Harvard Case - Suntory: Rebranding the Japanese Whisky Highball
"Suntory: Rebranding the Japanese Whisky Highball" Harvard business case study is written by Philip Sugai. It deals with the challenges in the field of Marketing. The case study is 9 page(s) long and it was first published on : Mar 27, 2020
At Fern Fort University, we recommend Suntory implement a comprehensive rebranding strategy for the Japanese whisky highball, focusing on positioning it as a premium, sophisticated, and authentically Japanese experience. This strategy will leverage Suntory's existing brand equity, tap into growing consumer demand for high-quality spirits, and capitalize on the rising popularity of Japanese culture globally.
2. Background
Suntory, a leading Japanese beverage company, faces the challenge of re-energizing the Japanese whisky highball category. While the highball enjoys widespread popularity in Japan, its perception abroad remains limited. Suntory seeks to elevate the highball's image, attracting a wider international audience and driving growth in a competitive market.
The case study focuses on Suntory's key protagonists: Shingo Torii, the company's global brand ambassador, and Takashi Niwa, the head of Suntory's whisky division. They are tasked with developing a successful rebranding strategy for the Japanese whisky highball, considering its historical significance, cultural relevance, and potential for global appeal.
3. Analysis of the Case Study
SWOT Analysis:
Strengths:
- Strong Brand Equity: Suntory enjoys a strong reputation for quality and innovation in the alcoholic beverage industry.
- Premium Positioning: Suntory's whisky portfolio boasts a premium image, aligning well with the highball's potential for upscale positioning.
- Cultural Significance: The highball holds a unique cultural relevance in Japan, offering a strong point of differentiation.
- Growing Demand for Japanese Spirits: The global interest in Japanese whisky and other spirits presents a significant market opportunity.
Weaknesses:
- Limited International Awareness: The Japanese whisky highball lacks widespread recognition outside Japan.
- Perception as a 'Simple' Drink: The highball's perceived simplicity may hinder its appeal to sophisticated consumers.
- Competition from Other Cocktails: The highball faces competition from established cocktails with strong brand recognition.
Opportunities:
- Emerging Markets: Expanding into new markets with a growing interest in premium spirits.
- Digital Marketing: Leveraging online platforms to build brand awareness and engage with consumers.
- Collaborations: Partnering with international bars and restaurants to promote the highball.
Threats:
- Economic Fluctuations: Global economic conditions could impact consumer spending on premium spirits.
- Competition from Local Brands: Local brands in emerging markets could pose a challenge to Suntory's market penetration.
- Changing Consumer Preferences: Shifts in consumer preferences towards non-alcoholic beverages could impact the highball's appeal.
Marketing Analysis:
- Target Market: Suntory should focus on young, affluent, and globally-minded consumers interested in premium spirits and cultural experiences.
- Positioning: The Japanese whisky highball should be positioned as a sophisticated, authentic, and refreshing drink, highlighting its Japanese heritage and quality ingredients.
- Marketing Mix:
- Product: Suntory should focus on high-quality whisky and mixers, emphasizing the purity of ingredients and production processes.
- Price: A premium pricing strategy will reinforce the highball's perceived value and exclusivity.
- Place: Suntory should prioritize distribution through high-end bars and restaurants in key international markets.
- Promotion: A multi-channel marketing approach should be employed, including:
- Digital Marketing: Engaging social media campaigns, influencer collaborations, and targeted online advertising.
- Public Relations: Building relationships with media outlets and industry influencers.
- Events: Hosting highball-themed events and workshops to educate consumers and build brand awareness.
4. Recommendations
1. Rebrand the Japanese Whisky Highball:
- Create a New Brand Identity: Develop a distinct brand name and visual identity that reflects the highball's premium positioning and Japanese heritage.
- Develop a Compelling Brand Story: Craft a narrative that highlights the highball's history, craftsmanship, and cultural significance.
- Emphasize Authenticity: Promote the use of high-quality Japanese whisky and mixers, highlighting the purity and tradition of the ingredients.
2. Target International Markets:
- Focus on Key Markets: Identify and prioritize markets with a growing demand for premium spirits and a strong interest in Japanese culture, such as the US, UK, and China.
- Develop Localized Marketing Strategies: Tailor marketing campaigns to the specific cultural nuances and consumer preferences of each target market.
- Partner with Local Influencers: Collaborate with influential bartenders, bloggers, and social media personalities to promote the highball and generate buzz.
3. Leverage Digital Marketing:
- Build a Strong Online Presence: Develop a dedicated website and social media channels to showcase the brand, share content, and engage with consumers.
- Utilize Influencer Marketing: Partner with relevant influencers to create engaging content and reach a wider audience.
- Run Targeted Advertising Campaigns: Utilize online advertising platforms to reach specific target segments and drive brand awareness.
4. Create a Premium Experience:
- Partner with High-End Establishments: Collaborate with prestigious bars, restaurants, and hotels to offer the highball as a premium cocktail option.
- Host Highball-Themed Events: Organize cocktail workshops, tasting events, and educational seminars to introduce consumers to the highball's unique characteristics.
- Develop a Highball-Specific Cocktail Menu: Create a range of highball variations using different whiskies, mixers, and garnishes to appeal to diverse palates.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of Suntory's strengths, weaknesses, opportunities, and threats. They consider the company's core competencies, external customer preferences, and competitive landscape. The strategy aligns with Suntory's mission to create innovative and high-quality beverages while capitalizing on the growing global demand for Japanese spirits.
Assumptions:
- Consumers are increasingly interested in premium spirits and cultural experiences.
- Digital marketing channels will continue to play a significant role in reaching target audiences.
- Suntory's brand equity will translate well to the international market.
6. Conclusion
By implementing a comprehensive rebranding strategy, Suntory can successfully elevate the Japanese whisky highball to a premium, sophisticated, and globally recognized drink. This strategy will leverage Suntory's strong brand equity, tap into growing consumer demand, and create a unique and authentic experience for consumers worldwide.
7. Discussion
Alternative Options:
- Mass Market Approach: Focusing on a wider audience with a lower price point. However, this could dilute the brand's premium image and diminish its perceived value.
- Limited Release Strategy: Launching the highball as a limited-edition product to create exclusivity and generate buzz. This could be effective in the short term but may not be sustainable for long-term growth.
Risks and Key Assumptions:
- Consumer Acceptance: The highball's success depends on consumer acceptance of its premium positioning and cultural association.
- Competition: Suntory faces competition from established cocktails and local brands in international markets.
- Economic Factors: Global economic conditions could impact consumer spending on premium spirits.
Options Grid:
| Option | Advantages | Disadvantages | Risk |
|---|---|---|---|
| Premium Rebranding | Strong brand positioning, higher margins, global appeal | Higher initial investment, potential for limited reach | Consumer acceptance, competition |
| Mass Market Approach | Wider reach, lower price point | Diluted brand image, lower margins | Competition, brand dilution |
| Limited Release Strategy | Exclusivity, high demand | Limited reach, potential for short-term success | Consumer demand, sustainability |
8. Next Steps
Timeline:
- Year 1: Develop rebranding strategy, launch new brand identity, focus on key international markets, build online presence, partner with high-end establishments.
- Year 2: Expand distribution, launch targeted marketing campaigns, host highball-themed events, monitor consumer feedback and adjust strategy as needed.
- Year 3: Evaluate the success of the rebranding strategy, identify new growth opportunities, and continue to evolve the brand to meet changing consumer preferences.
By following this comprehensive rebranding strategy, Suntory can successfully position the Japanese whisky highball as a premium, sophisticated, and globally recognized drink, driving growth and expanding its reach in the international market.
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Case Description
Founded in 1899 by Shinjiro Torii in Osaka, Japan, Suntory Holdings (Suntory) boasted a rich history in Japan's alcoholic beverage industry. It purchased US-based Beam in 2014 for $16 billion, renamed itself as Beam Suntory, and transformed into one of the world's largest alcoholic beverage makers, reaching total global revenues of more than 2.5 trillion yen ($23 billion) by the end of fiscal year 2018. Now, in 2020, could the Suntory team pull off a third miracle and successfully bring Japan's highball culture to the extremely competitive global marketplace?
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