Companies with multiple brand lines have options when it comes to marketing. With an optimal portfolio, a company works to maximize the brand equity in combination with other brands. In addition to decisions surrounding family brand name usage, sub-brands, and affiliations, global companies must also determine the optimal arrangement for handling the brand’s creative and media business.
Barcardi has a range of spirit products beyond its signature white rum including Martini & Rossi, Dewar’s scotch, Grey Goose, and the US version of Havana Club. Barcardi’s product portfolio has grown both organically as well as through recent acquisitions. The full line of spirts are sold globally, and the creative and media business for the entire portfolio is spread across 700 agencies around the globe. It is this arrangement with ad agencies that is being consolidated between two ad agencies.
Barcardi is striving to manage its approach to worldwide communications and continue building its brands from a consolidated global perspective. In the past, a single product would have been marketed differently and separately across the geographic regions where it had a presence. Going forward, marketing efforts will be centralized and messages delivered in a consistent way to each market.
Consolidating Barcardi’s global media strategy makes perfect sense from a financial perspective as well as for the purpose of delivering a consistent brand message and storytelling. However, different markets have different tastes, customs, traditions, laws, and patterns when it comes to the marketing, advertising, and consumption of alcohol. Does consolidating these efforts serve the company well in the long-term? Using 700 ad agencies across the globe, did provide a unique opportunity to be in touch with local needs and provided with local targeting opportunities. Barcardi needs to proceed with caution to ensure that no market is isolated in its consolidation efforts.