havana club

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Havana Club: Nothing Compares to Havana Havana Club, an alcohol rum beverage brand, took the task in 2012 to defend its brand’s position by rivalling the continuous ‘number one hot brand’, Bacardi (WARC Case Study 2012: p.2). Teaming with M&C Saatchi, the “Nothing compares to Havana” campaign was created, displaying the Cuban culture using emotional selling appeal, directly addressing the consumer with the strapline “to go see your friends, you don’t go on internet, you go see your friends” and using other strategic selling techniques; combining above and belowtheline activity including billboard, print and cinema advertising, as well as online activity and PR support. The campaign exhibited success after winning Grand Prix at the Euro Effie Awards 2012, the gold standard in marketing communication effectiveness (M&C Saatchi 2012). Reported by Ben Bold (6 th July 2011) Yves Schladenhaufen, Havana Club’s International Marketing Director said, “Havana Club is known as the genuine inheritor of Cuban rum tradition. Not only has it become a true ambassador of Cuba across the globe, but also actively promotes the Cuban creativity and talents to an international audience”. Advertising Agency: M&C Saatchi M&C Saatchi formed in 1995, after brothers Maurice and Charles Saatchi were removed of their chairman titles at Saatchi & Saatchi by shareholders. “Brutal Simplicity of Thought” is the core philosophy of the agency, with recent clients including NatWest, TFL, Ballantine’s Whisky, Peroni and Havana Club. In 2000 M&C Saatchi won Agency of the year and officially overtook Saatchi & Saatchi in billings according to the M&C Saatchi Story (no date). M&C Saatchi acknowledge a technological change, creating a Mobile sector at M&C Saatchi delivering 79% growth in its first year, utilising a Central Strategy Unit to bring together strategists believing that they [M&C Saatchi] are “uniquely placed to help clients navigate the incredibly complex new world” (M&C Saatchi, no date). Havana Club Brand & Campaign Objectives The Havana Club brand sells whiskeybased products around the world in over 125 countries promoting its Cuban heritage, founded in 1878 by Jose Arechabala in Cuba (Sainsbury 2006: p. 178). In 2009, Havana Club International set an objective to compete with rival brand Bacardi to become “an iconic premium brand, sold at a premium price” worldwide (excluding USA) and not “become the secondbest mainstream brand” in selling rum (WARC Case Study 2012: p.2). Bacardi sells three times more cases every year with a global communication budget ten times larger than that of The Havana Club (WARC Case Study 2012: p.2). The Havana Club, despite the current economic recession working with advertising agency M&C Saatchi, set out objectives to defend the brands position, highlighted here from the WARC Case Study, Havana Club: Nothing Compares to Havana (2012: p.2): Business Objectives: Reach 3.9 million cases sold globally in the 201112 fiscal year

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  • Havana Club: Nothing Compares to Havana Havana Club, an alcohol rum beverage brand, took the task in 2012 to defend its brands position by rivalling the continuous number one hot brand, Bacardi (WARC Case Study 2012: p.2). Teaming with M&C Saatchi, the Nothing compares to Havana campaign was created, displaying the Cuban culture using emotional selling appeal, directly addressing the consumer with the strapline to go see your friends, you dont go on internet, you go see your friends and using other strategic selling techniques; combining above and below-the-line activity including billboard, print and cinema advertising, as well as online activity and PR support. The campaign exhibited success after winning Grand Prix at the Euro Effie Awards 2012, the gold standard in marketing communication effectiveness (M&C Saatchi 2012). Reported by Ben Bold (6th July 2011) Yves Schladenhaufen, Havana Clubs International Marketing Director said, Havana Club is known as the genuine inheritor of Cuban rum tradition. Not only has it become a true ambassador of Cuba across the globe, but also actively promotes the Cuban creativity and talents to an international audience. Advertising Agency: M&C Saatchi M&C Saatchi formed in 1995, after brothers Maurice and Charles Saatchi were removed of their chairman titles at Saatchi & Saatchi by shareholders. Brutal Simplicity of Thought is the core philosophy of the agency, with recent clients including NatWest, TFL, Ballantines Whisky, Peroni and Havana Club. In 2000 M&C Saatchi won Agency of the year and officially overtook Saatchi & Saatchi in billings according to the M&C Saatchi Story (no date). M&C Saatchi acknowledge a technological change, creating a Mobile sector at M&C Saatchi delivering 79% growth in its first year, utilising a Central Strategy Unit to bring together strategists believing that they [M&C Saatchi] are uniquely placed to help clients navigate the incredibly complex new world (M&C Saatchi, no date). Havana Club Brand & Campaign Objectives The Havana Club brand sells whiskey-based products around the world in over 125 countries promoting its Cuban heritage, founded in 1878 by Jose Arechabala in Cuba (Sainsbury 2006: p. 178). In 2009, Havana Club International set an objective to compete with rival brand Bacardi to become an iconic premium brand, sold at a premium price worldwide (excluding USA) and not become the second-best mainstream brand in selling rum (WARC Case Study 2012: p.2). Bacardi sells three times more cases every year with a global communication budget ten times larger than that of The Havana Club (WARC Case Study 2012: p.2). The Havana Club, despite the current economic recession working with advertising agency M&C Saatchi, set out objectives to defend the brands position, highlighted here from the WARC Case Study, Havana Club: Nothing Compares to Havana (2012: p.2): Business Objectives:

    Reach 3.9 million cases sold globally in the 2011-12 fiscal year

  • Increase volume and value market shares in all markets against Bacardi Marketing Objectives: Become a hot brand (increase advocates friends among consumers, become a reference for bartenders) Improve the brand consumer funnel (awareness, consideration, usage) against Bacardi Communication Objectives: Improve brand image Be talked about: PR coverage The campaign titled Nothing compares to Havana promoted the Havana culture known as Havana Cultura whereby promoting contemporary Cuban artists, the shooting of print adverts in Havana with genuine Cuban people presenting Cuban culture and values, and promote a feature length movie called 7 days in Havana co-produced by Havana Club. According to Steve Paddok (2012) repeating messages in different ways will encourage more of a response. The campaign media strategy was distributed 24% in television, 5% branded content, 6% online/ interactive, 3% digital, 1% trade magazine, 38% consumer magazine, 1% point of sale and 22% on other marketing techniques (e.g. PR) (WARC Case Study 2012: p.5). The wide range of media strategies ensures Havana Club that the target audience have the best opportunity of experiencing their campaign increasing the probability of consumer consumption.

    Alcohol Beverage Sector The August 2002 publication from UK pressure group Alcohol Concern, 100% Proof: Research for Action on Alcohol, concluded that the majority of econometric studiesfind little or no evidence for advertising effects on total consumption levels (Dorsett and Dickerson 2004: p.155). However, there is a growing concern for the possibility, restricting the advertising alcohol industry further due to the rise in youth binge drinking; Campaign (26th September 2003) reports although ads should not appeal to under-18s or depict drinkers under 25, the report said: There is a perception the content and target of advertising go beyond the spirit of existing self-regulation. Havana Clubs 2012 campaign Nothing Compares to Havana set their target market as Urban Cultural Explores, both premium spirit drinkers and opinion leaders (WARC Case Study 2012: p.2); they explicitly did not include age, this prevents the possibility of encouraging youth binge drinking but does not exclude them from the possibility of the advert reaching them. FCB Grid Michael Ray developed an alternative hierarchies model as seen in figure 1 (Belch and Belch 2012: p.162), demonstrating three stages on product involvement and product differentiation, with three different outcomes, to learn, validate and passively learn. However this model fails to give clear recommendations regarding optimisation of advertising content to advertise different products (Belch and Belch 2012: p.161-162). According to Michael Rays model, the alcohol advertising industry, selling low-involvement products,

  • are required to advertise effectively by ensuring consumers are passively learning. Vaughns FCB model, however, develops Michael Rays model with the consideration of brain specialisation; considering high and low involvement and thinking versus feeling processing at each involvement, this is demonstrated in figure 2 (Belch and Belch 2012: p.165-166). Therefore, Havana Club, low involvement/ feeling product known as the self-satisfaction strategy would suggest consumers do not learn the product until after purchase. The best forms of media strategy are billboards, newspapers and point of sale, the same media strategies included in the Havana Club: Nothing Compares to Havana campaign; furthermore, the most affective form of creative strategy is attention advertising, also exhibited in Havana Clubs 2012 campaign. Mortimer (2002: p.463) advanced both Rays and Vaughns models suggesting each cell grid evokes a different product category as seen in figure 3 (Mortimer 2002: p.465); high involvement, thinking products are economic e.g. life insurance, car, house insurance and low involvement, feeling products are social e.g. alcohol, fast food, tobacco; therefore, the product differentiation, discussed by Ray, is a cultural association between different product categories and the consumers attitude, emotion and intension toward the advert; a European consumer would enjoy alcohol with friends to relax, a societal norm, therefore the product involvement is relaxed hence low involvement, feeling strategy.

  • Figure 4 (WARC Case Study 2012: p.4) exhibits the selected advert from the campaign that will be analysed in the following section of this report. Creative Strategy The unique selling point of the Havana Club rum was its clear and genuine Cuban heritage, as apposed to its rival vaguely Latin competitors, Bacardi. M&C Saatchi and Havana Club choose to expose Havana Club as a Cultural Brand, the only international Cuban brand. The agencys clear objective was to make people experience the incomparable human and artistic culture from contemporary Havana (WARC Case Study 2012: p.3). Figure 4 (WARC Case Study 2012: p.4) exhibits genuine Cuban citizens with a clear reference to the location in the strapline In Havana. The display of Cuban cultural values throughout this advert, is a rare creative strategy used for an international campaign; society shapes consumers basic values, which affect their behaviour and determine how they respond to various situations (Belch and Belch 2012: p.640). The application of selling a product in a different country displaying native values and norms as a form of selling is usually unresponsive, as each country has certain cultural traditions, customs and values, which may be un-transferable between countries and cultures (Belch and Belch 2012: p.136).

    Figure 4: Havana Club - Nothing Compares to Havana Advert. (Source: WARC Case Study 2012: p. 4)

  • Target Audience The Havana Club target market in the wake of its new campaign did not specify a gender target; the spirit rum is a unisex product internationally, therefore not using any specific gender selling technique (WARC Case Study 2012: p.2). Both gender and sexualisation of the gender hold good selling techniques that cannot be directly applied to the selling of Havana Club, as it is a unisex advert it must display appeal of both genders. Women are usually presented as traditional housewives or contemporary independent women when selling a product directly to a woman, and men are usually presented as independent and strong with a strong use of rational appeal when selling directly to a man (Zimmerman 2008: p.72). However, the use of women in an advert selling a male gender product sexualises a womens body and attitude, and a man in a female gender product advert displays a good father and/or husband figure in the form of a metrosexual man (Zimmerman 2008: p.77). Marketing (2012: p.14) reports there are great alcohol brands that manage to disproportionately appeal to women without defining their rai son d'tre [reason for being] by gender. Havana Club: Nothing Compares to Havana, displays a balanced appeal to both men and women, the advert displays both genders, neither in a provocative manner. The lady in the background has a low cut top and the man physic establishes him to be a strong man, the interaction between the male and female is positive, these appeals cover the range of techniques of communicating with both genders. Print Advertising Print Media is a successful tool of advertising, used in magazine, newspapers, collateral and out-of-home, figure 4 (WARC Case Study 2012: p.4) displays Havana Club Print advert used in consumer magazines. Belch and Belch (2012: p.405) suggest magazines have a number of characteristics that make them attractive as an advertising medium. Strengths of magazines include their selectivity, excellence reproduction quality, creative flexibility, permanence, prestige, readers high receptivity and involvement and services they offer to advertisements. Bronner and Neijens (2006) completed a study whereby participants were surveyed to state their experience of different mediums. As seen in figure 5 (Bronner and Neijens 2006: p.93), print media, newspapers, free local papers and magazines present the least negative emotion/irritation experience of participants and magazine medium presenting the most successful medium in transformational experiences amongst participants.

  • Message The ability to effectively persuade an audience through the use of print adverting is dependant on the message; the structure of the advert and message appeal technique (Belch and Belch 2012: p.195). Havana Club: Nothing Compares to Havana as exhibited in figure 4 (WARC Case Study 2012: p.2) demonstrates the most effective display of structure, research on learning and memory generally indicates that items presented first and last are remembered better than those presented in the middle. Havana Club present the product at the bottom of the advert alongside the strapline and the brands website. The visual content of the advert is displayed from the top to the middle of the advert; subtly using persuasive advertising techniques, yellow clothing worn in the advert reflects the brands trademark colours alongside the pigmentation of the colour red in the advert. The strapline reads, In Havana, when you cant find a party, you throw one, a close-ended conclusion is the technique used; although Belch and Belch (2012: p.197) suggest, more highly educated people prefer to draw their own conclusions, they also state even a highly educated audience may need assistance if its knowledge level in a particular area is low, it could be assumed that M&C Saatchis market research presented a lack of knowledge of the Cuban culture, therefore using this technique as an effective tool. Furthermore, a one-sided message technique is utilised by Havana Club, due to the campaign objectives of defending the brands position against rivals Bacardi, a two-sided message may discourage the brand further; Belch and Belch (2012: p.197) report one-sided messages are the most effective when the target audience already holds a favourable opinion about the topic, M&C Saatchis market research may also of concluded a favourable opinion on alcohol beverages. Havana Club: Nothing compares to Havana campaigns advert utilises an emotional appeal message through transformational techniques. Puto and Wells (1984: p.638-643) define transformational advertising as one which associates the experience of using (consuming) the advertised brand with a unique set of psychological characteristics which would not typically be associated with the brand experience to the same degree without exposure to the advertisement. Havana Club is establishing a cultural belief that will be activated when consumers use it, transforming their interpretation of the usage experience (Belch and Belch 2012: p.294). Effective Campaign The Nothing Compares to Havana campaign set out to defend the brands position. One objective to reach 3.9 million cases sold globally in the 2011-2012 fiscal year set to meet its objective, reaching 3.85 million cases globally sold in 2011 alone (WARC Case Study 2012: p.6). Both business and marketing objectives set out to overtake rivals Bacardi, as number one rum hot brand, in the Drinks International Magazine 2012, yearly report, Havana Club was ranked number one Hot Rum Brand for the first time, and even better became the

  • number one brand in the Bartenders Top 10 for all spirits brands (WARC Case Study 2012: p.5). The success of the campaign was noted and awarded with the Grand Prix the gold standard in marketing communication effectiveness at the Euro Effie Awards 2012 (M&C Saatchi 2012). The success of the campaign could increase competition for number one Hot Rum Brand; Bacardi may encourage their own heritage or loose their vague association with the Latin heritage, dependant on market research in strategies at the given time. To encourage further success, Havana Club could promote social media networks on print media adverts as a call to action, subtly sharing their brand message and weaving product promotion (Kincy 2011: p.40). Havana Club were suffering from being the second best Rum globally, in 2012 the brand teamed up with M&C Saatchi agency with the clear objective to defend brand position and become number one. The campaign, Nothing Compares to Havana, consisted of radio, television, billboard, consumer magazine and newspaper advertising as well as PR and marketing promotions. The success of the campaign was evident and the objectives were met when Drinks International published Hot Rum Brands 2012, with Havana Rum ranking first place for the first time, with rivals Bacardi falling short to second place (WARC Case Study 2012: p.6).

  • Reference List Belch, G and Belch, M. (2012) Advertising and Promotion: An Integrated Marketing Communications Perspective. 9th Edition. New York, USA, McGraw-Hill Irwin. Bold, B (6th July 2011) M&C Saatchi produces movie to promote Havana Club. Campaign. [Online] Available from: http://www.campaignlive.co.uk/news/1078833/ [Accessed 2nd January 2012]. Bronner, F and Neijens, P (2006) Audience experiences of media context and embedded advertising. International Journal of Market Research. [Online] 48 (1) 81-100. Available from: Business Source Premier [Accessed 2nd January 2013]. Campaign (26th September 2003) Govt plots anti-binge drinking advertising push. Campaign. [Online] Available from: Business Source Premier [Accessed 2nd January 2013]. Dorsett, J and Dickerson, S. (2004) Advertising and alcohol consumption in the UK. International Journal of Advertising. [Online] 23 (2), 149-170. Available from: Business Source Premier [Accessed 2nd January 2013]. Kincy, J (2011) Advertising and Social Media. ABA Bank Marketing. [Online] 43 (7) 40. Available from: Business Source Premier [Accessed 2nd January 2012]. M&C Saatchi (no date) About us. [Online] Available from: http://www.mcsaatchi.com/london/news/new-thinking/the-year-ahead-for-mobile/ [Accessed 2nd January 2013]. M&C Saatchi (2012) Effie Grand Prix Win. [Online] Available from: http://www.mcsaatchi.com/london/news/new-awards/effie-grand-prix-win/ [Accessed 2nd January 2013]. M&C Saatchi Story (no date) Celebrating 40 Years of Saatchi. [Online] Available from: http://www.mcsaatchi-la.com/#past [Accessed 2nd January 2013]. Marketing (3rd October 2012) A beer for no man. Marketing. [Online] p.14. Available from: Business Source Premier. [Accessed 2nd January 2013]. Mortimer, K. (2002) Integrating advertising theories with conceptual models of services advertising. Journal of Services Marketing. [Online] 16 (5), 460-468. Available from: Emerald [Accessed 2nd January 2013]. Paddok, S (2012) Advertising in the real world. Marketlink integrated marketing. [Lecture to BUSM2061]. 22nd November.

  • Puto, C, P. and Wells, W, D. (1984) Informational and Transformational Adverting: the Differential Effects of Time. Advance in Consumer Research. [Online] 11, 638-643. Available from: http://www.acrwebsite.org/search/view-conference-proceedings.aspx?Id=6323 [Accessed 2nd January 2012]. Sainsbury, B. (2006) Cuba. 4th edition. Los Angeles, Lonely Planet Publications. WARC Case Study (2012) Havana Club: Nothing Compares to Havana. [Online] Available from: WARC (World Advertising Research Centre) [Accessed 22nd December 2012]. Zimmerman, A. (2008) The Sexual Objectification of Women in Advertising: A Contemporary Cultural Perspective. Journal of Advertising Research. [Online] 48 (1) 71- 79. Available from: Business Source Premier [Accessed 2nd January 2013].