Tequila Ambhar: Designing a Growth Strategy for the US Market
(9 pages of text)
The chief executive officer of Ambhar Global Spirits LLC joined the company in 2003, when its Tequila Ambhar brand was immersed in financial and image problems. He dedicated himself to reconfiguring the positioning of Tequila Ambhar, establishing it as a product of high quality and sophistication for knowledgeable consumers. With this conviction, he worked closely with a tequila industry consultant to modify product and marketing components and perfect the production process, to create a fully Mexican, 100 per cent agave, handmade tequila with a high-end premium positioning. By 2017, the chief executive officer believed the time was right to raise the bar on Ambhar’s positioning and distribution in the US market. With great expectations for the product, and with the support of the board of directors, he intended to develop a commercial plan to increase market share by 30 per cent. However, he and the expert consultant were at odds on the next logical step for the brand: strengthen strategic alliances to reinforce the distribution network and increase points-of-sale in the United States, or improve branding to make the tequila more authentic and bring it closer to the consumer?
This case is designed for use in executive- and graduate-level courses that focus on branding and marketing strategy. Courses that specialize in hospitality and adult beverage markets will also find the case challenges applicable. The discussion of marketing a nationally-based product (tequila in Mexico) into international markets (the United States) also makes the case relevant to international marketing courses. The case gives students the opportunity to develop a branding plan for a young business that wants to aggressively penetrate a consolidated market. After working through the case and assignment questions, students will be able to
- analyze the tequila industry as a representation of challenges for developing and distributing an adult beverage (spirit) brand internationally;
- design and implement a branding plan;
- enumerate penetration strategies for a relatively unknown brand to enter a consolidated market; and
- consider advantages and disadvantages of push and pull marketing strategies in brand development.
Accommodation & Food Services
Mexico; United States, Small, 2017
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