Pernod Ricard’s Stance on Advertising Spending Despite Decreased Sales
Pernod Ricard, a prominent drinks manufacturer known for spirits such as Jameson, Malibu, and Absolut, has vowed to maintain its advertising and promotional expenditure despite an 8% year-over-year decline in sales during the first quarter. The company remains confident in their marketing strategy, portfolio, and brand image even with the decrease in sales. Pernod Ricard plans to continue engaging with customers and investing in advertising campaigns to drive growth and adapt to the fluctuating market demands.
Allocation of Net Sales and Digital Initiatives
Currently, Pernod Ricard allocates approximately 16% of its net sales to advertising and plans to maintain this percentage, while also enhancing its budget by implementing digital programs. These digital efforts will enable the company to effectively target a broader audience and lead to more efficient advertising spending. By utilizing advanced analytics and cutting-edge ad platforms, Pernod Ricard can optimize its ad spend and maximize return on investment.
Optimism in the Spirits Industry Despite Challenges
Despite recognizing the challenging market conditions, Pernod Ricard’s CFO, Hélène de Tissot, remains hopeful about consumer trends and the resilience of the spirits industry. Tissot believes that there is still significant potential for growth and innovation within the sector, despite the current challenges. Additionally, she emphasizes the importance of remaining agile and adapting to the ever-evolving demands of consumers to maintain a strong market presence.
The Role of Advanced Technologies in Marketing Strategy
Leanne Bank, UK marketing director for Pernod Ricard, underlines the significance of machine learning tools like D-Star and Matrix in optimizing marketing investments. She explains that these sophisticated technologies play a crucial role in analyzing data and predicting consumer behavior, allowing marketers to make better-informed decisions. By incorporating machine learning tools into their marketing strategies, businesses can significantly improve their return on investment and remain competitive in the constantly evolving world of marketing.
Increasing Advertising Expenditure Ahead of the Festive Season
Pernod Ricard plans to raise its advertising expenditure by up to one-third compared to the 2019 festive season, focusing on growing brand value throughout its product line. The increase in advertising expenditure aims to capture consumer attention during a time when shopping activity is at its peak, and to promote the company’s extensive range of products suited for holiday gifting. The marketing campaign will utilize multiple channels, including television, digital platforms, and print media, to connect with a diverse audience and boost overall sales.
Collaboration with Sprite and Expansion into Ready-to-Drink Offerings
Pernod Ricard has partnered with Sprite, a Coca-Cola product, to introduce a ready-to-drink offering under the Absolut name. The new beverage, appropriately dubbed Absolut Mixt, combines the iconic taste of Absolut vodka with the refreshing flavors of Sprite, resulting in a convenient, delicious, and invigorating pre-mixed drink. The collaboration aims to address the rising demand for easy-to-consume alcoholic beverages, while also capitalizing on the growing popularity of ready-to-drink cocktails in various international markets.
Frequently Asked Questions
What is Pernod Ricard’s stance on advertising despite decreased sales?
Pernod Ricard plans to maintain its advertising and promotional expenditure despite an 8% year-over-year decline in sales during the first quarter. The company believes in their marketing strategy, portfolio, and brand image and will continue investing in advertising campaigns to drive growth.
What percentage of net sales does Pernod Ricard allocate to advertising?
Pernod Ricard allocates approximately 16% of its net sales to advertising and plans to maintain this percentage while enhancing its budget with digital initiatives.
How does Pernod Ricard plan to optimize its advertising expenditure?
The company aims to optimize its advertising expenditure by implementing digital programs and utilizing advanced analytics and cutting-edge ad platforms to effectively target a broader audience and maximize return on investment.
What is the role of machine learning tools in Pernod Ricard’s marketing strategy?
Machine learning tools like D-Star and Matrix play a crucial role in analyzing data and predicting consumer behavior, enabling marketers to make better-informed decisions and significantly improve their return on investment.
Does Pernod Ricard plan to increase its advertising expenditure during the festive season?
Yes, Pernod Ricard plans to raise its advertising expenditure by up to one-third compared to the 2019 festive season, focusing on growing brand value throughout its product line and capturing consumer attention during peak shopping times.
What is Pernod Ricard’s collaboration with Sprite, and what is the new ready-to-drink offering?
Pernod Ricard has partnered with Sprite to introduce a ready-to-drink offering called Absolut Mixt. The new beverage combines the taste of Absolut vodka with the refreshing flavors of Sprite, catering to the rising demand for easy-to-consume alcoholic beverages and capitalizing on the growing popularity of ready-to-drink cocktails in various international markets.
First Reported on: marketingweek.com
Featured Image Credit: Photo by Mikael Blomkvist; Pexels; Thank you!
