MKTG 330-La Clandestine

8/4/2019 MKTG 330-La Clandestine

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La ClandestineThe Blue Fairy

Leading the Renaissance of Quality Absinthe

Elizabeth Aroyan, Jeremy Dunbar,Aaron Edmiston, Sara Jacobson,

Tarek Karame, Mary Liang,Amber Santos


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TABLE OF CONTENTS

EXECUTIVE SUMMARY ....................................................................................................................................... 2INDUSTRY PROFILE ............................................................................................................................................. 2

COMPANY PROFILE ............................................................................................................................................. 2SITUATION ANALYSIS ......................................................................................................................................... 3

GLOBAL SPIRITS INDUSTRY .............................................................................................................. 3US ABSINTHE INDUSTRY .................................................................................................................... 3

COMPETATIVE ANALYSIS ................................................................................................................................. 3GLOBAL SPIRITS INDUSTRY .............................................................................................................. 3US ABSINTHE INDUSTRY .................................................................................................................... 4SWOT ANALYSIS ..................................................................................................................................... 6

MARKET RESEARCH ............................................................................................................................................ 9PRIMARY RESEARCH ............................................................................................................................ 9SECONDARY RESEARCH ....................................................................................................................10

TARGET MARKET ...............................................................................................................................................11DEMOGRAPHICS ..................................................................................................................................................11PSYCHOGRAPHICS ..............................................................................................................................................12SOCIODEMOGRAPHICS .....................................................................................................................................12MEDIA STRATEGY ..............................................................................................................................................13MESSAGE STRATEGY .........................................................................................................................................13CREATIVE BRIEF .................................................................................................................................................14INTEGRATED MARKETING COMMUNICATIONS PLAN .......................................................................15SOCIAL MEDIA .....................................................................................................................................................19EVENT MARKETING ..........................................................................................................................................22PRINT .......................................................................................................................................................................24

POINT OF PURCHASE DISPLAYS ...................................................................................................................25BROADCAST MEDIA/PRODUCT PLACEMENT ........................................................................................26CONCLUSION ........................................................................................................................................................26


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Executive Summary

La Clandestine Global Brand Ambassador A. Moss (personal communication, April 13,2011) stated that in a market like the United States, where over 70 absinthe brands are

now authorized for sale, marketing spending counts more than high quality. Unfortunately,low ingredient costs allow some companies to spend maybe twice as much on marketing asthey do on the product. In comparison, La Clandestine will always be relatively clandestinein communication and spending. The result is not having enough resources to explain thecategory to the U.S. consumer.

The main resource we have is ourselves, our time and our belief in our product. Helped by

the fact that many long-term absinthe drinkers love it and help us with word of mouth. Sothe challenge is to find a way to communicate what the brand is about and to do so cost-effectively.

The following integrated marketing communications and advertising plan comprisesnationwide strategies to spread awareness about absinthe and the La Clandestine brand tothe U.S. market.

Industry Profile

Absinthe is a highly alcoholic beverage anise-flavored spirit made from herbs includingwormwood (Artemisia absinthium) from which the name is derived. Blanche absinthe(referred to as la Bleue in Switzerland) is bottled directly following distillation andreduction, and is clear. The more traditional verte absinthe (commonly referred to as the"green fairy") begins as a blanche but is altered by a new mixture of herbs placed into theclear distillate. Thujone, an ingredient found in wormwood is believed to be the cause ofreported hallucinations and the reason for many regulations.

Company Profile

La Clandestine absinthe is a blanche/la Bleue Swiss absinthe that was first launched in2005, when the Swiss bans on absinthe were retracted. The U.S. approved version was laterreleased in 2008. Compared to other brands that reach up to 80% alcohol by volume, LaClandestine has a lower alcohol content of 53% alcohol by volume. Most absinthes aretraditionally meant to be diluted with ice water poured over a sugar cube placed on a

slotted spoon on the rim of the glass; however, La Clandestine recommends using only icewater which results in a milky oil-in-water emulsion called the louche (French for opaque).La Clandestine chooses the finest of plants, distills batches in small proportions to ensurequality and authenticity, and remains 100% natural with no artificial colors.


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Situation Analysis

Global Spirits IndustryAlthough developed economies will have to contend with rising interest rates and ongoingefforts to address high levels of public debt, rising wealth and improving labor markets

across North America and Europe should result in stronger demand for white spirits,particularly vodka and whiskey. Demand for high quality premium and super-premiumbrands was more resilient than expected in 2010, and this segment of the market shouldrecover more quickly and strongly than more standard brands from the upturn in 2011. Amore supportive economic environment in 2012 should buoy spirits producers, as theglobal economy approaches normal growth during the year. Over the next five yearsthrough 2016, Global Spirits Manufacturing industry revenue will grow at an averageannual rate of 4.8% to be worth $119.1 billion (IBISWorld 2011).

U.S. Absinthe IndustryOn July 25, 1912, the Department of Agriculture issued Food Inspection Decision 147,which banned absinthe in America. In 2007, the Alcohol and Tobacco Tax and TradeBureau lifted the longstanding absinthe ban and has since approved many brands for salein the U.S. market. Although sage and sage oil (which can be up to 50% thujone) are on theFood and Drug Administration's list of substances generally recognized as safe, absintheoffered for sale in the United States must have thujone content less than 10 mg/kg.

Other restrictions focus on the labeling, branding, and advertising of absinthe. Absinthemay not be used as the brand name or part of the brand name, because it would appear as aclass and type designation. The term absinthe also may not be the sole word on the label,

as it must be accompanied by additional information. The graphics and artwork on thelabel, advertising, and point-of-purchase (POP) materials must not portray images ofhallucinogenic or mind-altering effects (Manfreda, 2007).

The U.S. absinthe industry is still in its growth phase, as it is trying to carve its section outof the competitive spirits market. Companies established in the worldwide absinthemarket are being pressed to create a U.S. legal version that complies with U.S. regulationswhile being comparable to thujone-included/pre-ban absinthe

Competitive Analysis

Global Spirits Industry

In the Global Spirits Manufacturing Industry, Scotch whiskey, Bourbon whiskey, and vodkaare expected to be the best performing spirits over the year, while the ongoing emergenceof cocktail culture in developed markets should support demand for liqueurs. Relativelyspeaking, absinthe is such an anomaly that it competes under the Other spirits category.


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The following shows the market share for each category in the industry.

U.S. Absinthe IndustryLucid has more popularity among U.S. consumers because it was the first brand of absintheapproved for legal distribution since the ban of absinthe in 1912. Kbler follows directlybehind Lucid, as it was the second absinthe to be offered in the United States. While bothLucid and Kbler started distribution in the U.S. in 2007, La Clandestine did not gainapproval until June 2008. Other favorites include Grande Absente, La Fe, Mata Hari,Mansinthe, and Jade Nouvelle-Orlans. In comparison to La Clandestine, all competitivebrands mentioned, with the exception of Jade Nouvelle-Orlans, are offered at lower prices.


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The following measures the performance of three competing brands based on qualities ofabsinthe most important to consumers.

Feature Analysis:La Clandestine versus CompetitorsBased on Qualtrics.com Survey

According to the feature analysis, La Clandestine out performs Lucid and Kbler bydelivering in every category besides price, in which all three brands disappointedconsumers.


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SWOT Analysis

Strengths

Strong Brand Image

La Clandestine displays a deep-rooted connection to its Swiss heritage that is said to be thebirthplace of absinthe. Its rich history gives the brand and the drink an authentic, classy,and high-quality image.

High Repurchase RateMultiple surveys show that those who sampled La Clandestine were satisfied and haveintention to purchase the same brand, implying brand loyalty.

High Alcohol ContentLa Clandestine absinthe contains 53% alcohol by volume, and is meant to be diluted withice water, so the high price per bottle is offset with longevity and numerous drinks.

VersatileLa Clandestine contains less alcohol by volume compared to other brands of absinthe, so itcan be drunk with water, water and sugar, as a cocktail, shot, or flamed (notrecommended).


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Weaknesses

Poor distributionAbsinthe as an entire product class is difficult to find at common bars, clubs, restaurants,and liquor, grocery, and convenience stores. Consumers who are not determined to sample

absinthe will have no motivation to search for a product available in only a few brands atspecialty stores.

MisinformationBecause absinthe was illegal for almost 100 years and is rumored to be psychotropic,consumers are hesitant and/or afraid to tap back into the traditions of the vintage drink.Some are under the impression that absinthe is still illegal and are unaware that absinthehas been legal and approved for distribution throughout the United States since 2007.

Highly Involved ProductCompared to other alcohol/spirits, absinthe has many different techniques for

consumption (proper and improper) and if consumers are not educated on how to extractits optimal taste, they will not have a preference towards absinthe.

Pre-ban EnthusiastsLegalized versions of absinthe do not contain thujone, so many consumers advocate thatthey are not getting the true experience, especially in the U.S. market.

Opportunities

Spirits Industry GrowthIndustry profitability is forecast to rise moderately in 2011 as an upturn in demand in keymarkets results in stronger price growth, outpacing rises in input costs and wage growth(IBISWorld, 2011).

Early Stage of Product Life CycleAbsinthe in the United States is still in the introduction stage of its product life cycle, so LaClandestine can still educate early adopters on the proper ways to drink absinthe andattach accessory purchases (specialty slotted spoons, sugar cube bowls, fountains, andcarafes) to create the optimal drinking experience.

Channel marketingSuccessful trade promotions would facilitate the wider distribution of La Clandestineinitially through specialty alcohol stores, bars, clubs, restaurants, and subsequentlyliquor/convenience and grocery stores.


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Threats

Perceived RiskAbsinthe is sold at higher price points than most alcohol/spirits and may discouragepotential customers to sample it. Prices can range from approximately $7 for 50ml bottles

to $60 for 750ml bottles.

Established Competitive BrandsAbsinthe falls under the spirits category with major players: Diageo Plc, making up 18.1%of the market share; Pernod Ricard SA, with 7.8%; and Bacardi & Company Limited, makingup 4.5% of the market share.


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Product SubstitutesThere are many close substitutes for spirits including sherry and port wines. Non-alcoholicbeverages can be considered less extreme competitors, and include bottled water, juices,and soft drinks (IBISWorld, 2011).

Government RegulationStrict FDA regulations prohibiting the use of thujone create a costly and elongated processfor getting new product lines approved.

Market Research

Objectives Understand the different segments of alcohol and spirits consumers Discover alcohol and spirits consumers' knowledge and perception of absinthe Determine which absinthe brands and experiences have shaped aforesaid perception

Primary Research

Facebook Questions and Casual InterviewsThe polling feature of Facebook Questions and casual questioning in-person were used tomeasure general awareness and consumption of absinthe and also popularity of individualbrands.

Key Findings

Few respondents were aware of absinthe's existence Some believed absinthe to be illegal, psychotropic, hazardous, or unpleasant Most who have sampled absinthe cited the Grande Absente brand

SurveyAn online survey on Qualtrics.com was developed to collect and analyze data. Because thismarketing and advertising plan is directed towards the United States, the survey waslimited to U.S. residents over the age of 21 who consume alcohol/spirits. Through email,social networks, and personal contacts, a sample size of 150 respondents was reached.

Key Findings Respondents ages 21-25 and 35-54 were the heaviest users of alcohol/spirits Few have heard of absinthe or had the opportunity to access it Most cited availability as the reason for choosing their brand Those who sampled Grande Absente were likely to try absinthe again but unlikely to

choose the same brand


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Secondary Research

AbsintheDevil Survey AbsintheDevila U.S. based absintuear webstore offering historical reproductions andmodern examples of absinthe accessoriesconducted a survey from late March to early

May 2010. The 174 respondents were mostly heavy users of absinthe from theAbsintheDevil database and a sub-sample of consumers from the Wormwood Society,Americas premier absinthe association.

Key Findings

Top 3 absinthe brands with have bought, will buy again scores of over 90% were:o Meadow of Loveo Nouvelle-Orlanso La Clandestine

Top absinthes by category based on have bought, will buy again were:o American: Meadow of Loveo French: Nouvelle-Orlanso Swiss: La Clandestineo Verte: Meadow of Loveo Blanche: La Clandestine

More than 90% ofabsinthe drinkers use the traditional ice/water way 95% drink absinthe at home while only 32% drink it in bars Most readily available absinthes are all outside the top 10 and are repurchased by

fewer than 60%

The Absinthe Review Network SurveyThe Absinthe Review Network conducted a survey in the United States during February

and March of 2009. The 204 respondents were from the Absinthe Review Network,Wormwood Society, MySpace, Facebook, Drink Up New York newsletter, Imbibe online,Liquor Snob and several absinthe blogs including Absinthe Devil and Absinthe Drinkers.Nouvelle-Orlans was launched shortly after the survey, so it was only included in sub-sections.

Key Findings

Top 3 absinthe brandso Kblero La Clandestineo Lucid and Duplais (tie)

71% drink absinthe with water and an optional sugar cube, 32% with water and ice, 17%as part of a cocktail, 9% as a shot, and 5% flamed 93% drink absinthe at home, a friends home, or dorm rooms while only 29% cited bars

or restaurants Two blanches shared the lead ahead of the traditional verte More than 90% of purchasers of La Clandestine, Nouvelle-Orlans, and Vieux Pontarlierwould repurchase these brands. Only 24% of Grande Absente purchasers intend to buy itagain.


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Summary of Research

Various categories, styles, and preparations of absinthe may satisfy a diverse group ofconsumers if the differences were acknowledged. Because most drink absinthe thetraditional way, bars will not have to make complicated absinthe cocktails or create

shooting or flaming absinthes. Retailers/bars are missing the opportunity to satisfy a broadmarket by stocking just a few absinthes unlikely to be repurchased and consequentlyreducing demand. Grande Absente is one of the most widely distributed and sampledbrands in the U.S. but also a least favorite with a very low repurchase rate. Similar lowquality brands may damage the reputation, first impressions, and sales of absinthe in theUnited States are a threat to their own product class unless quality brands like LaClandestine become associated with absinthe.

Target Market

U.S. Retailers of Alcohol and Spirits

The first target market includes specialty alcohol stores, bars, clubs, restaurants, and otherupscale members of the alcohol and spirits distribution channel in the United States.Retailers are able to make La Clandestine available for consumers but question their returnon investment (ROI), additional advertising costs, and benefits when carrying more brands.

U.S. Consumers of Alcohol and SpiritsThe second target market consist of middle to upper middle class Americans ages 25-to-54who consume alcohol and spirits and includes a broad number of demographics,psychographics, and sociodemographics.

DemographicsAgePer capita consumption of spirits is highest among ages 25-to-54.

GenderAlcohol and spirits consumption is generally higher among men than women.

Household incomeGreater disposable income allows consumers to purchase more discretionary products;including spirits. It can also serve to shift consumers from low-price to high-price premium

spirits. The level of disposable income is determined by macroeconomic factors such asgross domestic product (GDP) per person, and employment levels. Also, greater confidenceamong consumers in the outlook of the economy stimulates higher consumption ofdiscretionary products.


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Psychographics

Social trendsCocktail consumption and increased social acceptance of alcohol consumption have led tomore people choosing to consume spirits in a social environment.

PersonalityConsumers have used beverage choice to signal individuality or sophistication, leading toincreased consumption of premium products.

Attitudes toward alcohol/spirits consumption

Greater consciousness of the negative health and social effects of alcohol has been a barrierto volume consumption growth. Greater awareness of the dangers of drunk driving has alsocurbed consumption. Consumer attitudes toward alcohol are also influenced by advertisingcampaigns and government regulations.

Sociodemographics

Generation X has a tendency to have more disposable income due to already havingcareers. These people are skeptical and independent minded but are still vulnerable tostrong marketing campaigns.

The Bling bling generation includes flashy people with high-rolling lifestyles whopurchase various premium products.

Dinkies are double-income young couples with no kids and the ability to spend theirdisposable income on leisure and slightly upscale products.

Main Objectives Increase awareness and knowledge of absinthe Decrease negative perceptions towards absinthe Increase distribution and sampling of La Clandestine Feature La Clandestine as part of the evoked set for absintheKey Strategic DecisionsEducate: Provide opportunities to learn about and sample absinthe by creating engaging

events and participating in festivals and trade showsRelocate: Transform the illegal, psychotropic, and hazardous perception of absinthe bypositioning La Clandestine as new, exclusive, and of superior quality and designMotivate: Push retailers to carry quality absinthe and increase demand by providingdisplay allowances and bonuses to those who advertise and sell La ClandestineCaptivate: Increase buzz, word of mouth, and bandwagon appeal by creating allure arounda brand icon and subtle advertising


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Media Strategy

Media WeightingIn attempts to coordinate a push strategy towards retailers to carry La Clandestine and a

pull strategy for consumers to demand it, our media weighting strategy will allocate 35% ofthe budget on retailers and 65% on consumers.

Where (Geography)Metropolitan areas in the United States but especially:

Las Vegas, Nevada: Known as the sin city, it is a central location with high-end clubs, bars,and restaurants attracting customers who intend to purchase alcohol/spirits.

New York: Location for many wine and food festivals, fashion shows, and upscale events

California: Currently the state with the most retailers of La Clandestine and manyopportunities to advertise to a large population

When (Timing/Seasonality)Drinking alcohol during the summer can increase chances for dehydration and heatexhaustion, so the campaign will use a flighting strategy beginning November 2011(National Safety Council, 2010). This will provide enough lead-time into the winterholidays when alcohol is consumed more often. Also, absinthe is more likely to beconsumed indoors, and people are typically indoors more often during winter. Thecampaign will begin its hiatus in May 2012, in expectation of a carryover effect and end inNovember 2012 when the campaign will be re-launched to support product placement ofLa Clandestine in the film Bond 23 scheduled for release November 9, 2012. In December2012 the campaign will be evaluated to determine whether it will be continued, adjusted,or discontinued.

Message Strategy

A hard sell and straightforward message will be delivered to the members of thealcohol/spirits distribution channel, offering bonuses and display allowances and claimingthat carrying La Clandestine increases demand for absinthe.

A blend of four of Frazers Six Creative Strategies will be used towards consumers.

Unique Selling Proposition: La Clandestine is one of the few brands that discourages theuse of spoons and sugar. This will be presented as a benefit, because less involvement andfewer accessory purchases are required. Currently green absinthes are more common, sopresenting a clear absinthe is also unique.


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Brand Image: The Swiss heritage of La Clandestine will be emphasized to make consumerspresume it is of higher quality and superior to other brands.Positioning: La Clandestine will be positioned as refined and sophisticated to challengeGrande Absentes post-ban and barely-legal image.

Affective/Anomalous: A brand icon and subtle campaign strategy will be used to increase

curiosity and allure.

Also, one from Tylors Six-Segment Strategy Wheel will be used towards consumers.Social: Displaying upper middle class and higher lifestyle reference groups will createstatus appeal.

Creative Brief

Problem: Most consumers are unfamiliar with absinthe, because it is not widelydistributed.

Target audience: Upscale members of the alcohol/spirits distribution channel and middleto upper middle class U.S. alcohol/spirits consumers ages 25-54

Brand position: Refined, sophisticated, and exclusive

Communication ObjectivesDistribution Channel: Selling La Clandestine will increase profits and demand forabsinthe.

Consumers: La Clandestine is a status symbol, and drinking it will elevate your socialposition.

Proposition: La Clandestines Swiss heritage and high-quality ingredients make it superiorto other brands in this new product class.

Media considerationsConsumers are technologically advanced and use computers and mobile devices to seek outnew information and products, so most advertising will be placed on the Internet. Printmedia will urge consumers to visit the campaign website or order absinthe. To maintainsubtlety, broadcast media will only be used for product placement. Retailers will beinformed of the benefits of carrying La Clandestine in trade publications, trade shows, andon a portion of the company website where videos and digital brochures will be madeavailable.

Creative direction

An emphasis on the blue bottle and blue fairy brand icon will increase curiosity andremembrance of the brand. Consumers of alcohol/spirits connect with images andemotions, so a mysterious rather than straightforward tone of voice will be used to createallure and interest.


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Integrated Marketing Communications Plan

Internet/Nontraditional MediaScripps Networks comprises HGTV (Home & Garden Television), Food Network, TravelChannel, and other television brands focusing on home, food, and lifestyle. They also offer

digital advertising opportunities that reach audiences who closely resemble our targetmarket--homeowners with high incomes and travelers who seek new experiences andauthentic food and beverages.

Audience Profiles

HGTV.com 55% Adults 25-54 Median HH Income: $69,361 66% of users agree that HGTV.com is a way to learn about new products 56% of users agree HGTV.com gets them to try new thingsFoodNetwork.com 63% Adults 25-54 Median HH Income: $71,049 45% of users agree that FoodNetwork.com is a way to learn about new products 60% of users agree FoodNetwork.com gets them to try new thingsTravelChannel.com 68% Adults 25-54 Median HH Income: $77,441 59% of users agree that TravelChannel.com really stimulates their curiosity 41% of users agree TravelChannel.com gets them to try new thingsOnline Banner AdvertisingPushdowns are interactive advertising units that are available to run on any of the ScrippsNetworks websites. The clickable banner advertisement expands from the navigation barfor 15 seconds and then collapses where the words, "Follow the blue fairy willbe discreetlyvisible until expanded again by the viewer. Clicking on the advertisement anywherebesides the "open" and "close" button will direct traffic to the company website.Pushdowns complement the mysterious tone of our campaign, and one pushdown will bepurchased for each of the three main websites: HGTV.com, Foodnetwork.com, andTravelChannel.com.

TravelChannel.com also offers destination-specific sponsorship packages to reachconsumers as they explore feature articles, photo slideshows, video content, andinteractive features specific to a city or region. We will place an advertisement on the pageallocated to Switzerland directing traffic to the company website since La Clandestinewould like to share the importance of its birthplace with the consumer.


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Company WebsiteThe current company website has entirely too much information. The pace of Americanculture is too fast for large blocks of text. The URL on advertisements will be bluefairy.comto support the campaign and be easier to recall, but it will redirect consumers to the actualdomain name www.laclandestine.com. Currently absent, the website will begin with an age

and country verification home page with only the brand name, blue fairy, and the followingcopy:

You must be of legal drinking age in your country to visit the blue fairy.

Although age and country verifications appear as a nuisance, this page will serve as anothercomplement to the mysterious and secret tone of our campaign.

The current navigation includes the following sections each with multiple topics and linksto unaffiliated websites, which need to be consolidated.

o Hand-craftedo The Birthplaceo The Storyo Awardso Historical Press

All of these components will be condensed into a user-friendly timeline that will revealhistorical information on the homepage. Small awards and historical press tacked onto thewall may also be viewed in detail with a simple click. Lastly, viewers can label, package, anddigitally ship the newly distilled bottle of La Clandestine through email or Facebook.

Webcam: This 15-second live webcam is uninteresting, and the visitor pictures areambiguous, so it will be removed.

Where to Find Me: This will be renamed "Distribution." Current members of thedistribution channel will be able to log in to replenish product, and future distributors mayrequest information on the profit margins they expect to receive, the products majorselling points, and La Clandestines bonuses and display allowances.

Like/Follow Me: This will be removed and replaced with small Facebook and Twittericons on the bottom of the website. Viewers understand what the icons mean, how to usethem, and where it will redirect them.

News & Events and Cocktails: News updates will be featured on the website where you

can seek more information. Cocktails will be featured on the website along with theFacebook page and Smartphone/tablet personal computer (PC) application.

FAQ: False information is mentioned in paragraph form as if it were true and thenchallenged afterwards. This will be more clearly consolidated into a rumor/question &answer format.


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Social Media

A strategy to place information only where it seems relevant and/or compatible with theplatform will increase motivation to be connected to multiple formats.

FacebookAs another complement to the mysterious and secret tone of our campaign, all content onFacebook will only be accessible to those who "Like" the page. Instead of only gettingviewers, this feature spikes curiosity and encourages them to become a fan of the page,which is shown in their friends' news feed thereby increasing word of mouth about LaClandestine. Facebook also serves as a good platform for video, so the exclusive contentwill include advertainment webisodes starring (possibly fictional) brand representatives,bartenders, and hopefully humorous and attractive people informing viewers of absinthefactoids, tips, drinking methods, and cocktails including best and worst user-submittedrecipes. An advertisement will also be placed on Facebook, because it is cost-effective andthe target can be directly addressed: ages 25-54, U.S. residents whose interests include

alcohol and spirits, an estimated reach of423,120 people. CPM (cost per thousandimpressions) will be used for budgeting the campaign, because it is recommended forincreasing brand, product or service awareness. The ad will have the brand name, fairylogo, and the following copy:

Now available in the U.S. Imported from Switzerland! The ONLY absinthe handcrafted

in the village where absinthe was first born. Follow the blue fairy...This should spark enough curiosity to increase click-through to the La ClandestineFacebook page.


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Twitter

All news about absinthe, retailers, and La Clandestine events will be posted on Twitter.

MySpaceThis account page lowers the perceived quality of the brand and should be cancelled,because the age demographic does not match our target market, and the total traffic ofMySpace has been rapidly diminishing.

YouTubeDuring this campaign all La Clandestine videos will be exclusive to Facebook, and thisaccount will be made private or cancelled.

Mobile Applications

Due to increasing popularity of smartphones and tablet PCs, a free application for mobiledevices will be developed by U.S. brand owner Viridian Spirits LLC who has alreadydeveloped one for Lucid. Users will be able to digitally pour absinthe and watch a louchedemonstration. Other features include cocktail recipes and availability/purchasinginformation. Also, quick response (QR) codes will be placed on offline advertising, andthose with mobile phones can easily be directed to the new and interactive companywebsite.


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Event Marketing

By creating engaging events, La Clandestine can Influence industry opinion leaders to serveabsinthe, and consumers to associate absinthe with a positive experience.


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Social SeminarsBartenders, retailers, and other members of the alcohol/spirits distribution channel will beinvited to a Blue Tie Affair to socialize and learn about La Clandestine on yachts in select

metropolitan areas. Attendees can ride in a limousine to the location, enjoy La Clandestineabsinthe, and receive promotional products throughout the night. A successful social

seminar will build strong relationships with those who can push La Clandestine throughtheir channel.

FestivalsEpicurean events are a great way to showcase absinthe and expose the public to the LaClandestine brand in a dynamic environment. Branded booths can be set up to informattendees that absinthe is legal and available in the United States. Fountains, carafes,spoons, and other accessories will attract a crowd, and providing samples allows LaClandestine to demonstrate the proper way to drink absinthe. The following are a fewfestivals in which to participate: Pebble Beach Food and WineAmerican Wine and Food Festival New York Wine and Food FestivalTrade ShowsExhibits are greats ways to look for distribution for a new product or simply grow brands,products, or services in the U.S. marketplace. The Wine & Spirits Wholesalers of America,Inc. (WSWA) is a national trade organization representing the wholesale tier of the wineand spirits industry and is holding the 69th Annual Convention & ExpositionApril 2, 2012 -April 5, 2012 in Las Vegas, NV. Purchasing a booth at this event would connect LaClandestine to Americas distributors, suppliers, importers, and exporters.

Mixology EventsAdvertising Specialist at MGM Grand Hotel, P. Middleton, (personal communication, April13, 2011) says mixology has become a hot word around Vegas. Hosting a master mixologyevent could showcase the quality of La Clandestine. Free samples would not be offered, asthis could be marketed as a chance to try a handcrafted cocktail from an award-winningmixologist, which are common in Las Vegas. Vegas Uncorkdis one example that alsoprovides the opportunity to become a partner of the event.

Partnerships/SponsorshipsLa Clandestine will partner with Tao, Tryst, and XS in Las Vegas and other world-classnightclubs to be featured on their bottle service menu. The reserved table for each party

includes one bottle of La Clandestine, a four-spigot fountain of ice water, and slottedspoons and sugar cubes upon request. Additionally, suggesting a higher price than theother bottles will position it as a more sophisticated option.

La Clandestine will sponsor a series of after parties for Fashion's Night Out, New YorkFashion Week, LA Fashion Week and others where a variety of celebrities, designers, andchic opinion leaders can sample the product in a refined environment and help position itaccordingly.


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Print

Key Cards/In-Room AdvertisingMost consumers staying in upscale hotels and resorts do so because they have leisure timeand have a more discretionary income. Partnering with Hyatt and Westin to advertise on

key cards, room service menus, and in-room guides will urge consumers to order absinthein the restaurants and bars of the hotel and resort, and surrounding locations.

Table TentsBecause of the anise and fennel flavored herbs of absinthe, La Clandestine can easily bepaired with seafood and other foods found in upscale steak houses. Partnering with suchrestaurants and placing table tents featuring La Clandestine will expose the target toabsinthe in a non-intrusive way and allow servers to act as agents that provide additionalinformation about the beverage to consumers.

Magazines

IndustryArticles will be published in magazines such as Bartender, Wine & Spirits, and BeverageDynamics outlying the product performance and key benefits of carrying La Clandestine,which includes increasing demand for absinthe and receiving bonuses and displayallowances for selling and advertising La Clandestine.Consumer

Advertisements will be placed in magazines such as Elle and GQ, which target both malesand females who want to be contemporary in fashion and beverages.


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Point-of-Purchase Displays

At low price points, discounts can increase demand for spirits relative to beer and wine.However, at higher price points, discounts may be less effective and may even diminish theperceived quality and demand for super-premium spirits. Therefore coupons and discounts

will not be offered to consumers. Together with the common $60, 750ml bottle, $35,375ml, and $7, 50ml sized bottles will be advertised on point-of-purchase displays.Although the value of the smaller bottle is lower, a smaller required lump sum lowers theperceived risk of sampling the product. Retailers will be paid to construct and feature thefollowing POP displays that create curiosity and attract customers.

Three-tiered display table supported by stand with fairy logooTop tier displays 750ml La Clandestine bottlesoMiddle tier displays 375ml La Clandestine bottles along with drinking glassesoBottom tier displays La Clandestine gift sets

Narrow aisle end-cap display resembling La Clandestine BottleoFairy logo on neck of bottleoThree separate levelsoTop and bottom levels stocked with 750ml bottlesoMiddle level stocked with 50 ml bottles


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Broadcast Media/Product Placement

Product placement in broadcast media compared to commercials is less intrusive andintegrates the product into the scene in a natural way that cannot be ignored with digital

video recorders (DVRs).

Bond 23The 23rd James Bond film, temporarily named Bond 23, is scheduled to be released onNovember 9, 2012 and will mark the 50th year of the franchise. The image of this franchisealong with confirmed actor Daniel Craig is exotic, sexy, and edgy, but still sophisticated atthe same time; similar to the brand positioning of La Clandestine. James Bond is a classyconsumer of alcohol, and he will order absinthe at a bar. The brand will not be stated andthe label may or may not be briefly shown, but the importance is introducing absinthe tothe American public and displaying the distinctive blue La Clandestine bottle.

Iron Chef AmericaIron Chef America is a television program on the Food Network, stated earlier as having asimilar audience profile to the target market. Two chefs compete to create a five-coursemeal featuring one ingredient or theme of ingredients. There was previously an episodewhere the main ingredient was Bourbon whiskey, so featuring absinthe would not be out ofthe ordinary. Although the labels will be removed, again the importance is introducingabsinthe to the American public and displaying the distinctive blue La Clandestine bottle.Cooking with absinthe is not common, but it is possible, and it will really challenge thechefs to use creative ways to feature absinthe and demonstrate its versatility. Lastly, one ofthe hosts Alton Brown usually adds commentary including history and other informationabout the main ingredient.

Conclusion

By implementing a campaign that will motivate members of the alcohol/spirits distributionchannel to supply absinthe to the American public, and by creating a spark of curiosity inconsumers, La Clandestine can increase its market share in a cost-effective manner withoutcompromising its exclusive brand image and deep-rooted heritage.


28/33

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Survey


29/33

28


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29


31/33

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32/33

31


33/33

References

AbsintheDevil. (2010, May 11). 2010 Absinthe Survey Results [Web log message]. Retrievedfrom http://blog.absinthedevil.com/2010-Absinthe-Survey-Results

Alcohol and Tobacco and Trade Bureau. (2007). [Application for Certification/Exemption ofLabel/Bottle Approval, Lucid]. Retrieved fromhttps://www.ttbonline.gov/colasonline/viewColaDetails.do?action=publicDisplaySearchBasic&ttbid=07064000000076

Alcohol and Tobacco and Trade Bureau. (2007) [Application for Certification/Exemption ofLabel/Bottle Approval, Kubler]. Retrieved fromhttps://www.ttbonline.gov/colasonline/viewColaDetails.do?action=publicFormDisplay&ttbid=07058001000192

Alcohol and Tobacco and Trade Bureau. (2008). [Application for Certification/Exemption of

Label/Bottle Approval, La Clandestine]. Retrieved fromhttps://www.ttbonline.gov/colasonline/viewColaDetails.do?action=publicFormDisplay&ttbid=08123001000076

Archives Spirits. (2008). Absinthe History and FAQ IV. Retrieved fromhttp://www.archivespirits.com/absinthe_FAQ4.html

GreenDevil. (2006). Absinthe is now legal in the United States! Almost, well not exactly.Retrieved from http://www.greendevil.com/absinthe_us.html

IBISWorld. (2011). Global Spirits Manufacturing Industry Report. Retrieved from

http://www.ibisworld.com

National Safety Council. (2010). Summer & Alcohol Safety. Retrieved fromhttp://www.nsc.org/nsc_events/Documents/Summer%20Heat%20%20and%20Alcohol%20(Fnl).pdf

Manfreda, J. (2007). Use of the Term Absinthe for Distilled Spirits. Retrieved fromhttp://www.ttb.gov/industry_circulars/archives/2007/07-05.html

Moriarty, S., Mitchell, N., & Wells, W. (2008). Advertising: Principles & Practice. UpperSaddle River, NJ: Prentice Hall

The Absinthe Review Network. (2009). Survey Results: Absinthe Drinking in the USA.Retrieved from http://www.absinthe-review.net/Absinthe_Survey_2009.htm

Thujone - Cause of absinthism? (2006). Lachenmeier, D.W., Emmert, J., Kuballa, T., & Sartor,G. Thujone.Info webpage. Retrieved fromhttp://www.thujone.info/thujone-absinthe-3.html