How Have the Strategies Used by William Grant and Sons Made Hendricks Such a Successful Gin Brand - Case Study Example

How have the strategies used by William Grant and Sons made Hendricks’ such a successful gin brand? Table of Contents Table of Contents 1 Executive summary 2 1.0 Introduction 3 2.0 Literature review 3 3.0 Methodology 4 4.0 Findings and discussion of findings 4 5.0 Conclusions and recommendations 6 6.0 References 7 Davitt, D 2011, Aiming high with Hendrick's: A gin brand's remarkable story, viewed on 19th May 2013 http://www.moodiereport.com/document.php?c_id=31anddoc_id=29228 8 Paterson, J 2012, William Grant and Sons ensures tasty reward package, viewed on 18th May 2013 http://www.employeebenefits.co.uk/william-grant-and-sons-ensures-tasty-reward-package/15398.article 8 Patten, S 2012, Bursting out on the Heels of Moscato, Beverage Journal of Maryland, Vol.74, No.6, p. 34-98. 8 Shearman, S 2011, Brand Advocate wins Hendrick's Gin global digital and CRM account, Campaign, viewed on 19th May 2013 from http://www.campaignlive.co.uk/news/1108216/ 9 Turner, C 2008, How experiential activity has built the Hendrick’s Gin brand, Utalk Marketing, viewed on 19th May 2013 from http://www.utalkmarketing.com/Pages/Article.aspx?ArticleID=10501andTitle=How_experiential_activity_has_built_the_Hendrick%E2%80%99s_Gin_brand 9 Executive summary William and Sons Company has been in operation since 1887 as a family company and was incorporated in Scotland. The company is currently third in terms of Scotch whisky market share after Diageo and Pernod Ricard. It has enjoyed considerable success and has received numerous awards. The company’s main brands include Glenfiddich, Grant’s, Balvenie, Tullmore and Hendricks Gin among others. Hendricks Gin has been highly successful due to its traditional mode of preparation, ingredients, packaging and market approach thus gaining a fairly international distribution. These strategies have created good consumer relations for the gin. It has re-introduced the good old days feel among consumers by employing traditional approaches and ‘a most unusual gin-a gin made oddly’ tagline. 1.0 Introduction Hendrick’s Gin is a gin brand produced by William and Sons in Scotland. This super premium gin brand was launched in 1999, made of Bulgarian rose and cucumber botanical recipes to add flavor. The brand capitalizes on the old fashioned package by use of distinctive toffee brownish bottle symbolizing traditional medicinal origins. Hendrick’s Gin uses a mixture of spirits blend from a Carter Head still acquired in the 1960s by William Grant and sons (Davitt, 2011). The preparation of the gin involves charging the botanical ingredients together with 98 percent neutral and pure grain spirit prior distilling (one day before) and left to steep awaiting self distilling. In order to ensure quality consistency, it is tasted and final distillations of Bulgarian rose and cucumber are poured in the mixture. The ingredients, distillation process and package used for the Hendrick’s Gin offer the notion of a brand that has been in existence for a millennium or more, although Hendrick’s is just 13 years old. Its unique story and placement in the market makes it almost every marketer’s dream. The brand utilizes an unusual promotional style. 2.0 Literature review The brand popularity has been majorly surged through word of mouth. The brand exists even in some markets where there is no distributional market which is encouraging to the company and mainly sets a basis in establishing networks (Davitt, 2011). Hendricks Gin is strategically placed in the market, increasingly availing old-school recipes thus fueling interest and helping to bring gin to the bar’s forefront. It simply offers mixing possibilities from a botanical layered dimension (Magyarics, 2013) As Magyarics (2013) puts it “the availability and use in libations especially drinks that include its main botanical, cucumber have been responsible for introducing many cocktail lovers to gin.” The marketers of the Gin encourage creativity and experimenting thus boosting gin’s popularity. This is particularly experienced in distinguished chains like The Melting Pot-141 location, further boosting recognition. 3.0 Methodology In order to adequately address the research question “How have the strategies used by William Grant and Sons made Hendricks’ such a successful gin brand?” a literature review combined with observatory and interview with marketers approaches were employed. The mixed research approach was used to ensure a balance of information thus eliminating probable bias. Literature from the William and Sons Company and authors like Magyarics (2013), Lindstorm (2011), Wall Street Journal (2003) and Davitt (2011) provided the necessary back up. In order to compliment literature, observation (from past-recalling or present) on the surroundings concerning the Hendricks Gin and interviewing people who market or take the brand, were employed. 4.0 Findings and discussion of findings One of the major strategies that William and Sons Company uses to make Hendricks a successful gin is its natural ingredients and aroma (Paterson, 2012). Amongst the 11 diverse botanicals used in the making of Hendricks are the very aromatic coriander seeds and Italy’s juniper berries which are known in provision of an exotic, spicy, bittersweet-taste. In addition, the France and Belgium musky (sweet angelica root) believed by many to have curative and protective powers is also included. The Orris root is also used to bind the gin’s flavor while chamomile, elderflower yarrow, cubeb berries, lemon and orange peels are used to further boost the gin’s natural flavor. This strategy presents surety to consumers of their health (Paterson, 2012; Patten, 2012). William and Sons Company uses old fashioned package, the distinctive toffee brownish bottle. This triggers quality and classic nature of the drinks from the past. The package also represents the content of Hendricks gin which is the adoption of the old medicinal systems in contrast with the present. As Lindstorm (2011) explains “companies are invoking the Good old Days to foster a connection with their customers--even if the product is only a decade old.” This makes Hendricks gin a success brand (Davitt, 2011; Lindstrom, 2011). In encouraging creativity and experimentation, William and Sons Company has been employing the training approach ‘education’ of bartenders, the ritual of serving of Hendricks gin. This approach is strategic since it results in a network and sales volumes. In addition, the approach attracts an exclusive patronage of those who fit the values and aspirations of the product. The company capitalizes on word of mouth in getting the gin brand to consumers. Davitt (2011) explains “The strategy is to build brand equity, by driving visibility, trial and advocacy-via use of ‘a most unusual gin-a gin made oddly’ tagline” (Turner, 2011; Bostonbarhopper, 2013). Another strategy employed by William and Sons Company in the promotion of its Hendricks gin is engaging brand agencies like Brand Advocate, global digital and customer relationship management (CRM) agency responsible for global promotion of its Hendricks brand. The marketing strategy has employed marketing campaigns like “adventure” and “Hendricks curiositorium” in CRM efforts, driving brand loyalty to super premium gin drinkers (Shearman, 2011). 5.0 Conclusions and recommendations The strategies employed by William and Sons Company have been quite successful in the promotion of its Hendricks gin brand making it a success. The company has employed the content and aroma, techniques by using old fashioned natural ingredients and the botanicals aroma. This strategy has brought about traditional approach to ensuring high quality thus guarding consumers’ health. In its quest to position the Hendricks gin as a unique brand in the market, the William and Sons Company has adopted the old fashioned packaging, the toffee brown bottles. This has been a strategic move in introducing the ‘good old days’ experience to connect with the consumers. Creativity and experimentation has been in the core of strategic management of William and Sons Company in the promotion of the Hendricks brand. In order to expand its distribution network and sales, the company has employed retail travels approach by training bartenders on the rituals of serving Hendricks gin. In this regard, one bartender is seen as a connection points to so many consumers thus an introductory approach of the gin to the market-through word of mouth. In complementing the word of mouth, the company has also engaged a brand advocate for the promotion of the gin globally. Although, William and Sons Company has been quite successful in the market, the company could still enjoy faster growth. The company needs to create collaborations with existing companies worldwide like what Guinness brand has done to widen its distribution network and sales. In return, the availability of Hendricks gin would be propelled (Diageo, 2012). The network of William and Sons Company is still majorly limited to the United States of America and United Kingdom. 6.0 References Bostonbarhopper 2013, Hendrick’s Gin – The Delightfully Peculiar Cocktail Academy, viewed on 18th May 2013 http://www.boston-barhopper.com/2013/01/04/hendricks-gin-the-delightfully-peculiar-cocktail-academy/ Davitt, D 2011, Aiming high with Hendrick's: A gin brand's remarkable story, viewed on 19th May 2013 http://www.moodiereport.com/document.php?c_id=31anddoc_id=29228 Diageo 2012, Annual Report 2012, viewed on 19th May 2013 www.diageo.com/Lists/Resources/.../1341/Diageo_AR_2012_Low_res.pdf Lindstrom, M 2011, FAST COMPANY - Bottling The Past: Using Nostalgia To Connect With Customers, Lindstorm Company, viewed on 18th May 2013 from http://www.turkcellakademi.com.tr/TurkcellPublishEmbeddedDocuments/bottling%20the%20past-2011august23.pdf Magyarics, KA 2013, New Spins on the Gin: Operators get creative with the original flavored spirit, London, Cheers. Paterson, J 2012, William Grant and Sons ensures tasty reward package, viewed on 18th May 2013 http://www.employeebenefits.co.uk/william-grant-and-sons-ensures-tasty-reward-package/15398.article Patten, S 2012, Bursting out on the Heels of Moscato, Beverage Journal of Maryland, Vol.74, No.6, p. 34-98. Shearman, S 2011, Brand Advocate wins Hendrick's Gin global digital and CRM account, Campaign, viewed on 19th May 2013 from http://www.campaignlive.co.uk/news/1108216/ Turner, C 2008, How experiential activity has built the Hendrick’s Gin brand, Utalk Marketing, viewed on 19th May 2013 from http://www.utalkmarketing.com/Pages/Article.aspx?ArticleID=10501andTitle=How_experiential_activity_has_built_the_Hendrick%E2%80%99s_Gin_brand Wall Street Journal 2003, The best Gin in the World, Wall Street Journal. Read More