- Language: English
- Published: September 2012
- Region: Global
Brand Building and Advertising Strategies in Dark Markets
- Published: March 2013
- 38 Pages
With advertising bans on alcoholic drinks becoming more common, manufacturers must learn how to operate in dark markets. Just like tobacco companies, they need a long-term strategic plan with a relentless focus on new marketing initiatives.
Advertising restrictions represent the key obstacle to companies communicating effectively with their consumers. This report shows how manufacturers can develop their brands in dark markets. Specific attention is paid to marketing by stealth, strategic options in below-the-line marketing, and alternative approaches such as boosting appropriate new product development.
- Overview of dark markets – realize how significant an issue this already is, as well as understand the possible future speed of legislation.
- Analysis of new product launches – spot trends in NPD and learn from successes and failures.
- Checklist of tactics – rate your brand performance on issues such as interactive marketing, experiential marketing, and retailer collaboration.
- Examples of best practice – understand how companies such as Carlsberg and UB Group have responded to dark markets so you can apply those approaches.
- Strategic overview – step back from the tactics to appreciate how a long-term strategic view can guide your decision-making
In South Africa it has been estimated that an advertising ban would result in a 5–8% drop in branded liquor consumption followed by a recovery by the brand leaders at the expense of second-tier brands. Competing brands must utilize innovative strategies to mainatin market share.
Even in countries with bans in place, it may be possible to advertise a brand extension. In Norway, where it is legal to advertise products with less than 2.5% alcohol by volume, manufacturers have created light products on a limited scale, or even that are not available to consumers, in order to promote main brands with higher alcohol contents.
The tobacco sector pioneered the creation of both closed proprietary events (such as invitation-only music events) and brand experiences that are open to the public (such as branded cafes). And now some are taking a strategic approach by undermining the impact of plain packaging through price promotion.
- Where is alcoholic drinks advertising banned and on which media? How are such bans spreading around the world?
- What are the possible impacts of advertising bans on consumption, market shares, and new product development?
- How can brands be broken down into their constituent parts in order to facilitate alibi marketing? What examples are there?
- Where has trademark diversification and the creation of surrogate brands been most used as a form of stealth marketing?
- How has UB Group become one of the most successful companies in its collaboration with alcoholic drinks retailers in India? SHOW LESS READ MORE >
About the author
1. Dark markets overview
- The current situation
- More recent restrictions
2. Impacts of advertising bans
- Impact on consumption
- Impact on market share
- Impact on new product development
3. Stealth marketing
- Using omissions and loopholes
- Alibi marketing
- Trademark diversification
4. Shift to below-the-line marketing
- Interactive media
- Point-of-sale activity
- Experiential marketing
- Product placement
5. Boosting new product development
- Alternative products
- Products for new audiences
- New variants
- New forms of packaging and pack design
- Key findings
- Chapter 1
- Chapter 2
- Chapter 3
- Chapter 4
- Chapter 5
- Chapter 6
- Figure: Examples of alibi marketing
- Figure: Rebranding for alibi marketing
- Figure: Courvoisier clothing and Bombay Sapphire fragrance
- Figure: Kingfisher's trademark diversification
- Figure: Kingfisher's Book Cricket game
- Figure: Examples of fashion-inspired products
- Figure: Examples of beers in new packaging
- Figure: Examples of wines in brand-enhancing packaging
- Figure: Examples of products providing further information to the consumer
- Figure: Summary of the strategic options for operating in dark markets
- Carlsberg A/S
- bwin.party digital entertainment plc
- Diageo plc
- Hutchison 3G UK Limited
- Imperial Tobacco Group PLC
- Nestle S.A.
- Pernod Ricard SA
- SABMiller plc
- Schindler Holding Ltd.