Market structure of Absolute vodka in Nepal | Marketing Assignment Help

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Market structure of Absolute vodka in Nepal


Background to the company/product

In 1879, Absolute was founded by Lars Olsson smith. It is produced in Sweden at Ahus. Before absolute vodka was launched, the market was controlled Stockholm’s liquor. After the foundation of absolute vodka, Smith challenged Stockholm’s liquor and its marketing monopoly (Okada, 2017). Absolute vodka was sold at comparatively lower price out of the city border. Absolute vodka was sold at a lower price than the monopoly product. Smith had a good strategy for promoting his product. He offered free boat riding to distillery and rent brannvin. This changed the fortune of smith and he established himself in the business chain. After the monopolization of the country alcohol by the Swedish government, at that time the vodka was sold nationally in different name. It was named as absolute rent brannvin at that time. In 1979, absolute vodka was introduced with a higher price to the global market (Bukhari, 2016). After it was marketed globally, the sell of vodka increased and it was sold 90 million litres annually in 2008. The vodka is made of wheat rather of winter wheat. Annually, 80,000 metric tons of wheat are used to produce absolute vodka. There is a ratio of using the wheat and grain in absolute vodka. In every one litre of vodka, there is a use of 1 kilogram of grain that means one bottle of absolute vodka contains one kilogram of grain.

Situation analysis

Political analysis: According to the law of Nepal, there are several ethics that the business organization should follow. There is a total ban of advertisements for any type of alcohol products. No promotions even the sponsorships also cannot be done by the alcohol brand. 

Economic analysis: Though there are various economic challenges, externally and internally, still Nepal has managed to maintain the macroeconomic stability through the monetary and the fiscal policies. This is resulting in the slow structural transformation (Wang & Spence, 2015). the fiscal performance is stable and the budget deficit is low though they are facing some challenges related to the increasing subsides, recurrent expenditure etc. The revenue mobilization is relatively strong though there is a challenging field in political environment. 

Socio-cultural analysis: Beside agriculture, Nepal is fully dependent on the tourism. There are more tourism developments and destinations than the industrial business. Therefore hotel chains, restaurants, tourist markets are seen more than industries. This means there are more business on guides, hotel business, foods, and other related works. 

Technological analysis: However, when discussed about the technology of Nepal, then it can be said that Nepal is a late starter or late comer in modern technology and the science (Haffner, 2015).  It developed its technological prospects in limited fields such as civil engineering, architecture, agriculture, medicine, textile, water management, paper manufacturer, food technology, and dyeing. 

Environmental and legal: Air and water are the most significant problems that can be seen in Nepal. The reforestation of Nepal done is minimal. Nepal mainly suffer the effects of deforestation, erosion, agricultural encroachment etc. now, talking about the legal causes, there are patent rights, some application for acquiring right over the patent, some circumstances in which the patents cannot be registered, some terms are there that will give an impact on the business establishment (Kuan, 2018). The absolute vodka has to focus on these legal rights in order to establish the business in Nepal. 

Now, if the micro environmental factors are explained in details then it includes the competitors, suppliers, distributers, customers, publics, and the company. The competitors are the other business partners or houses who are competing with absolute alcohol in the same field. Then suppliers are those who are supplying the wheat and the grains and other ingredients that are mainly the raw materials that are needed to manufacture alcohol (Vannini & Williams, 2016). The distributers are those who are distributing the bottles of the absolute alcohol in the shops in the market places. Now, coming to the customers, who are buying the alcohol from the shops, consuming it and buying it. Publics are the mass who belong to the locality and the company is the manufacturer house who is the resource of the absolute alcohol.

SWOT analysis

Now, discussing about the strength, the absolute alcohol has a good review in the whole market and has a good competition field where absolute alcohol is giving a tight competition to its competitors. If talking about the weakness, though the external power of the company is strong enough to compete with the other organizations in the same field, but comparing to the internal power, absolute alcohol is relatively week in respect of the other companies. This can be a weak point of the company and can create a huge problem in future market. Opportunities of the absolute alcohol are well established as they have a good survey on political, economic, socio cultural, technological, environmental and legal fields. It is very mandatory to have a good knowledge about the market of the area where the company is trying to make a field and trying to capture it (De, 2018). Some micro environmental factors like suppliers, distributors should have a good business relation with the company. They should represent them in such a way with the price and quality that the consumer can be satisfied with its product. Lastly, coming to the threats, as it is known, all the positive impacts have a negative side. The vodka company has rivals in the same fields. They can also raise some problems in the future market of the absolute vodka.

Target market and positioning

Every company has to target a certain group to establish themselves in the market. Absolut vodka has a good market in the places where it is cold in the whole year. The Absolut vodka basically targeting the teenagers and the middle aged person (Morey et al., 2017 ). Among 15 to approximately 45 or 50 years aged person are the main target group of Absolut alcohol. These are consumed just as a purpose of enjoyment, entertainment. People who love to go out with their friends, families and the special loved ones love to consume this Absolut vodka or prefer this brand more than other brand (Hanssens, Wang & Zhang, 2016). Though rising of health issue, climate condition, drinking habits, consciousness towards health are some threat towards the company. Absolute vodka is considered as the premium brand.

The target consumer thinks that this brand is a premium brand. According to the demographical thinking, it is sophisticated, showy element, stylish towards the consumers. It is a witty brand, which is of superior quality, with stylish as well as unexpected position in the market. The word “absolut” has a fanciful target audience and they think they have a perfect or rather “absolute” world. It is primarily made for urbanites and most of the people use it as their main brand. They belonging with this kind value their orientation. It has a psychological thinking that it is considered as vodka of superior taste, price and quality and having different design. It comes under premium vodka segment.  According to the behavioral thinking, they use their brand name by removing the word vodka and print with colors that refer to the flavors or the aroma. It is simple but very sophisticated. According to customer review, they spend less money to experience the best they can ever have.

Marketing mix analysis

The brand is absolute Vodka, which is founded in the year of 1879 and now it is a symbol of status throughout the globe. Actually, it hits almost 126 country’s market with full of their brand value and all. The taste and the standard is enough maintained as per the market demand. Now it is focusing the market of Nepal for a better flourishment (Tuten & Solomon, 2017). Although it is already an established company but still looking for the growth in some developing country as well, so they have chosen the market of Nepal and as the matter is quite clear that the marketing mix part is must be highlighted and under focus by the in-house policies before taking any step based on any nation as per the brand value of their product.


There are so many other companies in the market as per the brand and the product concerned especially as pert the market of Nepal it is hard to grab the market of that particular place where the domestic alcohol also treated as an tradition by the country men. Still the mentioned product brings the pleasure in giving the assurance for an unique experience for the entire customer for the particular product (Baryshnikova, 2017). The extended range of the same product includes Vodka made out of apple, grapes, cherries and some other flavours as well and as a proof of the of being versatile brand Absolute Vodka stands there with full of their value.


The brand itself a very versatile product having their popularity among almost 126 countries and it is now a well maintained product in the world of spirit. The same product also follows the same regulations of the distribution as noticed in any FMCG industry (Hartwigsen, 2016). It is generally distributed directly from Sweden, which is their warehouse. It is a spirit base product, the brand fixes the objective to touch out to each with a fond of for the product. A simple bottle of the product of 0.75 Litre may be available at a minimum price of rupees $20 anywhere in the planet (Marketing91, 2017).As per the product concern it also there with so many kinds of variations.  It controls its other party premium level by assuring that the product is distributed only to some unique outlets. For fixing of manufacturing and linking up between the flavour and the product has given the helping hand to the brand acquired some creative reviews.


It is the brand which stands in the number one position in the market of the world. The distribution of the product through the mix market strategy and the channels such as on-trade way which comprise of some restaurants, bars, hotels off-trade medium and those also comprise of wide range retailers and some specific stores (Partanen, 2019). It also focuses to the travel trail which also give the impacts to cover all the selling zone, places, the outlets and in the midst of the visitors as well in their journey and all the electronic commerce sites.


This particular product has the longest continuing campaigns of promotion in its stride. The creative style of marketing and promotion designed by Steven Bronstein and occurs to be the creative and unique matter about the mentioned product, the way what is more than approximately 20 years and also included more than 1500 ads.

The concept is there in the shape of the bottle (Nepal & Jamasb, 2015). The creative marketing idea has given the helping hand to the stand out of Absolute Vodka for getting the recognition quite fluently.  They have chosen the most attractive part as the shape of their bottle and the designed mentioned in the bottle.

Physical Evidence 

After the promotional part the main matter is to deliver the product with the proper ambience and atmosphere and that depends on the area or the particular nation’s policy where the company concentrates to grow their market well (Bhattarai et al., 2017). As per the country Nepal concerned, they are enough capable to attract the people, the casino and the other outlet in the capital city and in the other place the decor and the atmosphere is very much linked with the marketing strategy what exactly the company required to promote their product and gather their profits.


The delivery process of Absolute Vodka is unique. For maintaining the quality and other thing they are used to take their direct warehouse for delivering their raw material and the completed product as well. For their reseller even they use their own electronic system to deliver their product. As per the country Nepal concerned the capital city is always in the top position to catch the market of the Nepal. The direct container parcelling system and the e-commerce system is one of their favourite ways to deliver their product towards their target area not directly to the people as per the regulation of individual nation’s norms (Sharma & Phyak, 2017). As per few country’s norm the e-commencing of alcohol related product is still prohibited even the alcohol related product is also varied for marketing as per few states of a particular nation as well. Basically the store performance and the restaurant’s method with displaying in some bar also are the favourite part to deliver their product to any nation’s market. In Nepal the polarity of alcohol especially Vodka is in high demand but a little bit of challenges they are getting from the domestic product of the nation as well so their main focus is to hit each consumer’s hand directly through any store or bug entertaining house


The people who are working in the house directly and to the particular market of the product are the main key to give the level of the product as per the specific market concern and most importantly the feedback helps any individual; company tom grow to hit the target as well. In the scenario of marketing and sales the product’s growth is apparently depends on a particular zone and here the nation called Nepal. Nepal’s transportation and the people are quite ecofriendly and easy tom touch the ground without any obstacles. Hen staffs working in the Sweden warehouse and directly to the market of Nepal are the main source to get the review of the particular product’s view to the people of that particular area. Not only had that, by the staffs or by the people involved with the product’s market are continuously giving the feedback and an invisible survey report by that the higher authority of the same company can judge the market standard of the product in Nepal and that only gives them the ultimate way or source to take the further step to a better movement in this particular nation. As per the market or any industry concerned staffs are then main key for productivity, here the company hires few people directly from Nepal to get more involvement there and few from the Sweden as well to understand the scenario there and after getting the result from Nepal they can easily utilize their growth in their warehouse and that directly reflects to their product and especially to the country in near future by that they can  easily get the ultimate result as a successful mark sheet or smooth opportunity for a term called golden profit.


As per the market concerned of Nepal there are so many things what the particular company has to keep in their mind for their marketing strategy to grow their business in the market of Nepal. The norms of the nation is actually against of the promotion of any alcohol related product but in the other side the domestic alcohol product from the particular nation is in a high popularity to the countrymen, so few thing they have to maintain while the company is about to promote an alcohol product to a nation like Nepal.



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