Scotch in Comparison
Nathan Cannon
To have global potential, a product should meet the wants and needs of global consumers (Keegan & Green, 2017). Based on Maslow’s hierarchy of needs, one such global need is esteem (Keegan & Green, 2017), and spirits, given that they are not necessities, have the potential to become global brands if they can fulfill an esteem need. While scotch still remained wildly popular in the United States the sales in China were not equaling as much. Scotch is associated with class appealing to the emotional side of consumers who desire to be seen a certain way. In addition to satisfying an esteem need, a product can also break the global barrier if it can be marketed to a global demography–for example a growing middle class–rather than just a local or national market (Keegan & Green, 2017). This example can be illustrated by comparing a premium scotch whiskey to Maotai. Maotai is a Chinese spirit that can cost as much as $1000 or as little as $25 a bottle (Keegan & Green, 2017) so it certainly fills an esteem need, but is far from a global brand.
Chivas and Johnnie Walker, on the other hand, are considered global brands. Chivas and Johnnie Walker, which are premium scotch brands, were able to achieve global status because extensive research on consumers, their strong brand image/marketing metaphors, and their cultural adaptation strategies (Keegan & Green, 2017). Corporate advertising assisted Chivas with their advertisement placement in separate markets (Keegan & Green, 2017). For a time, Pernod Richard attributed two-thirds of their global sales to the popularity of Chivas Regal and green tea (Bruce-Gardyne, 2015).
Furthermore, according to Francis (2009), a brand that is distinct and avoids negative emotions associated with global economic difficulties is poised for global success. In other words, “a brand that clearly stands for something is a real asset” (Francis, 2009, para 33). Indeed, strong brands are able to carry a global idea globally, regionally, and locally (Francis, 2009). Francis (2009) cites Johnnie Walker as an example of such adaptability. It’s campaign that called to progress in life was a cultural adaptation in China, as “achievement” in Chinese culture is most highly valued when recognized by others (Keegan & Green, 2017).
In this ad you can see the importance of peer recognition. Conversely, in other countries, the idea of achievement was treated metaphorically, for example the Fish commercial (Francis, 2009). Armed with a “brand that stands for something” (Francis, 2009, para 33) around the world, a simple message (achievement), and the flexibility to culturally adapt the message (Keegan & Green, 2017), Johnnie Walker has been able to build a ubiquitous global brand.
This customized advertisement in addition to joining the World Trade Organization, Scotch Whisky sales increased drastically (Keegan & Green, 2017). The branding agency studied the consumers and took note of three things (1) other impressions of personal achievements (2) the drink is more likely to be consumed by the youth (3) the different settings and areas where the drink is consumed (Keegan & Green, 2017). Diageo’s (owner of the Johnnie Walker Brand) approach to marketing in China included breaking down the population into influential age groups.
An example of this was the Chivas campaign. The advertising agency wanted to target a specific group in China. Research and cultural considerationsrevealed the targeted group had a desire to learn and participate in leisure and travel. The brand story was centered around parties in different eras acting as a metaphorfor the brand’s identity, which the targeted Chinese consumers related to (Keegan & Green, 2017). In the case of the the whiskey trade in China, the Chinese Foreign Ministry should focus on their PR efforts (Keegan & Green, 2017). The prominence and intrigue that once accompanied Scotch in China may have slightly faded but sales will remain steady thanks to the Chinese culture of gift giving (Bruce-Gardyne, 2015).
References:
Bruce-Gardyne, T. (2015, July). China’s Bling Dynasty blip for Scotch. Retrieved June, 2016, from https://www.whiskyinvestdirect.com/about-whisky/whisky-china-071420151
Francis, C. (2009). Emotional resonance connects local and global brand aims. WARC. Retrieved from http://www.warc.com.libproxy1.usc.edu/Content/ContentViewer.aspx?MasterContentRef=ba2254c6-383b-4607-9037-86c8a5b28bba&CID=A89215&PUB=ADMAP