Advertising Proposal

Svedka Vodka

Elijah Clark-Ginsberg, Dana Cornelius, Hilary Kee, William McHugh

Executive Summary

Svedka is a premium vodka suffering from a crisis of brand perception. Despite its many

accolades, Svedka is viewed as a budget-brand spirit, which ultimately inhibits its success among

the essential 21-25 year-old market. Young adults are unwilling to compromise on either price or

quality and want premium spirits that won’t break the bank. Young adults also see drinking

primarily as a social event, so their regular hang-ups about fitting in and projecting a strong self-

image factor into the brand selection process. Premium brands like Absolut and Grey Goose

dominate the nightlife market because people are proud to order them. Svedka deserves to be one

of those brands – it’s been rated higher than both Absolut and Grey Goose – but its current

positioning condemns it to a life of sleazy college parties and unimpressive home bars.

A new advertising campaign that repositions Svedka as a sophisticated and premium

spirit at a very affordable price can counter the perception that it’s simply a cheap vodka that

isn’t worth ordering when you’re out on the town. New positioning will allow Svedka to retain

it’s current buyers while also appealing to more affluent and image-conscious segments.

Svedka doesn’t have a problem with brand awareness. Its current marketing efforts are

reaching the right people, but they carry the wrong message. The new campaign can use

Svedka’s current media channels to elevate the brand to a more premium position.

The objective of the new campaign is to alter perception of the brand and ultimately lead

to an increase in on-premise sales. This will allow Svedka to pick up market share from the

declining nightlife staple Absolut. Success can be evaluated purely through on-premise sales

numbers, which should be an accurate barometer of brand perception, or through focus groups

and analysis of user-generated content.

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Introduction

Svedka Vodka, a young but promising brand in the adult beverage industry is a crowd

favorite accepted by connoisseurs and occasional drinkers alike. It has been named a gold medal

winner in many competitions, including the World Spirit and International Spirit Awards in 2010,

and the Exceptional Taste and Best Buy Competition in 2008 and 2009. Despite success in

competitions and overall ratings, Svedka has not yet reached its potential in terms of building a

large market share. Svedka’s current ad campaign, featuring a sexy fembot, fails to clearly

communicate the brand’s qualities and tends to confuse and turn off consumers. By redefining

Svedka as a premium yet affordable vodka and revamping the creative, it can successfully appeal

to a broader market. Aiming simultaneously for audiences that like to socialize and enjoy life on

a budget as well as more premium minded consumers, Svedka can be accessible to both because

it continually offers a high-quality product. A carefully repositioned brand could reach more

consumers and more clearly communicate Svedka’s values and strengths.

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Advertising Objectives

Svedka’s current brand image is plagued by a perception as an inferior budget spirit.

Young adults are a highly image-conscious, and they are hesitant to order a budget spirit when

they’re our at a bar or nightclub with friends. Almost a third of 21-25 year-olds report that bars

and nightclubs are the primary place where they consume spirits. Almost a third of young adults

also say that they would not drink value-brand spirits around their friends. Svedka suffers in on-

premise sales compared to competitors like Absolut and Grey Goose primarily because it is seen

as a cheap, immature brand rather than the premium brand that it really is.

Fundamentally, Svedka needs to communicate itself as a top-shelf brand at an affordable

price point and make it known that it’s not just a vodka for college students. If Svedka continues

to be positioned as a cheap college spirit, its drinkers will quickly outgrow it. More mature

positioning will allow Svedka to cultivate a generation of loyal drinkers. More premium

positioning will subsequently lead to an increase in on-premise sales. This will also ideally

position Svedka to claim market share from the declining Absolut.

Within the year-long span of the campaign, Svedka should see an increase in on-premise

sales resulting in an increase of market share of at least one percentage point, bringing Svedka’s

market share from 4.7% to at least 5.7%. Ideally, Svedka should meet or surpass popular

nightclub vodka brand Grey Goose, which currently has a market share of 6%. Increase in on-

premise sales will act as a barometer of brand perception, and therefore of the success of

communication objectives. Additionally, communication objectives can be evaluated separately

from sales objectives in order to prevent misleading results due to other market factors.

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Creative Strategy

Product Concept

A new campaign, first and foremost, needs to depict Svedka as the premium yet

affordable spirit that it is. It will be positioned as a high-quality vodka that should be as

comfortable at a basement frat party as it is at a penthouse soiree. Svedka is differentiated by its

extraordinary quality in relation to price and its Swedish origin, which it has in common with

other stylish low-cost brands like H&M and Ikea. Svedka needs to be shown as a social spirit to

proudly enjoy with friends, not a cheap “at home” brand to keep secreted away.

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Top Shelf

Bottom Shelf

Low Price

High Price

Svedka (goal)Skyy

BelvedereGrey Goose

Ketel OneStoliAbsolut

SmirnoffSvedka (current)

Papov

Finlandia

Figure 1. Vodka Positioning Map

Target Audience

This campaign will target 21-25 year-old spirits drinkers in the Boston area. This group is

largely made up of students and young professionals, so budget is a major consideration. Young

adults are looking for a low cost and fuss-free way to enjoy themselves, which intersects

perfectly with Svedka’s brand values. Despite their budgetary constraints, young adults spend a

greater proportion of their money on alcohol than other age groups do and are always looking for

a new favorite brand or drink. Because of this, young adults are easy to win over as trial buyers,

but significantly more difficult to earn as brand loyal costumers. In order to do so, Svedka needs

to be clearly portrayed as a spirit that is both affordable enough to buy regularly and premium

enough to use in a wide variety of settings. Svedka can easily be the vodka for every occasion.

Many of the occasions when young adults will be drinking are social and the presence of friends

and their choices strongly effect brand choices. 70% of young adults report using spirits

primarily as a way to socialize and 40% (compared to 21% in other age groups) base their brand

selection on what everyone else is drinking. Additionally, 30% of 21-25 year-olds refuse to drink

non-premium brands when they’re with their friends, which creates a serious problem with

Svedka’s current sub-premium positioning and prevents Svedka’s success as a nightlife brand.

Positioning Statement

For 21-25 year old spirit drinkers, Svedka is the only vodka that delivers high quality

taste for an inexpensive price, because only Svedka is made from the finest wheat and freshest

spring water found in Sweden.

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Creative Brief

ProblemThis is a new campaign designed to rebrand Svedka as a premium vodka with an affordable price, rather than as a value vodka. We want the branding to appeal to a wider margin of consumers. Our primary goal is to establish a positive brand image, while our secondary goals include boosting retail and on premise sales.

Target AudienceThe campaign will be aimed towards spirit buyers in Boston, MA. The primary target is both male and female, 21-25 years old, outgoing, youthful, and value-conscious.

Creative Objectives - Print ads - Cable TV spots - Online display ads - Out of home placement - City information panels - MBTA Green Line - Taxi toppers

Key PromiseCheap enough for (a pedicab/the basement/Allston), good enough for (a Towncar/the penthouse/Beacon Hill).

Support for Key PromiseThe key promise makes the brand relate to a wide margin of people. It also clearly states that the product is a high-quality, yet inexpensive product. This will allow for affordable, premium brand perception.

Personality of AdThe ads will convey a sense of hipness and edgy elegance that exudes premium quality while also showing a fun and fast-paced lifestyle that appeals to young adults. Richly saturated colors will add to the luxurious look of the ads. In TV ads, fast cuts and uptempo music will give Svedka the feel of a youthful, energetic brand.

MeasurementOur secondary goals can be clearly measured by retail and on premise sales. Our primary goal, however, will be measured by examining forms of user generated content associated with Svedka. Whether it be via Facebook, Twitter, blogs, etc. Analyzing our customer’s voices and our key influencers/competitors could provide insight on message effectiveness, brand perception, and emerging trends within the market.

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Advertising Message

Print/OOH/Web Display

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TV Spot

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SFX: Ding.

MUSIC: Sleazy party music.

MUSIC: Classy party music.

VO: “Svedka. Good enough for the penthouse, cheap enough for the basement.”

Taxi Topper

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Demonstration of the feel of a holiday-centered ad. Actual ad will depict a highfalutin grandmother and a college-aged cousin reaching for the same bottle of Svedka.

Media Strategy

We will focus our media efforts largely on magazine advertising and out of home media,

along with television programming as well. Although our key audience is comprised largely of

tech-savvy young adults, research shows that social media advertising is considered to be the

least important medium and consequently proves less effective. Svedka does not currently budget

for social media and we see no issue with the current media mix, leading us to focus on

revamping the message as opposed to the media outlets. Aiming for our target demographic of

21-25 year old young adults, we will include media appearances in influential publications such

as Nylon Magazine, Rolling Stone, and GQ as well as popular cable television channels like E!,

AMC, and FX.

So as to best intercept the proper demographic in their daily routine, especially within the

urban city setting we will continue investing approximately 1/4th of our budget to OOH media,

focusing largely on public transportation such as the T, taxi cabs, and busses along with bus

stations. Our reach will include college and university dense regions of New England, especially

focusing on Boston, appealing to college upperclassmen as well as the young and enthusiastic

post-grads living on their own. Taking advantage of popularity of public transportation we aim to

increase brand awareness through placement in highly target-oriented locations and nurture a

more consistent brand exposure.

We intend to communicate via a strong connection to the target audience’s psychographic

preferences including tech-savvy, trendy, image and budget conscious, and party animal

qualities. This will include a focus on popular nightlife locations, creative that promotes a trendy

and relevant atmosphere, as well as a firm adherence to the brand belief in high quality and high

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value. We aim to increase Svedka’s presence in bars and lounges taking advantage of faltering

competition and allowing us the opportunity to build a larger market share.

Because we are aimed towards a diverse target audience and intend to have a loose

seasonality, we will implement our campaign year round with an emphasis on the school season,

especially arrival. The pulsing strategy will allow us to continually promote the brand and fully-

reinvent the brand’s identity while specifically selecting more relevant occasions to delve deeper

into the core campaign. We aim to reinvent the brand perception held by current consumers and

facilitate a new and more meaningful relationship with new consumers.

Our proposed budget is approximately $4.2 million, though this includes multiple

national media outlets, which come at significantly higher prices than those specific to Boston.

The current media mix has proven effective in creating brand awareness though lacks the

creative backing to successfully generate sales. By fully re-inventing the brand image through

relatable creative and relevant social presence, Svedka will no longer be an after-thought brand

but rather the first choice among all spirits drinkers looking to enjoy high quality Vodka.

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Campaign Budget

Per Month Entire Campaign (9 Months)

PRINT $176,630 $1,589,670

Nylon $66,200 $595,800

Full Page per 2 Issues $66,200 $595,800

GQ $49,507 $445,569

Full Page per 3 Issues $49,507 $445,569

Rolling Stone $60,923 $548,310

Full Page per 3 Issues $60,923 $548,310CABLE TV $120,000 $1,080,000

AMC $40,000 $360,000

20 30 Second Spots $40,000 $360,000

E! $40,000 $360,000

20 30 Second Spots $40,000 $360,000

FX $40,000 $360,000

20 30 Second Spots $40,000 $360,000OUT OF HOME $78,750 $708,750

Taxi $35,000 $315,000

100 Taxis $35,000 $315,000

MBTA Bus $30,000 $270,000

20 Buses $30,000 $270,000

MBTA Green Line $3,750 $33,750

20 Interior Car Ads $2,000 $18,000

5 Station Ads $1,750 $15,750

City Information Panel $10,000 $90,000

20 Panels $10,000 $90,000ONLINE $91,800 $826,200

All Print & TV Outlets $91,800 $826,200

Double Skyscraper $64,800 $583,200

Video Pre-Roll $27,000 $243,000CAMPAIGN TOTAL $467,180 $4,204,620

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Research Plan

To begin the process of shaping our campaign, we first researched our target audience.

We found many pieces of qualitative and quantitative research that helped us identify our

audience. Our key findings led us to the conclusion that 21-25 year olds in the Boston area are

more willing than other age groups to spend cash on alcohol, especially when they feel they’re

getting a good bang for their buck. We also found that these consumers like to see themselves as

trendsetters, and enjoy consuming spirits in social settings. These facts, along with Svedka’s

award winning taste and low price went on to shape our campaign goals of repositioning Svedka

as a premium vodka with an affordable price, and boosting on premise sales.

Our audience research also helped us determine where we should advertise. Because

21-25s are always on-the-go, out of home advertising will be a large focus of our campaign. By

placing Svedka ads on taxi cabs, bus stops, on and around the T, and on city information panels,

the new and more relatable branding will be integrated into the consumer’s everyday life. We

will also be airing commercials on cable television, specifically on AMC, E!, and FX (channels

that largely appeal to our demographic). Additionally, we are placing ads in Rolling Stone,

Nylon, and GQ to equally appeal to men and women. Because our research showed that banner

ads and social media are least important and effective in communicating to our demographic, our

efforts will be least concentrated in this area. Other than freely promoting Svedka via facebook

and twitter, we will also be creating banner ads to be shown on the previously mentioned outlet’s

websites (AMC, E!, FX, Rolling Stone, Nylon, and GQ).

Our competitive analysis showed that in Svedka’s current “cheap chic” niche of the

spirits market its largest competitor is Smirnoff, which holds 16.2 percent of market share.

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However, since we are attempting to rebrand Svedka as a premium vodka at an affordable price,

we are largely focusing on competing with Absolut vodka. By leveraging its superior quality and

low price, Svedka can maneuver itself to steal some of Absolut’s declining market share, which

is largely based off of popularity at nightclubs. We aim to integrate Svedka into similar venues

though at a more reasonable price.

In order to further connect with our target demographic we will focus on presenting

Svedka as the next big thing; the trend that is waiting to blast-off with the help of enthusiastic

and current-minded consumers. Our ads will be uniquely positioned to highlight Svedka’s

premium quality, while also associating the brand with a fun, fast-paced lifestyle that our

audience can relate to. To do this, our ads will use rich, saturated colors along with fast cuts and

music.

In order to assess the success of our campaign, we will be analyzing on-premise sales

numbers, conducting focus groups and analyzing local user-generated content. Through on-

premise sales numbers alone, we should be able to see an accurate depiction of brand-perception.

By conducting a number of focus groups in the Boston area, we will be able to see which ads

work, and why they are well-received. This will help us make any adjustments to the current

creative. Analysis of user generated content will work in a similar fashion. However, by looking

at this type of data, we will be able to better understand how Svedka is perceived in a social

setting. Overall, these methods will help us see if and why the campaign works, and offer

suggestions for improvement.

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