Table of contents

1. The product brand
1.1 Brand position
1.2 Brand value
1.3 The market in figures
1.4 Market share
1.5 Brand map
1.6 Target audience

2. Product Vs Brand

3. The brand Identity system
3.1 Brand map
3.2 Brand as a symbol
3.3 Brand as a person

4. Brand equity
4.1 Self-expression model
4.2 The relationship basis model
4.3 FBR model

5. The marketing campaign

6. Current issues identified
6.1 Globalization
6.2 UK population
6.3 Credit crunch

7. References

8. Appendix

1. The product brand

Jack Daniel’s is a smooth, premium whiskey, also specifically defined as a ‘Tennessee Whiskey’; a product which was born as a bourbon but which, having been mellowed through maple charcoal, becomes a Tennessee sour mash whiskey (www.jackdaniels.co.uk).

1.1 Brand position

Jack Daniel’s position itself as a familiar reassuring, dependable brand and it promote itself as such. “Jack Daniel’s is a unique whiskey that is slowly mellowed drop by drop through 10 feet of sugar maple charcoal and matured in new American oak barrels at America’s oldest registered distillery to achieve its smooth character”. JD is a premium whiskey, often more expensive than its competitors especially outside the U.S maintains its position despite its price, because the uniqueness of the product (www.jackdaniels.co.uk).

1.2 Brand value

The brand value are related to the “authentic values of the hard-working people in the small American town of the backwoods Tennessee culture”, which are always referred on their advertising to shape the brand value itself. The “American authenticity” is the essence of the Jack Daniel’s brand (www.arnoldworldwide.com).

1.3 The market in figures

The brand is owned by Brown-Forman, which state that in the US, Jack Daniel’s rank as the number one in terms of brand awareness among all the other liquor brands, with global volume up 6% in fiscal 2004. “A true iconic brand with a loyal following”, each bottle of whiskey is distilled and bottled in the town of Lynchburg (pop.361) Tennessee and exported all over the world (www.jackdaniels.co.uk).

Most recent figures available on Mintel (2008) proclaim Jack Daniels market leader on the US national scale with over 30% of the whiskey industry and it is the 4th highest spirit in on-premises (bar and restaurant) sales for the UK. Jack Daniels is also number one in the world for sales and awareness, and regardless of category corrosion, the global volumes keep increasing. Since 1989, the percentage volume for Jack Daniel’s is up to 72% versus the whiskey industry, which is down 26% (www.mintel.com).

Jack Daniel’s main competitor on regard of the US imports is global bourbon Jim Beam, but on the UK scale is far behind and third after Jameson. In the future companies are aiming to target a younger audience, because trends indicate youngsters tend to drink more. Companies also hope they will grow a loyalty sense to the brand while they age (www.mintel.com).

1.4 Market share

Bell’s, Grouse, Teacher’s and Grant’s are fighting for the pole position in the UK whiskey market, Glen Fiddich and Glenmorangie command malt; meanwhile both JD and Jameson are increasing market share. On a general scale, volumes sales of whiskey are going down, with a market value of £3.8 billion. The future of the market is in decline, especially because the lost in popularity of the Scotch blends; premiumisation will be rewarded.

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On the other hand JD have a first place if ranked by value. In fact JD accounts for 12% (£m 488.3, 2008) of the whiskey brands, followed by the Famous Grouse 10%, Bell’s 9.5% and Teachers and Grants respectively 3.6% and 3.4%. Below the apple chart identify JD market leader for whiskey market and relative competitors shares in the U.S. market.

The U.S. whiskies market share, 2007

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Source: Adams Liquor Handbook (2008)

1.5 Brand map

A survey conducted by Ciao (2008), has revealed some insights on regard the competitive market place of the Whiskey in the UK and its brand performances. The brand map below, gives a clue about the strength and qualities of each brand in relation to differentiation (“indication of vitality and profitability) trust (“indication of brand integrity), and experience (“indication of knowledge and presence in the market”) (Mintel, 2008).

As indicated by the graph, JD is the most used brand, highly profitable and according to the survey conducted on more then 2000 individuals, it has the highest proportion of consumers who have affection for it, and it is seen as stylish, fun and a vibrant product. Satisfaction ratings are very high and JD continues to grow in the market place occupying a position of premium pour, especially compared to local brands in the international market (Mintel, 2008).

1.6 Target audience

Its target audience is mainly AB, male, 34-55; conservative people, with a strong personality based on the sense of effort and a life of tradition and strong values. The JD drinker is an anti conformist consumer, often like music especially rock music or country music especially in the States. Basing on the facts that 55% of whiskey drinkers use bourbon whiskey with a mix and that the majority of the people who mix a whiskey with a Cola or other substances are likely to use it in a bar or a club, assumptions can be made suggesting JD drinkers are likely to be slightly younger then other type of whiskey drinkers. Furthermore marketing strategies reported in Mintel (2008) conducted by Jack Daniel’s in the last five years suggest a reposition of the brand to appeal a younger audience. Sports sponsorship and music-related associations will attract a 24-35 years old type of audience, with an interest to expand the target to a female audience too.

2. Product VS Brand

Having described the brand within the Organization, the report now shifts its focus on the consumer perception of the brand. Many definitions have been given on this module about what is a brand and a clear definition is hard to find in the textbooks too. Although they all agree with the statement that: “brand exists inside people mind and hearts”. Furthermore, it can be said that brands satisfy consumer needs, but commodities or product do that too. The aim of this chapter is to explain what is the product taken in analysis, how products become brands and what brand means to consumers (David A. Aaker, 1996).

Being the Jack Daniel’s an alcoholic beverage, a research on its nature has been reported, in order to define its nature and benefits. The Social issue research centre, investigated the social and cultural aspects of drinking and its origins. Since the age of Neolithic, alcohol has always been in the centre of the human culture. In fact all the societies use intoxicating substance and alcohol has been the most common and widespread. Its persistent usage throughout the history gives a clue on how drinking has had some adaptive benefits on human evolution (www.sirc.org).

The core benefits for alcoholic products are to create a shared sense of well being and a release from tension (www.sirc.org). Even more important is that during the history , drinking has always been an element of celebration and something to share with other people: therefore other benefits must be social bonding, feeling of acceptance and sense of belonging to a certain group.

In fact, “in all societies, alcoholic beverages are used as powerful and versatile symbolic tools, to construct and manipulate the social world”. Cross-cultural studies uncover four major symbolic uses of alcoholic beverages (www.sirc.org):

1. As labels defining the nature of social situations or events
2. As indicators of social status
3. As statements of affiliation
4. As gender differentiators

Those above listed are what in marketing terms are defined as additional values to augmented products. Together with all the element of the marketing mix, companies offer ‘branded products’, which will lead the customers to their purchase decisions. In fact customers will choose a brand or another depending on which benefits the brands will have to offer. (David A. Aaker, 1996).

Brands can have different meanings in different disciplines: for instance in economy, brands are considered to be reputation signals, in sociology a trust mechanism; a facilitator decision maker device for customers in psychology, and a symbol, when it comes to cultural disciplines (www.joc.sagepub.com).

So brands are also viewed as symbols: “Vessels of meaning and sentiment that are valued in society” (B. Holt, 2006).

The most powerful brand symbols are called Iconic brands and are the most famous of the world, one of them is the brand taken into analysis by this paper: Jack Daniel’s. People use iconic brand symbolism to define their identities and begin the affiliation process, which are the main function of symbols (www.joc.sagepub.com)





Title: Jack Daniel's Brand Activity Analysis