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What do BlackBerrys and Booze Have in Common?

January 19, 2012 No Comments

Too many choices.

Research in Motion (RIM), the makers of BlackBerrys, is having some problems. Their stock is down, the new line of products has been delayed for a year and there are rumors of corporate sharks looking to take a bite out of them.

In the view of most observers, the problem stems from too many choices. Since 2007, they have introduced 37 models including BlackBerrys that flip, slide, with touch screens, touch screens and keyboards, high and low end products. The product line is too complicated. In a recent NY Times article, a market research firm estimated that their market share slipped from almost half in 2009 to roughly 10 percent in the US.

Compare that to Apple’s iPhone. There have only been four since 2008 and all were the same but differed only in storage or capabilities from earlier models. Apple made it simple and less is more.

Seagram’s Gin

January 14, 2012 3 Comments

I was always fascinated by Seagram’s Gin and at a recent lunch with a former production friend, we reminisced about the brand. I thought I would share that with my Seagram readers.

When I came to Seagram, the brand was selling at roughly the 3.3 million case levels. Thanks to Snoop Dogg’s Gin and Juice rap song, it grew to close to 4 million cases by the late 1990s. Today, the brand is still the leading gin but its sales are in the 2.5 million case range.

The product story of Seagram’s Gin epitomized the fundamental values of the company. In the commitment to quality and brand differentiation, someone way back when (perhaps Mr. Sam himself) decided that an American Dry Gin could be smoother and more tasteful if it were rested in charred oak barrels for 90 days. That resulted in a more expensive proposition and gave the product a pale straw color. Then, they decided to put it in an “ancient bottle” which evolved into the “bumpy” bottle the brand uses today.

Booze, the B-List and Beer

December 27, 2011 No Comments

I came across an article in USA Today indicating that US alcohol consumption hit a 25-yeat high. Americans drank the most wine on record (2.3 gallons per person). Spirits grew by 18% to 1.5 gallons. But, beer dropped 7 percent to 20.7 gallons according to the Beer Institute.

The report brought to mind an article in Wine & Spirits Daily back in October. Speaking to the National Beer Wholesalers Association, Tom Long of MillerCoors, indicated that the beer industry could learn a thing or two from spirits marketing.

To further illustrate the problem, according to Ad Age, AB InBev spent $555 million in measured media last year and still managed to lose a full share point. MillerCoors spent just under $400 million and lost half a share point. How does that work? Together they spent nearly a billion and lost market share. Is it the creative? Is it the media? Is it that consumer alcohol tastes are shifting to craft beers and spirits/wine? Probably all of the above.