how can we get women in asia to try canadian club ?
DESCRIPTION
Response to a research/strategy question from GapJumpers.meTRANSCRIPT
March 2014
Canadian Club
Stromi Lof
How can we get women (LDA - 30 years) in Asia (especially India and
China) to try Canadian Club ?
The brief
Process
Gather insights into both Chinese and Indian cultures to find out if Canadian Club’s approach should be tailored to
each market or generic ?
Uncover the idiosyncrasies of each culture to better inform the
marketing/communication strategy
Chinese
Market
CONSUMER INSIGHTS
Regulation
18Legal drinking
ageSale of alcohol to
minors was banned in 2006
Source: http://www.chinadaily.com.cn/english/doc/2006-01/06/content_510002.htmhttp://www.who.int/bulletin/volumes/91/4/12-107318/en/#R10http://apapaonline.org/APAPAnetwork/Meeting_Reports/files/Auckland_Sept04/Alcohol_Marketing_China.pdf
Since 1995Advertising on alcohol is restricted but seemed weakly
enforced according to the World Health Organization
“Violations are commonplace, alcohol commercials are still aired during prime time television programmes and misleading and sensational advertising content is
common.”
Regulation
Instead it seems that Chinese government
and the alcoholic
beverages industry chose self-regulation
Source: http://www.eucam.info/eucam/home/news.html/1881/1195/self-regulation-announced-for-advertising-in-chinahttp://vimeo.com/69868746
Chinese drinking culture seems dominated by men
Source: http://www.who.int/bulletin/volumes/91/4/12-107318/en//http://www.interfaceasia.com/i-news/news_58.htmlhttp://thinkingchinese.com/alcohol-culture-jiu-wenhua-drinking-as-a-currency-converted-to-friendship-and-successful-business
•15% of Chinese women declared drinking
alcohol vs. 55% for their men counterparts’
• Female respondents in China seem to drink less
frequently than the same gender groups in
other countries; more than 40% of female
respondents in these countries claim that they
drink once every few months.
• Traditionally, it seems that alcohol consumption
is mainly used to strengthen social/business
relationships amongst men/business partners
during business banquets where men are
encouraged to show their drinking skills ‘ganbei or
gambei’.
•During these functions, Chinese women are not
expected to drink like men…
“Alcohol means business and
power, but more directly, alcohol
equals emotions (ganqing) and an
informal (yet formal) long
standing masculine social
tradition of softening social
barriers.”
Women are not expected to drink but if they chose to do so
they have to drink like men…
“The social expectation for women to drink
is a lot less. Although women will
sometimes be made (or even teased) to
drink a bit, it’s much less of an obligation
than it is for men.”
http://jennyzhu.com/2010/02/08/drinking-
culture-in-china/
“Chinese women and, by extension, all
women are not required to drink as much.
Or if you remember to pretend from the
beginning that you “just don’t drink” — but
then you you have to stick to it til the end,
so make your choice wisely.”
http://matadornetwork.com/nights/a-
westerners-guide-to-chinese-drinking-culture/
“Generally speaking, when toasted in China men
are always supposed to drink.
Women, on the other hand, have a privilege to miss
a round (or even ask someone to drink instead of
her).
But don’t be deceived by slender looks of Chinese
girls. You might be surprised to reveal that some of
them can make a tough competition to guys in
drinking alcohol.”
http://www.lovelovechina.com/entertainment/chinese-
drinking-habits/
“Though it is socially acceptable for men to
consume high-strength alcohol, the concept of
women consuming high-strength alcohol such as
baijiu is still not fully accepted in Chinese culture.”
http://www.chinabusinessreview.com/opportunities-in-
chinas-alcoholic-beverage-market/
There exist opportunities to reach out Chinese women
Source:http://www.chinabusinessreview.com/opportunities-in-chinas-alcoholic-beverage-market/http://newzealandtochina.wordpress.com/2011/04/17/wine-and-chinese-women/
• Rise of alcohol consumption in the past five years: Fuelled
by their financial independence, female consumers tend
to consume more alcohol
• According to China Business Review, Wine appears to be
their favourite drink because of its:
• Aspirational lifestyle image. As wine is widely
consumed by western consumers, drinking wine
appears to be a sign of identification and
sophistication/social success among Chinese
women
• Claimed health benefits: “Many consumers believe
that drinking wine is good for one’s health and that
it promotes beautiful skin”
Taste /preference and Alcohol
percentage were the most
important factors
when Chinese consumers,
regardless of gender were asked
what were the important factors
they were paying attention to at
the moment of choosing an
alcohol
Taste and Alcohol percentage are important criteria
when choosing an alcohol
Source: http://www.interfaceasia.com/i-news/news_58.html
As a result, Chinese consumers tend to choose lower-
strength alcohol
“More consumers are choosing lower-strength alcohol
following:
• Increased taxes on spirits and high-strength alcohol
• Media and industry promotions on healthier drinking
habits”
Source: http://www.chinabusinessreview.com/opportunities-in-chinas-alcoholic-beverage-market
Further, mixing whisky and green tea seems popular in
China
“Observing that Chinese like green tea as a
mixer in their spirits, Chivas Regal began
promoting canned green tea as a mixer
with its whiskey products instead of
encouraging Chinese consumers to drink
Scotch neat, straight up, or on the rocks.”
This might be something that Canadian Club can
explore/utilize when developing
marketing/communications campaigns for the
Chinese target audience
Source: http://www.chinabusinessreview.com/opportunities-in-chinas-alcoholic-beverage-markethttp://the-fuqua-experience.com/blog/shanghai-day-7-chivas-regal-china-marketing-strategy/
MARKET INSIGHTS
Baijiu, the traditional Chinese spirit is losing its lusters
Source: http://www.jingdaily.com/chinese-drinkers-turning-to-imported-spirits-but-baijiu-still-king/17948/http://www.reuters.com/article/2013/09/10/us-china-baijiu-idUSBRE9891C920130910
"Baijiu is popular among mid- and elder-
aged consumers, but the younger
generations don't show strong interest"
Baijiu still largely dominates the Chinese
liquor market with 900 million cases sold
each year…
but Market leaders, Moutai and Wuliangye
saw weakest sales performances since,
2001 and 2005, respectively.
Meanwhile imported spirits are rapidly gaining market share
Source: http://www.ipsos.com/sites/ipsos.com/files/Drinking-to-the-Future-Trends-in-the-Spirits-Industry.pdfhttp://www.chinadaily.com.cn/china/2013-03/05/content_16275613.htm
• Imported spirits
grew by 16% in
China between
2010 and 2011
• Cognac & blended
scotch are the
biggest selling
imported spirits
• Diageo whisky brands grew by
59%
• Pernod Ricard liquor sales growth
reached 18%
Premiumisation seems key to succeed in this market
Source: http://www.ipsos.com/sites/ipsos.com/files/Drinking-to-the-Future-Trends-in-the-Spirits-Industry.pdf
Top 3 imported spirits brands in China:
• Hennessey Cognac
• Martell Cognac
• Chivas Whisky
CONNECTION
MOMENTS
Most popular places to
drink outside of home:
1. Restaurants
2. Friend’s houses
3. Pubs
Not surprisingly, this
leads to believe that the
alcohol consumption is
collective
Restaurants seem to be the favourite places to enjoy a
drink
Source: http://www.interfaceasia.com/i-news/news_58.html
WRAP-UP
CULTURAL INSIGHT Historically, Chinese alcohol culture has been driven
by business banquets where men used to cement their business relationships. Hence, until today, it
seems that women are not expected to drink ‘like men’
CONSUMER INSIGHTAs Chinese female consumers become more independent, they tend to enjoy drinking alcohol without any inhibitions.
They favour wine above any other alcohol for its aspirational aspects and pre-supposed health benefits
PRODUCT INSIGHT Positive sales growth indicates high enthusiasm for imported spirits in China, which represents an opportunity for Canadian Club. But it seems essential to adapt to local tastes and highlight the premium aspect of CC Whisky to be successful
Indian
Market
CONSUMER INSIGHTS
India has one of the highest legal drinking age in the
world…
Source: http://www.icap.org/Table/MinimumAgeLimitsWorldwide / http://en.wikipedia.org/wiki/Alcohol_laws_of_India
http://articles.timesofindia.indiatimes.com/2011-06-24/mumbai/29698621_1_drinking-age-drinking-age-alcohol
Legal Drinking age: 18-25 years depending on the
stateIt’s one of the highest in
the world
Drinking age sits at 25 years old in Maharashtra, the state of Mumbai, the financial and
economic center and the most populous city in India
as well as the toughest advertising regulation
Source:http://apapaonline.org/data/National_Data/India/Alcohol_Policy_India.pdf / https://www.alcoholwebindia.in/content/regulation-legislation
http://www.ias.org.uk/What-we-do/Publication-archive/The-Globe/Issue-4-2001-3-2001/Alcohol-in-India.aspx
Advertising alcohol drinks is prohibited across all communications channels (TV, radio, print…)
This law is enforced based on The Cable Television Network (Regulation) Amendment Bill dated from September 2000
Restrictions on
Alcoholic beverages advertising
But there exists a grey area around surrogate
advertising
Source: http://www.freestyle-marketing.co.uk/advertising/what-is-surrogate-advertising.html
Most brands use surrogate ads to bypass these restrictions.
What is surrogate advertising?
Surrogate advertising consists in associating its brand to a product (soda, mineral water,
CD…) with the intention of promoting a product subjected to
advertisement restrictions (e.g.
Alcohol, cigarettes) Example of surrogate ad
for Kingfisher
A widespread practice that seems closely monitored by
the government
Source: http://adage.com/article/global-news/advertising-india-s-marketers-evade-alcohol-ad-ban/140509/
http://www.thehindu.com/news/cities/Thiruvananthapuram/liquor-companies-warned-against-surrogate-ads/article5055497.ece
In 2009, surrogate advertising accounted for 5% of the total ad spending in India, which represents about $4.5
billion
But this common practice has also been under scrutiny of the Indian government, which regularly releases warnings
to liquor companies
Similarly to China, traditions still have a strong impact
on drinking patterns
Source: http://www.ias.org.uk/What-we-do/Publication-archive/The-Globe/Issue-2-2008/Indian-Alcohol-Atlas.aspx
http://www.ias.org.uk/What-we-do/Publication-archive/The-Globe/Issue-2-2005/India-Alcohol-and-public-health.aspx
http://www.theguardian.com/commentisfree/2012/aug/22/letter-from-india-women-drink
http://meerareflections.blogspot.com.au/2012/10/wine-and-women.html
Low consumer base
‘’India is generally regarded as a traditional ‘dry’ or ‘abstaining’ culture”
Less than 5% of Indian women are consuming alcohol whilst one in five men (21%) regularly drinks alcoholic
beverages
Public opinion seems judgemental on women who drink, particularly in public
“Indian girls might drink alcohol, but they cannot be seen in public buying it.”
“Yes I know times are changing but generally, in India, women who drink are
viewed in the most suspicious way!”
But there is a significant opportunity among the female
market
Source: http://www.indianalcoholpolicy.org/images/alcohol_atlas/F-Current%20Patterns%20and%20Trends.pdf
http://www.reuters.com/article/2013/03/17/us-india-liquor-women-idUSBRE92G0IF20130317
Existing women drinkers drink almost as
frequently as their male counterparts
“While almost 70% of the
male drinkers drink daily or almost
daily, 55 % of women drinkers also
drink at the same frequency”
Consumption among female drinkers is on the
rise
“This segment is growing more than twice as fast than the
overall market”
Little information exists into female drinking
preferences
Source: http://www.eucam.info/eucam/home/news.html/1881/2310/india-female-alcohol-consumption-on-the-rise
http://www.reuters.com/article/2013/03/17/us-india-liquor-women-idUSBRE92G0IF20130317
Women appear to drive cocktail consumption "There is a rise in the cocktail culture and a significant part of that is because of
women"
Restaurants and bars proved to be their favourite places to
have drink
Women who drink in public would typically do so in high-end restaurants or bars in
upscale sections of cities such as Mumbai, New Delhi and Bangalore.
Brands have started to tailor their NPD* and Communications to the female market
Source: http://www.eucam.info/eucam/home/news.html/1881/2310/india-female-alcohol-consumption-on-the-rise
http://sulawines.com/Newscategory/Newsdetails/Taboo-broken-as-Indian-women-get-taste-for-drink/1/233/
Low-strength & flavoured alcohol drinks and specific
events
• Remy Cointreau launched the orange liqueur in India three years ago to tap the burgeoning women's market.
• Sula Wines developed a wine for women with low alcohol, slightly sweeter and sparkling
• Several brands/bars regularly host event exclusively dedicated to women:
•“Sensing the shifting culture, big city bars
and clubs are promoting ladies’ nights, with free cocktails for women and incentives to
wear high heels.”
*NPD: New Product Development
MARKET INSIGHTS
Spirits lead alcohol consumption
Source: Drinking-to-the-Future-Trends-in-the-Spirits-Industry - IPSOS
…and Whisky is King
Source: Financial Times - The Business of whisky
World Leader
India is the world largest Whisky market (in terms of volume)
Indians consume
150M nine litre cases of Whisky each
year
This represents half of the spirit market
Yet, imported genuine bottled whisky consumption remains low
Source: Financial Times - The Business of whisky
Local Indian Whiskies make the majority of the whisky consumed in India while Imported Whisky represents
a mere 1%
These whiskies, named IMFL (Indian Made Foreign Liquor) differ from the Scotch; they are made from a blend of distilled molasses and imported Scotch whisky
Taxes represent the main barrier to entry for foreign companies
The low consumption of foreign brands is mainly due to a hefty price of entry to Indian liquor market, driven by high taxes on imported alcohol.
150% Import tariff on foreign spirits
The biggest players in the Indian Whisky market
Source: http://www.euromonitor.com/alcoholic-drinks-in-india/reporthttp://articles.economictimes.indiatimes.com/2013-03-05/news/37470124_1_pernod-ricard-net-profit-higher-profit
• United Spirits is the largest liquor company in India.
•• In 2012, Diageo agreed to
acquire United Spirits
• The company holds 43% of the spirits market (in terms of volume)
• Pernod Ricard is currently the most profitable spirits firm in India
This is mainly due to the strong performance of local brands (e.g. Royal Stag and Blenders Pride) owned by Pernod Ricard
WRAP-UP
CULTURAL INSIGHT There seems to exist an ‘untold prohibition culture’ that restrains women to buy and drink alcohol in
public. This is driven by archaic ideas combined with strong stereotypes (e.g. ‘If she drinks that means she
is ‘loose’ woman) . As a result, women choose carefully with whom and where they consume
alcohol.
CONSUMER INSIGHTAvailable data indicates that alcohol drinking patterns are marginal among Indian women. However, female urban consumers fuel the rise in alcohol consumption. Upmarket bars and restaurants are their favourite places to have a
drink; cocktails also seem very popular. Aware of this trend, companies designed special drinks for women as well as
events
PRODUCT INSIGHT Whisky consumption is already well established in India and the market is highly competitive with strong local brands some of which backed by international groups.
However, there exists an opportunity to educate consumers to differentiate CC Whisky from local brands.
Further, beyond the product attributes, CC Whisky will need to promote its brand while respecting the tough restrictions on advertising in order to prevail in this market
RECOMMENDATIONS
STRATEGYBased on cultural,
consumer and product insights, the following
themes should feature in CC communications in
order to successfully encourage trial of CC whisky among LDA-30
years Chinese and Indian consumers
Leisure drink
Present CC whisky as a leisure drink to differentiate itself from the traditional Chinese business culture, which is strongly linked to the male drinking culture.
Data suggests that restaurants, friend’s houses and bars are the favouriteplaces for both Indian and Chinese women to have a drink.
Explore further, which times, places and surroundings that can feature in communications
Sophisticated brand
Research indicates that Chinese female consumers prefers wine as it reflects their social status goal.
Meanwhile research suggests that affluent women living in Indian capital cities boost the female alcohol consumption
There is an opportunity to educate female consumers about whisky history and culture via whisky tasting, teach them how to create whisky cocktails and pair whisky with food
Easy to Drink
Take into consideration the low-strength/ mixer trend and health concerns in China and the rise in cocktail drinking among women in India, It is not suggested to encourage drinking CC whisky straight or on the rocks.
However, CC could be the perfect base for cocktails and could set apart the brand from the competition by introducing new flavours to mix with its whisky
Empowerment
Given the stereotypes of Indian and Chinese societies on women who drink, the communications must represent Chinese and Indian women drinking without inhibitions. The CC woman does not fear what the public opinion will think.
• Messaging should be narrated from a female point of view to be able to have an impact on the target audience.
• Positioning suggestion: CC whisky is a drink that women will drink their own way.
• Key message: There is nothing wrong with a woman who drinks
Commonalities: Communication pillars
STRATEGY
How CC can connect with the target audience ?
The bar counter
Due to the restrictions on advertising, CC cannot use mass communication (TV,radio, print, Internet) to promote its whisky.
Although, surrogate advertising is common in India, it’s not legal and we would not advise CC to use this practice.
This might conflicts with the Premium character of the brand. Moreover, these ads/products could be banned under the Indian laws.
Instead, CC could showcase its whisky during relevant events (fashion week…) or create its own events in bars and restaurants.
This second option will enable the brand to connect directly with its target audience in an environment where they are in the mindset to enjoy a drink and open to discover new drinks too
Mass media + the bar counter
In China, CC can use all communications channels to connect with its target audience.
Explore further what are the media consumption behaviours among LDA-30 years Chinese women.
However, we would recommend to create special events in restaurants and bars where Chinese women can discover the brand
Differences:
Key touch points
STRATEGY
How CC can connect with the target audience ?
One to one communication with messaging apps
Rationale: Given that CC Whiskey cannot use mass media in India, there is an opportunity to use messaging apps (e.g. whatsapp, viber, line, hike or nimbuzz) to engage with the target audience.
Activation idea: Seed invitations to private parties and encourage audience to share with their girl friends for a free girl night out organized by CC Whisky
Differences:
Key touch points
Messaging aps in India – Numbers of
active users:
• Whatsapp: 30M
• Viber: 15M
• Line: 10M
• Hike: 5M
Source: The Growth Of Mobile Messaging Apps in India: Numbers, Marketing And Challenges - http://lighthouseinsights.in/the-growth-of-mobile-messaging-apps-in-india-numbers-marketing-and-challenges.html
APPENDIX
Example of surrogate products
Source: http://blogs.welingkar.org/index.php/campus-corner/implicit-positioning-and-surrogate-advertising