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| A new high for Officer's Choice |
| Sapna Agarwal / Mumbai Sep 17, 2009, 00:01 IST |
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 Three years ago, Officer’s Choice was selling just five million cases a year and its market share was around 10 per cent in the regular whisky segment.
The growth since then has been phenomenal for the 20-year old brand of the Kishore Chhabria-owned Allied Blenders and Distillers (ABD). In July this year, Officer’s Choice became the 12th whisky brand in the world and the third in India to have sold 10-million cases a year. The two Indian brands are Bagpiper and McDowells No 1.
That’s not all. In the last three years, sales of the Officer’s Choice whisky have recorded a compounded annual growth rate (CAGR) of 33 per cent, which is almost double the 17 per cent growth achieved by the 120-million-cases whisky segment.
Its market share is now 19 per cent, much behind market leader Bagpiper, but Officer’s Choice has been able to widen the gap with other competitors. For instance, Radico Khaitan’s 8pm has lost market share from 10 per cent to 6.5 per cent and United Spirits’ Directors Special from 9 per cent to 8 per cent.
It’s also the No 1 brand in Rajasthan, Himachal Pradesh, Andhra Pradesh, West Bengal and Meghalaya. In Punjab and Jharkhand, it’s the second largest selling brand.
So what brought about this change? “Aggressive marketing, increased distribution, a new management team and a brand makeover,” says Deepak Roy who joined the company in October 2007 as its managing director, with five per cent equity stake.
The brand, which contributes close to 90 per cent of ABD’s overall volumes and close to 85 per cent of its Rs 850 crore revenues, went in for a makeover. It changed its positioning from “Challenge Yourself” to “Jagaiye apne andar ke officer” which targeted the growing aspirations of its new target market — the lower middle class consumer. “This positioning is different from the rest of the brands in the industry,” says Roopak Chaturvedi, an ex Pepsico and Marico professional who joined in October last year as head of marketing and sales.
The company increased the distribution reach by 50 per cent in the off-premise segment and doubled it in the on-premise (restaurants and hotel) segment.
The brand has also doubled its spends on sponsorships and associations. “Our marketing and promotion spends will be Rs 30 crore this year,” says Chaturvedi who also plans to launch a mass media campaign with its new Officer’s Choice water brand.
There is more. The company brought down the time of payments to suppliers from 90-150 days to the industry norm of 60-75 days. And despite the growing distribution reach, it brought down the customer service time from 10-30 days to within 48 hours.
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