Rule Breaker Whiskey by Jennifer Gavens

Rule Breaker Jennifer Gavens October 16, 2013 New Product Development

The Rule Breaker Introduction When you think of whiskey what is the first thing that comes to mind? Is it the type of person that drinks it? Do you make a face because it has a strong, unique flavor? Whiskey is considered one of the most sophisticated drinks to order at a bar or before dinner but it comes with a warning, you need to know how to drink it. You need to build an acquired taste for this drink that may take years to develop. Most important of all you need to completely understand what you are drinking to fully appreciate the distinctive flavor and experience this beverage provides. The question though is who drinks it? Through the use of primary and secondary research it is clear that whiskey is considered a man’s drink. Though some women do enjoy drinking it, whiskey is branded and catered towards men. There is also a unique masculine personality that whiskey provides to its drinker - tough, edgy, and all man. Why would women want to drink it then if it is designed for men? By not including women, there is an immediate weakness in the whiskey brand that other alcoholic beverages take advantage. Also, because of the slow increase in growth within the market, the whiskey industry needs a new strategy to target new consumers. So how can whiskey companies eliminate this problem? By making a whiskey that is specifically catered to women. What is Whiskey? Whiskey, surprisingly, is very similar to beer. They are developed from grains, which are then fermented to release sugar. The only difference between the two types of beverages is that beer companies add hops to its drink to balance the flavor, whereas whiskey uses oak aging. Whiskey falls into the category of dark spirits, which also include brandy and cordials. There are also many different types of whiskey that are created in different countries around the world such as Scotch, Irish, American and Canadian whiskeys. Each type of whiskey is unique based on the types of grains and barleys located in each geographic region (Hansell, Whiskey 101). Situation Analysis Based on information found in Mintel, it is forecasted that the dark spirit market will experience only a small amount of growth each year until 2017. Though whiskey is also expected to have a minimal growth of 1.5% and a total volume sale of 47.1 million, they are still the largest segment within the dark spirit category. In the year 2010, product launches of dark spirits have focused primarily on flavors and packaging to cater towards the younger millennial generation who, according to Mintel, “represent the category’s future”. This generation appears to have a more responsive attitude towards unique flavors and combinations as well as interesting bottle designs (2012, Dark Spirits, Mintel). Another interesting trend occurring in the dark spirits category is where alcohol is purchase/consumed. Since the economic recession, most alcohol categories have seen an increase in consumers choosing to drink their beverages at home instead of out. The dark spirit category is the opposite. They have experienced an increase of on-premise sales

(from $9.4 billion in 2007 to $11.9 billion in 2012) and a decrease in off-premise sales. It is presumed that this trend is the result of an increase in the development of new flavored whiskeys and the cocktail trend, which allows consumers to taste a drink instead of being forced to buy a whole bottle (2012, Dark Spirits, Mintel). Price: Shot of Whiskey $3 – good whiskey $5 – decent whiskey $10 – high quality $15 – reserve brands

Bottle of Whiskey <$20-30 – good $30-50 – decent $50-70 – high quality $70< – reserve brands

Place: Bars Restaurants Wine and Spirit Stores Online Whiskey And Women The number of women who drink whiskey compared to men is extremely low due to the popular brands of dark spirit companies focusing their marketing strategies more towards men. However, women represent over half of the population, and if the whiskey industry made a greater effort to target women, they were be more inclined to purchase the beverage for their own consumption. Competitors Although whiskey can be broken down into many different types such as Scotch, Irish, American and Canadian, this report will only focus on whiskey as a whole brand and compare it to other types of alcoholic beverages. The three top competitors are white spirits (rum, vodka, gin and tequila), and beer. White Spirits The white spirit category is constantly growing. In 2012 the market reached $30.6 billion in retail sales - an increase of 3.7% from the year before. This consistent rise is caused by the cocktail culture, the interest in premium products, and the innovation of new flavors. White spirits were also affected during an economic recession as drinking habits of consumers changed from on-premise to off-premise (2012, White Spirits and RTDs, Mintel). White spirits also attract the millennial generation as their key consumers. Based on a Mintel report, 74% of respondents aged 21-24 drank white spirits compared to the 41% of consumers over 65. These consumers also choose to drink mid-range products as well as premium high end products. This means that the consumers were willing to spend more money for a drink, which resulted in more money brought into the company (2012, White Spirits and RTDs, Mintel).

Vodka Vodka has the largest sales in the white spirits category and is still growing. Sales in 2012 reached 70.6 million 9-liter cases or %55.7 of category sales, which is likely due to the ability to mix it with other drinks. Sales also were caused by the enormous amount of flavored products offered in the category (2012, White Spirits and RTDS, Mintel). Vodka consumption is very similar between men and women as well as a younger age group of 18-24 year olds. Vodka is also an alternative to expensive beverages and provides upscale looking bottle for a low price (2011, Spirits: The Consumer, Mintel). Price: Shot of Vodka Depends of the type of bar and the geographic location between $3-$11

Bottle of Vodka $10 – Cheap $20 – Good $30 – Decent $40 – Luxury

Place: Bars Wine and Liquor Stores Online Bottles are usually showcased directly in front of people waiting at the bar. The bottles are meant to be shown off to sell the product. Therefore, they are the key agent that entices the customer to choose that drink. Promotional History Although there are hundreds of different types of vodka and white spirits, for this study only vodka created and designed for women was singled out for comparison. One of the more recent types of vodka developed in 2011 for women is called Skinny Girl Cocktails. This vodka screams women. Their advertisements directly address common comical issues associated with women as well as encourage women to push themselves to get what they deserve. They are low calorie and contain all natural flavors. Their advertisements are promoted using the famous TV actress Betheny Frankel who discusses the drink on her talk show. Here are some advertisements for Skinny Girl Cocktails.

These advertisements are clean and very simple. They use feminine colors and have catchy slogans that relate to womenâ&#x20AC;&#x2122;s lifestyles. Most important, like other vodka advertisements, these ads are focused on using the bottle to sell the product. The bottles are the key focal image in all of these ads. Beer Beer is one of the main competitors of dark spirits. The main reason is that it has a lower price point. In 2012, beer had a total sale of $71.5 billion and sold 2.9 billion 2.25-gallon cases. According to Mintel, it is estimated, that this number will continue to increase through 2017. The growth is due to the development of low priced domestic and imported beer segments (2012, Beer, Mintel). Beer, like whiskey, also needed to focus on developing products that cater to women who are less likely to drink it. Unlike the whiskey industry, beer companies have already created new products such as light flavors, and sweeter tastes that cater to women (2012, Beer, Mintel). Price: 24 Pack of Beer (cans) - $15-$19 24 Pack of Beer (bottles) - $14-$22 Keg of Beer - $55-$130 Glass of Beer - $2.25-$5.50 Place: Grocery Stores Drug Stores/Convenience Stores Bars/Clubs Usually found in the back of store or off to the side. Promotional History Beer is similar to vodka in that there are hundreds of different beer manufactures around the world. For the purpose of this study, only beer that caters to women will be mentioned. It is clear that women enjoy light beers that are low calorie and does not necessary have a strong hops taste. The beer chosen as the best representative is Budweiserâ&#x20AC;&#x2122;s Bud Select 55. It is a light, smooth beverage that has lower calories when compared to other light beers. Here are some examples of Bud Select 55.

These advertisements solely focus on promoting how Bud Select 55 is the lightest and lowest calorie beer in the world. They literally have the bottle of beer floating to emphasize how light the beer is. Again, like most alcohol advertisements, the main focal image is the bottle of alcohol. SWOT Analysis Strengths • Unique with a variety of flavors • Rough, Edgy Personality • Higher quality of product and standards

Weaknesses • Marketed for Men • Not everyone enjoys the taste, bitter • Expensive

Opportunities • Create a market for women • Growth of the Millennial Generation • Create a cheaper, but still high quality product

Threats • All competitors market to men and women • Any one can drink beer and white spirits • Competitors are selling their products for lower prices

Primary Research Based on the research stated above, there are many questions regarding the whiskey industry. Too begin; there needed to be confirmation that there was a stereotype towards those who consumed whiskey. Advertisements for whiskey were looked at to determine if they were directed towards men and if there were women who wanted to drink it. Was it possible that women were too intimidated to drink whiskey because of this stereotype? To learn the answers to these questions, a survey was conducted that was handed to seventeen respondents between the ages of twenty to twenty-five. This age demographic was chosen because competition within the whiskey market all has key consumers that fall into this age range. These purchasers who fall into the extremely influential millennial generation are the main consumers of alcohol and would be an excellent demographic for the whiskey industry to begin creating a new image. In the survey developed, participants were asked to respond to twelve questions pertaining to their alcohol consumption and their personal perception and attitudes towards whiskey (See Attached Survey). Then they were asked to share their own opinions to access any bias towards women drinkers. The final question dealt with the pricing of whiskey. Findings After conducting the preliminary survey, a wide variety of feedback was gained that answered many of the posed questions as well as provided information that was not considered previously. The discovery that there was a difference between male and female respondents was surprising. Patterns began to form between the genders that are described in greater detail below.

Men The majority of the men that were surveyed do not believe that there is a stereotype towards women and whiskey. They responded with answers like, “not at all, they’re entitled to their own taste” and for the few males that did have a response towards the stereotype, they believed that any women seen drinking a glass a whiskey, defined the type of women she was. They stated that the women would be “much cooler, more mature and into having fun” as well as “it’s very special”. A conclusion drawn based on these answers is that most men are truly oblivious to women and their opinions towards whiskey. However, those who do notice it, immediately apply a unique personality trait to those women who drink whiskey. The next finding found among men was that the majority of those surveyed consumed Whiskey. This was an expected result, but the reasons they drank whiskey and their emotional response regarding their consumption was important to note. Based on the survey it is clear that men drink whiskey because they enjoy the taste and the fact that it is unique beverage. They also get a very masculine emotional response when consuming whiskey. According to the respondents they feel “good and masculine” as well as “strong and smart” while drinking whiskey. The results point to a conclusion that whiskey provides men with a strong masculine attachment. Women The women surveyed told a different story about whiskey consumption. It is still true that there is an assumption that whiskey was created for men, but what is different is how women perceive those who drink it, especially other women. The majority of the women that were surveyed immediately placed a judgment on other women who drank whiskey. They thought of her as “more of an alcoholic” and with “a little rougher personality”. They also believe that she wasn’t going for flavor”. Based on these responses, it is concluded that women are extremely intimidated (good and bad) by other women who drink whiskey. They feel that they have this rough appearance that they may subconsciously idolize. Another key component found through these surveys was that most women do not drink whiskey. Instead they drink other liquors such as vodka, gin, and beer, which are in direct competition with whiskey. For every response in the survey to the question why don’t you drink whiskey, their answers were “it’s too strong” and that they “don’t really enjoy the taste”. These are extremely important factors when trying to entice the public, women or men to purchase and consume a product. Overall the findings from this survey were very helpful towards discovering more insights about whiskey and women. The conclusion is that women immediately judge and admire women who drink whiskey while men think these women are unique. Also, it was discovered that the women who avoid whiskey do so because of its bitter taste and strength. Therefore; to combat this negative stereotype, the whiskey industry needs to develop a beverage that will entice more women to drink it by presenting it as a women’s drink, while still preserving its edgy image. A beverage campaign will need to highlight the positive reactions men will give to women who drink the new

and improved beverage as it will give women that unique and positive emotional response. Other Findings In addition to the overall differences between male and female respondents, it was curious to note that the type of individual mentioned most likely to purchase whiskey over other alcoholic beverage were men and women from the south. These responses brought up an interesting insight as to where the new whiskey product should be introduced and marketed. The second finding from the surveys was how the respondents chose alcoholic beverages to purchase. Flavor and the reputation of the brand was the response given most often. Bottle design and size were also important factors in the purchasing decision. With the new insights gathered from the survey results, it will be important to incorporate these elements when creating a marketing campaign and product design for the new whiskey. Product Introductory Plan A second survey (see attachment) was conducted that was specifically targeted women between the ages of twenty and twenty-five. In this survey, ten respondents were asked about their alcohol purchasing habits, and where they were most likely to be exposed to advertising for alcoholic beverages. They were also asked to comment on a new whiskey product targeted directly to women that has a better taste but were not as strong. Finally, respondents were asked to choose the best name that would entice women to buy the new product from three choices. Name Recommendation The three names that were suggested for branding the new product were: AntiPrincess, Women Only, and Rule Breaker. Based on the responses that were received, Rule Breaker was the clear winner. Respondents provided insight to why they chose Rule Breaker above all of the other names. They responded with answers such as “I think that’s a name my friends and I would have fun with on a night out” and “Rule Breaker is a good gendered name”. Based on these responses, the name Rule Breaker expresses that is a different drink designed for an exciting night. Rule Breaker can mean a lot of different things to women. Most importantly it implies something that goes against the norm and challenges what society already believes. Whiskey has always been thought of as a men’s drink, Rule Breaker will change that. It will challenge women to fight against the stereotypes of which gender should consume certain alcoholic drinks and embodies the supreme power whiskey can provide women. Rule Breaker breaches the rules in regards to whiskey consumption and allows women to feel sexy and confident. Positioning Recommendation Rule Breaker is the only whiskey that provides an opportunity for women to unleash their inner rebelliousness with a unique and sophisticated flavor.

Pricing Recommendation Based on the two surveys conducts, the price of Rule Breaker should be lower than the current prices of whiskey and other alcoholic beverages sold at bars and restaurants. Most respondents in the surveys were actually unsure of the price of a glass of whiskey but were under the impression that it was an expensive drink compared to beer and white spirits. Due to these findings, Rule Breaker should be similar in price to its competition while still maintaining the high quality, unique flavor that expensive whiskeys contain. To raise market share and increase profits within the whiskey industry, there needs to be a drink that is delicious, low priced, and drives the consumers away from other alcoholic drinks. As the target audience is young, they may not have the budget to invest in expensive drinks when they go out. They choose drinks that are low in price, but also flavorful. Based on these findings, the price of Rule Breaker should be between $3.00 and $5.00 per glass and around $20.00 for a bottle. Distribution Recommendation The second survey suggests that the key place to introduce Rule Breaker would be in liquor stores located around college campuses. This will allow Rule Breaker to be targeted directly to the demographic chosen for this product. This insight will be combined with information received from the first survey stating that southern men and women are more likely to drink whiskey. Therefore, the initial distribution of Rule Breaker will be in liquor stores near college campuses located in the southwest region of the United States. Another key factor in deciding the location is that most consumers of any type of alcohol are more likely to go to a store to buy beverages to bring back to their homes for consumption. The goal then would be to acclimate new, young consumers to the beverage by first bringing Rule Breaker home for their enjoyment. Once accustomed to the drink, they may be more likely to order it when they go out for dinner or to a bar. There will be an advertising campaign to expose consumers to Rule Breaker before they enter the store through a multiple media strategic process (See Advertising Plan Below). Product Recommendation In addition to pricing and distribution recommendations, it also very important to consider how Rule Breaker will look when displayed in the liquor stores. Based on the results from the two surveys, it is clear that product perception is important in a consumerâ&#x20AC;&#x2122;s purchasing decision. Also, it is important to consider why women choose the competition beverages to drink over other drinks and what those drinks provide for them. Beer comes in a personal sized can. There is no hassle with pouring it and measuring the correct drink size so it is convenient and easy to use. White Spirits and Vodka provide consumers the opportunity to create their own blended drinks. However, this could also be a hassle for consumers because of the time it takes to create the drink.

As a result, it is decided that Rule Breaker needs to have an edgy bottle design so that it is unique and stands out from other whiskeys as well as its competition. Therefore, Rule Breaker will be presented with multiple sized bottle options. Like beer, Rule Breaker will be made in personalized sized bottles as well as regular sized so that it can be consumed easily. Rule Breaker will be low in calories and pre-flavored so that women will not feel the need to mix it with other high calorie beverages or flavorings to lighten the intensity of the drink. Not only will it be ready to serve, but it will also be easy to drink and delicious. Creative Brief Objective Entice young women to purchase Rule Breaker because it is the only whiskey beverage that is made with women in mind and as a result, increase sales growth within the whiskey industry. Target Audience Rule Breaker is made for young women who want to play with the boys but still be strong, unique and 100% female. It is for women who want to try something new, with a variety of unique flavors that they can enjoy out at the bar, in a restaurant, or just hanging out at home. Whiskey Whitney is 22 years old, just graduated from college and likes to have a good time. Her friends are mostly guys who tease on her every time she orders a “girly” drink when they go out. She wants to be one of the guys, but she does not enjoy the taste of the whiskey they drink. When she does order whiskey, she feels manly and tough while drinking it, which she believes makes her unattractive to guys. All she wants is to fit it, but still be seen as a unique woman. Current Belief Whiskey is a man’s drink because of its strong unique flavor. It is also expensive to purchase a glass of whiskey compared to the price of a beer or mixed drink. Future Belief Women can enjoy the same high quality, flavorful whiskey that men do for a lower price and with a taste that is more appealing. Single-Minded Proposition Rule Breaker will give women an opportunity to feel sexy, confident, and powerful when they drink and enjoy this beverage. Reasons To Believe Once women taste Rule Breaker they will know that it is a tasty whiskey that they can enjoy while relaxing at home or during a night out. They can be one of the guys while still feeling feminine, confident, and unique.

Advertising Plan The advertising plan selected to promote Rule Breaker is a multi-step process. This process needs to encompass everything that Rule Breaker represents. It needs to be intrusive, bold and edgy. It also needs embody the message of a strong, powerful woman. The first step in doing this is to get Rule Breaker into everyoneâ&#x20AC;&#x2122;s mind. The advertisements need to be seen everywhere. According to the second survey that was conducted in this research study, most respondents answered that they are exposed to alcohol advertising through media such as magazine, billboard, television, and music videos. Over time, the Rule Breaker advertisements should be advertised within each of these mediums. Below is an example of a print advertisement for Rule Breaker that would be used in a magazine.

Memories Arenâ&#x20AC;&#x2122;t Made When You Follow The Rules Introducing Rule Breaker. A new whiskey distilled by women just for women. Now in a personal size

The second step in the advertising plan would be to get women to try Rule Breaker. Based on the research conducted it was clear that women would automatically assume that because it is a whiskey, it would have a bitter taste and therefore, would not drink it. Rule Breaker needs to present itself at different functions where women will taste it such as bars, restaurants, and social gatherings. However, the key place for Rule Breaker to attract the target demographic will be at liquor stores located near college campuses. At liquor stores, Rule Breaker will have taste testing stands located near the entrances of each store. As soon as women of legal age enter, they will be given a taste of Rule Breaker. If they like it, they will be offered a discounted bottle of Rule Breaker right there that they can purchase. Hopefully, women will share their opinions as well as the discounted beverage with their friends and peers. The strategy is that these women will enjoy Rule Breaker first in their homes and then order it when they go out for drinks at restaurants and bars. Below is an example of what the stand will look like at the liquor stores.

Letâ&#x20AC;&#x2122;s Break The Rules Whether you are male or female, there has probably been a time in your life where you experienced a moment where you wanted to take risks and dare to be different. That moment where you just want to make a statement and become a unique, confident person. For men whiskey has always been there to give them just the little push they needed to become that rebel. Unfortunately, women have not had that same opportunity. Now, with the introduction of Rule Breaker, women too can go against societies beliefs, play with the boys and become the wild, sophisticated women they want to be. Rule Breaker provides all the edginess that tradition whiskey provides for men, but with a better taste, cheaper price, and packaging designed specifically for women. Based on the research, it is clear that traditional whiskey can be intimidating for women. And that it is too expensive. Rule Breaker will change these opinions and become the â&#x20AC;&#x153;go-toâ&#x20AC;? drink for women when they go to restaurants or are relaxing at home. It is also clear based on the research that the Millennial Generation is a key demographic when targeting consumers in the alcohol industry. They are the largest population, and will be reaching the legal drinking age within the next couple of years. In the past, whiskey was not targeted to this demographic, and especially not to young professional women. Rule Breaker will become that next trendy beverage Finally, with the new advertising plan and product design promotion set in place there will be no stopping Rule Breaker when it is unleashed. Soon every woman will see this new beverage through a multi-media campaign and feel a strong urge to try it. From that very first taste at the liquor store women will be entranced by its unique flavor and bottle design. It will create a glow of confidence and sophistication every time they drink it. Soon they will share their discoveries with their friends and the word will spread. Women enjoy standing out and being rebellious. Rule Breaker was made for them.

References Bloom, B. (2012, November). White Spirits and RTDs - US. Mintel. Retrieved October 10, 2013, from academic.mintel.com.libezproxy2.syr.edu/display/590770/ Goel-lal, G. (2011, September). Spirits: The Consumer - US. Mintel. Retrieved October 10, 2013, from academic.mintel.com.libezproxy2.syr.edu/display/542986/ Hansell, J. (n.d.). Whiskey 101: Resources for whisky enthusiasts. Whisky Advocate. Retrieved October 12, 2013, from www.whiskyadvocate.com/whisky_resources.asp Zegler, J. (2012, December). Dark Spirits - US. Mintel. Retrieved October 10, 2013, from academic.mintel.com.libezproxy2.syr.edu/display/590697/ Zegler, J. (2012, September). Beer - US. Mintel. Retrieved October 10, 2013, from academic.mintel.com.libezproxy2.syr.edu/display/590816/?highlight=true

Survey #1 Please answer the following questions truthfully and to the best of your ability. Thanks! 1. 2. 3.

What is your gender? Male or Female How old are you? What types of alcoholic beverages do you like to drink?

When/where do you consume alcoholic beverages? How often?

Which type of alcoholic drinks do you buy at the store? (circle all that apply) Gin ____

Vodka ______

Wine

Beer

_____

Tequila _____

Whiskey _______

Other_______ _______

_______

Please rate drinks on a scale of 1-7 (1 being your least favorite, 7 being your favorite) 6.

Are there beverages you believe are only for Women? For Men?

Who do you think drinks whiskey? Men, Women or Both. Describe them.

Do you believe there is a stereotype towards those who drink whiskey? Please Explain

Do you drink Whiskey often? Yes or No (please circle and answer the appropriate questions)

If Yes, Please answer these following questions a. What do you like about whiskey? b.

How do you feel while drinking whiskey?

If there were anything you could change about whiskey, what would it be?

Is whiskey you first choice beverage?

When do you like to drink whiskey?

Does whiskey offer you something that other alcoholic beverages do not?

If No, Please answer these following questions a. Why do you not drink whiskey? b.

What is your perception of whiskey? (good or bad, please explain)

What would you change about whiskey if you could?

10. How much do you think a bottle/glass of whiskey cost? 11. How much do you think it should cost? 12. Would you have an opinion towards seeing a woman drinking a glass of whiskey? If yes, please explain. Please use this space to provide any other comments you may have towards whiskey or other alcoholic beverages.

Survey #2 Please answer the following questions truthfully and to the best of your ability. Thanks! 1.

Where would you most likely see advertising for alcohol?

Which of these places you stated above do you think would be most successful in enticing you or your friends to buy alcohol?

Where do you or your friends purchase alcohol?

How do you choose which alcohol to buy? Bottle? Flavor? Peers?

Where do you think Whiskey is sold?

What would you think about a Whiskey that is sold directly to women, that has a better taste, and may not be as strong but still has the edgy personality traditional whiskey has?

Would you buy it? Try it? Why or Why not?

Do any of the names listed below interest you into purchasing a whiskey like this? • Anti-Princess • Women Only (No Men Allowed) • Rule Breaker

If yes, which one?

If no, what do you think it should it be named?

How much do you think a glass of this whiskey would cost? A bottle?