Whether you are small business or a huge corporation predicting a future growth of your brand is a must. In a modern world brands are more important than 100 years ago. Brands are valuable.
Why growing a brand is so important?
Consumer market nowadays is so huge and demanding, changing every year with new trends, developments and technologies that every company should look into developing new strategies of growth, getting into different market segments, satisfying needs of the customer.
There are four growth strategies: market penetration (the existing market and existing product), market development (new market and existing product), product development (new product and existing market) and diversification (new product and new market). Market penetration is the most difficult because it relies on a current market and current customers. The market development strategy is a bit riskier. Basically, its taking an existing product and developing a new market for it. There are demographic and geographic development strategies withing market development strategy. Demographic strategy means finding new customers in the same geographic area and geographic market development means expending to a new area. Product development strategy is when company creates a new product for an existing market. Diversification is the hardest and riskiest of all growth strategies. Its creating a completely new product for a new market. It involves the research of the new market while developing a new product for this market.
In this blogpost I would like to talk about Pernod Ricard and its brands growth strategies.
Pernod Ricard is the world’s second-biggest distiller with such brands as Jameson whiskey, Beefeater, Absolut vodka, Olmeca tequila and many other brands. Pernod Ricard is a global manufacturer of spirits and wine, operating in more than 160 countries. Through both organic growth and timely acquisitions, the company has become the second largest spirits and wine company in the world and the largest in the premium spirits category.
Pernod Ricard aims to be a number one in the premium category market among spirits brands. Pernod Ricard also aims to build its strong position in emerging market and rising the demand for premium brands which will lead to revenue growth.
Pernod Ricard aims to become a number one spirits and wine company in the world shifting their only competitor Diageo. To differentiate itself from the competitor Diageo, Pernod Ricard is focusing on doubling down on the premium spirits market. For that they use innovation and popular marketing campaigns.
One of Pernod Ricard strategies is penetrating a new market. I think its a great idea to go into Asian market. Yes, its hard to get into a new market as its already full of existing brands but in terms of Asian market – its huge and I am sure there is a space for such massive company with a premium brands portfolio. There is always a risk of loses but Pernod Ricard is penetrating the Asian market very well and already in 2018/2019 they gained 21% growth in Chinese market and 12% growth in the rest of Asia. Pernod Ricard is building a new whisky distillery in China which will be ready by next year. Building a distillery can be a huge risk as its possibly won’t have ROI but it can also be a huge success as the production will be based in the same country and region where its distributed which means less costs on transportation and taxes. The construction of the distillery opens up a new world of opportunities and growth for Pernod Ricard. “Our goal is to develop and expand the category of whisky in China. said Jean-Christophe Coutures, CEO of Chivas Brothers, at a press conference in London for Pernod Ricard’s 2019 “Having a local whisky developed in China of the highest possible quality will help boost whisky penetration. This is among China’s affluent middle class.”
Currently Pernod Ricard leads China’s whisky market with a rich portfolio of renowned brands, including Chivas Regal, Ballantine’s, Royal Salute, The Glenlivet, Aberlour, Longmorn and Jameson.
In conclusion I would like to say that — ‘The future depends on what you do today.'(Mahatma Gandhi ). Everything we do now, the strategies we choose these all will affect future of our company and the brand. In terms of Pernod Ricard they use the best strategies and I am sure they will be a number one company in spirits industry.
UCT 2020 
