Jack Daniels Marketing Diary

Before everything else, The Concept of Whiskey..

Whisky is a well-known and much appreciated spirit around the world. Experiencing the distinctive differences is a source of inspiration and pleasure that consumers would like to enjoy more. Firmenich focused its industry leading R&D capabilities to analyze the volatile compositions of several unique whiskies, which lead to the creation of top notes in the direction of well-known market products. This work has resulted in a range of whisky flavours allowing consumers to enjoy these unique characteristics.

History:

Tradition has it that the secrets of distilling came to Scotland from Ireland, and were introduced there by St. Patrick in 400 A.D. He had travelled on the Continent and may have learned about distilling. Whisky production began in grain-growing regions (the same regions where beer was being produced) whereas the distillation of brandy developed in regions producing wine. The first traces of distilled barley go back to the 13th century in China. In those times, whisky was considered a medicine, helping to heal all kinds of diseases. It was used as an ointment as well as a drink. Before bearing the name of "whisky" (or whiskey if produced in Ireland or the United States), the drink was called "Uisge Beatha" in Scotland, which means "Water of Life" in Gaelic.

Classification:

There are three main categories of Scotch whisky; Malt Whisky, Grain Whisky and Blended Whisky.

Malt whisky consists of whisky made from 100 percent malted barley; malt whisky from one distillery is called single malt to distinguish it from blended varieties. The grains used to make whisky include barley in Ireland, Scotland, Canada, and the United States, rye in Canada and the United States, and corn in the United States. Various types of straight whiskey, such as Rye whiskey, Tennessee whiskey, and Bourbon Whiskey are produced in the U.S. Blended whisky is made from a combination of any of the above whiskies with the similar grain whisky or neutral grain spirits. Blends will almost always identify the type of base whisky used, ie. blended Scotch, blended Canadian, or blended Bourbon. Light whiskey is a style of American whiskey made up almost entirely of neutral grain spirits, with small amounts (typically less than 5-10 percent total volume) of straight whiskey and sherry added for flavour and colouring.

The three major points of difference between all these whiskey types are:   

Raw material Distillation method Maturation method

SOMETHING ABOUT JACK DANIELS

At Jack Daniels things are done a little differently – and that’s what gives Jack Daniel’s its distinctive character. The whiskey is Charcoal Mellowed drop by drop, and then its aged in the distillers own handcrafted barrels. A calendar is not followed. The Tennessee sipping Whiskey is ready only when the tasters say it is. Senses are the best judge, just like Jack Daniel himself did. In fact, more than a century later, the Tennessee Whiskey is still judged the same way. By the way it looks. By the way it smells. And of course, by the way it tastes.

Jack Daniel's is a brand of sour mash Tennessee whiskey that is among the world's best-selling liquors. It is known for its square bottles and black label. As of November, 2007, it was reportedly the best-selling whiskey in the world. It is produced in Lynchburg, Tennessee by the Jack Daniel Distillery, which has been owned by the Brown-Forman Corporation since 1956. Despite being the location of a major operational distillery, Jack Daniel's home county of Moore is a dry county, so the product is not available for consumption at stores or restaurants within the county, although the distillery does sell commemorative bottles of whiskey.

Although the product generally meets the regulatory criteria for classification as straight bourbon, the company disavows this classification and markets it simply as Tennessee whiskey rather than as Tennessee bourbon.

DELIVERING CUSTOMER VALUE

As it is used in the business world, customer value is the amount of benefit that a customer will get from a service or product relative to its cost. Some businesspeople explain customer value as “realization” compared to “sacrifice.” Realization is a formal term for what customers get out of their purchases. Sacrifice (in terms of monetary cost, time cost, energy cost and psychological cost) is what they pay for the product or service.

At Jack Daniels the determining factor in creation of customer value is the way the brand is perceived in the minds of the consumers. This is successfully done throughout the years by the proper statement of facts of building the very unique form of charcoal mellowed, proprietary barrelled whiskey. This is again very successfully propagated with the application of the stories that has been gradually propagated through the years. The stories state the reasons why Jack Daniels enjoys far more superiority than any other whikey currently available.

WHAT IS CHARCOAL MELLOWING?

Jack Daniel believed "Every day we make it; we'll make it the best we can." For him, that meant mellowing his whiskey drop by drop through ten feet of sugar maple charcoal.

Seven generations later, the whiskey is still as mellow as Mr. Jack’s. The reason is simple: it imparts a distinctive smoothness folks have come to expect from Jack Daniel's. Charcoal Mellowing makes Jack Daniel's what it is – a Tennessee Whiskey and not a Bourbon. It refines the whiskey's rich flavour even before we fully mature it in barrels of the distillers own making. Yes, it's a painstaking process that demands extra attention and makes the whiskey a bit more costly to craft. But Mr. Jack wouldn't have it any other way.

PRODUCT LINE of JACK DANIELS PROCUCT LINE: The product line of Jack Daniels can be broadly classified into various heads, with the prime product being whiskey manufacturing. The rest are classified as:

APPAREL HEADWEAR ACCESSORIES BAR ITEMS & ACCESSORIES

SPORTS & LEISURE CUSTOM BARRELS MOTORING ACCESSORIES ELECTRONIC EQUIPMENTS

In respect to the finest whiskeys..

THE PRODUCT DEPTH:

JACK DANIELS SINGLE BARREL The specialities of these bottles are that each specifically crafted whiskey bottle (250 in number) is made from a single barrel.

GENTLEMAN JACK RARE One of the rare breed of double charcoal mellowed and fine grain added whiskey started from 1988.

COUNTRY COCKTAILS Ready to consume premium malt beverages which is sure to satisfy and re-freshen the senses of the consumer.

The Marketing Mix for Jack Daniels

FAQ’s Product What does the consumer want? What features should be included to meet these wants? How and where will the consumer use it? What will its physical attributes be like?

Price

How sensitive is the consumer towards the price?

How is the pricing strategy comparable with competition ad substitutes?

What are the sensitive established pricing points?

Does the price increase the perceived value?

Place Is there a place utility in the product? How to design a proper distribution channel? What should be the supply chain network, structure and size?

Promotion

What are the promotion channels?

What is the advertising strategy?

How to increase brand awareness?

How differently can the product be promoted than the competitors and substitutes?

JACK DANIELS ANSWERS PRODUCT

PRICE

JD’s main goal is to create a consistent product and remain constant in the marketplace, drawing upon the same marketing, packaging and brand voice that they have had for 40 years.

JD is seen as more than just an American company, due to the resentment of prices acceptance of other American based companies. “Brown-Forman has made Jack Daniel's more expensive so it didn't look cheap next to the other superpremium brands”, CEO Paul Varga.

Jack Daniel's seeps into the culture more than most rival liquor brands. Impeccable quality standards throughout. MARKETING Information about its customers is important enough to Jack Daniel's for the company to break character to get it. Jack Daniel's is still made according to its timeless recipe, albeit with the help of computerized monitoring and process- control systems to ensure consistency and increase the whiskeymaker's efficiency.

PLACE

MIX

Email marketing is the ideal solution for the sourced online marketing needs. By providing related products based on the customers’ interests, sales can be easily increased. SEO considers how search engines work and what people search for optimising your website when they look for the product online.

PROMOTION

COMPETITION MAP

NEW ENTRANTS EVAN WILLIAMS 1994

WILD TURKEY BRIM ‘95

CATEGORIES JD- Tennessee JB- Straight Bourbon JW- Blended

WHISKEY DISTILLATION JD- Charcoal Mellow

JACK DANIELS (OLD NO. 7)

JB- Barrel treated

JIM BEAM (DEVIL’S CUT)

JW- Split Area Cov

JOHNNIE WALKER (BLACK LABEL 12 YEARS)

RAW MATERIAL JD- Best Corn Rye JB- Rye & Vanilla Notes JW-Smooth Malt

MATURATION JD- Custom Oak Barrel JB- Barrel Wood JW- WindedBarrel

In consideration to the fact that Whiskey is one of the few product that has to be “tasted” to know the value derived from the product.

PRODUCT LIFE CYCLE

Sales

Profits

New Product Intro

Growth Maturity

Decline

Development

BASED ON THE TIME LINE THE PLC MIGHT BE PUT AS New Product Development stage (1866) Introduction Stage (1875)

Growth Stage (1910)

Maturity Stage (1956)

Integrated Marketing Communication for Jack Daniels

Virtual tours

Actual staying experience

Legacy oriented approach

Online Branding

Racing sponsorships

Sponsoring musical events

Real-time Guest invites

Culture oriented pathways

New avenue searches

Real-time Competitions

Inclined Specific

Big Event holding

Promotion..the JD way..

Promotion comprises that range of techniques used to attain sales or marketing objectives in a cost effective manner by adding value to a product or service either to intermediaries or end users, normally but not exclusively within a defined time period. Jack Daniels uses definite Sales Promotion techniques at the different stages of the product life cycle since sales promotion techniques provide a strong incentive to BUY.

The bass Guitar designed by Maddok Headley to promote the Old No. 7 Brand

The Game devised in a form of a treasure hunt to revive fallen sales and market share in the United States. The game followed strict rules and regulations and the winner was awarded with grand prizes and hampers.

Anniversary celebration of the Old No. 7 brand drew crowds from far and wide and the promotion strategy worked wonders for the brand.

SALES MANAGEMENT Efforts put forth to attain Jack Daniels sales objectives. Sales management can involve any of the following activities: (1) Formulation of sales strategy through development of account management policies, sales force compensation policies, sales revenue forecasts, and sales plan. (2) Implementation of sales strategy through selecting, training, motivating, and supporting the sales force, setting sales revenue targets. (3) Sales force management through development and implementation of sales performance, monitoring, and evaluation methods and analysis of associated behavioural patterns and costs.

JACK DANIELS a pioneer in sales management in the breweries industry!

Jack Daniels introduced The Sales Cloud which is the world’s most complete, trusted, and popular workflow automation engine for the full range of sales management needs. And now the Force.com Visual Process Manager tabulates sales process management to yet another level —more quickly and easily than was ever possible before.

The Visual Process Manager makes it simple to eliminate the grunt work from sales management processes that company representatives can spend more time pursuing customers and less on administration. Jack Daniels also makes sure everyone is following the same playbook, adhering to the sales process management rules and procedures that have proven to work best for the organization and sales cycles.

And here’s the best part: The Visual Process Manager lets non-technical business people build sales management automation scripts, processes, and guides driven by sophisticated business rules— without help from (or having to wait around for) IT.

The Visual Process Manager brings new ease and speed to sales management by integrating the Sales Cloud with external applications such as diallers, interactive voice response (IVR), and databases. This kind of workflow automation helps your sales teams do what they do best: talk to prospects, pursue opportunities, and close deals. Streamline sales calls and online interactions by automating the up-front work—for example, by creating tasks, converting leads, and setting up opportunities. Sales management complexity is reduced, ensuring of useful and accurate data, and support consistent processes. The end result is customer contact that’s faster, more efficient, and less costly.