Jack Daniels Presentation
- 1. Candace Maciel, Valerie Maillet, Priya Sanghvi, Daniela Soberman, Alex Szeto, Susie Veladi USC Marshall School of Business Advertising & Promotion Strategy Marketing 526 Prof. Tellis Ad Test and Analysis
- 2. Project Objectives Our project seeks to identify Jack Daniel’s: Target segments The best positioning for the product An appropriate message proposition An attractive ad appeal The best media outlet
- 3. Spirits Market Information In 2003, the market for spirits and liqueurs reached approximately 1.4 B Liters, growing approximately 3.1% from 2002 Whiskey is the largest US distilled spirits sub-sector, but sales have decreased slightly because of increasing competition and the sector’s maturity Whiskey faces its biggest challenge from trendy drinks such as rum, tequila, vodka, and Cognac. These beverages have been increasingly aimed at younger consumers, aged between 21 and 35
- 4. Spirits Market Sectors 1999-2003 Source: Euromonitor White Spirits Whiskey Tequila Rum Other Spirits Liqueurs Brand/Cognac In Millions of Liters 422.9 402.6 60.3 142.5 12.3 149.6 75.7 1999 484.9 393.6 72.4 176.6 11.6 159.3 91.7 2003 15% (2%) 20% 24% (6%) 6% 21% % Change
- 5. Whiskey Brand Share Source: Adams Liquor Handbook, trade press, company research, trade interviews, Euromonitor estimates 100 Total 42.5 Other brands 2.6 Wild Turkey 4.7 Early Times 14.4 7 Crown 16.5 Jim Beam 19.3 Jack Daniel’s 1999 % of Volume
- 6. Ad Critique Strategy, Segmentation & Positioning Problem #1: Too Product Focused Message lacked a value proposition or emotional appeal Ad didn’t speak to a specific target group Problem #2: Mass Marketing Approach The ad does not distinguish between Switchers and Loyalists Potentially alienates core customers Ad was generic, bland, and lacked a clear message
- 7. Ad Critique Attention, Communication, & Persuasion Lacks a strong headline and does not offer the consumer any information or value Lacks emotion and is weak at grabbing attention No bright colors No sharp images No stimulation of curiosity, suspense or intrigue Could make use of humor or sex appeal to improve persuasion, retention, and attention
- 8. Demand Analysis Results Key dimensions or predictors of demand: “ Taste”, “Quality”, “Sweetness” and a “Trendy versus Traditional” Results indicated that age, gender, and usage patterns may have an influence Brand Positioning: Based on “Taste” and “Quality”, JD ranked fairly high relative to other brands and possessed the largest segment among brands tested JD is also positioned well on “Sweetness,” and is separated from the competition on this spectrum Target Segments: Male and female segments can be targeted by appealing to their preferences for Taste, Quality, Trendy, and Tradition in whiskey
- 10. Preference Maps Sweet vs. Quality
- 11. Preference Maps Sweet vs. Trendy
- 12. Ad Test Trendy/Warmth Jacktini Ha: Females Trendy/Humor Stays with Jack Hb: Females/Males Traditional/Warmth Official Drink Hc: Males Traditional/Humor Scratch & Sniff Hd: Males
- 13. Results of Ad Test Experiment Design Disguise & Recall Respondents 51 (47% M, 53% F) Results Traditional Message - Males Self-report: 71% Observed based on Action: 75% Trendy Message – Females Self-report: 48% Observed based on Action: 67% Trendy/Warmth Jacktini Ha: Females Correct! Trendy/Humor Stays with Jack Hb: Females/Males Wrong! - Males Traditional/Warmth Official Drink Hc: Males Correct! Traditional/Humor Scratch & Sniff Hd: Males Wrong! – Females/Males
- 14. Strategy Recommendations Three ads Official Drink: FHM or Maxim Jacktini: Jane or InStyle Scratch & Sniff: Time or Newsweek
- 15. Strategy Recommendations Official Drink Ad: FHM or Maxim
- 16. Strategy Recommendations Jacktini Ad: Jane or InStyle
- 17. Strategy Recommendations Scratch & Sniff Ad: Time or Newsweek
- 18. Communication Recommendations Print More effectively reaches target groups More cost effective Allows for personal interpretation
- 19. Lessons Learned Target segments Men: existing and new users (21-34yrs) Women: new younger users 21-34 Message & Appeal Separate ads targeting each group Women: Trendy/Warmth Men: Traditional/Warmth Both: Traditional/Humorous
- 20. Thank You