By Ayanna Kirton, Staff Reporter
AFTER REPORTING a 4 per cent decline in the volumes of most of its popular brands in the domestic market in the second half of 2003, Red Stripe plans to bolster sales with new advertising campaigns for those brands this year.
Attributing the decline to the current economic downturn, the 45 per cent SCT, and the resulting reduction of local purchasing power, Red Stripe's new marketing director, Wayne Lawrence, said after what shaped up to be a tough year, the company planned "to bring things back on track".
"The increase in alcohol variants available on the market only makes it interesting for us and the consumers. On one hand they have more options to choose from and on the other -it drives us to do more to ensure that our brands get their attention," he said.
"We want to examine each brand (with an aim to) reposition the brands in the minds of consumers while increasing our presence at points of purchase," he said outlining Red Stripe's proposed strategies for growth.
Red Stripe will be participating in a global project to change the look of Guinness Stout, he said. The idea was to repackage the brand in a more modern format. Already launched in Malaysia, the marketing director said the new bottle would be available in Jamaica within the company's next financial year.
Describing the look of the new bottle as "more modern and sexy," Mr. Lawrence said the change would be monumental. "In over 100 years there have been no changes made to the packaging so it's a significant step to make sure that the brand remains relevant to consumers," he said.
INDIVIDUAL BRAND PERFORMANCE
In terms of individual brand performance, Red Stripe, the flagship beer of the brewed beverage company, continues to be their sales leader.
Malta, the non-alcoholic malt beverage, has displayed the most consistent growth. Consequently, Mr. Lawrence said the company plans to devote more attention to this product in an effort to maximise buyer satisfaction and to capitalise on growing consumer interest.
Smirnoff Ice, one of Red Stripe's most recent additions to its product offering, entered the market with a bang in 2003. However, interest in the vodka-based beverage appeared to fizzle.
"Compared with Red Stripe, the numbers are less than what we would have liked," said Mr. Lawrence. "We started in a good position but there were a number of new entrants to the marketplace that were able to communicate with Smirnoff Ice's consumers," he said.
Red Stripe's director of finance, Lisa Nichols admitted the company had higher hopes for Smirnoff Ice and was slightly disappointed that it had not done as well as it would have in a larger market. Nonetheless, she said the product remained an important addition to the company's portfolio and it would be marketed as such.
In addition to beefing up its presence in the local market, Red Stripe is very serious about cornering the United States market as well. According to Ms. Nichols, Red Stripe has become the fastest growing imported brand in the US with sales growing at a rate of 17 per cent. Currently, exports account for approximately 15 per cent of Red Stripe's total sales. According to an article published in The Financial Gleaner last November, investments behind the growth strategy in the US market amounted to $161 million last year.
Back in Jamaica, after spending a year as regional marketing manager in Singapore for parent company, Diageo's Asia venture hub, Mr. Lawrence is optimistic about Red Stripe's ability to meet the challenges facing them in this environment. "We are not in an unprofitable situation and we're committed to maximising shareholder returns in the next three years," he said.
