42below swot analysis

42 Below SWOT Analysis

Identifying the strength
42 Below is renowned for its unique Kiwi flavours including feijoa (pineapple guava), manuka honey, passionfruit and kiwifruit. The innovation and new product activity surrounding the vodka category has been in the area of flavours so flavours have been a real source of growth. 42 Below able to be sold in duty free stores throughout Australia and Asia as well as an agreement with Pearl beverages for importation into the United States.

42 Below provides education and incentives to leading bartenders and managers to build partnerships with key influencers resulted in the creation of more than 4500 account customers worldwide including the world’s best bars, hotels and restaurants. PR, events, online and word of mouth form the central part of the 42 Below’s push into foreign markets along with marketing concepts that inspire both comfort and repulsion in equal parts 42 Below has won several awards globally and it is now the number one super-premium vodka by volume in New Zealand and Australia.

Identifying the weakness
The higher alcohol component attracts higher taxes that why 42 Below needs to pay more taxes compared to the other brands. Difficulties in developing relationships with bartenders and liquorstore owners who are harder to influence through traditional marketing communications. 42 Below is considered as a new brand in the high price competitive vodka market and consumers are price conscious that resulted in some of the consumers will not try a new brand with a premium price.

Identifying the opportunity
New Zealand has the physical ingredients for producing world class vodka which are clean water, fresh air and the good growing conditions. New Zealand is globally known as a place of purity and a growing reputation for creativity. It brings a positive image and awareness to 42 Below. Premium pricing in the niche market can be a major marketing opportunity as 42 Below has never compromised its premium pricing even it considered as a new brand in the market. Vodka can be seen as a minor category in Asia but it is showing some signs of growth particularly among young adults. In Asia and China is 42 Below’s latest market to expand their market share. The US remains the epicentre of global premium and super-premium vodka consumption as 42 Below has pushed itself forward as a super premium and high quality vodka option. Bacardi Limited is the largest privately held spirits company in the world who recently bought 42 Below and plans to invest heavily in the brand portfolio and supporting infrastructure to really get them on top of the world spirits stage

Identifying the threat
There are lots of well-known premium vodka brands in the market such as Absolut, Grey Goose, Belvedere, Finlandia, Stolichnaya, Ciroc, Skyy and Nemiroff. It becomes a major threat to 42 Below to expand its market share. The increasingly crowded vodka market with new brands entering the market on a weekly basis becomes a threat to 42 Below to build up their brand awareness in the market. 42 Below has embraced viral marketing and it may resulted in a wide range of boycotts of the brand by those who feel offended by the advertisement. For instance, those people who are gay or are very patriotic to their own country. The changes of the ownership of 42 Below may influence customers’ loyalty as New Zealanders may no longer support to the brand.

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