Maker's Mark: Is Diluting the Boubon a Good Idea?

I have to admit that I was very surprised when I heard this week's news about Maker's Mark bourbon.  The company announced that they cannot keep up with customer demand, and therefore, they are cutting the proof from 90 to 84 to boost availability.   As Roger Dooley points out in his column at Forbes, the move risks damage to the brand.  Even worse, Dooley cites a statement by the company's chairman emeritus, Bill Samuels, Jr (son of the company founder).    Here is an excerpt from a news report by the Louisville Courier-Journal:

In an interview Monday, Chairman Emeritus Bill Samuels Jr. said he failed to foresee a worldwide surge in demand for premium bourbon when he was still in charge of the brand about six years ago. As a result, Maker’s Mark is being diluted to 42 percent alcohol by volume, from 45 percent, so more of the whiskey can be bottled to meet demand. That’s a cut from 90 proof to 84 proof.“I was the forecaster in chief around here. ... I must have been asleep at the wheel,” Samuels said.  Samuels and his son, Maker’s Mark Chief Operating Officer Rob Samuels, insist consumers won’t notice the change when the slightly weaker bourbon hits shelves in the next few weeks. Even Maker’s Mark’s professional taste testers couldn’t tell the difference, Rob Samuels said.

Wow... as Dooley rightfully points out, why makes things worse by claiming that your loyal customers won't know the difference!   Perhaps it is true, but should you really say that?   The bigger question is whether Maker's Mark has put short term revenue and market share goals ahead of what is good for the brand in the long run.  Does this move really fit with a company whose historic slogan was:  "It tastes expensive... and is." 

How does a firm handle scarcity?    Should it try to capitalize on the excitement and frenzy that scarcity can create, or should it move to rapidly expand supply?   One other interesting note:  Beam Spirits now owns Maker's Mark.  Would the company have made the same move if it was privately held?  Does being part of a publicly traded company put too much pressure on management to make up for this supply shortage? 

Oreo: The Power of a Nimble Social Media Strategy

By  now, many of you have heard of Oreo's social media grand slam during the Super Bowl.  While all of us sat through that lengthy delay due to the power outage, Oreo's social media team unleashed the tweet heard round the world.   The tweet read:  "Power out, No problem."   The tweet included the photo shown here.

15,000 people retweeted that simple message.   More than 20,000 people "liked" it on Facebook.   Oreo's Instagram followers mushroomed from 2,000 to 36,000.   

Forbes reports on the most interesting part of the story - namely, how they managed to engineer such a rapid and highly creative response.  Apparently, Oreo's brand team had set up a "command center" at advertising agency 360i’s offices in New York City.    All of Oreo's advertising agency partners set up shop together at those offices, with Lisa Mann, an executive from Oreo's parent company on the  phone.   Mann explained how they moved so quickly:  “Because everyone was together, they had everyone in place to jump on a real-time marketing opportunity, which was, how would Oreo see the blackout? And Oreo saw the blackout as an opportunity to dunk in the dark.”

What a terrific story!   I love the fact that preparation yielded such a great result.  They knew that the Super Bowl represented a unique opportunity.  While so much attention is focused on the television ads, social media represents a huge opportunity at low cost.  With the blackout, everyone took to Twitter.  The volume of tweets exploded.  That posed a challenge for many firms though. How do you stand out when the Twitter world suddenly became so crowded.   Being prepared and ready to move so quickly turned out to be a tremendous advantage.   

Notice that Oreo did not try to be controversial or outlandish.  They stayed true to the brand.  So many social media and television advertising efforts associated with the Super Bowl yield poor results, because they emphasize being funny or controversial at the expense of communicating an authentic and consistent message about the brand.  Think about some of the ads you saw this weekend.   How many times did you think to yourself:  While that ad was funny, I'm not sure I know what it has to do with that product or brand.  

Johnnie Walker: The Man Who Walked Around The World

My good friend, John Crosby, sent me a link to this video this morning.  The brilliant and creative short film features Scottish actor Robert Carlyle telling us the history of the iconic whiskey brand Johnnie Walker.   The short film offers some fun facts about the company's history, such as the rationale for the square bottle and the slanted label.   Moreover, the constant walking, use of props, and beautiful scenery truly are captivating.

To me, the short film demonstrates the creative way in which companies can use lengthier web videos, on platforms such as YouTube, to do things that you cannot do in a brief 60 second television advertisement.  Sharing the history of a brand in a creative manner can be a wonderful way to reinforce its authenticity.

The genius of this "Keep Walking" brand campaign by Johnnie Walker is that it is wrapping the brand in history and nostalgia while simultaneously offering a message of progress and hope for the future.  That can prove to be a tricky proposition.  No brand wants to be "your father's Oldsmobile" when it comes to categories such as whiskey.  Yet, the history and the roots of the brand are a key part of the image and positioning that make it iconic.   This short film threads the needle beautifully, bringing together past, present, and future in an authentic way.