Angostura is taking the bold step to promote Rum as a category VS the scotch brands (in particular they are attacking the market leaders JWB and Black and White/aka “two dogs”). I made the point in an earlier post that people don’t buy categories, they buy brands. But if Angostura could imbue Rum with the “cool factor” maybe they are betting that their brands would benefit.
At the end of the day, customers ask themselves, what’s in all of this for me? It is accepted among marketers that “badge value” is important in people’s choice of beer and liquor brands. So the “badge value” plus the lower cost of rum VS scotch could be just what the Angostura doctor ordered.
I’m always uncomfortable using the competition to draw attention to myself. (my brands) I find it gives the enemy a status that can enhance their position rather than detract from them. And what should JWB do? Well for sure the right strategy is for them to take the high road. Ignore the rum “mosquito” completely as not worthy of a response and get on with its game. Taking the high ground though, does not mean not keeping their ears to the ground. They have to keep their eyes on their market to make sure that they are aware of what kind of defection might be taking place. They also have to be even more focused on their customers (through their premium positioning) and the proper execution of what customers have come to expect from their brand at all touch points.
Angostura is spending oodles of money to win the share of mind game which could lead to share of market. If I were them though I would encourage people to rum but I wouldn’t stalk.
