SVEDKA Case Analysis
Assignment questions for the A case:
Question 1: What gave Cuvelier the idea that there was a market for $10 vodka?
Market research gave Cuvelier the idea and evidence that there was a market for $10
vodka. Vodka brands such as Popov, Gordon’s, McCormick, and Barton all priced under $10,
sold the most cases and were responsible for the largest market shares. Cuvelier estimated that
these standards, under $10 per bottle market share made up about 80% of market volume at the
time. Therefore, Cuvelier strongly believed that his mid-priced vodka stood a chance and had the
potential to capture some volume sales. As observed from the case study, one can clearly see that
lower-priced vodka sold the most cases.
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Question 2: Are there brands you can point to that have used strategies similar to those
employed by SVEDKA?
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The more that SVEDKA became popular, the more competition rose by the year 2005.
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The increase in the competition was brought on by an increase in marketing efforts between
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2003-2004. Competitors began to follow SVEDKA’s original strategy by investing their
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marketing efforts and spending on targeting cool, hip, and social customers. For example, Ciroc
was able to obtain celebrity endorsements from Sean “Diddy” Combs. This strategy targeted and
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attracted those in the 21-35-year-old consumer segment. Grey Goose was another lifestyle brand
that used the same strategies as SVEDKA that was gaining popularity and market share. Another
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