ANALYSIS: Bacardi faces uphill entry - Beachside bars are out as Bacardi eyes Thai whisky drinkers

<p>In a market that is largely indifferent to white spirits, </p><p>Thailand's importer of Bacardi rum is facing a long and uphill battle as </p><p>it launches variants in the market. </p><p><BR><BR> </p><p>While Thailand is the world's sixth largest market by volume for Scotch </p><p>whisky, white spirits make up less than one per cent of imported </p><p>liquors. </p><p><BR><BR> </p><p>This makes the key marketing issue one of "communicating what the </p><p>product is all about", says Mahesh Madhavan, marketing director of </p><p>Caldbeck Macgregor Thailand, which imports Bacardi. "Even before you </p><p>really get started branding, you've got to tell people how to drink the </p><p>product. One of the things we learned in research is that people used to </p><p>try Bacardi or vodka with water. And obviously if you drink this with </p><p>water, you won't drink it a second time." </p><p><BR><BR> </p><p>Another task is fine-tuning Bacardi's brand image to ensure it appeals </p><p>to new-entry drinkers, the core target. While the brand's Western </p><p>promotions play off its Latin roots, its sexy TVCs with dark-haired men </p><p>and women dancing in moonlit beachside bars don't hold the same catchet </p><p>in Thailand. </p><p><BR><BR> </p><p>"For the average Thai, with Koh Samui and Phuket in his backyard, is </p><p>this feel aspirational? </p><p><BR><BR> </p><p>"For a guy sitting in Europe, it is. But our research found it wasn't </p><p>that compelling here. It perhaps linked the brand with a geography and </p><p>gave it home, but that's all. It didn't really build a badge for the </p><p>brand, which is what I think we really need." </p><p><BR><BR> </p><p>Finding space to position the brand won't be easy. The vibrant values of </p><p>Bacardi's brand have already been co-opted by established whisky </p><p>sellers, Madhavan points out. "Unlike the West, where whisky is seen as </p><p>fairly conservative, here the producers have placed it exactly where </p><p>white spirits are in the West. So obviously it's going to be that much </p><p>more difficult for a white spirit in a Thai market because the whisky </p><p>products are exactly where we should be." </p><p><BR><BR> </p><p>To overcome these challenges, Madhavan will be spreading his 28 million </p><p>baht (USdollars 620,000) budget between two agencies. McCann-Erickson </p><p>will continue to represent the rum account, which was first introduced </p><p>two years ago, while Ogilvy & Mather is helping with the launch of </p><p>ready-to-drink Bacardi Breezers. </p><p><BR><BR> </p><p>Along with TVCs and a strong below-the-line campaign, Madhavan has some </p><p>other weapons in store. One is to use Bacardi's mixability as its trump </p><p>card. Future campaigns may leverage the versatility of the </p><p>white-spirit. </p><p><BR><BR> </p><p>That rum can be blended with a number of secondary products gives it an </p><p>advantage over whisky's less varied mixers of water, ice or soda. </p><p><BR><BR> </p><p>"And actually we'd welcome more competition from white spirits," he </p><p>adds, laughing at the irony. "It's true! It would help to the strengthen </p><p>the product category. It can't be done by Bacardi alone." </p><p><BR><BR> </p>

In a market that is largely indifferent to white spirits,

Thailand's importer of Bacardi rum is facing a long and uphill battle as

it launches variants in the market.



While Thailand is the world's sixth largest market by volume for Scotch

whisky, white spirits make up less than one per cent of imported

liquors.



This makes the key marketing issue one of "communicating what the

product is all about", says Mahesh Madhavan, marketing director of

Caldbeck Macgregor Thailand, which imports Bacardi. "Even before you

really get started branding, you've got to tell people how to drink the

product. One of the things we learned in research is that people used to

try Bacardi or vodka with water. And obviously if you drink this with

water, you won't drink it a second time."



Another task is fine-tuning Bacardi's brand image to ensure it appeals

to new-entry drinkers, the core target. While the brand's Western

promotions play off its Latin roots, its sexy TVCs with dark-haired men

and women dancing in moonlit beachside bars don't hold the same catchet

in Thailand.



"For the average Thai, with Koh Samui and Phuket in his backyard, is

this feel aspirational?



"For a guy sitting in Europe, it is. But our research found it wasn't

that compelling here. It perhaps linked the brand with a geography and

gave it home, but that's all. It didn't really build a badge for the

brand, which is what I think we really need."



Finding space to position the brand won't be easy. The vibrant values of

Bacardi's brand have already been co-opted by established whisky

sellers, Madhavan points out. "Unlike the West, where whisky is seen as

fairly conservative, here the producers have placed it exactly where

white spirits are in the West. So obviously it's going to be that much

more difficult for a white spirit in a Thai market because the whisky

products are exactly where we should be."



To overcome these challenges, Madhavan will be spreading his 28 million

baht (USdollars 620,000) budget between two agencies. McCann-Erickson

will continue to represent the rum account, which was first introduced

two years ago, while Ogilvy & Mather is helping with the launch of

ready-to-drink Bacardi Breezers.



Along with TVCs and a strong below-the-line campaign, Madhavan has some

other weapons in store. One is to use Bacardi's mixability as its trump

card. Future campaigns may leverage the versatility of the

white-spirit.



That rum can be blended with a number of secondary products gives it an

advantage over whisky's less varied mixers of water, ice or soda.



"And actually we'd welcome more competition from white spirits," he

adds, laughing at the irony. "It's true! It would help to the strengthen

the product category. It can't be done by Bacardi alone."