Abstract

The case revolves around the decision of Kentucky based-bourbon company, Maker’s Mark, to dilute the alcohol content of its iconic product, and the subsequent roll-back of the decision following a backlash from its loyal customers. The whole incident was likened to what is considered the biggest marketing fiasco of Coca-Cola Company, which reformulated its existing product in 1985 and introduced a New Coke. The Coca-Cola fiasco is considered to be a part of marketing folklore. Maker’s Mark had created and created a brand and cultivated a loyal customer base. In addition to its Ambassador Loyalty Program, the company had relied heavily on online and offline word-of-mouth marketing. Moreover, the bourbon maker had evolved from a no-marketing company to a promotion savvy one. But in 2013, faced with a high demand for its product and product shortage, Maker’s Mark made the decision to dilute its bourbon from 90% proof to 84% proof, much to the chagrin of its loyal customers. The company’s hasty move to go back on its earlier decision following the backlash led to many industry observers wondering whether it was a public relations fiasco for the bourbon maker, or whether the company had pulled off a clever marketing stunt.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the marketing initiatives adopted by Maker’s Mark over the years and how the brand leveraged social media for marketing communication.
• Analyze the company’s decision to dilute the product, and its response to the consumer backlash that followed.
• Discuss and debate whether the decision of Maker’s Mark was a public relations fiasco or a clever marketing stunt.
• Discuss the implications for brands in this new age, which is marked by a proliferation of social media where consumer reactions can make or mar a brand.

Keywords

New Coke fiasco, Manage demand, Manage shortage, Marketing communication, PR fiasco, Clever PR stunt, Crisis communication, Digital marketing, Loyal customer base, Social media, Brand Management, Branding, Brand differentiators, Bourbon industry