Wednesday, March 20, 2013

Trademarking ABSOLUT


It may be thought that ABSOLUT spelled without the final "e" is a mistake, when it actually stems from their patent.  As "absolute" is a common English adjective, it cannot be trademarked.  When ABSOLUT applied, they changed their company name from "Absolut Pure Vodka" to " ABSOLUT VODKA" with the slogan "Country of Sweden".  This can be seen on every bottle produced, along with a brief history to express their originality to consumers.

 "This superb vodka was distilled from grain grown
 in the rich fields of southern Sweden.  It has been produced at the famous old distilleries near Ahus in accordance with more than 400 years of Swedish tradition. Vodka has been sold under the name Absolut since 1879."

The trademark on this name, and the designed bottle based off traditional Scandinavian medicine bottles, is a huge combined intellectual asset to ABSOLUT's company. 

It is no wonder that ABSOLUT is considered a higher end vodka.  They focus their strategies on people who are out to appreciate a solid spirit brand.  By investing in not only different flavors, but also in marketing different mixers including ABSOLUT, they are able to give their buyer a complete experience. 

To further understand where ABSOLUT is standing in the market, we can look at the overall business life-cycle... and where they currently stand.  I stand to argue that ABSOLUT is at the high end of the growth stage, almost to maturity.  Although they have a solid brand and multiple varieties, they still are developing more.  Rivalries are all there, brands such as Smirnoff, Skyy, and Ciroc... but none seem to be trying to find cost leadership.  Their differentiation is their focus, which seems to be working just fine as their stock (Pernod Ricard's stock) maintains constant shares and standing. 

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