Case 25: Jack Daniel’s International Strategy Identification of the Major Problem: Liquor sales have been on the rise in the last 20 years, both stateside and abroad. Jack Daniel’s is striving to stay competitive in the global marketplace in the liquor industry by leveraging the heritage they enjoy in the US and translating that brand abroad. This is not without its challenges though:[1]: JD, along with all other US-based corporations are sensitive to anti-US sentiments, a weak USD and also the fact that the Americana story currently resonates with Europeans, but JD is challenged in the Far East.
Analysis of the Problem: Jack Daniel’s must become more strategic when marketing internationally. A SWOT analysis will reveal that although the company has taken advantage of international opportunities by leveraging its rich heritage and smooth, quality product. Weaknesses like their global marketing strategy and threats such as competitors have not been addressed. Opportunities are numerous when considering the changes JD could make to packaging, communications plans, and even special edition flavors that may entice a non-whiskey drinker to try it. JD has to be seen more than just an American company, due to the resentment other American based companies have faced. • 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. [2] • While JD has tried to modernize their product marketing before successfully, they prefer to lean on their heritage and maintain the same marketing plans that have worked for the last 40 years in the states. Brown-Forman wants to keep Jack Daniel’s unique from its competitors, yet remaining enticing to new customers.
Also, JD relies on the fluctuations of the marketplace allowing itself to be at the mercy of the ever-changing consumer. • Jack Daniel’s has been able to cross cultural lines and be a strong global company; this correlates directly to the fluctuating position. Present and Evaluate Alternatives: 1. Continuing to stress their vision, mission and standing behind the history of the company that has made them successful. With a consistent product and marketing plan people will be familiar with Jack Daniel’s- no matter where they are. 2. Jack Daniel’s can segment their marketing plan, appealing to people of different ages or cultures.
They could have a different marketing plans based on location. 3. JD could implement a licensing program throughout Europe that feeds consumer need for a smooth whiskey, but disguises itself as a European/Orient brand that eliminates anti-US sentiments from the marketing plan. Recommendation: The recommendation that spells success for Jack Daniel’s abroad is recommendation number 2. JD should continue developing their functional tactics[3] that boost short-term growth through implementation of a company strategy that focuses on the marketing plan, as well as other areas including R & D and finance, but always focusing on the bottom line.
Staying true to their identity, Jack Daniel’s will continue to grow and reinforce their brand image abroad with the help of clear and concise marketing plans developed specifically for each region, but keeping their heritage at the forefront of the messaging. McDonald’s does this well[4] as diversity of the brand regionally is the foundation of their global marketing plans. Perhaps the idiom ‘east, west, home is best’ says it perfectly. Recommendation # 2 can be a costly one – developing campaigns specifically for each cultural region.
However, the investment they will make will reap benefits ten-fold if European, Indian and Asian drinkers feel that JD speaks directly to them. By creating this competitive advantage, JD will not only become the number one whiskey of choice in the US, but will surpass Jameson as the first choice of whiskey drinkers abroad. ———————– [1] Pearce and Robinson, Jack Daniel’s International Stratgy. Case 25, paragraph 7. [2] Pearce and Robinson, Jack Daniel’s International Strategy. Case 25, paragraph 9. [3] Pearce & Robinson, page 309. [4] http://www. businessweek. com/globalbiz/content/jul2008/gb20080717_293203. htm
