CAPTAIN MORGAN: BRAND TRACKING SURVEY

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MRK561-MMS

Contents Captain Morgan Rum... 2 Canadian Market... 4 Market Research Objectives:... 4 Tracking survey... 4 Survey Draft... 5 Brand Awareness and Usage... 5 Brand Judgments... 6 Brand Resonance... 7 Research debrief... 8 Data Analysis... 9 Works Cited... 17 1

BRAND Captain Morgan Rum Top markets: United States Canada Great Britain South Africa Global Travel Launch: Captain Morgan Original Spiced Rum launched in 1983 In just over ten years following its launch, Captain Morgan Original Spiced shipped a million cases, a significant achievement for any brand in the industry. The brand continued to grow and expand its offerings with a range of new variants. Variants: Captain Morgan Original Spiced Captain Morgan Silver Spiced, a distinctive blend of Puerto Rican white rum and tropical spices, which is dryer and lighter than Captain Morgan Original Spiced Captain Morgan's Parrot Bay, a range of flavored rums in coconut, mango, pineapple and passion fruit Captain Morgan Private Stock, a bottling designed for the sip and savour occasion Captain Morgan Tattoo, a bold version crafted from fine, aged Puerto Rican rum and hot spices, offers a sweet to heat finish. Fact: The brand takes its name from Captain Henry Morgan (1635-1688), a Welsh born buccaneer who was appointed Governor of Jamaica in 1680 and was eventually knighted by King James I. 2

When Sam Bronfman, President and CEO of Seagram's drinks company, arrived in the Caribbean in the 1940s, he was mesmerized by the opportunities presented by spiced rum. He quickly set about becoming "Rum King of the World" and established a network of trading relationships with distillers across the region, founding the Captain Morgan Rum Company in 1945. When the company subsequently purchased the Long Pond Distillery in Jamaica, Sam bought an age-old family recipe for spiced rum from the Levy Brothers, two Jamaican pharmacists from Kingston. That recipe would become the inspiration for Captain Morgan Original Spiced. Just as the young Henry Morgan came of age in the Caribbean, so too does the rum that bears his name. We take American white oak bourbon barrels, char them, and fill them with triple distilled rum. Then we leave them to rest and mature. The charred barrels play a huge part in shaping the rum's flavor, helping release the vanillin, tannins and caramelizing sugars. Ageing in these barrels also mellows the spirit and helps create the rich golden color that is characteristic of Captain Morgan Original Spiced. Perfect for Sipping & Mixing While Black Spiced still has the spice character that consumers have come to expect from the brand, the blend is different. There is more clove flavor and a bolder taste profile overall, Herbst explains. Made with a blend of black strap rum finished in double charred oak barrels, Black Spiced has more layers of flavor than the original. Developed to be delicious straight and on the rocks, Black Spiced gives people the opportunity to drink Captain in a whisky occasion. Which is not to say it doesn t make a mean cocktail. In fact, a major reason Black Spiced is offered at 94.6 proof is because that s the optimum strength for classic cocktails it helps the overall balance of the drink, and enables the flavor to really come through, says Herbst. Early trial-and-error behind the bar has resulted in deliciously simple cocktails Black Spiced with a few splashes of ginger ale to the more complex: We ve developed a few recipes where Black Spiced essentially takes the place of whisky, such as in an Old Fashioned or the Perfectly Black Manhattan. It makes beautiful classic cocktails with a rum twist. 3

Canadian Market The Captain Morgan brand, currently holds a 63% share of the white rum market in the region. Canada s East Coast accounts for 40% of the company s overall volume in rum sales and 50% of its sales of white rum. That s hugely disproportionate to the size of the population (by comparison, the company says the Atlantic Canada accounts for 6% to 12% of sales in other spirit categories). The East Coast rum drinker also represents a different kind of consumer. While the brand s target in other Canadian markets is roughly 18-25 years old, in the Maritimes it s 25-39. Even the product itself is a little different out East, where Captain Morgan makes a white rum with a greenish tinge (while most rums are treated to be perfectly clear, the brand has maintained the original process it used in 1953, when va Scotia was became the first province to sell the label). More filtered versions of the rum were later introduced across Canada, but the original was a hit in the province, so Diageo has continued to sell it across the eastern provinces. Market Research Objectives: 1. To measure brand awareness and brand knowledge among existing customer base and prospects 2. To identify beliefs and intentions of the Captain Morgan brand among existing customer base and prospects 3. To identify customers perceptions of the brand in order to measure the usage of the Captain Morgan products. Tracking survey The primary target market, which is chosen to track the behavior, is Students (both male and female) Aged 18-27 Sociable Outgoing Looking for fun experience individuals Low to high income Sample Size: 25 respondents 4

Survey Draft Brand Awareness and Usage CAPTAIN MORGAN: BRAND TRACKING SURVEY 1. What is your age? 19-24 25-30 31-35 35+ 2. What is your gender? Male Female Other 3. How often do you consume alcoholic beverages? Never 1-2 times a month 3-5 times a month More than 5 times a month Everyday 4. List the top three alcohol brands, which come to mind. 5. What was the last alcohol brand you consumed? Jack Daniels Canadian Club Captain Morgan Absolut Vodka Bacardi Other 6. Have you heard about Captain Morgan before? 5

7. Have you drank Captain Morgan? 8. When I say Captain Morgan, what are the first association that come to your mind? Brand Judgments 9. How favorable is your attitude towards the Captain Morgan brand? 1-Very weak 2-Weak 3-Neither weak nor strong 4-Favourable 5-VeryFavourable 10. How well does Captain Morgan satisfy your needs? 1-Very Poor 2-Poor 3-Neither Poor nor Well 4-Well 5-Very Well 11. Would you recommend Captain Morgan to your friends? 12. Is Captain Morgan worth a premium price? 6

13. What is most unique about the Captain Morgan brand? 14. To what extent is Captain Morgan superior to other brands in the hard liquor category? 1-Very Poor 2-Poor 3-Neither Poor nor Superior 4-Superior 5-Very Superior Brand Resonance 15. I consider myself loyal to Captain Morgan 16. I really like to talk about Captain Morgan to others 17. I am always interested in learning more about Captain Morgan 18. I would be interested in merchandise with the Captain Morgan s name on it 19. I like to visit Captain Morgan s Web site 20. I follow the Captain Morgan brand on Social Media 7

Research debrief Our Market Research Objectives were identified in order to find the relevant customer insights about the Captain Morgan brand. First eight questions are focused on Brand Awareness and Usage of the product. Awareness is tracked through measures of brand recall and recognition. A brand that it is easily recalled in certain situations is more likely to be considered for purchase than one that is only recognized when it is prompted to the consumer. Usage is measured through recency, frequency of usage, and product category (hard liquor drinks). These brand tracking measures, tell us about consumer behavior and preferences. Questions 9-14 are focused on Brand Attitudes and Perceptions and fall into the category we call Brand Judgments. These insights are capture through questions related to brand image and associations that consumers develop based on their experience with the brand. Brand associations include beliefs about product- and non-product related attributes and benefits, as well as perceptions related to price and value. Some brand associations are stronger than others, are more easily recalled and are appealing enough that they become a driver in a consumer s decision to buy a brand. Many times, attitudes towards a brand go beyond the product to include attitudes toward the company. Questions 15-20 are focused on the Brand Resonance, which is the hardest stage to achieve. We look at the level of effort and time, customers are ready to invest. By asking these particular questions, we identify how much consumers are engaged with the Captain Morgan brand, and how tend they are to become brand ambassadors. 8

Data Analysis 1. WHAT IS YOUR AGE 8% 19-24 28% 25-30 64% 31-35 2. WHAT IS YOUR GENDER? 4% Female 48% 48% Male Other 9

3. HOW OFTEN DO YOU CONSUME ALCOHOLIC BEVERAGES? 8% 24% 1-2 times a month 3-5 times a month Everyday 40% 20% More than 5 times a month Never 8% 4. List the top three brands, which come to mind Tequila Souza, Jack Daniels, Smirnoff Vodka Smirnoff Smirnoff Ray stallion Jack Daniels Jack Daniel's Heineken, Miller, Molson, Labatt, Jack Daniels Total Glenfiddich, Captain Morgan, Creemore (Beer) Corona Canadian Baileys Appleton Rum, Captain Morgan, GreyGoose 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 10

5. WHAT WAS THE LAST ALCOHOL BRAND YOU CONSUMED? Other Jack Daniel's Captain Morgan Total Canadian Club Absolut Vodka 0 2 4 6 8 10 12 6. HAVE YOU EVER HEARD ABOUT THE CAPTAIN MORGAN BRAND? 7. HAVE YOU EVER DRANK CAPTAIN MORGAN BEFORE? 8% 100% 92% 11

Axis Title CAPTAIN MORGAN: BRAND TRACKING SURVEY 8. If I say Captain Morgan, what the first association? 5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Total 9. How favourable is your attitude toward the Captain Morgan brand? 9 8 7 6 5 4 3 2 1 0 1 3 4 5 (blank) Total 2 9 6 7 12

Axis Title CAPTAIN MORGAN: BRAND TRACKING SURVEY 10. How well does Captain Morgan satisfy your needs? 45 40 35 30 25 20 Total 15 10 5 0 1 2 3 4 5 Axis Title 11. WOULD YOU RECOMMEND CAPTAIN MORGAN TO YOUR FRIENDS? 12. IS CAPTAIN MORGAN WORTH A PREMIUM PRICE? 16% 64% 36% 84% 13

13. What is the most unque about the Captain Morgan Brand? 2 1.5 1 0.5 0 Total Total 14. To what extent is Captain Morgan superior to other brands in the category? 12 10 8 6 4 2 0 1 2 3 4 (blank) Total Total 14

15. I consider myself loyal to Captain Morgan 16. I really like to talk about Captain Morgan to others 36% 64% 20% 80% 17. I am always interested in learning about Captain Morgan 18. I would be interested in merchandise with the Captain Morgan's name on it 36% 64% 71% 29% (blank) 15

19. I like to visit Captain Morgan's Web Site 24% 76% 20. I follow the Captain Morgan brand on Social Media 28% 72% 16

Works Cited "Brand Profile: The Captain Has a Dark Side."» Beverage Media Group. N.p., n.d. Web. 17 v. 2015. "Captain Morgan Honours Its East Coast Connection." Marketing Magazine Captain Morgan Honours Its East Coast Connection Comments. N.p., n.d. Web. 17 v. 2015. "How To Do Brand Tracking Studies." SurveyGizmo. N.p., n.d. Web. 17 v. 2015. "Rum." Rum. N.p., n.d. Web. 17 v. 2015. 17