in the supply chain.
Opportunity
- Trend of customers migrating to higher end products - It represents great opportunity for Remy Cointreau, as the firm has strong brand recognition in the premium segment, customers have experience with excellent customer services provided by Remy Cointreau brands in the lower segment. It can be a win-win for the company and provides an opportunity to increase the profitability.
- Opportunities in Online Space - Increasing adoption of online services by customers will also enable Remy Cointreau to provide new offerings to the customers in Beverages (Alcoholic) industry.
- Accelerated technological innovations and advances are improving industrial productivity, allowing suppliers to manufacture vast array of products and services. This can help Remy Cointreau to significantly venture into adjacent products.
- Increasing customer base in lower segments - As customers have to migrate from un-organized operators in the Consumer/Non-Cyclical industry to licensed players. It will provide Remy Cointreau an opportunity to penetrate entry level market with a no-frill offering.
Threats
- Saturation in urban market and stagnation in the rural markets - For Remy Cointreau this trend is an ongoing challenge in the Beverages (Alcoholic) segment. One of the reasons is that the adoption of products is slow in rural market. Secondly it is more costly for Remy Cointreau to serve the rural customers than urban customers given the vast distances and lack of infrastructure.
- Competitive pressures - As the new product launch cycles are reducing in the Consumer/Non-Cyclical industry. It has put additional competitive pressures on players such as Remy Cointreau. Given the large customer base, Remy Cointreau can't respond quickly to the needs of the niche markets that disruptors are focusing on.
- Changing demographics - As the babyboomers are retiring and new generation finding hard to replace their purchasing power. This can lead to higher profits in the short run for Remy Cointreau but reducing margins over the long run as young people are less brand loyal and more open to experimentation.
Media Choice
To get the message in front of the people who will view or hear it receptively, it is important to understand and know where the message can reach the target audience. To ensure the message is reachable, it is important to choose an appropriate media and methods with proven appeal to that target audience.
From the survey conducted, we found that 62.5% of the young generation (group age 18-24) preferred a short video ad as the media choice for liquor advertising.
According to the research done, majority of younger generations use social media regularly, studies have shown that social media ads can be seen as intrusive and may prove ineffective for that reason. In the recently released Social Media Use In 2018 report, Pew Internet found, that among 18-24 year olds, 94% use YouTube, 78% use Snapchat, with 82% of these users visiting the platform daily, 71% use Instagram, with 81% of these users visiting the platform daily while 45% are Twitter users. The video-sharing site YouTube which contains many social elements, even if it is not a traditional social media platform is now used by nearly three-quarters of adults and 94% of 18- to 24-year-olds. Thus, we decided to choose a short video ad as our media choice to convey the message.
Ideas
Mind map & Sketches
After consultation with Mr Vinod, Mr Vinod said that we were too focusing on the brand and the Bacardi drinks. Mr Vinod said that we should focus more on the campaign instead of the drinks. He suggested that we can combine the ideas of a cool lifestyle with something meaningful. He also said that we should produce a video ads instead of a poster as video can capture more feeling and passion than a photo.
First Attempt
Final Video Ads
Presentation Slides
References
BACARDÍ Dance Floor
BACARDÍ presents: What Moves Bugzy Malone
Feedback
Week 1
In the first class, we have told Mr. Vinod our ideas after reading the brief. Mr. Vinod said that our initial idea(mix of cultures from all aroung the world) was good but still need to do more research to know more about Bacardi branding strategy. Mr. Vinod looks through our first ideation in google drive and commented that we need something that can "pop" and be unexpected to the audience instead of a typical fun loving liquor ad.
Week 4
After showing more our sketches to Mr Vinod, Mr Vinod said that we were too focusing on the Bacardi drinks bottle. He suggested us to focus more on the #DoWhatMovesYou campaign and come out with something that combine a cool lifestyle and something meaningful. He also suggested us to shoot a video ad instead of a poster ad as it is able to capture the motion that brings out the feels of the moment. Mr. Vinod commented that we need to sketch more LGBTQ+ concept to tie up to the quote "Do What Moves You" and present a rough idea to him.
Week 5
During Week 5, we show Mr. Vinod our video idea sketches and LGBTQ+ sketches. Mr. Vinod said that the idea was okay and told us to proceed to execute our outcome to test if it works. Mr Vinod told us that we have to choose our actor or actress carefully and they need to be dressed appropriately to fit the theme that we want to bring out.
Week 6
Mr. Vinod commented that we need to put in more effort into our final outcome as the visual element is not strong enough. He mentions that the music does not really work. The cinematography is weak. the video has only one shot no angles. And the video ends rather abruptly.
Reflections
Lectures
Week 1
Lecture 1 : What is Advertising?
For the first class of this module, Mr Vinod gave us an introduction of this module. He brief us on our project and exercises that we need to done throughout the whole semester. After that, he gave us the first lecture.
First, Mr Vinod asked us the meaning of advertising. He told us to break the words in a long sentences to understand the meaning of it. What is Advertising? Advertising is a means of communication with the users of a product or service. Advertisements are messages paid for by those who send them and are intended to inform or influence people who receive them. Advertising uses every possible media to get its message through.
The purpose of advertising is to:
- Make customers aware of a product or service
- Convince or persuade customers that a product or service is right for their needs
- Announce new products or services
- Create a desire for a product or service
- Enhance the image of your company
10 Principles Of Advertising by Bill Bernbach
1. Go to the essence of the product.
2. Make your product an actor in the scene; not just a prop.
3. Art and copy must be fully integrated.
4. Advertising must have vitality.
5. It is little less than useless to employ a so-called gimmick in advertising unless the gimmick itself tells the product story.
6. Tell the truth. If the product is good, tell the truth; if the product is not really good, don't tell the negative and enhance the good of the product.
7. Be relevant.
8. Be simple.
9. Safe ideas can kill you.
10. Stand out.
Lecture 2 : Advertising and Marketing
For today's lecture, Mr Vinod explained about the relationship between advertising and marketing. Advertising is only one component of the overall marketing process. Advertising is that part of marketing that involves directly getting the word out about business, product, or service to those who want to reach most.
Marketing originates from the Latin words; Mercari and Marcatus, which means “buy or trade”. “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Advertising is but one component of the marketing process. Therefore marketing is “the management process through which goods and services move from concept to the customer.
Advertising practices in support of marketing
1. Understanding the target audience
2. The planning process
3. The creative process
4. Reaching the target audience
5. Integrated marketing communications
4 P's of marketing :
1. Identification, selection and development of a product
2. Determination of its price
3. Selection of a distribution channel to reach the customer's place
4. Development and implementation of a promotional strategy.
Week 2
Lecture 3 : Roles and function of an art director
Art director is someone who is responsible for the visual style and images of a product packaging, magazines and newspaper. In the advertising industry, an art director is responsible for generating visual concepts in response to clients’ briefs. This covers all media platforms, including digital communications, marketing materials, press advertising, television and video, logos and branding.
Often working in partnership with a copywriter who produces the written content, the art director will seek to influence changes in audience behaviour through ideas, creativity and the use of media.
Job scope of an art director:
1. working closely with the copywriter to generate creative ideas and concepts
2. producing sketches or drafts to communicate ideas to the client
3. gaining an understanding of the target audience
4. meeting with the creative director and account managers before presenting ideas to clients
5. Pitching ideas to clients
6. Briefing other members of the creative team
7. Commissioning photographers, artists or film-makers to work on projects
8. Visiting and assessing locations for potential shoots
9. Working on location
10. Attending meetings at production houses and with other directors
11. Working in editing suites
12. Advising new creatives
Moreover, Mr Vinod also explained about what is creative ideas.
A product proposition (USM/SMP) + Something unrelated = Creative ideas
Week 3
No lecture on this week.
Week 4
Lecture 4 : Creative and effective advertising message for a specific target audience.
What is creative?
Creativity is the act of turning new and imaginative ideas into reality. Creativity is characterised by the ability to perceive the world in new ways, to find hidden patterns, to make connections between seemingly unrelated phenomena, and to generate solutions. Creativity involves two processes: thinking, then producing. If you have ideas, but don’t act on them, you are imaginative but not creative.
Why do we create?
1. Need for novel, varied, and complex stimulation
2. Need to communicate ideas and values
3. Need to solve problems
What is creativity in the context of advertising?
1. Make a relevant connection between brand and its target audience.
2. Present a selling idea
3. Be unexpected
Market segmentation means developing products to meet the needs and wants of a particular market segment.
Market Segmentation:
1. Behavioristic Segmentation
2. Geographic Segmentation
3. Demographic Segmentation
4. Psychographic Segmentation
Lecture 5 : Advertising message and choice of media
Media refers to main means of mass communication. It is the communication channels through which news, entertainment, education, data, or promotional messages are disseminated. Media includes every broadcasting and narrowcasting medium such as newspapers, magazines, TV, radio, billboards, direct mail, telephone, fax, and internet.
To get the message in front of the people who will view or hear it receptively, we must go where we can reach our target audience. Once we know the demographics of our target population, choose an appropriate media and methods with proven appeal to that audience.
Advertising message & media strategy
Media strategy describes how advertisers will achieve the stated media objectives which media will be used, where, how often and when. Media strategy is a process of analyzing and choosing media for an advertising campaign. There are instances where the medium is the message, whereby the type of media chosen has a significant role in relaying the advertising message significantly.
The five M’s:
1. Market
2. Money - Based on intuition and budget size
3. Media - Don’t rely solely on one media
4. Mechanics - Planning out the mechanics is important
5. Methodology - The overall media strategy of selecting media channels
Week 5
Lecture 6 : Roles and Responsibilities of an Art Director File
Art directors are responsible for the visual style and images in magazines, newspapers, product packaging, and movie and television productions. They create the overall design and direct others who develop artwork or layouts.
Art directors work in a variety of industries, and the type of work they do varies by industry. However, almost all art directors set the overall artistic style and visual image to be created for each project, and oversee a staff of designers, artists, photographers, writers, or editors who are responsible for creating the individual works that collectively make up a completed product.
Ad design considerations
1. Make sure the idea is on strategy.
analyse the brief ( read the brief every week)
2. Set up cooperative action between words and image. Words and image are independent.
3. Determine specific relationship between words and image.
4. Check the quality of typography. It is important to come out with headines.
5. Apply all principles of design
6. Guide the viewer through the composition using arrangement
7. Ensure clarity of communication
Lecture 7 : Influence of social, cultural, economic ethical and political factors on/in advertising
“Advertising promotes choice, and simply reflects existing cultural values”
So advertising not only reflects culture it also promotes and normalizes what would be considered foreign cultures.
What is culture?
1. The ideas, customs, and social behaviour of a particular people or society
2. The arts and other manifestations of human intellectual achievement regarded collectively
How does politics influence advertising?
In most countries there is often a nemesis in the form of another country. In Malaysia, it is Singapore. In Japan its China. In India it is Pakistan.
Malaysian advertising code has strong control exerted from the Malaysian Ministry of Information, an important and key enabler of the Malaysian policy of ensuring that information is closely controlled, especially that which could endanger the government's own social engineering.
How does economic influence advertising?
Economic factors always influence advertising as advertising cost money. The larger the pockets the larger the advertising campaign and the longer the duration of the campaign.
Ethics in advertising is a contentious issue. There are pertinent arguments on both sides of the divide.
Exercises
Exercise 1 (Week 1)
For the first exercise, Mr Vinod asked us to search for "D&AD New Blood Awards 2019" and get into the website. He asked us to sign up and download the briefs. After that, we have to read through, understand the brief and choose a brief that we wanted to do. After that, Mr Vinod told us to understand the brief and find out the keywords of the brief and roughly think about our ideas and draft and told him.
Exercise 2 - Decoding Exercise (Week 1)
For this exercise, Mr Vinod asked us to find a campaign advertising and list down their proposition, creative ideas, elements, strategies and target audiences.
Product's brand : Adidas
Messages : Encourage audience to buy original product instead of the fake product as the fake product is not good in quality and it will hurts the foot.
Proposition: Fake hurts real. Imitations are poorly made, giving you no protection.
Elements: The famous brand, Adidas's logo
Strategies: Fears, the images illustrate the damage that caused by the fakes product and eventually shows the three stripes which is pointing towards the adidas signature logo
Target Audience: Teenagers / Brand's enthusiast
Exercise 3 - Market Segmentation (Week 4)
For this exercise, we were separated into 4 groups and each of the group were give a different segmentation and we have to find and explain the definition of the topic given. For our group, we have to find the definition of psychographic segmentation.
Definition of psychographic segmentation:
Psychographic segmentation has been used in marketing research as a form of market segmentation which divides consumers into sub-groups based on shared psychological characteristics, including subconscious or conscious beliefs, motivations, and priorities to explain and predict consumer behavior. Psychographics is to look past who your customers are towards your company and see them as individual people living in the real world. By learning about their personality, lifestyle and social classes and how our brand fits into their personal life.
Project
For our project, in a group of two, we have to select a topic from the website called "D&AD New Blood Awards 2019". My teammate is Jane, after we read through all of the briefs, we selected Bacardi as our topic.
Project Brief
After reading through and understand the brief, we find out all the keywords and do some research on the brand and the campaign.
Research
About Bacardi
February 4, 1862. The Bacardí family, led by Don Facundo Bacardí Masso, buy a distillery in Santiago de Cuba. They throw away the rule book and make their own unique blends with a revolutionary rum-making process that would change the way rum was made forever.
Parent Company: Bacardi Limited
Category: Beverages
Sector: Food and beverages
Tagline/ Slogan: #Dowhatmovesyou
USP: The unique selling proposition for Bacardi is their mixable nature of rum. Bacardi is known for its premium mixable rum that influences cocktail making all around the world. The result is a light taste and balanced nature which sets a new standard for future rum production.
Positioning: Bacardi’s brand positioning is, first, defined by its target audience which are young professionals. Secondly, it is flexible as the ease of using the alcohol as a mixer to conjure different cocktails. For Bacardi rum, it is usually mixed to create different cocktails, including the legendary Mojito Cocktail, but it can also be taken neat.Bacardi is white in color and has a mild flavor, and both attributes contributes to Bacardi’s flexibility as a mixer.
POD: Bacardi is known to be flexible which able to be mixed with different mixers to concoct a good cocktail, moreover, with its mild flavour, this supports its performance as a mixer. Aside from the main attributes, on the level of benefits, Bacardi is able to highlight its tradition and reputation as a rum producer through awards and its years of history. This provides consumers reasons to believe.
Bacardi also has an extensive range of flavored-rum products to cater to different tastes and preferences, in an attempt to reach out to as many consumers as they can. This clearly sets Bacardi apart from its competitors, where line extension is rare or limited in the spirits category.
In addition, Bacardi is widely marketed as well, which further highlights its position in the market. This allows the benefits and attributes of Bacardi to be communicated to the public, thus creating greater awareness in its brand.
POP: Bacardi is able to set itself as leader in the rum industry, one that produces superior rum. This is due to the top-grade manufacturing. It is a good mixer, especially known to be one of the main ingredients in cocktails. For instance, rum and Coke is set to be a “Bacardi drink”, known as the Cuba Libre. In terms of competitive position-of-parity,this differentiates Bacardi from its competitors as a cocktail which is refreshing, and the number one choice as a mixer.
SWOT analysis of Bacardi
Strength
1. Bacardi has more than 200 brands and labels under its portfolio. Some of the most popular brands are Bacardi rum, Dewar’s scotch, Grey goose vodka, Sapphire gin etc. Bacardi rum is the world’s most selling rum, Dewar’s Scotch is world’s most awarded whisky. With so many strong brands under its kitty, Bacardi has a very loyal customer base.
2. Bacardi has a very strong global presence with operations in over 150 markets in the world. The company’s primary markets are US, Canada, France, Germany, Italy, China and India. The company’s strong presence allows it has widespread sources of revenue catering to a various segment of customers in the world.
3. Bacardi possesses robust manufacturing facilities with over 27 production facilities in 17 countries which include Scotland, Italy, France, Germany etc. The strong manufacturing facilities allow the company to maintain control as well as respond quickly to demand.
Weakness
1. Bacardi does not have the scalability quotient to fight large players which dominate the market. Pernod Ricard and Diageo are more than double the size of Bacardi.
2. Bacardi being a family owned company does not have the capital resources to fight out price wars if and when occurs. The larger players in the industry who are Bacardi’s prime competitors like Diageo, Pernod Ricord and Remy Cointreau are capital-rich company and can sustain in the market with low margins for a longer period.
3. All products of Bacardi are restricted being alcohol products. So it is altogether missing in regions where Alcohol is banned causing a loss of market potential.
Opportunity
1. The global spirits market is expected to reach $388340 million in 2018 with an increase of about 22.9% in the previous five years. A growing spirits market provides an opportunity for Bacardi to increase its sales and introduce new products in the market.
2. Bacardi’s focus has been on building a strong portfolio of innovative products through strategic acquisitions. Bacardi has been successfully acquired Banks rum, Leblon Holdings and Angel’s Share brands. These acquisitions allow Bacardi to strengthen its variety of offering which helps in boosting the top line of the company.
Threats
1. Strict Governmental regulations on taxes as well as advertising and branding can affect Bacardi’s sales. For Instance, GST bill in India has levied a sin tax on alcohol increasing the effective price of alcoholic drinks. Such moves can be a threat to the business.
2. The wine industry is extremely competitive and the larger players are trying to buy out smaller brands to expand market share as well as increase their footprint in the world. Bacardi is against various large brands and hence any unpredictable action by the larger brands can affect Bacardi’s sales.
3. There is an increasing awareness amongst people especially the youth in being health conscious which could directly affect the sales of alcoholic drinks.
In Cuba, bats are considered lucky. When Doña Amalia Bacardí spotted fruit bats in the distillery, she insisted that a bat should appear on every bottle.
Location: Santiago de Cuba, Cuba (1862)
Bacardi drinks
Its light taste and unique balance meant that it could be mixed with light flavours such as mint and lime without dominating nor disappearing in them. The result was a new style of light, clean, crisp and refreshing cocktails such as the Original Mojito and Daiquirí.
About the campaign
Bacardi is taking a new creative direction with its largest-ever integrated campaign, which is themed around self-expression.
It launches in the UK this month with digital out-of-home ads placed in key cities and university campuses to reach the 18-25 age group. Bacardi is also teaming up with Spotify to make customised playlists this summer and collaborating with musicians such as Bugzy Malone, Stefflon Don and Giggs for videos representing the "sound of rum." Each artist will host a Casa Bacardi live show in their home cities of Manchester, Birmingham and London, followed by additional gigs by more artists during the autumn and early 2019. Later this year the brand will also advertise on TV for the first time since 2015. The campaign was created by Greg Farringdon and Julia Merino at Abbott Mead Vickers BBDO.
Campaign Hashtag: #DoWhatMovesYou
Keywords: summer, dance, freedom, self-expression, music, festival, fun, enjoyable, inspire
Target Audiences: 18-24 ages
How to inspire?
Bacardi gets people to dance, move, get inspired and share to bring people together
How to let people experience the brand?
1. Casa Bacardi - A bespoke tented performance and bar area. CASA BACARDÍ is a permanent brand home dedicated to the most Awarded Rum in the world, located in Sitges, the birth town of creator Don Facundo Bacardí Massó. A visitor center located 40 minutes from Barcelona, in the historical modernist building Mercat Vell (an old food market) constructed in 1890 by the architect Gaieta Buigas, in the old city center of Sitges on Plaça de L´Ajuntament 11. The CASA BACARDÍ Sitges experiences such as the Guided Discovery Tour and Mixology Masterclass are intended for the general public to enjoy as well as corporate employees and clientel.
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| Casa Bacardi |
2. Bacardi Rum Truck - A roving bar
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| Bacardi Rum Truck |
Target Audiences
A target audience is the intended audience or readership of a publication, advertisement, or other message. In marketing and advertising, it is a particular group of consumers within the predetermined target market, identified as the targets or recipients for a particular advertisement or message.
In advertising, it's imperative to know who our "target audience" is, and how to reach them. In order to understand our target audiences, we decided to conduct a survey to our target audiences which are young generation with group ages 18 - 24. In our survey questionnaire, we included Demographic(Question 1, 2, 4, 5), Psychographic(Question 6, 7, 8, 9) Behavioural(Question 12) and Geographic(Question 3) based question in order to understand the target audiences in this 4 crucial aspects which is directly affecting the outcome of the project.
These are the PDF copy of the google form responses of the survey conducted:
Competitors
Competitors are person or entity which is a rival against another. In Advertising, a company in the same industry or a similar industry which offers a similar product or service. Competitive advertising is an effort by at least one company to create a contrast between its product and the same or similar product offerings by competitors. By establishing a contrast for the consumer and trying to influence the consumer's buying choice, this company hopes to obtain a larger market share.
It is important to understand who your competitors are, and what they are offering, can helps to make your products, services and advertising stand out.
Who are the competitors?
According to our research, we found that the biggest competitors of Bacardi are Diageo, Pernod- Ricard, Suntory, Remy Cointreau.
1. Diageo (1997)
The company Diageo was created in 1997 as the product of the merger of two well-established drinks companies – Guinness and Grand Metropolitan. Its name was conceived by branding consultancy Wolff Olins as a nod to the Latin words for “day” and “the world” to convey the idea that the company’s products bring joy everywhere, every day.
Diageo is the biggest producer of spirits globally, as well as a leading manufacturer of beers and wines. Its brands include some regulars in the average British drinks cabinet: Johnnie Walker, Smirnoff, Tanqueray, Guinness, Baileys, Bell’s and J&B, to name a few.
Diageo is famous for its relentlessly innovative culture, particularly when it comes to creative thinking in advertising and marketing, winning Campaign’s advertiser of the year accolade in 2014. One reason it received this award is that the company encourages experimentation, with new formats such as short films and more edgy, content-driven approaches, while also remaining faithful to the heritage of its brands. Guinness, in particular, has a long and celebrated tradition of boundary-pushing marketing.
Strength
- A highly recognized brand which has a market presence in 180 countries.
- The world’s largest whiskey producer with almost 30 malt distilleries and two grain distilleries.
- Strong brand positioning has developed through global associations and tie ups.
- Presence across multiple price points and deal in various types of liquor like vodka, rum, whiskey and beer ensuring that they have something for all types of customers.
- Out of the world’s top 20 brands of spirits 8 brands are owned by Diageo. Some of these popular brands include Smirnoff Vodka, Johnnie Walker, Baileys, Guinness, Captain Morgan, Crown Royal etc.
Weakness
- High costs, challenges in managing costs since procurement of licenses, legal formalities as well as distribution demand high levels of investment from the company.
- Insufficient market resources in the wine’s portfolio of the brand comparatively to its spirit business.
Opportunity
- There is a growing awareness regarding various types of alcohol across the world and people are more aware of global brands and prefer to serve well-known brands of alcohol
Threats
- Laws and regulation can threaten the establishment and advertisement of the wine business.
- The customers of alcohol are concerned about the ill effects of consumption of the drink and this is likely to affect the sale of hard liquor in future.
2. Pernod- Ricard (1975)
Pernod-Ricard became the world's 2nd spirits and wine company behind Diageo in 2005, following completion of a takeover of larger rival Allied Domecq. It became bigger still three years later with the acquisition of Vin & Sprit, parent group to Absolut vodka and other brands.
Pernod Ricard launched the first TV campaign for the brand in seven years next week. The £1.2m campaign includes a 40-second ad, created by TBWA Dublin, that shows the story of a robbery in Johannesburg where only crates of Jameson. Based on a true story, the spot will be aired for the first time next Thursday (6 September) and will run for four weeks. The campaign is aimed at a younger male audience and will also comprise social media, online video and print advertising in The Metro. The campaign launch follows Pernod Ricard’s pledge to spend 50% more on its key brands in the run-up to Christmas.
SWOT analysis of Pernod- Ricard
Strength
- Pernod- Ricard was the 2nd biggest Spirits company in the world
- It was recognized as a brand-builder
- Most of Pernod Ricard’s marketing strategies are aimed at connecting to the customer in a way that is different from the competitor. The company has around 34 million followers on social media and more than 35 % of their advertisements happen in digital media.
Weakness
-Focus on premium liquors: In growing markets like India and China as well as in the US the company is harping on its premium liquor brands to give it profitability. However, the margins are low on these brands and the company will need to increase volumes for achieving the necessary profitability.
- Inability to target mass: Pernod Ricard is a seller of premium brands of alcohol.In countries like India where there is a growing market most of the volumes come from the sale of economy brands of alcohol and the masses are not willing to spend on premium brands. This will affect the future profitability of the businessU
- Unrealistic sales growth expectations: Pernod Ricard is focusing on accelerated sales growth in most of its markets. While in the USA the sale of its popular brand of Vodka Absolut has been on a steep decline, in China the slump has made people conscious about their spending and thus they are unwilling to spend on luxury brands of alcohol. This makes the sales growth dream an unrealistic one for Pernod Ricard.
Opportunity
- Great opportunity for the organization to grab a strong hold on the upcoming whole new generation of drinkers and get a virtual first mover advantage in emerging economies
Threats
- Consumer health concern (switching to non-alcoholic beverages).
- Laws and regulation can threaten the establishment and advertisement of the wine business.
3. Suntory (1899)
Suntory of Japan is best-known as a leading beverage producer, controlling an extensive collection of alcoholic and non-alcoholic beverages. The company first introduced whisky into Japan in the 1930s, and now controls some 70% of the huge domestic market, importing around 70 spirits as well as 1,500 wines from 21 countries.
In terms of marketing and promotion Suntory concentrated its huge marketing and advertising budget on wine, whisky, beer and soft drinks. The advertising and marketing campaigns for wine and whisky focused on the arts and culture since the 1920s when the Torii family began supporting educational and social welfare programs. As the years progressed, Suntory’s patronage came to encompass the full-fledged funding of the arts and literature and wildlife conservation.
Corporate identity is immersed in a potpourri of cultural activities and Suntory’s philosophical theme “Enjoyment of Daily Life,” together with its advertisements, cleverly exploited its corporate identity to promote its products.
SWOT analysis of Suntory
Strength
- Sound soft drinks business – Suntory has a strong position in the global soft drinks market despite the increasing profile of Chinese companies. The company is the largest Japanese soft drinks manufacturer.
- Established brand – the eponymous Suntory brand is a very valuable asset of the company as it is still Japan's second best-selling soft drinks brand, and in China, the brand’s market share is increasing year-on-year.
- Healthy external relationship – the company’s business relationships with PepsiCo, Nestlé and Unilever have helped it cushion the sluggish growth in soft drinks in the Japanese domestic market and increase its revenue streams.
- Asian expansion – further expansion China and Southeast Asia may help Suntory to increase its market shares in Asia-Pacific in the long term. The development of the RTD coffee business in the region is expected to bear fruit in the medium term.
- Proactive to market trends – Suntory is proactive in responding to consumer trends and this is reflected in the introduction of new products in dynamic sectors such as RTD tea and the direct importing of Nestlé’s water brands from France to Japan when imported water brands are becoming popular.
Weakness
- Reliance on domestic market – Suntory’s heavy reliance on the Japanese domestic market has made it susceptible to the sluggish growth of the country’s soft drinks business.
- Heavyweight business relationship with PepsiCo – some reliance on Pepsi bottling business makes Suntory vulnerable to any decline in PepsiCo’s global soft drinks business.
Opportunity
- Imported water brands – imported bottled water is becoming increasingly popular in Japan and with imported brands also growing in popularity, the company's agreements to import and distribute Nestlé’s brands should prove a positive move in the short to medium term.
- Online retailing – the growing popularity of online shops can be used to leverage the intense competition in the regular retail channels.
- Stronger relationship – the strengthened alliance with PepsiCo in Southeast Asia will help Suntory to be a more serious player across the region.
- Acquisitions – over the past six months, Suntory has made a few acquisitions, showing that the Japanese player is becoming bolder in terms of acquisition particularly for expanding overseas business and domestic channel development.
Threats
- Increases in marketing spending to maintain interests – Japanese consumers are characterised by short interest in certain products, and the constant need to launch new products could be a costly business, potentially affecting margins.
- Company brands to be under pressure – increased selling of imported brands increases the revenue stream, but Suntory’s own water brands could potentially be pressured.
- Rising input costs – high commodity prices and energy costs will increase significantly the production costs and put margins constantly under pressure.
4. Remy Cointreau
Remy Cointreau is France's third largest spirits business (behind Pernod-Ricard and LVMH). It controls a small selection of prestigious brands of which the best-known are Remy Martin cognac and Cointreau liqueur. Despite its well-respected portfolio, Remy Cointreau is something of a minnow in the fast-consolidating global drinks industry. Its departure in 2009 from Maxxium, a worldwide distribution joint venture with three other partners, led to widespread speculation that the company was preparing the ground for merger with another group.
The first global campaign of Remy Cointreau Launched in the UK in 2105, the campaign’s slogan ‘One Life/Live Them’ aims to highlight that today’s consumers are not defined by one talent or skill and should be applauded for their many passions. These multi-talented millennials are labelled by the brand as “the slash generation”.
The campaign includes a 60 second ad featuring US actor Jeremy Renner, who also claims to be a producer, singer and renovator. It will include a print and OOH campaign, digital display, as well as behind the scenes footage that will be promoted on the brand’s social media channels. The brand is launching an ad in China under the same umbrella, featuring actor Huang Xiaoming, in a bid to appeal to the Asian market.
SWOT analysis of Remy Cointreau
Strength
- First mover advantage in the increasingly crowded market place. The new products are rapidly increasing Remy Cointreau market share in the Beverages (Alcoholic) industry.
- Remy Cointreau has a strong market leadership position in the Beverages (Alcoholic) industry. It has helped the company to rapidly scale new products successes.
- A wide geographical presence - Remy Cointreau has extensive dealer network and associates network that not only help in delivering efficient services to the customers but also help in managing competitive challenges in Beverages (Alcoholic) industry.
- Talent management at Remy Cointreau and skill development of the employees - Human resources are integral to the success of Remy Cointreau in Beverages (Alcoholic) industry.
- Brands catering to different customers segments within Beverages (Alcoholic) segment - Remy Cointreau extensive product offerings have helped the company to penetrate different customer segments in Beverages (Alcoholic) segment. It has also helped the organization to diversify revenue streams.
Weakness
- Business Model of Remy Cointreau can be easily imitated by the competitors in the industryname industry. To overcome these challenges companyname needs to build a platform model that can integrate suppliers, vendors and end users.
- Low investments into Remy Cointreau's customer oriented services - This can lead to competitors gaining advantage in near future. Remy Cointreau needs to increase investment into research and development especially in customer services oriented applications.
- Loyalty among suppliers is low - Given the history of Remy Cointreau coming up with new innovations to drive down prices in the supply chain.
Opportunity
- Trend of customers migrating to higher end products - It represents great opportunity for Remy Cointreau, as the firm has strong brand recognition in the premium segment, customers have experience with excellent customer services provided by Remy Cointreau brands in the lower segment. It can be a win-win for the company and provides an opportunity to increase the profitability.
- Opportunities in Online Space - Increasing adoption of online services by customers will also enable Remy Cointreau to provide new offerings to the customers in Beverages (Alcoholic) industry.
- Accelerated technological innovations and advances are improving industrial productivity, allowing suppliers to manufacture vast array of products and services. This can help Remy Cointreau to significantly venture into adjacent products.
- Increasing customer base in lower segments - As customers have to migrate from un-organized operators in the Consumer/Non-Cyclical industry to licensed players. It will provide Remy Cointreau an opportunity to penetrate entry level market with a no-frill offering.
Threats
- Saturation in urban market and stagnation in the rural markets - For Remy Cointreau this trend is an ongoing challenge in the Beverages (Alcoholic) segment. One of the reasons is that the adoption of products is slow in rural market. Secondly it is more costly for Remy Cointreau to serve the rural customers than urban customers given the vast distances and lack of infrastructure.
- Competitive pressures - As the new product launch cycles are reducing in the Consumer/Non-Cyclical industry. It has put additional competitive pressures on players such as Remy Cointreau. Given the large customer base, Remy Cointreau can't respond quickly to the needs of the niche markets that disruptors are focusing on.
- Changing demographics - As the babyboomers are retiring and new generation finding hard to replace their purchasing power. This can lead to higher profits in the short run for Remy Cointreau but reducing margins over the long run as young people are less brand loyal and more open to experimentation.
Media Choice
To get the message in front of the people who will view or hear it receptively, it is important to understand and know where the message can reach the target audience. To ensure the message is reachable, it is important to choose an appropriate media and methods with proven appeal to that target audience.
From the survey conducted, we found that 62.5% of the young generation (group age 18-24) preferred a short video ad as the media choice for liquor advertising.
Ideas
1. Dance Idea
-mix of cultures from all around the world
-mix of type of dances and music from different countries
2. Dance with After Effects visuals in a summery afternoon while the sun is up with a Caribbean music background.
3. Flash mob of people dancing while holding Bacardi and sharing a drink.
4. Sea water is bacardi liquor, people jump in it, zoom out, is bacardi bottle.
5. Boy sitting at home staring at window outside seeing people dancing and he is bored and wonder if he can join them, then he pick up his skateboard and go out the door and skated danced all the way and socialize and drink liquor. (video)
6. Summer bikini beach bacardi dance a group of girls
7. Music festival couples mixed people
8. Bacardi brings different people together
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| Mind map |
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| Sketches 1- 9 |
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| Sketches 10- 18 |
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| Sketches 19- 25 |
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| Sketches 26- 34 |
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| Sketches 35- 43 |
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| Sketches 44- 52 |
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| Sketches 53- 61 |
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| Sketches 62- 70 |
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| Sketches 71- 76 |
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| Sketches 77-80 |
After consultation with Mr Vinod, Mr Vinod said that we were too focusing on the brand and the Bacardi drinks. Mr Vinod said that we should focus more on the campaign instead of the drinks. He suggested that we can combine the ideas of a cool lifestyle with something meaningful. He also said that we should produce a video ads instead of a poster as video can capture more feeling and passion than a photo.
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| Storyboard |
Final Video Ads
Presentation Slides
References
BACARDÍ Dance Floor
BACARDÍ presents: What Moves Bugzy Malone
Feedback
Week 1
In the first class, we have told Mr. Vinod our ideas after reading the brief. Mr. Vinod said that our initial idea(mix of cultures from all aroung the world) was good but still need to do more research to know more about Bacardi branding strategy. Mr. Vinod looks through our first ideation in google drive and commented that we need something that can "pop" and be unexpected to the audience instead of a typical fun loving liquor ad.
Week 4
After showing more our sketches to Mr Vinod, Mr Vinod said that we were too focusing on the Bacardi drinks bottle. He suggested us to focus more on the #DoWhatMovesYou campaign and come out with something that combine a cool lifestyle and something meaningful. He also suggested us to shoot a video ad instead of a poster ad as it is able to capture the motion that brings out the feels of the moment. Mr. Vinod commented that we need to sketch more LGBTQ+ concept to tie up to the quote "Do What Moves You" and present a rough idea to him.
Week 5
During Week 5, we show Mr. Vinod our video idea sketches and LGBTQ+ sketches. Mr. Vinod said that the idea was okay and told us to proceed to execute our outcome to test if it works. Mr Vinod told us that we have to choose our actor or actress carefully and they need to be dressed appropriately to fit the theme that we want to bring out.
Week 6
Mr. Vinod commented that we need to put in more effort into our final outcome as the visual element is not strong enough. He mentions that the music does not really work. The cinematography is weak. the video has only one shot no angles. And the video ends rather abruptly.
Reflections
Experiences
Throughout the whole semester, I have faced a lot of problems and obstacles. First, the biggest problem that I encountered was insufficient of time as the whole week of CNY holiday, I was in my hometown Kedah while my teammates was in Selangor. We were not able to meet up to shoot our video since that are miles away from us. We had one week wasted and we have to double up our time and effort to get things done on time. Unfortunately, after a few days coming back from Kedah, my beloved grandpa had passed away on 14 Feb and I need to get back to Kedah immediately for the funeral. The funeral takes about 7 days to wrap up, I was able to get back to continue the project. Moreover, I also faced problems with coming out more and more ideas.
Observations
Throughout this module, found that I have grown and learnt a lot, not just about advertising, but about the lesson in life. I have learnt to arrange my time properly so that I could done the assignments on time. Although there was a lot of time wasted, but we can still finished it on time and I'm really appreciate that our lecturer could understand with my condition and gave us an extension.
Findings
Throughout the whole module, I have learnt a lot about advertising ,understand more about theory of advertising and I realized that advertising was very important in the field of design. From this module, I realize that advertising is very important to help in educating people. There are some social issues also which advertising deals with like child labour, liquor consumption, girl child killing, smoking, family planning education, etc. thus, advertising plays a very important role in society.
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