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Monday, September 5, 2011

Case Study of Beam Global Spirits & Wine

The history of Canadian Club Whisky (CC) dates back to 1856, when Hiram Walker (Walker), an eminent Canadian businessman, set up his distillery in Canada. Prior to this, he had a wholesale and retail grocery business as well as a distillery in Detroit, Michigan.in November 2007, Canadian Club Whisky (CC), a Canadian whisky brand owned by US-based premium spirits company, Beam Global Spirits & Wine (Beam Global), unveiled a national ad campaign 'Damn Right Your Dad Drank It' to promote its CC brand of whisky. The campaign was launched soon after research conducted by the company uncovered that the CC brand was perceived to be a dad's drink by most male consumers in the US. The research also revealed that the target consumers preferred to be seen as 'masculine, sophisticated, and unpretentious' when they chose their drinks.

The campaign also marked the celebration of CC's 150th anniversary. Commenting on the launch of the campaign, Dennis Prado (Prado), senior brand director, CC, said, "With our iconic brand commemorating its 150th anniversary in 2008, we couldn't think of a better time to celebrate generations of CC consumers than with the launch of the 'Damn Right' campaign.
'Damn Right' is positioned to expose the brand to a new consumer who appreciates the notion of timeless masculinity, most importantly a masculine, classic cocktail. It signifies a vital shift for CC and we're thrilled to launch this compelling campaign. Since its inception, CC had occupied the foremost position in the spirits category. However, the growing popularity of spirits like vodka and rum had led to a decline in its popularity. This had resulted in CC experiencing a gradual downturn in sales for 17 years since the 1990s.Though the several campaigns launched by the company were successful, they failed to arrest the decline in sales of CC since the 1990s. The decline in sales was attributed to several factors including frequent changes in ownership, erosion of the brand value of CC, the entry of new brands in the market, change in consumers' preference for vodka-based drinks, etc.

The retro-themed campaign featured a series of print ads depicting the 1960s and 1970s era that showed 'fathers' as a classic personification of unpretentious masculinity. The ads included provocative taglines that sought to remind consumers that theirs dads were masculine, stylish, and cool and that they embodied these traits through their choice of drink consisting of whisky cocktails made with CC. The campaign was a multilayered one including viral marketing elements. The campaign was backed by billboards, point-of-sale (POS) items, radio advertising, out-of-home advertising, in-market events, and experiential elements. The campaign not only rejuvenated the moribund brand but also turned its falling sales curve around. But some critics opined that the campaign ads were offensive and also contended that the campaign theme was sexist.

Questions:
-         Review the marketing efforts for Canadian Club over the years and the new 'Damn Right Your Dad Drank It' advertising campaign?
-         Explain the issues and challenges faced while repositioning and reviving a dormant brand?
-         Suggest the ways in which the company could have made the 'Damn Right Your Dad Drank It' campaign more effective and also explore branding strategies that the brand management team can adopt in the future?