Pernod Ricard Global Travel Retail
Introduction
Pernod Ricard Global Travel Retail partnered with GTW, a dynamic marketing and promotional merchandise company, to introduce a novel strategy aimed at increasing sales and enhancing brand loyalty through the use of exclusive travel bags as a gift with purchase in duty-free stores across the Asia-Pacific region. This case study explores how this innovative approach to merchandise strategy resulted in substantial sales growth and fundamentally transformed the industry.
Challenges
Intense Market Competition: The duty-free sector in the Asia-Pacific region is highly competitive, with numerous liquor brands vying for the attention of travelers.
Promotional Merchandise: Traditional gift-with-purchase items had become commonplace and failed to create a significant impact on customer perception or sales.
Enhancing Perceived Value: Pernod Ricard needed a strategy to increase the perceived value of their products and differentiate themselves from competitors.
Solution
Pernod Ricard Global Travel Retail partnered with GTW to create a unique strategy centered around exclusive travel bags as gifts with purchase. The key components of this strategy included:
Customized Design: GTW worked closely with Pernod Ricard to design stylish and high-quality travel bags that were exclusively available with the purchase of select Pernod Ricard products.
Limited Availability: The travel bags were only available at select duty-free stores across the Asia-Pacific region, creating a sense of exclusivity and urgency.
Marketing Campaign: A comprehensive marketing campaign was developed to promote the initiative, including in-store displays, digital and social media promotion, and influencer partnerships.
Results
The introduction of travel bags as gifts with purchase had a profound impact on Pernod Ricard Global Travel Retail’s sales and brand perception in the Asia-Pacific region:
Sales Growth: Sales of Pernod Ricard products at duty-free stores in the Asia-Pacific region witnessed a remarkable increase of 35% within the first six months of the initiative.
Brand Loyalty: Customers expressed a significantly higher level of brand loyalty, with surveys indicating that the travel bags enhanced their overall experience and perception of the brand.
Market Differentiation: Pernod Ricard successfully differentiated itself from competitors, setting a new industry standard by using travel bags as a gift with purchase. This initiative quickly became a reference point for other brands in the industry.
Increased Foot Traffic: The exclusive availability of travel bags attracted a higher number of travelers to Pernod Ricard’s duty-free stores, generating increased foot traffic and boosting overall sales.
Positive Industry Impact: Pernod Ricard’s innovative approach set a new standard for duty-free retail, inspiring other brands to explore unique gift-with-purchase strategies to enhance their brand presence.
The collaboration between Pernod Ricard Global Travel Retail and GTW to introduce travel bags as gifts with purchase at duty-free stores across the Asia-Pacific region proved to be a game-changer for both companies. This innovative approach not only significantly boosted sales but also set a new industry benchmark, highlighting the importance of enhancing perceived value and differentiation in a competitive market. Pernod Ricard’s forward-thinking strategy demonstrated the potential for creative merchandise initiatives to transform the duty-free retail industry.