Dewar’s leader in U.S. Scotch whisky industry
1. Situational Analysis
1.1 SWOT Analysis
- Dewar’s leader in U.S. Scotch whisky industry, with a market share
- Past success with the advertising campaigns in maintaining a
positive image for Dewar’s among Scotch drinkers.
- Strong research and development.
- Backup from United Distillers, which is an International leader in
the Scotch whisky and Gin markets, and one of the most profitable
spirit’s Company in the world.
- Dewar’s is positioned as a premium and prestigious blend of Scotch
- Schieffelin & Somerst, distributor of Dewar’s within U.S, is the
product of a Joint Venture with Moet Hmessy Louis Vuitton, allowing
- Lack of promotional strategies to attract new customers.
- Targeting a segment market that is not growing.
- Slow reactions.
- US, the largest liquor market in the world (13% market share) with
high profit margins.
- Young adults’ good attitude towards the consumption of withe
- Social acceptance of mixed drinks.
- Sales in Industry of liquor and withe spirits with a negative
- Scotch whisky in the declining stage of product cycle.
- Mature target market consuming less Scotch whisky.
- Growing social resistance and regulations of liquor consumption in
- Shift of consumer preference towards lighter alcohol beverages, such
as wine and beer.
- Risk of becoming over analytical and moving to slowly when
implementing the repositioning strategy.
1.2 US Scotch whisky Industry Analysis.
Both the industry of liquor and the industry of distilled spirits had
suffered a reduction in consumption since 1978. This represents 15
years of constant negative growth. Some of the factors that had caused
this phenomenon are the growing of social, regulatory and legal
restrictions over drinking. Also, drinking preferences have shifted
towards lighter alcohol beverages, such as wine and beer.
The Scotch industry has suffered an even greater decline due to the
fact that its target market is drinking much less. It has become the
distilled spirit with lower consumption per-capita. Mature customers
are not loyal to a brand, they are lower priced oriented.
If all these factors remain the same, there is not a promising
forecast for the Scotch Industry: restrictions will continue or even
get harder; consumption will go down as well as sales and profits.
Some important trends in consumers’ preferences can be distinguished
as a way to minimize the down slope of the declining cycle of the
Scotch whisky. Such trends are the perception of mixed drinks as more
enjoyable and fun than the dark spirits, the increasing attractiveness
of white spirits to young adults, more social flexible environment.
1.3 Company Analysis
Relucting new customer was vital for the long...