Skyy Vodka Case Study: creating differentiation in the premium vodka market

Introduction
This case study on Skyy Vodka forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. It examines how the leading vodka brand has achieved success in the US due to its stand-out packaging, premium production processes and innovative marketing.
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Table of contents

DATAMONITOR VIEW
CATALYST
SUMMARY
ANALYSIS
Vodka is a leading US spirits category but the recession could impact premium sales
Vodka has performed well in the US, with innovative launches vying for attention
Premium claims are popular in new vodka launches, with ultra premium varieties remaining strong
However, the recession could hinder premium vodka sales due to consumers drinking at home more frequently and abandoning premium spirits
Vodka has the potential to grow strongly in developing nations, outside of its traditional strongholds
Skyy vodka is one of the leading premium vodka in the US, and has fared well despite the recession
Skyy packaging is a distinct feature of the brand which helps it stand out from competitors
Skyy has been one of the most prolific launchers of vodka products in the US, aiming to benefit from consumer interest in natural and premium beverages
Skyy is promoted towards women and LGBT consumers using movie sponsorship as a key form of marketing
The recession may hinder Skyy's sales due to its reliance on the on-trade, but the company remains positive that it can boost its appeal
Conclusions
APPENDIX
Case study series
Methodology
Secondary sources
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer
List of Tables
Table 1: The US off-trade spirits market by value, 2003-13
Table 2: Leading claims on new vodka launches in the US, 2005-09
Table 3: Vodka off-trade market in Brazil, India and China ($m), 2003-13
Table 4: Leading companies in US vodka launches, 2005-09
Table 5: US vodka market value, by gender, 2003-06
List of Figures
Figure 1: Recent vodka innovations have been widespread in the US
Figure 2: Vodka launches in the US have been significant in the past few years
Figure 3: Super premium vodka launches have been popular in the US, despite the recession
Figure 4: A small but significant proportion of consumers have made efforts to drink more alcohol in the home
Figure 5: Only a small proportion of consumers agree that the aesthetic appeal of packaging is important to them
Figure 6: Skyy has launched a high number of new vodkas in the US in recent years
Figure 7: The healthiness of alcoholic drinks is influential to some consumers

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By company: SKYY Vodka