Golden Oak Soaring to New Heights with Revamped Brand Strategy
Once relegated as a poor man’s drink, Golden Oak has managed to reinvent itself as a go-to drink for young demographics and average middle class households. Golden Oak has successfully revamped its image as a premium brand, minus the cost! In this article, we will have a look at some of the reasons that have led to the increase in Golden Oak’s success.
Successful Rebranding
FIFA World Cup is a global event that provides immense marketing opportunities for brands worldwide. Golden Oak rode the same bandwagon. While Golden Oak has traditionally suffered a brand image as a ‘cheaper’ option for consumers who cannot afford premium whisky from other brands, World Cup presented a unique opportunity for the brand to rebrand itself. Just have a look at some of the ads the company ran during this period. The ad shows corporate employees and households choosing Golden Oak over other brands.
We can see that Golden Oak has been rapidly rebranding itself as a premium whisky brand.
Just have a look at another ad that the brand ran focusing on the world cup!
Here too, you can see how the brand attempts to place itself seemingly, but inconspicuously, within average young and middle class demographic. With a smart tagline ‘Football above all else’, the brand capitalized on the World Cup event very well. Instead of relying on the same old tried, tested and refused marketing gimmicks, the brand has instead prioritized on reaching adults with a premium brand position.
Surrogate marketing
With tobacco and alcohol products, there is a big ethical conundrum. Advertising and Marketing are two basic pillars of any business. However, since most economies have levied some or other forms of restrictions on these products, some of the best creativity has come from the liquor industry. Since we are talking about the World Cup event, let us have a look at how Budweiser navigated the absolute liquor ban by Qatar.
A mere 48 hours before the official opening ceremony of the World Cup, Qatar decided to ban all sales of liquor products in their stadiums. This presented Budweiser, the official sponsor of the World Cup with branding and logistical nightmare. However, Budweiser turned this into another marketing opportunity by running the ‘Bring Budweiser Home’ campaign announcing that the winning team would get all the beer! Additionally, as a part of smart surrogate marketing, the brand also sold its non-alcoholic beverage ‘Bud Zero’ at the stadiums. Since the brand has been the official sponsor of the World Cup since the 1960s, the brand still managed to maintain its visibility throughout the event through these marketing strategies.
BrandGuff commends these conscientious marketing tactics. Mr. Shraya Krishna Shrestha, Brand Manager – Liquor at Jawalakhel Group of Industries (JGI), confidently said, ‘With restrictions on alcohol advertising, and in spirit of being a responsible brand, we ensure that our marketing is targeted only towards drinking age consumers, that too through digital mediums like YouTube’.
Cost
While Golden Oak used to be regarded as a poor man’s drink, with its rapid revamp of its brand image, the cost factor definitely plays into an average consumer’s mind while purchasing alcohol. 750ml of Golden Oak retails at around Rupees 1160. With Golden Oak having revamped its brand image to cater to average middle class, the attractive price point will also retain and expand on its core consumer demographics i.e. middle class and young people!
One of the most effective means through which a brand instills a premium brand image amongst its customers is through its premium pricing. Case in point- Apple devices. However, one needs to be cognizant of the fact that consumer behavior in Nepal should not be compared as similar to that of the Western counterparts. Nepalese consumer, actually South Asian customers, are very value oriented. As our economy is still one of the least developed in the world, consumers often spend time in finding products with the best bang-for-buck; brands with hyperinflated price cannot simply rely on their brand image/value to push sales, as is in the case of developed economies like the U.S.A.
Taking cognizance of this fact, Mr. Shraya asserts that their strategy with trying to expand to a more affluent middle class is not to make the cost premium, but rather to establish Golden Oak as a premium brand. Moreover, he asserts that, notwithstanding out-of-control market movement and regulatory reasons, the brand will not artificially drive up the cost.
Summing up
Following on this trend to establish the Golden Oak as a premium brand, they have also recently released ‘Kalapatthar’, a 25 UP premium whisky. Kalapatthar hopes to cater to a more affluent consumer base. Therefore, it is priced at around Rs. 2700, a price point similar to its direct competitor Old Durbar under the 25 UP category. Mr. Shraya is confident that the beverage would be able to compete with established brands under the same category, as the distillery has focused on quality, going as far as to import the malt from Scotland for their premium offering! BrandGuff, specifically found the whiskey distinct in that category i.e. smoother with a smoky aftertaste compared to its competitors.
As mentioned above, when it comes to liquor and tobacco brands, there is a very fine line navigating marketing and advertising within regulatory restrictions. Therefore, it is especially challenging when it comes to shifting the brand position. Golden Oak has found this perfectly during the World Cup event by making it ‘Football above all else’. This can also serve as a great example for other brands who are looking to expand on their consumer base or revamp their brand position in a more premium manner. While ‘Kalapatthar’ is definitely premium priced as the likes of its competitors like Signature and Old Durbar under the 25 UP category, Golden Oak remains an undisputed king!
