May 4, 2024

Media Decoder Blog: Absolut Vodka Takes a Rare Step and Adds an Agency to Its Lineup

Executives who sell Absolut vodka are doing something they rarely do: expanding the roster of advertising, marketing and communications agencies they work with.

The Absolut Company, a division of Pernod Ricard, is adding Sid Lee, an agency based in Montreal that also has offices in cities like Amsterdam, New York and Toronto. The agency, which works for marketers like Adidas, Cirque du Soleil and Ubisoft, is being named to create the next worldwide campaign for Absolut, which is scheduled to begin appearing in summer 2013.

There was no review or pitch before Sid Lee was added, said Mathias Westphal, global brand director for Absolut, which is based in Stockholm. Absolut executives simply liked the work the agency had produced for clients like Cirque du Soleil.

The campaign is to include traditional advertising; digital advertising; so-called experiential marketing, which involves events and other ways to bring products to life in tangible forms; social media; and branded entertainment, meaning the production of content in which Absolut will be interwoven into the plots.

Absolut has for many years worked with two agencies that lead the global work on its campaigns. One, specializing in television, print and other mainstream forms of advertising, is TBWA Worldwide, part of the Omnicom Group, and its TBWA/Chiat/Day office in New York. The other is GreatWorks, based in Stockholm, which specializes in digital advertising.

It is TBWA/Chiat/Day and a predecessor, TBWA Advertising, that have created the well-known Absolut ads featuring the brand’s distinctive bottle, artists like Andy Warhol, flavored vodkas and novelties like snow globes and gloves. That relationship with Absolut dates back more than 30 years, through several owners and distributors of the brand.

Both TBWA and GreatWorks will continue to work on Absolut, Mr. Westphal said.

The reason that Absolut decided to “appoint Sid Lee as one of our lead agencies on a global level,” Mr. Westphal said in a phone interview on Thursday, was a rethinking of how Absolut needed to be advertised and marketed, particularly when it came to millennial consumers.

“There’s a bit of a shift in our marketing model, to doing from saying,” Mr. Westphal said — in other words, away from traditional ads that talk about the product to focusing on experiences that the product can offer consumers.

Sid Lee is “bringing a lot of fresh, new thinking to today’s millennial generation,” he added.

Another reason for reconsidering how Absolut is sold is what Mr. Westphal called the “fierce competition” in the premium segment of the vodka market that confronts Absolut.

Absolut was once almost alone in its field of imported vodkas that cost more than domestic brands like Smirnoff. Now it faces scores of rivals, both in its price range as well as from vodkas that are known as superpremiums, brands like Grey Goose and Ketel One that cost more than Absolut.

“As a brand, when we started out, we were challenging conventions,” Mr. Westphal said. “We need to do that now.”

Absolut is the fourth-largest spirits brand in the world, behind Bacardi, Smirnoff and Johnnie Walker, meaning it is still the biggest brand of imported vodka. In most countries in which it is sold, including the United States, it is also the best-selling premium or imported vodka.

At Sid Lee, the Absolut work will be primarily handled out of its Amsterdam office, with the New York office, a relatively new addition, and the Toronto office also taking part.

“It’s a big deal for us,” said Bertrand Cesvet, chairman of Sid Lee in Montreal.

And “it’s humbling,” he added, to join TBWA on the Absolut agency roster, because “there’s a great body of work and a great heritage.”

“Absolut has been one of the most consistent brands in history” in terms of its ad approaches, Mr. Cesvet said. “It’s a new era.”

Eric Alper, vice president for strategy and lead account partner for Absolut at Sid Lee, based in the Toronto office, said: “To reach, touch and engage millennials, advertising can’t be like wallpaper. You have to create advertising that can compete with pop culture.”

TBWA will continue to create campaigns for other brands sold by the Absolut Company and the Pernod Ricard parent, among them Jameson and Kahlua.

After the campaign for Absolut for 2013 begins to run, Mr. Westphal said, “where we go in the future is an open question.”

Asked if, going forward, each assignment from Absolut will be a so-called jump ball, with the roster agencies competing to be selected for the work, Mr. Westphal replied, “Right now, Sid Lee has caught that ball.”

In another sign of how competitive the vodka market is, another vodka brand said on Thursday that it was hiring an agency it had not worked with before.

Belvedere vodka, produced and distributed by LVMH Moët Hennessy Louis Vuitton, selected BBDO Worldwide, also an Omnicom agency, to handle a project, creating its next global campaign. The ads are expected to begin running in spring 2013.

Belvedere had most recently worked with another Omnicom agency, the Arnell Group in New York, as its creative agency of record.


Article source: http://mediadecoder.blogs.nytimes.com/2012/12/06/absolut-vodka-takes-a-rare-step-and-adds-an-agency-to-its-lineup/?partner=rss&emc=rss

Advertising: BMW Promotes Its Tagline to Its Slogan

Kirshenbaum Bond Senecal Partners, appointed in August by BMW as its lead agency in the United States for national brand creative work and ads for BMW dealers, has produced a new 30-second television spot that will have its premiere on NBC’s broadcast of the N.F.L.’s wild-card games.

Unlike BMW’s previous global brand campaign by GSDM of Austin, Tex. — which focused on the joy of driving a BMW — the new advertising depicts the BMW as the “ultimate driving machine,” whatever the model. The tagline has been used continuously by BMW since it was created by Martin Puris, then the chief executive of Ammirati Puris, in 1975.

The new spot features, in quick succession, a BMW M3 Coupe on a track, followed by a BMW X5 in sand, then a BMWi8 on a bridge, then a BMW 7 Series in a tunnel, before finishing with a montage of the BMW family of cars. The voice-over says, “We don’t make sports cars. We don’t make S.U.V.’s. We don’t make hybrids, and we don’t make luxury sedans. We only make one thing, the ultimate driving machine.”

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Dan Creed, vice president of marketing for BMW of North America, said, “We’re in the middle of an extremely significant product offensive.”

The introduction of 14 models in 2012 will be the most by BMW in the United States in one year in at least a decade. With the new campaign, Mr. Creed said, the company is trying to “take the ultimate driving machine and define what it will be in the future.”

Ed Brojerdi, co-chief creative officer of Kirshenbaum Bond Senecal, a New York-based part of MDC Partners, said the agency was dealing “with one of the most iconic taglines in marketing. We needed to make sure the marketing is as encompassing as the portfolio. Big brands have a focused point of view, they stand for something. BMW evokes the joy and passion for driving, sheer driving pleasure.”

After Saturday’s football games, the new spot will run during prime-time programs like “House,” “The Big Bang Theory,” “Modern Family” and “Law and Order: SVU” on the Fox, CBS, ABC and NBC networks. It also will run nationally on cable channels throughout the year.

According to Trudy Hardy, manager of marketing for BMW North America, the ad is aimed at the company’s “normal buying demographic,” men and women age 35 to 54.

Mr. Creed said BMW’s 2012 advertising budget would be “slightly more” than its budget in 2011. According to Kantar Media, the company spent $133 million on all advertising in the United States in 2009, $166 million in 2010, and $109 million in the first nine months of 2011, slightly up from $108 million spent in the same period in 2010.

Mr. Creed said that for the luxury segment of automobiles, 2011 was a “two-horse race between BMW and Mercedes-Benz from a volume standpoint” in the American market. The BMW Group announced Thursday that sales of BMW brand vehicles in the United States were up 12.6 percent in 2011, to 247,907 vehicles, while Mercedes-Benz USA said on Thursday that sales of that brand rose 13.3 percent in 2011, to 245,231 vehicles.

Noting he would “rather go into any downturn with the newest products rather than the oldest” and with more efficient and dynamic products than their predecessors, Mr. Creed said, “regardless of which way the economy goes in 2012, we feel BMW is in the strongest position of our competitive set.”

Christopher Cedergren, managing director of Iceology, a Los Angeles consulting and research company that has worked with BMW in the past, called the new TV spot an effort by the automaker to “go back to its performance roots as the ultimate driving machine. The previous campaign was too nebulous. It blurred the image of the BMW brand, made it too much like its competitors. It kind of walked away from its positioning about its driving performance.”

“They’re trying to pull on the heartstrings of consumers again. The joy campaign really didn’t pull on the heartstrings that effectively,”‘ he said, adding, “The luxury business is an emotional business. If you want to sell a product that commands a premium price, you need to tug on the heartstrings, the passion points of consumers.”

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Christie L. Nordhielm, an associate professor of business administration at the Ross School of Business at the University of Michigan, said that although the ad’s depiction of multiple car models was “not particularly unique, the message in the campaign is very unique. I don’t recall another automotive company emphasizing the overall corporate benefit, while expressly de-emphasizing the specific types of cars, in the last 30 years.”

BMW, she added, “in a sense is the Apple of the automotive industry. Apple delivers great user experience across products, and BMW delivers an exceptional experience across all types of automobiles.”

Renée Richardson Gosline, an assistant professor of marketing at M.I.T.’s Sloan School of Management, said “a campaign that emphasizes a consistent brand essence is powerful, but BMW has to keep in mind that luxury consumers seek distinction, even within the brand. So, along with the egalitarian message that all BMWs are ‘ultimate driving machines,’ BMW has to make owners of different models each feel special as well, by building relationships with the owners of each model.”

She said that could be done with customized direct mail campaigns or online or offline community groups.

This article has been revised to reflect the following correction:

Correction: January 5, 2012

An earlier version of this article misstated the day when Mercedes-Benz USA announced its 2011 sales figures. It was Thursday, not Wednesday.

Article source: http://feeds.nytimes.com/click.phdo?i=5e211ce2ee533366169ecde38dde0858