Mindanao State University – Iligan Institute of Technology

School of Graduate Studies

JOHNNIE WALKER- REIGNITING GROWTH

A Case Analysis

Aranas, Justine Joy D.

Baroro, Jenelyn E.

Macakiling, Jauhara Fatima I.

Nanaman, Eula Rosetta S.

Group 3

Marketing Management

MBA 203

Mr. Anton Cabatingan Jr., MM

December 1, 2018

I. Perspective Held by the Group

 The group chose Alice Avis, the Global Brand Director for Johnnie Walker, to analyze the
case.
Johnnie Walker is experiencing radical changes in which the growth of the brand needs
to reignite to make it a global power brand. Thus we chose Alice Avis because she is
tasked to grow the brand and make Johnnie Walker more relevant and aspirational. She
is also responsible for positioning the brand as one of the largest spirit brands in the
world.

II. Statement of the Problem

A. Main Problem:

How to make the brand more relevant and aspirational, to get it growing again?

B. Sub-Problems:
1. Will it move from a multi-local product-focused brand to a global master
brand?
2. What should its global positioning be?
3. What are the next steps to re-introduce the brand in the global market to
capture more sales?

III. Objectives:

The following are the objectives that we have formulated that are aimed to address and
answer the main and sub-problems stated above:

1. To choose the most effective and appropriate methods to get the brand growing
again.
2. To boost sales at more than triple the predicted growth for Scotch, seize 19 percent
of the Scotch market (up from 11 percent) and double the brand’s profit
contribution.
3. To establish new marketing initiatives, targeting a large group of the population.

IV. Analysis of the Relevant Case Facts

 Using the strategic management tools, SWOT Analysis, and PEST Analysis, we have
presented some case facts which are our basis for deciding what strategies should we
apply to reach our objectives:
SWOT ANALYSIS
STRENGTH
● Johnnie Walker was the “strongest”
spirit brand in the world, with a history
of awards for quality and innovation
based on the study done by Interbrand
Powerbrand.
OPPORTUNITY
● After years of recession and slow
growth rate in the industry, economic
uptick and an increase in customer
spending is an opportunity for Johnnie
Walker to capture new customers and
increase its market share.
PEST ANALYSIS
WEAKNESS
● Johnnie Walker’s trade and
distribution on emerging markets
such as Brazil and Thailand, were
underdeveloped.
THREAT
● Standard Scotch lost out because of
changes in consumer tastes.
Consumers had been developing a
taste for different drinks from the
early 1990s. They bought less
whisky and opted for alternatives
such as wine, champagne, vodka,
tequila and ready-to-drink mixes
like Smirnoff Ice. As demand for
other spirits rose, whisky
consumers either scaled up to
premium Scotch or went for value-
based products.
 POLITICAL ECONOMIC

● Extra taxes on alcoholic beverages ● The global crisis and its

consequences and effect on the
● Strict law of advertising
demand and performance of
companies

● Consumers purchasing powers.

SOCIAL TECHNOLOGICAL

● Drinking culture ● Digitalization to provide value

producing opportunities
● Healthier lifestyle
(Advertising)

V. Statement of Strategies and Alternative Courses of Actions

The following are the strategies we have developed in order to reach our objectives:

1. Migrate from product brands managed by geography to a master brand managed

globally.

This would allow Johnnie Walker to have a clear market prioritisation and relevant
product differentiation.

2. Focus on being a multi-local product-focused brand.

The localization of brand positioning and advertising campaigns which has led to brand
fragmentation will give Johnnie Walker the ability to personalize and be exclusive to
their different type of markets.

VI. Decision Analysis

 The following table below shows our analysis of the strategies we have come up as
stated above:

Strategies Advantage Disadvantage

Migrate from product By managing the brand This is an expensive course

brands managed by globally, this will build a of action that needs to
geography to a master consistent presence and exhaust a substantial
brand managed globally impact at the point of amount of funds.
purchase to the consumers
through even look-and-feel.
Moreover, this measure
could thwart confusion from
the consumers.

Focus on being a multi- This will help develop
local product-focused positioning and advertising
brand for clusters of smaller
developing markets since
the local teams have
budgets for media spend,
promotions and on-trade
activity.
The current situation of
having the brand market
differently from country to
country is not producing
sufficient results that could
climb up to reach their
targets.

VII. Conclusion

Johnnie Walker started out having to market the brand differently from country to
country. This resulted in marketing inconsistencies between labels and from one region
to the next. As an effect, this generated confusion from consumers and lack of relevance
thereof and their aspirations on the other. Further, the absence of an overall on-trade
strategy resulted in an inconsistent presence and impact at the point of purchase.

Thus, the company should switch to managing the master brand globally through the
efforts of Alice Avis, the Global Brand Director for Johnnie Walker, with the help of the
Global Brand Team (GBT). This step should address the global customer need, which
could manage the standardization of marketing activities across markets. Hence,
significant internal changes are required to the existing structures and processes to
create a homogenous message globally that could magnify the power of the brand.

VIII. Recommendation
As a follow-up procedure after unifying the Johnnie Walker master brand positioning,
the company should realign its global campaign through linking to a deep-seated,
universal concern of consumers. This can be done through a powerful advertisement
phrase that produces an emotional bond with consumers or to a brand new logo that is
meaningful and connotes that such company cares.

This marketing and advertising drive should construct a clear understanding of what the
brand stood for and that could appeal to the consumers on an emotional and personal
level. This should create a symbol of something to the customers that represent
themselves – their struggles and their triumphs. It should tell the men to just keep
moving forward because Johnnie Walker would be their friend along the way.