The new packaging initiative is a part of Pernod Ricard's two-fold strategy for the Indian market: boost India-centric brands like Tilsbury (a premium grain whisky blended with Scottish malts) and Santiago (a Cuban type dark rum) in the 64 million-cases-a-year IMFL market through its Kolhapur-based venture The United Agencies Ltd (where it has acquired 74 per cent stake); and develop its imported brands through hotels and duty-free shops of ITDC.

The packaging initiative is aimed at ensuring the brands at multiple price points: Tilsbury whisky will now be available from Rs 260 for 750 ml to Rs 130 for a 375-ml bottle and Rs 60 for a 180-ml bottle while Santiago rum, which has been priced at a premium of around Rs 40 at Rs 225 for 750 ml, will now be offered at Rs 125 for a 375-ml bottle and Rs 60 for a 180-ml bottle in Mumbai.

Broadening the brand appeal
Pernod Ricard is aiming to penetrate the smaller markets with pints and nips, which are expected to account for around 70 per cent of the overall sales. ``The new bottles will carry the same upscale brand image of Santiago and Tilsbury,'' says Albert Elgrissy, chairman and managing director, UAL.With presence in over 700 IMFL outlets, Pernod Ricard is targeting to cover over 3,000 outlets across India by December 2000.

Says Elgrissy, ``We expect to cover three-quarter of India by October and enter Delhi by September this year.'' Pernod Ricard is at present building its distribution network in Maharashtra, Karnataka, West Bengal, Goa and the North-East; has very recently entered Harayana, UP, Chandigarh and Rajasthan and will touch Bihar, Orissa and Madhya Pradesh by October 2000.

Of Latino nights and stirring eagles
Unlike most spirits multinationals, who introduced their brands with global ad campaign, Pernod Ricard will pursue a local-centric campaign to promote its IMFL brands. Says Elgrissy, ``We avoided bringing global TVCs and rather concentrated on creating a campaign which bonds with the aspirations and unique needs of the Indians.''

The Tilsbury ad account has been given to Trikaya Grey while the Santiago brand to Capital. For brand-auditing and the tracking of repeat purchases at the retail end, it has inducted Nielson-Marg. With a tagline of `Stir the Eagle in You', Tilsbury whisky is targeted at the go-getter who is a high achiever in life. The brand's visual identity is linked to the eagle icon - the embodiment of focus, determination and achievement.

Pernod plans to associate the brand with musical nights by organising Karaoke events in places like Sholapur and Satara. For on-ground promos, it has tied up with Virgin Records-Shaan (of Tanha Dil fame) has already made a whirlwind tour of cities like Mumbai, Pune, Goa, Calcutta, Bangalore and Gurgaon.

The positioning for Santiago dark rum revolves around the theme `Let the Night be Latino'. Thus, Santiago is presented as an essence of Latino American culture-a passion for fiesta and music. It evokes the Latino appeal: young, trendy and sensuous.

As Santiago will be targeted at the 25-35 years age group, it will be promoted by Latino style parties at various pubs, restaurants and clubs where, amid salsa and mombo, Santiago maids will serve the dark rum to connoisseurs. Says Elgrissy, ``You can expect big events involving Ricky Martin, Lou Bega or Jenifer.''

Globally Pernod Ricard spends around 15 per cent of its turnover on advertising and promotion. In the domestic market, it will invest around $12 million in the next five years towards plant (installed capacity: six million litres a year), brand building and marketing. It is also planning to introduce a brandy in the mid-term.

As per its five-year projections, it plans to capture 10 per cent each of the rum (4.5 million cases a year now) and premium whisky segment (11 million cases a year).

The whisky segment is estimated at 39 million cases a year, out of which around 80 per cent is sold in the price segment of Rs 90-Rs 170 and the remaining in the Rs 180-Rs 420 segment (which has brands like Antiquity, Signature and Royal Challenge).

A club for the connoisseur
Pernod Ricard is contemplating to form a club-by-invitation concept `Pernod Connoisseur Club' to promote its imported brands. Under this, it will organise six events a year, in association with organisations like Cuban Cigar Association, at prestigious five-star clubs (like the Chambers at the Taj Hotel, where membership takes four to five years).

``These events will be for people who need no mention and who value only the best things in life,'' says Elgrissy. Each event will have around 100 invitees, who will experience the Pernod Ricard imports-initially, Clan Campbell Scotch Whisky ($11 for 1-litre bottle in the US), Havana Club Cuban rum ($14), Jameson Irish Whiskey ($15-$30), and Ricard aniseed spirit ($16).Pernod Ricard is expecting to sell between 5,000 and 6,000 cases by December 2000 through the permissible channels (five-star hotels and duty free shops). Pernod also expects to leverage its IMFL distribution network for boosting its international brands by next year.

Says Elgrissy: ``From April 2001 onwards, once imported spirits and wines are put on the Open General Licence list and the import duties are reduced to international standards (at present it is over 220 per cent), we hope to sell these brands through the traditional off premise (retail) market.''