Jack Daniel’s Old N°7

The brand:
Jack Daniel’s is a U.S brand. Its name comes from its founder, but nobody know from where comes from the label ‘old N°7’. It has been created on 1866 in Lynchburg, Tennessee. Nowadays, the whisky is always produced in this small town. Its distillery is the oldest in the U.S.A and a Historic site. Since 1956, the brand is owned by the Brown-Forman company, which is also based in the U.S.A. It’s the third best-selling whisky in U.K.

The market:
In U.K, there’s a decline of the alcohol market (Mintel Oxygen, 2010, Whiskies). Wine and lager are the strongest alcohol on this market, but spirits are gaining market shares. The whisky market represents £3.6 billion. It’s the best spirit sector before the vodka market. Globally, whisky isn’t a regular drink, it’s occasional. It’s a premium item with often high margins. The whisky market is complex. Lots of different kinds of whiskeys are competing and consumers have some difficulties to compare them. There’re three sub-markets within whisky market. The Blended market is the most important in term of revenue. Blended whiskeys are generally cheaper than the other segments. The Malt market is the least developed. Malt whiskeys are often more expensive than other whiskeys and are high-end products. The imported whisky market is the one of Jack Daniel’s. This segment has known an increase in U.K between 2004 and 2010, thanks to intensive investment on advertizing and brand building. The whisky market has to face up hard taxations. It’s a drawback against other drink categories. There’s also a minimum price for alcohol which acts as a brake for the market.

Segmentation and targeting:
Globally, the whisky market is a male market (Mintel Oxygen, 2010, Whiskies). Drinking whisky is a masculine need. Moreover, consumers generally look for authenticity and tradition when they drink whisky. As it’s considered as a luxury product, buyer also seeks quality. There’re three consumer segments