To conduct an extensive market research on Campari’s products it is crucial to analyse current market trends, potential customers, competitors and consumer preferences in the beverage industry, specifically the spirits and liquor sector. In terms of market trends, there has been an ever growing demand for premium and super premium spirits and a rising interest in craft cocktails and mixology. Over the past decade, the number of distilleries has grown significantly, with a corresponding increase in the market share of crafts spirits, indicating a shift towards higher quality and more sophisticated beverages. This presents an opportunity for Campari group’s diverse range of brands to capitalise on this trend.
To understand the consumer preferences it is important to analyse Campari group’s target market.It includes adults of legal drinking age, particularly those with a preference for premium and super premium products. The companies diverse range of brands and products and their participation in events such as the Berlin International film festival suggest an appeal towards individuals with an interest in art, craftsmanship, culture and sophistication.
Evidence indicates that when it comes to consumer preferences there’s been an inclination towards experiental and quality-focused consumption. Consumers are increasingly seeking unique and authentic experiences and this translates to their beverage choices. Additionally there has been a global shift where traditional markets in Europe and North America are decreasing in importance while sales in fast growing economies such as Brazil, China, India and Turkey have seen significant increase. This goes to show a shift in consumer preference and market demand towards emerging economies.Campari Group’s portfolio of premium and super premium brands can align with these preferences by emphasizing the heritage, craftsmanship, and distinct flavor profiles of their products. Moreover, the social responsibility initiative, Bartender Hero, highlights Campari Group’s commitment to responsible serving by their bartenders which in turn leads to responsible consumption, which resonates with consumers that prioritise ethical and socially conscious brands.
The following are the strengths of Campari’s products relative to their target market:
· Diverse brand portfolio – Campari Group has over 50 premium and super premium brands which appeals to various consumers within the target market
· High ethics and social responsibility – Initiatives such as the Bartender hero ensure a responsible alcohol consumption by the users which appeals to many consumers who may have ethical concerns
· Cultural influence – Campari has associated its products with events such as the Berlin International Film Festival potentially attracting consumers interested in art and sophistication
The following are the Weaknesses of Campari’s products relative to their target market:
· Regulatory challenges – The alcohol industry is subject to a lot of regulations, some of these regulatory changes affect the marketing and sale of Campari’s products
· Brand perception – Maintaining a consistent brand perception across multiple products might prove to be a challenge
The following are the Opportunities for Campari’s products presented in the market:
· Market expansion – Campari Group can explore opportunities to expand into emerging markets where premium alcohol products are in demand
· Partnerships and collaborations – Due to a rising demand of premium products in rising economies, there are numerous opportunities for partnerships with bars, restaurants and events enabling their products to reach a broader audience.
The following are the Threats that face Campari’s products relative to their target market:
· Changing consumer preferences – Shifts in consumer preferences towards non-alcoholic and health lifestyle might be a threat to Campari’s products
· Economic factors – Economic downturns and changes in consumer spending habits can reduce the demand of premium alcoholic beverages potentially affecting Campari’s products
Campari Group faces competition in the beverage industry specifically the premium spirits and liquors segment from companies such as Diageo, Pernod Ricard ,Brown-Forman Corporation, Remy Cointreau and Beam Suntory. In this discussion Diageo and Pernod Ricard will be discussed as the major competitors in the market and their strategies that keep them on top.
Diageo is a prominent brand In the beverage industry known for its exceptional portfolio and it’s influential iconic labels such as Guinness, Johnnie Walker and Smirnoff. It is a market leader in the premium spirits segment and it employs the following strategies to stay on top.
According to Seifu (2020), in the promotion of one of Diageo’s products, three key marketing strategies were investigated; Integrated Marketing communication (IMC), sales promotion and advertising. IMC focuses on unifying various communication elements such as social media, public relations and advertising into one consistent brand identity, this ensures that the voice of the brand remains consistent. This helps build a stronger relationship with customers and influence their perceptions. This has also been seen through investments in social media advertising, in 2011, the head of digital at Diageo announced plans to step up the multi-million dollar partnership with Facebook (now Meta) reporting their fan base increased from 3.5 – 12 million in the preceding year.
Sales Promotions is a strategy that includes various short term incentives to solicit the purchase of a product. It involves activities such as samples, coupons and contests.Advertising on the other hand refers to any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor via various media channels, Seifu (2020). Diageo as a brand does an exceptional job at advertising through story telling as observed in one of it’s iconic labels, Johnnie Walker.
Pernod Ricard is also a well known brand in the beverage industry and is responsible for iconic labels such as Absolut Vodka, Jameson Irish Whiskey and Chivas Reagal. They have employed a comprehensive marketing strategy that focuses on brand management, decentralisation and a premium strategy. Its decentralisation approach allows each vessel/label to focus on it’s core business and local audience leading to adaptability and consistency . It is also known for a well structured brand portfolio that allows resilience and adaptability in changing market dynamics and consumer behaviors.
Pernod Ricard has also implemented a premium strategy offering a wide portfolio of premium products.This shift has enabled them to become a worldwide leader in the premium sector and has resulted in a strong increase in operating profit in the last decade.The brand portolio has also been extended through mergers and acquisitions so as to match consumer habits.
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