SWOT Analysis Of Absolut Vodka analyzes, Absolut Vodka is a Swedish vodka made exclusively from natural ingredients, and unlike some other vodkas, it doesn’t contain any added sugar. In fact, Absolut is as clean as vodka can be. Still, it has a certain taste: Rich, full-bodied and complex, yet smooth and mellow with a distinct character of grain, followed by a hint of dried fruit. Absolut vodka is among the top five brands in the world that sell spirits and vodka. If we look at Absolut the brand wise, Absolut is the third most ranked brand in the industry of alcohol and is ranked behind the Bacardi as well as Smirnoff. Absolut is a product of the family of Pernod Ricard. Absolut and Chivas Regal represent two top brands of the house of Pernod Ricard, which owns over 30 brands.
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As part of its “recycle everything” philosophy, Absolut gives distillate byproduct — also known as “stillage” — to pigs and cows at local farms. Proteins are left over after distillation, making the stillage a great source of food for the upwards of 290,000 pigs and cows that chow down on it.
Absolut was established in 1879 by Lars Olsson Smith and is produced in Åhus, Sweden. Smith challenged the city of Stockholm’s liquor marketing monopoly with his vodka. It was sold outside the city border at a lower price than the monopoly’s product. Absolut Vodka is one of the most famous vodkas in the world. Launched in the US in 1979, it completely redefined the premium vodka landscape, becoming synonymous with art, culture and nightlife.
This can only be achieved through a firm with extensive knowledge, experience, and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities, and threats, it is necessary to conduct a SWOT analysis by Absolut Vodka.
Absolut Vodka At A Glance – Absolut Vodka SWOT Analysis
Company: The Absolut Company AB
Founders: Lars Olsson Smith
Year of establishment: 1917
CEO: Anna Malmhake
Headquarters: Stockholm, Sweden
Employees (Dec 2020): 550
Ticker Symbol: PDRDF
Annual Revenue (Dec 2020): US$124.00 Million
Profit net income (Dec 2020): US$67.00 Million
Products & Services: Premium vodka
Company Website: www.absolut.com
Top Absolut Vodka Competitors
Competitors: Grey Goose | Svedka | Beluga
Absolut Vodka SWOT Analysis – SWOT Analysis Of Absolut Vodka
SWOT Analysis Of Absolut Vodka analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Absolut Vodka SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Absolut Vodka SWOT Analysis. Below Is The Detailed SWOT Analysis Of Absolut Vodka.
Absolut Vodka Strengths – Absolut Vodka SWOT Analysis 2023
1. Universal Brand equity Universal brand equity: The biggest benefits for Absolut is the distribution all over the world that has created global brand equity. Absolut is the most concentrated in the United states, United kingdom and Asia Pacific three of the biggest continents on earth.
2. The sole source that produces: The quality of production is the most important thing in Absolut due to the fact that all production is made at their one manufacturing facility located in Sweden. They own a vast harvest of winter wheat that is the sole source of production for their spirit. It could be any part of the globe there is no reason to complain about Absolut being different or weak. Absolut is a single source, one grain.
3. The bottle: The biggest and quietest operating promotional campaigns throughout the world of alcohol was The Absolut Bottle. The bottle is distinctive and is a part of its own history and has been touted as the mainstay of Absolut’s marketing campaigns since the year 1980. The bottle is also widely recognized.
4. Varieties and flavors Varieties and flavors: As of 2016. Absolut vodka has 21 varieties (click to find out more about the different varieties). Each variant are priced differently and Absolut is well-known for releasing various spirits that sells for a high cost due to its distinct quality.
5. The company has strong promotions Strong promotions: Absolut is a strong brand with solid promos beneath the lines. It has Ice bars located in Stockholm, London and select cities, which is an original concept. Absolut always makes sure to communicate and presents it’s a hip brand that is totally in tune with the times. Pop advertising and sponsorships are just a few ways in which Absolut is visible throughout the day.
6. Heritage: Heritage Absolut vodka was founded in the year 1879 (in an alternative name) and is therefore been one of the most long-running periods of presence in the history of alcohol. It was sold under the official name of Absolut vodka from 1979
7. Clear focus Clear focus: Pernod Ricard, the company that owns it Pernod Ricard has five drivers in their strategy that have given them the focus they have to date. Of the 14 leading brands, they concentrate on two in order to increase the value of their brand and increase the size of the business.
Absolut Vodka Weaknesses – SWOT Analysis Of Absolut Vodka 2023
1. Cost: Cost Because Absolut only has one source, the price is prohibitive and too many costs are incurred on transportation around the globe.
2. Competing market Competitive market: Smirnoff, Bacardi and Absolut have been at war for a long time. All three have the same qualities, with marketing being the main distinction.
3. Advertising restrictions: The main weak points for Absolut is the fact that they does not advertise or distinguish it. Due to no fault on its part, Absolut can’t directly promote its alcohol products on TV. However, while Bacardi as well as Smirnoff’s CD’s have become both popular, Absolut has not made the same amount of money in the form of advertising. So, the brand’s recall is lower when compared the brands Smirnoff and Bacardi which has given these two brands an advantage.
Absolut Vodka Opportunities – Absolut Vodka SWOT Analysis
1. It seems like the world’s becoming smaller: Everyday, more individuals need and require alcohol today. The public has accepted drinking as a fun activity, and many people drink it regularly for a refreshment. With this acceptance of the market in both the developed and emerging countries, the size of the market is increasing rapidly.
2. Online sales: eCommerce is growing and, even though certain of the most popular E-commerce companies aren’t willing to offer this item via the web, Absolut should take steps to make sure it’s accessible on the internet in the countries where they sell it. To boost margins, they must communicate directly to their customers.
1. Long time competition: This time, the risk is due to being aware that Absolut constantly takes damage to its bottom line due to its long-term rivalry against Smirnoff as well as Bacardi. Absolut’s only option is to make Absolut raises its distribution to insane levels.
2. The rising cost of fuel The rising cost of fuel: Since its distribution is entirely on transportation, due to the single source method and the rise in the price of gasoline due to the increasing shortage of it will impact Absolut negatively.
3. The government has taken action against alcohol: Numerous establishments have shut down sales of alcohol due to interference from the government. In any place where alcohol is prohibited in any way, all alcohol businesses are impacted.
4. Costs rising caused by taxes levied by the government: Governments generally increase the excise duty and import duties on foreign brands in many countries. These taxes eventually lead to increasing costs for the brand in itself.
Absolut Vodka SWOT Analysis Overview Template
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