Maker's Mark faced "unforeseen demand". Instead of communicating the temporary supply constraint to its customers and the market, and in the interest of maintaining its price competitiveness, it decided to decrease the proof of its whisky from 90 to 84 proof - i.e. Maker's Mark announced it would be diluting the alcohol content of its whisky. A surefire way to kill your brand is to water down your product (or service)!
Since the one-brand company does not purchase bourbon from other distillers, forecasting and meeting demand is sometimes difficult. The brand was able to keep ahead of shortages in the past because the age range of the whiskey is 5 years 9 months to 7 years. The recent growth of Maker's Mark and whiskey in general changed this.
Maker's Mark said they tested the watered-down bourbon themselves and validated their own findings with consumer research. Both agreed that "there's no difference in the taste." Customers thought otherwise to the idea and an "overwhelming response" online against the move by customers led Maker's Mark to reverse the decision to dilute its alcohol.
If you want to change your product, create a brand extension or a new brand. If you dilute your product, you dilute your brand. If you do not respect your brand, do not expect your customers to either.
Sources:
(1) "Maker's Mark reverses decision to lower alcohol content", Reuters, February 17, 2013
http://www.reuters.com/article/2013/02/17/us-beam-makersmark-idUSBRE91G0EM20130217
(2) "Maker's Mark Won't Cut Alcohol Content", ABC News, February 18, 2013
http://gma.yahoo.com/blogs/abc-blogs/makers-mark-wont-cut-alcohol-content-192224565--abc-news-Recipes.html
CKB Solutions is all about real solutions for the real world. To learn how we can help your business, contact Greg Kovacic in Hong Kong.
Since the one-brand company does not purchase bourbon from other distillers, forecasting and meeting demand is sometimes difficult. The brand was able to keep ahead of shortages in the past because the age range of the whiskey is 5 years 9 months to 7 years. The recent growth of Maker's Mark and whiskey in general changed this.
Maker's Mark said they tested the watered-down bourbon themselves and validated their own findings with consumer research. Both agreed that "there's no difference in the taste." Customers thought otherwise to the idea and an "overwhelming response" online against the move by customers led Maker's Mark to reverse the decision to dilute its alcohol.
If you want to change your product, create a brand extension or a new brand. If you dilute your product, you dilute your brand. If you do not respect your brand, do not expect your customers to either.
Sources:
(1) "Maker's Mark reverses decision to lower alcohol content", Reuters, February 17, 2013
http://www.reuters.com/article/2013/02/17/us-beam-makersmark-idUSBRE91G0EM20130217
(2) "Maker's Mark Won't Cut Alcohol Content", ABC News, February 18, 2013
http://gma.yahoo.com/blogs/abc-blogs/makers-mark-wont-cut-alcohol-content-192224565--abc-news-Recipes.html
CKB Solutions is all about real solutions for the real world. To learn how we can help your business, contact Greg Kovacic in Hong Kong.
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