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History of Dalmore Whiskey

Question:

Discuss About The Marketing Strategies Engaging Generation?

Dalmore is a luxurious brand in the industry of premium whiskey. Dalmore distillery was built in 1839 by Alexander Matheson and following his death, the distillery was sold to the Mackenzies in 1891. After a series of acquisitions, the company was finally acquired by Whyte & Mackay, under the business tycoon Vijay Mallya’s United Brand Group. The company is famous for creating high class, exclusive and luxurious brands, which appeals to the affluent customers all across the globe. The company sells one of the best quality single malt whiskeys to different customers all across the world. The company has a long history and export whiskey all across the globe. The company has a world class refinery and manufactures high quality whiskeys. However, previously, the company struggled to attribute a specific brand image for the organization.

Previously, Dalmore did not have any sense of its identity or any belief as a brand. It is important for the companies to create a specific brand value so that the organization can connect to different generations of whiskey drinkers. In the recent years, the company has developed a specific value of the brand, Bravery which provides an ideal platform to enhance the distribution of the organization’s products. The new brand image of the organization has been crucial in combining the heritage, product and the modern culture of the organization[1]. These branding initiatives of the organization have increased the sales magnificently. There are several aspects such as the marketing campaigns on the social media such as Facebook, Twitter and Instagram, which has increased the market share of the organization. 

The history of the organization began in 1263. Colin of Kintail, saved his King from the attack of Royal stag. This act of bravery and decisiveness was rewarded by the King by offering him motto “I shine, not burn.” and he was awarded a 12-pointed Royal Stag as the crest of the clan. It created the foundation of the distillery. The Dalmore distillery was established in 1839, and it was founded by Alexander Matheson. Then after, the company took several initiatives to create a perfect production location, where natural resources can be used for producing a single walt whiskey. After the foundation of the company, the founders searched for a perfect location to gain access to the natural resources and developing infrastructure for producing whiskey.

Later, the distillery was taken over by the brothers of Clan Mackenzie in 1867 and they offered two different things to the company, which was handed over to them by generations. It includes the emblem of their clan, which is the symbol of royal stag. Till now, the company focuses on the customer satisfaction as it delivers unique taste, dedicated to the sourcing of fine woods, and commits the time so that whiskey matures to perfection.

Reference Market of the Organization

The company has evolved to present itself as a luxurious brand. The organization has developed its marketing strategy to target the affluent customer segments in different countries. In the UK, the company targets the affluent customers over the age of forty.  Most of the customers of the company are affluent businessmen. In other countries, these countries have high demand for whiskey. The company targets the people in the age group of 25 to 40, which are the middle class customers. In Russia, the cost of Whiskey is more than the cost of a single bottle of vodka; however, there are a large number of customers from the middle class segment. Therefore, the company targets this section of customers[2]. The target customers of the Dalmore Brand can be characterized on the basis of following features:

Demographic characteristics

Mostly men, within the age group 40 and more

Psychographic characteristics

Customers, who are attracted towards luxury and premium brands. Mostly, affluent lifestyle

Behavioral characteristics

The luxury seekers who are conscious of the quality of the product

Geographic characteristics

People from all across the globe

Brand Value and Marketing Initiatives

The whiskey market is the third largest market segment and the fastest growing industry in the international spirit market. It is expected that the Compound Annual Growth Rate (CAGR) of the whiskey industry will be about 5% between the years 2016 to 2020, which is good for the industry[3]. According to the market trends, the demand for the premium whiskey is rising in the potential markets of the USA and the UK. The growing demand in these markets is one of the key drivers for the growth of the market[4]. There are several other factors such as the increase in the disposable income of the middle class and the increased demand for the premium whiskey brands, which has increased the growth of this market[5]. Whiskey is considered as an affordable luxury, which can drive the manufacturers towards premium brand offerings.

There are also growing trends such as the demand for the organic scotch whiskey, which has enhanced the demand of the growth of the market. The organic distilleries of Whiskey are avoiding the use of artificial colors, which is helping the whiskey distilleries to target the customers, who are conscious about their health. A significant number of customers consider that whiskey is an affordable luxury; therefore, the manufacturers have launched premium and super-premium brands.

There are three main categories in the scotch whiskey market, which are malt scotch, grain scotch and blend scotch. The blend scotch has a market share of 79% and this market segment is growing due to the high demand from the customers.

The highest demand for the whisky emerges from the European market, which account for 34% sales of the whiskey. Turkey is also an emerging market for the organization. Other than that, there are also several other markets of France, Spain and Germany, which accounts for significant sales of the whiskey manufacturing organizations.

It can be critiqued that the global whiskey market is quite fragmented due to the presence of several small and large whiskey suppliers. There are several competitive factors such as quality of the product, pricing, innovation capability of the brand, customer service, distribution and the promotion, which can help the companies in developing their brand. In the current market scenario, the companies are focusing on reducing the product and price to combat the enhanced market competition[6]. In the markets of the USA and the UK, there is a growing demand for the Irish Whiskeys and the American Bourbon. These types of whiskey have a higher demand than usual; therefore, it is projected that these brands will grow at a CAGR OF 8% to 7%[7]. The product segmentation of whiskey can be divided into Scotch whisky, US whisky, Canadian whisky and the Irish whisky. The Indian whiskey products are also growing substantially. Dalmore is a popular brand, which is popularly becoming the most consumed Whiskey in the world. 

In the recent times, whiskey is growing popular in all the age groups and motivating vendors to establish target markets. There are several companies, which are emerging from Japan, Croatia, Taiwan, China, New Zealand and Sweden, which are enhancing the competition in the whiskey market.

Target Customers of Dalmore Whiskey

The market trends also states that whiskey sales will be beneficial for the big distillers; however, small companies will not benefit from the projected growth. The operations of these companies are facilitated by the purchase and the sale of bulk whiskey and the price is determined by the fluctuations in the demand and supply of the product[8]. There are also several companies, which have built a major brand without owning a distillery.

The growth in the whiskey industry is also characterized by the entry barriers in the whiskey industry. These entry barriers pertain to the production side of whisky as the establishment of a distillery requires that the company wait for at least three years, before entering the distribution. There is a regulation, which states that scotch must be matured for three years, before they can be sold to the consumer companies[9].

In the recent years, the company has made substantial efforts to position itself as a luxurious brand. The company has adopted the vision or the style statement of Bravery platform. It has assisted the company in establishing a unique brand image and associating with the luxury seeking customers of the world[10]. It has created flagship marketing with several companies, hotels and the event organizers. As such, the company has established as the leading suppliers of several multinational hotels. The premium brands of the company are sold to Michelin star restaurants or 5 star hotels of Paris.

The company aims to become an exclusive brand. It has aimed to develop hubs and flagships in different cities of London, Paris and New York. The vision of the brand is to produce qualitative product, and provide luxurious amenities. The company aims to achieve unparalleled expertise and intimate knowledge about whiskey distillation, which can help the organization to create super luxury single malt whiskey.

The company has positioned itself as an exclusive and extremely luxurious brand. It caters to the needs of the affluent men of the society. Recently, the company has launched a triple-matured single malt 40 years old whiskey, which is worth 6000 euros/per bottle. It was the celebration of the 50th anniversary of the founder of the company, Richard Paterson. The company tries to position itself with the top 10% of the competition. The company desires to become pinnacle brand in the whiskey category. In order to maintain the brand image, the company has used the key symbol of pricing.

The brand contract refers to the promises that a brand makes with its customers. The company has made a strategy to position itself as an exclusive brand for the most affluent society of the world. In this regard, the company has taken several initiatives such as creating flagships with the most of the Michigan star restaurants and the five star hotels. It also promotes itself to the whiskey tasting events. The company promises to offer exclusive taste and quality whiskey to the customers[11]. The customers tasting the whiskey will feel elite and special. The vision statement of the organization is “To the Brave”, which associates with the history of the organization. It has created a bold identity for the organization which also indicates the strong heritage of the distillery.

Market Trends in the Whiskey Industry

It is the only whiskey tasting company, which offers single malt whiskey in the six cask finish. The whiskey is matured in American White oak Ex-bourbon casks, and then it is divided into different casks, such as small batch bourbon, Matusalem Oloroso Sherry, Cabaret Sauignon, Port, Maderia and Marsala[12].

Dalmore is an ultra-premium brand, which has recently changed its visual merchandizing standards to enhance the brand image of the organization. The current brand strategy of the organization is to design a better whiskey appearance for the consumers.

It is one of the fastest growing ultra-premium brands, which offers unique single malt whiskey to the consumers. It is available finest restaurants and outlets. The company also has a strong reputation among the whiskey connoisseurs as the single malt whiskey has a long history and finesse. It is considered as the leading rare whiskey investment choice. The company has developed a new visual identity with its emblem to connect more with the customers and make them aware of the excellent heritage and its innovations regarding the casks and the dynamic ageing of the whiskey. The expertise and the knowledge of the organization assist the company are producing the sumptuous and layered single malt whiskey.

The company has also focused on the consumer experience and is focused on providing a multi layered highly polished experience to the customers. The outlets of the company have a unique and highly polished aesthetics and the company’s representatives take care of every single detail. The new product of the organization has the hidden depths of storytelling and, as a result, the company has achieved new standards of brand experience and has engaged number of customers.

It has also created new look for the retail experience and has also made collaboration with different airports such as Dubai Airport, Guangzhou Airport to provide ever rich duty free products. It has also established new collaboration with different flagships and they have created a new standard and trade partners for its sale in Asia[13].

It is summarized that Dalmore is an ultra-premium brand, which focusses on the affluent men and the business men all across the globe. Over the years, the company has designed a unique brand with the tagline of “to the brave”. The organization has established a proper strategy to position itself among the most luxurious brands of the world. Prominent business person and business executives buy whiskeys from this brand. The company has made collaborations and flagships with the several affluent companies, and hotels which contribute in maintaining highly luxurious brand image of the organization.

Currently, the company has selected a very niche market of the highly affluent male section of the society. It is ultra-premium brand and caters to the needs of exclusive customers. The products of the company are extremely luxurious and cost a fortune. However, with the cost, comes the exclusive taste and exceptional customer service[14]. The customers experience excellent hospitality and enjoy exclusive ambience. However, the company can extend its target market to other sections of the society. It can assist the organization in achieving high level of profitability. The organization can extend the target market to women customers. In regard to the female customers, the company can produce extremely light whiskey. It can become fairly popular among the ladies. The cost of the product will be determined at a high level to maintain its brand image of catering highly affluent people[15]. The company will also develop an exclusive digital marketing strategy for engaging with these customers.

The target market of the organization is defined as the ultra-luxurious women customer base. It is important to attain excellent consumer insight before the determination of the target market and proposing a target mix. It can be posited that the brand luxury cannot be defined by exclusive logos and presentation. Today, the luxurious brands are promoted with a subtle, personal and exclusive approach. There are several unique features of the consumers of the whiskey consumers of the company. These characteristics are:

  • The consumers are highly successful in their field. They are people of substance and their decision impacts several other people in their lives.
  • They are independent thinkers and highly successful in their field
  • Although they are confident and opinionated, they are also open to new learning and welcome new thoughts.
  • These customers appreciate the diverse luxuries of lives and have strong opinion and desire to indulge and talk about them.
  • They are obsessed with detail and can easily identify small mistakes,
  • These people have a high level of sophistication and want them to be differentiated from the standard users.

The company will target women with similar consumer characteristics.

In the present paper, a marketing mix is proposed for developing a light whiskey, specifically for the women customers. The development of a specific marketing mix is important for the organization as it can directly impact the purchase behavior of the customers.

Product: The product is whiskey, which is specifically brewed for women. It also encompasses the accessories, packaging, and services. As Dalmore is an exclusive brand, it can provide exclusive services to the customers. The service factor of the product, should not be separated and the company should try to provide exclusive services to the customers. It includes exceptional ambience, taste and treatment by the customer service executives. It is an important component of the customer service as the customers remember only from their feelings and the memories developed with experience from the brand. It is important to make the customers feel that they are exceptional and they enjoying luxury. The organization should make sure that the whiskey experience is attached along with the purchase of the bottle. It will increase the sales of the product and drive the profitability of the organization[16]. The packaging of the hotel will use the light colors so that it appeals to the women customers.

Place: The place dimension of the marketing mix refers to the availability of the product at different locations for the disposal of the customers.  It encompasses all the activities undertaken for the distribution of the product and the places at which the product is available. The whiskey and the alcohol industry are highly regulated and require the navigation of the heavy logistics for the distribution within the different places. The company can began with the launch of the new whiskey with a tasting ceremony. They can also plan to organize different whiskey tasting sessions or events especially for the elite women of the society. The product can also be promoted at the high end parties organized at the flagship hotels. Other than that, the company can use specific targeting. In this process, it will invite the highly elite customers to purchase the hotel. The distribution channels can be chosen for the coverage of the channel, control over the channel and the flexibility of the channel. In direct marketing, the companies have the maximum control over end product.

Price: The price of the product refers to the value, which is charged for a specific product or service. The price is a complex decision and the business organizations have to consider the supply, demand, and competitors’ pricing and other factors in determining the price of the organization. The pricing is directly proportional to the level of demand of the customers. It means that if the price of the product increases, the consumers demand will decrease[17]. The price of the product is also directly linked to the perceived quality of the organization. There are also several demographic and psychographic factors which impacts on the product price.

In the alcohol industry, prestige pricing strategy is commonly used to determine the price of the products. In this industrial sector, the price sensitivity is less of the external factors. The tasting events in the alcohol industry come under the monopolistic competition, in which the alcohol producing companies have the freedom to enter and exit a place with differentiated products. In the alcohol industry, the products are not identical; therefore, the overall sales are determined by the differentiation and the advertisement than the price of the product. It can also be considered as monopolistic competition; therefore, in the alcohol industry, the pricing decisions must be taken after careful consideration.

According to the brand image of Dalmore, the company has to maintain the brand image of catering to the needs of the elite customer base. The company can utilize the strategy of premium pricing. The premium pricing refers to the process of keeping the product price high so that a favorable perception can be achieved in the mind of the customers. This pricing strategy is used to exploit the tendency of the customers to presume that high priced products are costly in nature. The luxury is often associated with the high price of the products.

Promotion: In the marketing mix, promotion refers to advertisement of the product attributes to the target audience. This communication is focused to enhance the awareness of the customers, develop positive image and establishing prospective target market for the organization. There are several channels of advertising such as sales promotion, public relations, and direct marketing. The advertisement is a paid promotional technique and the communication is beneficial to reach large number of customers[18]. The whiskey tasting requires limited advertising as only the elite customers will be targeted in this method. Special invites and referrals can be used in this advertising method[19]. The public relation can also be used to positively influence the mass media. It is a form of non-personal media, which can create positive publicity for the organization.

Personal selling and flagships can be used for communicating with the customers and making them aware of the new product. Effective marketing strategies can be used to send a clear and consistent message to all the people of the organization. The direct marketing is another approach through which the employees can engage in personal communication, mails or mobile marketing to sell the product to the customers.

The affluent and rich women customers are essentially one of the trickiest and the desirable sector for the brands. The access to this customer segment is quite difficult. Regarding the luxurious customer segment, the first impression to the brands is very desirable. Moreover, since it is a small niche customer segment, each and every customer is very important. Women have a tendency to look a product and its features to the detail. In addition to it, they also readily accept new products according to the recent market trend. Therefore, the product or the brand must look luxurious right from the first impression. It should feel appeasing to the senses and taste exceptional[20]. There should be no room for mistakes and the company should focus on providing unique experience to the customers, which encompass the taste, ambience and the overall experience with the brand.

Another approach is to conduct organic advertising and lots of images in the online strategy. It is important that the design and the social media features should focus to appeal to the taste of women.

While using this strategy, it is important that the tone and the style of the brand should suit the style and the tone of the organization. The company can also invite associated partners and flagships to write about their experience with the brand. It will spread the brand message in an efficient manner so that the company can easily reach to a broad audience.

Another strategy, which can be used to entice high end women customers, is to make the access to the products a little challenging. When the customers of the organization do not have an access to the product, the desire of the customers to attain the item will increase. Therefore, the company should give special emphasis to the design of the whiskey bottles. It can also implement a selective sales strategy in which the company offers the product to the selective customers based on reference. It will increase the prestige of the organization. The company can show the customers their exclusiveness by providing limited and bona fide products to the customers. Other retail strategies, such as limited and high-end packaging can be used to increase the exclusiveness of the product[21].

The characteristic of the high end luxurious market is that it has limited customers. It means that each and every customer is important for the organization. The company can use the transparency to engage the customers with the organization. The transparency can give the people a better understanding of the company and the products. It also develops as the strength of the company. The company can showcase its transparency in the social media by documenting the events and engaging the customers with the lifestyle and ethos of the customers[22].

Another important aspect of the retail strategy is that visuals are important to attract new customers. These features are important in engaging the customers at an emotional level. Therefore, in the broadcast strategy, the company can attract new customers to the organization. In the retail purchase, the company will try to add other components such as aroma and touch to establish a strong emotional connect.

It can be critiqued that there is not much difference between the luxury shoppers and the people who purchase for the basic amenities. The successful marketing refers to the process in which the business enterprises search about the features and brands that appeal to the customers and use them to attract the customers[23].

The company will develop an exclusive strategy for catering the women customers. It has to redesign the digital strategy as the current digital strategy has the theme of bravery and darkness, which can only appeal to men. The company has established global hubs in London, Paris and New York. Recently, it has also opened new routes and market in the Asian countries. The marketing team of the company should promote the brand in the digital platforms, so that the luxury credentials of the company should be shared with the potential customers. The website of the company is dark, clunky and is not used friendly. It is based on old-fashioned concepts and did not represent the brand positioning and the consumer usage. The social channels of the organization should promote the brand voice and place them in different posts.

With a novel digital marketing strategy, the company has the opportunity to enhance its inline perception and digital brand[24]. The company should link with the social networks and should indicate their commitment to provide extremely luxurious experience.

The digital communication is an excellent opportunity for Dalmore, to present their luxury credentials to the global audience. The global marketing team should follow some key principals in their digital marketing strategy. Firstly, the company should assure that all the visual designs should be light and clean. It should include light colors as they will be attractive to the women customers. According to the web behavior of the customers, the companies should develop responsive design, scrolling and tablet-friendly web pages. Moreover, the social media pages and the website should have ultra-luxurious presentation to entice the customers.

Before the implementation of the digital branding strategy, it is important that the company has all the prerequisites for developing an exclusive brand image in the digital mediums. These materials encompass different assets such as distillery, a creation of the brand story, and developing unique content for each of the whiskies of Dalmore. These visual assets will be essential in developing a unique brand image of the company.

In the new design, the website and the applications should create a responsive design layout for attracting more customers. In order to implement the digital strategy, the company should partner with the boutique agencies, so that they can provide excellent designs and strategies for the companies. The digital partners of the organization should have extensive experience in social media platforms and should be associated with luxury fashion industry[25].

The current image of the Dalmore distillery is static and is not properly engaging to the audience. The global marketing team of the organization should present its distillery in an engaging fashion. The photographs attached to the website and the social media account should be highly engaging and should be able to create a sense of emotional engagement with the organization. The distillery should be shown in a personal manner. The digital marketing team should take different photographs from different locations such as still house, warehouse and the tasting room of the organization.

In the digital communication, the company can also focus on video and films, which shows the maturation process of whiskey at Dalmore in an attractive manner. The video and the music theme of these videos should align with the product and the image of the organization. The website and the mobile application should be redesigned so that it is responsive for the mobile and the tablet users and has an intuitive navigation and smooth transition[26].
The social media feeds of the organization should focus on developing the brand image of extremely luxurious organization. The digital strategy should highlight the credentials of the organization in London and Paris hubs. The marketing team of the organization should also develop a series of cocktail videos so that the sharing the cocktail videos in the social platform of the organization. These videos and films should assist the company is showing their creativity and passion to the customers[27].

The digital marketing strategy of the organization should communicate the brand as an effective, vibrant and dynamic brand. The content strategy should engage the customers with the brand, which is necessary for the brand activation. Other than that, the digital strategy of the organization should provide consistency to all the platforms engaged in the media communication. Moreover, the luxury brand positioning of the organization should reflect in its branding strategy.

Conclusion

In the current report, the branding strategy for Dalmore, a premium whiskey company has been proposed. It is a premium whiskey organization, which caters to the needs of premium customers. The current customers of the company include elite management person. However, in order to extend the customers of the organization, the company needs to expand its branding strategy. The company can launch a new whiskey for women, which is light to drink. A branding strategy is developed for the new product. A digital communication strategy can also be used for the development of the brand. It is an excellent opportunity for the Dalmore, to present their luxury credentials to the global audience. The global marketing team should follow some key principals in their digital marketing strategy. Firstly, the company should assure that all the visual designs should be light and clean. It should include light colors as they will be attractive to the women customers.

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