Radico launches new ad to push 8 PM sales

ADVERTISING: Brand competes with Bagpiper and Officers' Choice.

Eight years after 8 PM whisky's successful TV commercial showed generals of two enemy countries sharing a drink at the border, Radico Khaitan has released another TV ad for the brand but only this time music is the mantra.

8 PM Club Music CD, which endorses music and 8 PM as means to unwind and relax is part of the Rs 15 crore Aath ke Thaath (At 8 PM you live in your own style) campaign.

The brand's entry into the Limca Book of Records as the first company to sell one million cases in the first year of its launch stands as a testimony to Radico Khaitan's phenomenal growth in the liquor market.

The sales volume of the brand 8 PM in the calendar year 2004-05 was 3.3 million cases, and grew to 4.2 million cases in 2005-06. The sales volume further grew to 4.5 million cases in 2006-07 at a growth rate of 8 per cent.

The main factors for the success of 8 PM, according to the company, have been good packaging, the quality of liquor, and the marketing and ad campaign which struck a chord instantly with the audience.

8 PM falls in the regular segment of whisky with a 26 per cent market share, and is still growing. It faces stiff competition from brands such as Bagpiper, Director's Special and Officers' Choice.

"8 PM whisky has made a sale of 4.5 million cases in the year 2006-07, with a marketing expense of around Rs 20 crore planned for the brand in the year 2008. We are expecting the brand to grow further and create many more records," says Raju Vaziraney, COO, Radico Khaitan Ltd.

In the last eight years, there has been a dramatic change in the consumer profile due to economic progress and rising disposable incomes.

The new campaign aims to address the lower socio-economic groups who are moving upwards, and make 8 PM a mass brand. However, the brand's pricing remains the same, ranging between Rs 180 and Rs 200 in different states.

Riding on its success, the company extended the 8 PM brand to rum and launched 8PM Bermuda in 2003.

Priced 6-7 per cent higher than the company's flagship rum brand Contessa, 8 PM Bermuda was launched to compete in the premium rum segment dominated by McDowell's Celebrations. Contessa, on the other hand, has become the largest selling rum in the army.

"We sell 3 million cases of Contessa a year. The category is likely to register strong growth over the next three years," adds Vaziraney.

According to industry experts, taking the CSD sales into account the Indian rum market should hit the 35-million cases mark, with CSD accounting for 8 million cases by next year.

Despite the success of its two flagship brands the company is refraining from expanding its portfolio and spread. Radico Khaitan is now aiming to establish itself in the premium segment, through marketing and distribution tie-ups with several foreign liquor companies.

Latest in this regard is the 50:50 joint venture with premium liquor manufacturer Diageo, which has brands like Johnnie Walker, Smirnoff and Captain Morgan in its portfolio.

The JV is aimed at redefining the brand marketing and distribution in the Indian Made Foreign Liquor segment. The first offering of the Diageo Radico Distilleries Pvt Ltd is Masterstroke premium whisky.

With plans of putting its money in strengthening its existing brands, Radico Khaitan can only hope to recreate the magic with the new surrogate ad campaign.