Travel Retail - PR Chivas brand

Chivas Regal
EXPERIENTIAL MARKETING CAMPAIGN
London – 17th November 2009

Content
Background – Introduction
Channel
Brand
Category – consumer, competitors)
Objectives
Strategy
Enablers (execution ideas)
Global
Idea 1
Idea 2
Idea 3
Customers
Other Marketing tools

Introduction
In airports most travellers don't visit a store. To
understand how to get travellers in -store we need to
understand why they don't shop.
Reasons for non-purchase:
1. Too busy/not enough time
2. Buy cheaper at home
3. Nothing new/ interesting
4. Don't want to carry extra things*
(*that's often the reason why GWP's don't capture their attention)

Introduction
Travel Retail figures ...

Introduction
About the Brand:
it was founded in 1801 in Aberdeen, Scotland. The Chivas brand's home is
Strathisla Distillery at Keith, Moray in Speyside, Scotland. Colin Scott is
the Master Blender.
Chivas Regal is the flagship Scotch whisky brand of Chivas Brothers.
Chivas Regal is ranked as the number three spirit in the travel retail sector.
During the year ending 30 June 2008, Chivas Regal, which comprises
Chivas Regal 12, 18 and 25 Year Old has sold over 4.5 million 9-litre
cases (+10% versus previous year), its highest ever volume; more than
one every second, 24 hours a day, 365 days a year.
Chivas Regal has achieved a strong global performance - No 1 in Europe
and Asia, with dynamic growth in Eastern Europe, South America, and
most emerging markets.
The Chivas Regal range is the epitome of style, substance and exclusivity
and includes Chivas Regal 12, 18 and 25 Year Old.

About the Consumer:
Profile: 30 – 55 yo, 70:30 men vs women; Status motivation
Status gives an air of maturity and sophistication. Compels people to stand out,
avoiding the ordinary and everyday. It’s a choice that reflects confidence and prestige.
TRENDS IN SCOTCH CONSUMPTION
1.Premiumization – Younger, non-traditional consumers are trading up. The new
generation of Scotch drinkers is particularly attracted to single malts and deluxe/super
premium blends – products 12 years or older. Over the last 10 years, the compound
average growth rate for Super Premium Scotch has topped 13%.
2.Ethnicity– Consumption among ethnic groups is rising dramatically – particularly
among Hispanic and Asian consumers. Hispanics segment is growing faster than the
General Market.
3.Younger Consumer Profile – The traditional Scotch drinker tends to be male,
professional and Caucasian in the 50+ age group. The new generation is likely to
discover scotch in their mid to late twenties.
* Whisky Magazine’s theory is that as today’s white spirits drinkers rejected Whisky because it was their father’s
drink, so their children will turn back.
Introduction

Introduction
About the Competitors:
The main competitor is Johnnie Walker owned by Diageo.
Other Status Scotch brands:
Cardhu, Glenfiddich and Ballantine’s.
Other Status Brands:
Moet Hennessy, Bombay Sapphire, ...

Introduction
What about the competition practices in Travel Retail?

Introduction
What about the competition in Travel Retail?

Projected F06 – F11 CAGR
Source: PMSI
Introduction
About Pricing:
Chivas Regal 12 yo: £22
Chivas Regal Royal Salute: £150
Johnnie Walker BL: £20 – 22
Johnnie Walker GL: £58
Johnnie Walker BL: £195
Glenfiddich 12 yo: £20 – 22.50
Glenfiddich 18 yo: £48.50

Objectives
So we need to create brand experience
...that for consumer:
1. Offers something unique/ exclusive
2. Encourages to buy now and Trade up
...that for PR:
1. Drives brand equity
2. Creates consumer experience
3. Drives sales
...that for customer:
1. Drives category value
2. Encourages repeat purchase
... To increase brand awareness & sales –
Increasing Passenger penetration into stores

Why Brand Building in Travel Retail?
The Global Travel environment is suitable for brand building
* We can go after our targeted consumer with precision
* Global/ EU Travel retail focuses on premium brands and so do
shoppers / consumers
* Global/ EU Travel retailers are supportive as brand activities drive footfall
and increase sales

Strategy
…whereas Chivas Regal invests in Experiential Marketing
EM is more than just visual impact
EM is beyond the notion of simply trying a product
EM allows us to engage with shoppers/consumers on a number of
parameters at the right connection moment
So....

Linked with ... “Live with Chivalry campaign”
"Live with Chivalry” is about staying true to your word and leading by example,
standing up for what you believe in no matter what.
"Live with Chivalry” global concern regarding the erosion of values is high and
the overwhelming feedback is that friendship, loyalty, honour and intelligence
are prized within societies around the world.
It celebrates an eternal masculine ideal of substance, class and sophistication.
It is a powerful message for today's world. It is the start of a real movement, but
it fits perfectly with the brand's noble heritage".
“The ‘Live with Chivalry’ advertising campaign, which was launched at the end
of last year, is based on the idea that there is a code of behaviour that sets
some men apart from others, referring to ideas of brotherhood, honour,
adventure, courage, gallantry and loyalty. This contemporary call for
‘Modern Knights’ is an inspirational new platform, which has researched
extremely well in key markets around the world.”
... In order to have brand consistency

Travel Retail - PR Chivas brand

Enablers
The general concept:
* Creating an in–store bar to increase brand visibility and to attract traffic.
* An interactive concept based on the look & feel of the brand campaign
“Life with Chivalry”; There will be signature cocktails and our bar staff will wear special
costumes supported by POSm and in place advertising.
* The bar is integrated with digital solutions such as IPod charges, free internet
connection for sending special emails (we provide different messages ideas to send to
friends and family) and download music station.
* Signature cocktails ideas:
 The Perfect Serve: On the Rocks (ice cubes shaped as swords with engraved Chivalry values)
 100th anniversary celebration: Chivas 18 yo shaken with fresh apples and lime juices and honey.
 The Cannes Red carpet: Chivas 12 yo/ Chivas 18 yo, sweet vermouth, benedictine herbal liquor
and twist lemon peel. (in relationship with partnership events having a 360 degree activation)

Enablers
Idea 1: Focus on Chivas Regal 12 yo
Added value promotion:
* Get two bottles of Chivas Regal 12 yo for £30
* Get 2 bottles of Chivas Regal 12 yo 5cl when you buy a bottle of 75cl.
* Get a bottle of Chivas 18 yo 5cl when you buy a bottle of Chivas 12 yo 75 cl.
Objective: encourage purchase by price and trade up.
10.000 packs
Timing: 1 month (15th November to 15th December 2009)
Budget: packs + 5cl’s

Enablers
Idea 2: Focus on Chivas Regal 18 yo
Unique gift promotion:
* Get a personalised (brand) leather pouch personalised with your purchase
of one bottle of Chivas Regal 18 yo.
Engrave a meaning message for your friends/ family instantly by our artisan.
Objective: To trade up marking the occasion (xmas), reward customer loyalty
or simply as a beautiful gesture to reinforce brand credentials and keep front
of the client’s mind.
6.000 packs
Budget: pouches, special stand and the Chivalry Artisan.
Some strategic Alliances for the Leather pouch:
Aquascutum, Gucci, Richemont group (Montblanc, ...)
* To reinforce brand equity and desirability. They provide the
lifestyle platforms to bring the brand to life.

Enablers
Idea 3: Focus on Chivas Regal 25 yo (exclusivity)
A unforgettable experience:
* Win the travel of your life to enjoy with your friends/ family and discover a
new world of sensations.... Get a code to participate when you buy a bottle of
Chivas Regal 25 yo.
Objective: To trade up marking the occasion (xmas), reward customer loyalty
and make our consumers to be Chivas ambassadors.
3 prizes for 4 people each.
Budget: cards and travel costs.
Some strategic Alliances: Hotels group, Michelin Star Chef’s, ....
Once one of those
consumer “adorers”
lives this experience,
they’re not just
converts, but
ambassadors”.

An Unforgettable Experience
5 day trips including:
Chivas Heritage Strathisla home visit.
Learning about the Whiskey category and Chivas Regal brand
The production process
Perfect serve and cocktails
Whisky and Food; Food paring dinner hosted by our BA and created by Michelin Star Chef
Sailing, horse riding, violin concert, opera, spa’s.... Relax; enjoying the simple life pleasures.
These historic surroundings provide special environments to bring relationships to life, from
intimate dinners to education sessions, including golf and spa days. It’s the “joie de vivre”.
Finally, guests can take home a personalised gift of an individually numbered and engraved bottle
of Chivas Regal 25 yo whisky to commemorate the remarkable experience.
Mentorship: All activities that educate our consumer as to the story, history, provenance &
functional benefits of the brands.

Sales team and Customers:
Customers want to drive footfall and increase average weight of
purchase. The idea of a unique brand experience at front of store to drive
footfall and 'exclusive' offer to close the deal ticks both those boxes.
Also we can create an incentive program that works for example in
selected stores for the staff and/ or for the managers.
Indulge yourself with a Spa session
A gift card with £100 to spend in (Selfridges, ECI, ...)
A dinner for two at the Michelin Star restaurant of your choice (tasting
menu around £100 pp)

Other Marketing tools
POS Material
(Ice buckets, Tumbler Glasses, ...)
Merchandising
Photo shootings/
Brand Iconography
Limited Editions
Alliances

Information sources
www.pernod-ricard.com
www.chivas.com
www.moodiereport.com
www.just-drinks.com
www.dfnionline.com
www.whiskymag.com
www.tren-news.com
www.euromonitor.com
www.mintel.com
www.drinsint.com

Travel Retail - PR Chivas brand

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Editor's Notes