Individual Brand AnalysisSrinivas RaoMarch 30, 2009

BACARDI SWOT ANALYSISStrengths• Strong brand recognition• Multiple Product Lines• Distribution Channels

Opportunities• Non-alcoholic Bacardi Branded Beverages• Bacardi Branded Food Items

Weaknesses• Heavily driven by consumer preference• Difficult to predict tastes/preferences• Only associated with Rum

Threats• Intense competition• Limited Brand Loyalty• Strict Advertising Regulations

AGENDA

• SWOT

• DEMOGRAPHICS

• PSYCOGRAPHICS/CHARACTER PROFILES

• MODELS FOR MOLDING ATTITUDE

• Q&A

DEMOGRAPHICS

• Skews towards a younger demographic

• Age Groups 21-24, 25-34 represent largest target demographic

• Consumption is highest among people who make over 75k annually

• African American, Whites, and Hispanics have the largest consumption of rum on a percentage basisSource: Mintel Reports, Premium Alcohol Consumption

PSYCOGRAPHICS

• Active Lifestyles

• Most classify themselves as casual social drinkers

• Generally tend to stick to one type of drink/have a preferred drink of choice

• Have strong preference for certain distilled spirits

• Will try new drinks promoted by a sponsor or recommended by a friend

• Source: Mintel Reports, Premium Alcohol Consumption

CHARACTER PROFILES

Jane Doe

Age Group: 21-24

Character Traits: Recent College graduate, hoping to get a promotion at her job, considered attractive by most men. Doesn’t have trouble getting into any night club

Lifestyle: active, goes out 3-4 nights a week, you’ll likely find her at a night club with 4 friends on most weekends.

Alcohol Consumption Habits: Drinks daily, but sticks to Bacardi Breezers during the week, but will be drinking a mojito on the weekend. If her friends suggest a new drink she’ll give it a try

John Smith

Age Group: 25-34

Character Traits: graduated from college 3-4 years ago. Was the president of his fraternity in and acquired a taste for Bacardi there. Works in finance and is considering returning to get an MBA

Lifestyle: active, goes out every weekend. Likely to be with one friend and sometimes will get bottle service

Alcohol Consumption Habits: Drinks daily and tends to drink on the heavier side. You’re likely to find him drinking Bacardi 151 because he prefers a stronger drink, wants to hook up with Jane

THREE COMPONENT MODEL FOR ATTITUDE MOLDING

Cognitive

Conative

AffectiveThink

Feel

Do

Think

Feel

Do

Think

Feel

DoBACARDI/DIET COKE BACARDI TV

COMMERCIALS

BACARDI EVENTS

COGNITIVE MOLDING EXAMPLE

AFFECTIVE MOLDING EXAMPLE

CONATIVE MOLDING

Level of Involvement: Advertising Effectiveness• Bacardi Consumers have a relatively low level of

involvement with its products (mainly a leisure product)

• Peripheral route is most effective in reaching the consumer

• ELM: Elaboration Likelihood Method

• Low levels of elaboration about the product make peripheral route the most effective mechanism to reach the target audience

QUESTIONS?