#OLD MONK : THE FALLING BUDDHA ?
Old Monk. Yes, the Buddha that everyone is in love with.
Ask any chugger of this beautiful brown liquid in a unique square bottle, why this drink is apart from any other booze in the world, and they would tell you that it is not the drink. It is the stories attached to the beautiful high this drink gives.
Here is a post that talks all about it : http://bit.ly/11qAaUG
However, I am not here to talk about what this drink does, or how good it is. I am here to blare a horn about a glaring hole in the strategy of this product which ‘might’ lead to its downfall.
Here is a recent article in Livemint which talks about the decline in the sales of Old Monk, and McDowells No. 1 overtaking it : http://bit.ly/11MwOg9
As the post informs , it has lost so much ground that the venerable label sells less than one-fourth the volume of McDowell’s No.1 Celebration rum, owned by United Spirits.
Now, I have tasted both, and I know better than the stats to know which one is better. So why is it that our beloved Old Monk is losing out on sales? After all, it is the only Indian spirit brand to figure in advertising guru Ian Batley’s list of potential Great Indian Brands, which could tap the world market.
The major issue is of outsourcing its distribution to third parties. While I can understand that high distribution costs would have prompted such a move, but with such outsourcing comes the need to monitor them strictly. Old monk has failed to do that. McDowells and Old Monk are at the same price range.However, while McDowells (Owned by United Breweries) has its other brands, and good trade incentives push it through the grilled window of the liqour shops, Mohan Meakin Brewery, due to its third party distribution, has 1. lesser incentives to over. 2. lesser control over the execution. This is the reason why you would seldom find Old monk on the shelves of the shop. When you ask for it, it comes out of a carton stacked somewhere in the shop.
Since the time it was launched, this brand has been a king in the rum market. So it had nothing to fear about. But with the proliferation of foreign brands, and the competitors becoming bigger & smarter, Old monk needs to understand that it is not just about the taste anymore.
Trying to understand competitor trade incentives, and countering them should be paramount in Old Monk’s strategy.
Now lets try to understand their marketing strategy.
Amazingly, This Mohan Meakin Brewery Rum from the Ghaziabad-based company hasn’t spent a single rupee on advertising ever since it was launched on 19th December, 1954. (Source: http://bit.ly/160zT0l). Strangely, they dont’ even have a website! All the content available on the net, is created by fans.
Here is a Fan Ad made for the Old Monk, probably the only one on the net:
Looking at the rum market in India, there are only three major player : Bacardi, Old Monk and McDowells.
While Bacardi is considered to be a premium drink for the upper class, McDowells is positioned for the lower segment of the market. Old Monk, however, is in an ambiguous space. While it is affordable, the taste appeals to all – be it rich or poor, While people get hooked to the taste at a younger age (usually during college days), they graduate to other drinks later on in life. As the price of the bottle is in the lower range, it caters to all segments. Both to the price sensitive, and the brand loyals who have done well in life, and can afford better ones. However, even though they are brand loyal, you would find Old Monk at the bottom of the list in any official venue or place. The reason being, because of its price, it is not considered good enough to feature there. Of course, there would be brand loyal who would ask for it (and get it).
One good thing that Old Monk has done, is tap into the loyalty of its customers. It has introduced four different variants basically different bottles for the monk. We have the classic – the squat bottle that we know of. Apart from this, there are 3 more variants :
Deluxe – Priced at Rs. 220/-, it is the same bottle with a different name.
Gold Reserve – Price at Rs. 270, the bottle is tall and slender. This bottle is a more mobile version as it is easier to put it in a bag, and carry it. Also, there seems to be a little variation in the taste though the spine remains the same.
Supreme – Shaped as a Buddha, this bottle seems to be more of a collector’s edition. It is priced at Rs. 380/-, and is targeted at the people higher up in the order, in the society.
I believe, word of mouth is one of the strongest medium to spread the word for a product who cannot show its ads. While the other brands use surrogate advertising, Mohan Meakin might not be into it because of budget constraints.The new digital media gives the option of cheap and customized advertising to the makers. It gives them a platform to connect with its lovers.
However, we are talking only about the Indian Market. Given the popularity that this small Buddha has, it might very much be possible that Mohan Meakin might be concentrating on international exports too. However, that is not an explanation to let their share of the Indian market go.
Old Monk has one of the strongest and most loyal customer base in India. I guess, it is time to blare the horn and join hands to put the Monk back on its throne!
