The Marketing mix of Chivas analyses the 4Ps of the Chivas marketing mix, including Product, Price, Place, and Promotions. Chivas Regal is a Scottish brand that manufactures and distributes blended scotch whisky. The company is associated with the food and beverage industry and is produced by the Chivas brothers, hence its name. It is a subsidiary of its parent company, Pernod Ricard, and was introduced to the market in 1801. Chivas is one of the oldest operations of Highland Distillery and is the undisputed leader in providing 12 years and above Scotch whisky. Some of its main competitors are as follows-
- VAT 69
- Johnnie Walker
About Chivas
- Type: Blended Scotch whisky
- Industry: Beverages
- Founded: 1801
- Founder: John and James Chivas
- Headquarters: Aberdeen, Scotland
- Area served: Worldwide
- Key people: Davide Campari-Zannini, CEO Pernod Ricard
- Number of employees: Over 18,000
Table of Contents
Chivas Product Strategy
Whiskies from Chivas Regal are blended in a distinctive style of mellow-honeyed flavor with a hint of heather, providing a unique taste. The company’s first product was Royal Glen Dee, blended Scotch whisky, and it was a success and was followed by Royal Strathythan in the year 1860.
Chivas Regal was launched for the US market in the early 1900s. In 1909, Chivas Regal, 25 years old, was introduced as original-luxury-Scotch.
The product mix of Chivas Regal includes a range of blended Scotch whiskies, each with its unique flavor profile. The new Product Mix of Chivas in 2023 is as follows:
- Chivas Regal Extra
- The Chivas Blend of Brother’s
- Chivas Regal 12-year-old
- Chivas Regal, 25 Years Old
- Chivas Regal Years Old
Chivas Place Strategy
Chivas Regal has a brand presence that is spread over nearly seventy countries. Its origin is in Keith, Moray in Scotland, at Strathisla distillery. During the early 1900s, the brand decided to foray into the United States and created a unique whisky for its entry, and by 1909, it had captured most of the beverage market through Chivas Regal, a 25-year-old. Later, it ventured into new places and had several tie-ups with companies to distribute its products.
In Asia Pacific and Europe, it is one of the leading suppliers of Scotch whisky; between 2002-08, its sales increased by 61%. It is also one of the primary drinks available in China. Products of this world-renowned brand are readily available at leading bars and shops. The company has also adopted a direct approach to reaching its customers. Selected people from the affluent class are hand-picked and presented with their bottles.
Chivas Regal’s place strategy is characterized by:
- Global Brand Presence: Chivas is available in over 70 countries, establishing a robust international market presence.
- Origin and Production Base: The brand originates from Keith, Moray in Scotland, with its primary distillery in Strathisla.
- Expansion into New Markets: Chivas has successfully expanded into markets like the United States and China.
- Availability in High-End Bars and Stores: Chivas products are easily found in renowned bars and premium retail outlets.
- Selective Customer Targeting: The brand employs a strategy of reaching out to an upper-echelon customer base with its offerings.
Chivas Pricing Strategy
Chivas targets successful individuals from upper and upper-middle-class backgrounds. Its customers are Premium-Scotch drinkers for whom taste matters more than money. Chivas has kept an open pricing policy for its products. Its pricing policy depends on several factors. One of the most important is the prices of its competitors. As it wants to maintain its position in the beverage industry, it has kept the prices at par with similar products from other brands. Another vital aspect that determines its pricing policy is the place.
The company has kept its options open, as imported products must go through local customs duties and other taxes. It has a team that goes through various factors and sets up the most reasonable pricing policy for consumers in that region after a complete evaluation. Although Chivas Regal is a premium brand, its prices are affordable and suitable for people who are avid whisky drinkers.
Chivas Regal’s pricing and marketing strategy is tailored for the premium Scotch market, targeting upper and middle-class customers. The brand considers various factors for pricing, including competition and local taxes, to maintain a competitive edge. Prices vary by region, factoring in import duties and local taxes. While Chivas positions itself as a premium brand, its pricing remains accessible to serious whisky enthusiasts.
Chivas Promotion Strategy
Chivas’ marketing policy includes advertising its products through all the available mediums. All its ads have a distinctive sophistication and style. Glamour and whisky go hand in hand; hence, its advertisements and commercials have projected its product as a well-deserving reward for the polite gentleman. In the film The Spook Who Sat by the Door, Characters were shown to drink Chivas Regal. It was the first ever idea of its kind as a promotional strategy, and this film was released in 1973. In 2008, an ad campaign was launched with the slogan Live with Chivalry, and it became its tagline.
Its Chivas Regal whiskies have won numerous accolades at international spirit competitions. As a brand, Chivas believes in sponsorship deals and has sponsored several lifestyle events and musical concerts. It sponsored Frank Sinatra’s Diamond Jubilee tour in 1990. The brand’s advertisement campaigns have been aired on television and shown in print media, improving its image and creating a positive consumer response to its product.
Some Recent Video ads and Print ads of Chivas are:
Chivas Regal x LISA: I Rise, We Rise – YouTube
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