Angostura Rum Case Study Exploring strategies to help premiumise brands October 25th 2016
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1 Angostura Rum Case Study Exploring strategies to help premiumise brands October 25th 2016
2 Introduction Genevieve Jodhan Executive Marketing & Sales Manager, Angostura Limited
3 My presentation this morning Why and how we evolved our range of premium rum and what others can learn from it.
4 OUR PROBLEM
5 Everyone knows this Founded by Dr Johann Siegert in 1824 Nearly 200 years of heritage Distinctive and unchanged packaging
6 Not enough people know this High quality Trinidadian rum Rich heritage & legacy from the 1870 s But with limited international distribution (until recently)
7 The Situation Our rum brands lacked a cohesive brand identity and emotional appeal We lacked consistency across the range No Angostura design DNA and no aggregate benefit to the brand We were premium by numbers
8 Our Proposed Solution Leverage the Angostura master brand for the rum range (House of Angostura strategy) Develop/refine a shared brand essence which brought both the rum and bitters closer together Reposition & repack the range to create an ownable sense of Angostura premium
9 THE MARKET
10 Market conditions: 1. Viewed from the top line, rum was in gentle decline 2. Global rum sales saw a decline of 0.8% in 2015 compared 2014 levels - a fall expected to continue 3. However premium rum was in robust growth, with EU sales of the most expensive brands having more than tripled since There was a sense in the industry that rum needed to overcome its image as the drink of clubbing and casual hedonism Sources: Financial Times, Time, Just Drinks, The Spirits Business, IWSR
11 The future of rum lies with connoisseurs, not clubbers. Ed Pilkington, Head of Global Marketing Diageo s vodka, rum, and gin brands Good
12 Audience evolution: 30+, rather than 20+ Higher disposable income Drink for enjoyment, not to get drunk Often buy spirits as gifts for friends and family Socialising more linked to great food than nightclubs Like to drink and entertain at home with carefully chosen products They seek brands with proven provenance
13 Competitor response: In 2013 Bacardi vowed to premiumise the whole rum category This resulted in a brand refresh and global ATL campaign to realign the product The strategy built on the provenance of the family heritage and their 150 year history Sources: Financial Times, Time, Just Drinks, The Spirits Business
14 This campaign ushers in a new era for Bacardi rum, with a deeper focus on its provenance. Dmitry Ivanov, Senior Global Category Director of Rums, Bacardi
15 CREATING PREMIUMISATION IN THE RUM CATEGORY
16 Creating premiumisation in the rum category In the spirits industry, rum is relatively underdeveloped but according to IWSR, global rum volumes have grown from 26.4m nine-litre cases in 2014 to 27m in Premium rums on the other hand has sparked an interest in the category with a 10% growth in the last six years. Premium Packaging: Besides changes to the labels, our four premium rums Angostura 1787, Angostura 1824, Angostura 1919, Angostura 7 Year Old are now presented: in a heavy, sensuous bottle with a thick glass base beautifully shaped bottles with rounded curves a new orchid closure system which is both easy to open, yet safely secured for the customer s protection ergonomically balanced and shaped to facilitate storage and usage at the bar Our premium to super-premium rums, Angostura 1787, Angostura 1824, and Angostura 1919, are exquisitely packaged. Angotura 1787 is presented in a rigid box while 1824 is in tube. In the case of Angostura 1919 there is the option of a beautiful matte grey box or a tube. Specially made for gifting, these packages bear the story of the Spirit of Trinidad and Tobago, placing Angostura s sipping rums where they belong alongside the world s best whiskeys and spirits.
17 MAPPING THE APPROACH TO RETAIN OUR HERITAGE
18 Retain Our Heritage Angostura rums celebrate the history and the true spirit of Trinidad and Tobago. Over the last 192 years Angostura has successfully perfected the art of rum making, creating elegant stylish rums that are now found across the five continents. We believe that our new packaging reflects our sense of adventure and innovation and while aesthetically pleasing, it also centres the brand geographically in its Caribbean birthplace and reflects the unique nature of our journey from Our adventurous spirit and drive for innovation are manifested in our music, food, art, and (of course!) in the creation of our exquisite rums. The signature illustration: The Spirit of Trinidad on our closures, captures the essence of our proud heritage and 192-year history.
19 Each element of this beautiful illustration captures an aspect of Trinidad & Tobago The Ship: Symbolic of the transportation of slaves and indentured labourers. Of rum-running up the eastern coast of North America. Sailors on these ships were rewarded for their hard work with a tot of rum, or grog! Injecting the spirit of Trinidad & Tobago The Scarlet Ibis: Brilliant and bold red plumage echoes the colours of Trinidad and Tobago s Flag. The Scarlet Ibis takes pride of place on the national coat of arms. The Sugar Cane in Arrow: The silvery blooms signal the ripening of the luscious, sweet, sun-ripened sugar cane. Molasses from the sugar cane is the first and most essential ingredient in Angostura s fine rums. The Dancer: She is the joyous Spirit of Trinidad and Tobago. Earthy, sensual and all woman! She represents the cultural heritage of the nation beginning in the days of the Amerindians.
20 Elements of Our Heritage Notable on our New Packaging The iconic butterfly logo of The House of Angostura - centred at the top of the front label Two new brand icons have been added a map of Trinidad and Tobago on the left, and an illustration of a butterfly landed on the sugar cane that produces the molasses used in our quality rums These images tell the distinctive story of the brand: Butterflies have always been associated with Angostura s rums since the House of Angostura is home to the Barcant Collection of more than 5,000 butterflies.
21 OUR BRAND ESSENCE
22 Our new packaging was redesigned to set the tone of our brand essence: What Angostura is What Angostura does Iconic bitters and award winning rum carefully crafted from long preserved secret recipes by a team of dedicated people who are an integral part of the Angostura family (real people). Chilled Personality Thoughtful Spirited Creates premium rum and bitters which are recognised internationally to bring out the joy of the moment with true depth of flavour putting spontaneous smiles on the faces of those lives it touches! Easy-going BIG-HEARTEDNESS Quirky Alive Amiable Convivial Carefree Awards & history Royal warrant Butterfly icon On site coopers ENRICHMENT INCLUSIVENESS Brand Home & museum Secret Recipes World s most expensive rum Proud Trinidadian Heritage Approachable Interesting Animated Unpretentious Like I m enjoying the moment! Sigert & Fernandes legacy How Angostura makes me feel How Angostura makes me look
23 Our new packaging was redesigned to set the tone of our brand essence Bigheartedness Enrichment Inclusiveness
24 Angostura s ethos is all about joy. It s in our DNA. From our secret recipes of ancient times to exotic ingredients. Angostura exemplifies: Inclusiveness: Angostura is synonymous with spontaneous joy. The feelings that spark special times, where there is no care in the world. The brand is seen as spirited, natural and easy going. Angostura is for anyone seeking out a quality, aged rum. Big Heartedness: Angostura brings warmth and fun to any occasion. It is stylish and sophisticated, inclusive and unpretentious; experimenting with new things are key! Everyone who speaks about Angostura shares that sprinkle of light heartedness to lift the moment. Enrichment: Angostura enriches our lives.. a favourite drink with close friends and family. A simple feeling of a well spent day. Real people whose lives seem better when drinking our rums.
25 The Shared Essence We had to bring this through in the design of the new pack
26 DEVELOPING THE NEW LOOK: 1. BOTTLES 2. GRAPHIC ASSETS
27 1. Bottles A look at the category and competitors There was no over-riding convention
28 Learning from our past Vintage Bitters
29 Learning from our past Vintage Angostura Rum
30 Which Informed our direction on Bottle shape
31 Making it more distinctive Sugar cane / neck ribbing
32 2. Our Graphic Assets Various brand assets at our disposal
33 Multiple lock ups = confusion
34 Creating a new lock up
35 Injecting a touch of creative Trinidad & Tobago
36 THE FINISHED ARTICLE
37
38
39
40 CHARTING THE WAY FORWARD
41 To charter the way forward, ensuring that our rums are recognized as Caribbean icons, we have: Premiumised our packaging Assigned on our back labels, the Authentic Caribbean Rum Marque (ACR) issued by the West Indies Rum and Spirits Producers Association Inc., which guarantees that the rum is a genuine Caribbean rum. Ensure that our rums are visible and top of mind - Increased rum education programs and tastings with the trade - Communication our international awards for taste and packaging.
42 WHAT ARE THE LESSONS
43 Lessons learned Be clear on your brand essence and let it inform the creative - Provides enduring focus
44 Lessons learned Be clear on your brand essence and let it inform the creative - Provides enduring focus With 200 years of heritage, keep the elements that work - Dates, signatures, awards
45 Lessons learned Be clear on your brand essence and let it inform the creative - Provides enduring focus With 200 years of heritage, keep the elements that work - Dates, signatures, awards Cultivate a sense of provenance - Illustrations, colours, type styles
46 Lessons learned Be clear on your brand essence and let it inform the creative - Provides enduring focus With 200 years of heritage, keep the elements that work - Dates, signatures, awards Cultivate a sense of provenance - Illustrations, colours, type styles Look to create distinctive ownable assets - Build them into a premium feel with embellishments & finishing
47 Lessons learned Be clear on your brand essence and let it inform the creative - Provides enduring focus With 200 years of heritage, keep the elements that work - Dates, signatures, awards Cultivate a sense of provenance - Illustrations, colours, type styles Look to create distinctive ownable assets - Build them into a premium feel with embellishments & finishing Simplicity translates to confidence and elegance - Your heritage does a lot of the heavy lifting
48 Lessons learned Be clear on your brand essence and let it inform the creative - Provides enduring focus With 200 years of heritage, keep the elements that work - Dates, signatures, awards Cultivate a sense of provenance - Illustrations, colours, type styles Look to create distinctive ownable assets - Build them into a premium feel with embellishments & finishing Simplicity translates to confidence and elegance - Your heritage does a lot of the heavy lifting Create room for incremental premiumisation
49 Thank you
COCKTAILS
NIO COCKTAILS 1. 2. 3. 4. 5. THE IDEA STRATEGY PACKAGING COCKTAILS BUSINESS THE IDEA OUR VISION IS THAT OF BEING RECOGNISED AS THE BRAND WHICH OFFERS THE BEST COCKTAIL TASTING EXPERIENCE OUTSIDE OF A BAR.
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