Bacardi in India

Details

Case Code : CLMC-018
Publication date : 2005
Subject : Marketing Communications
Industry : -
Length : 04 Pages
Price : Rs. 100

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Key words:

Bacardi Martini India Ltd., Bacardi Breezer, Carta Blanca, Reserva, Below-the-line promotions, Event sponsorships, Ready-To-Drink, Regulations on advertising, ‘Bacardi Blast’ and Cuba.

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

This caselet gives a brief overview of the operations of Bacardi Martini India Ltd. It details the launch of ‘Bacardi Breezer’ in India and the reasons that forced the company to opt for the first time ever a localized advertising campaign. The caselet also talks of the use of below-the-line promotions, and event sponsorships like ‘Bacardi Blasts’ and ‘Bacardi Night Shift’, to create brand awareness and sustain interest in the brand.

Issues:   » Problems of using a standardized advertising approach   » Localizing the global marketing communications strategy   » Role of on-ground promotions   » Impact of regulatory environment on marketing communications strategy   » Packaging as a tool to communicate a premium brand image Introduction Bacardi Martini India Ltd. (BMIL), a 74:26 joint venture between Gemini Distilleries and Bermuda-based Bacardi Ltd., entered India in 1998 with the launch of its white rum Carta Blanca. The brand had a dream start with sales growing steadily in the initial years.

From 20,000 cases in the first year, sales reached almost 100,000 cases by the third year. But after this, sales stagnated. Later, the company launched the premium dark rum Reserva. Since the spirit was light gold colored, it was a completely new category in dark rum and failed to evoke the desired response. Seeing a potential in the Flavored Alcoholic Beverage (FAB) or Ready-To-Drink (RTD) segment, BMIL launched the Bacardi Breezer, the largest selling brand in the RTD segment worldwide.

Questions for Discussion:

1. Bacardi’s global ad campaigns were successful in various markets across the world. But the company used a local ad campaign in India. What are the reasons that forced BMIL to opt for a localized campaign in India?

2. Explain the rationale of the company in conducting ‘Bacardi Blasts’ and the release of CD’s in view of the government ban on liquor advertising.

3. What did BMIL want to communicate through the new pack design for its Bacardi Carta Blanca brand of white rum?