Diageo invests in marketing to get more sophisticated about Ypióca group

Sao Paulo-the cachaçaria Ypióca group debut a new phase on Thursday, 18, with the release of major advertising campaign of its 167 years. The company will have as its poster boy the American actor John Travolta.
The campaign is part of a repositioning of the brand proposed by Diageo beverages, owner of Johnnie Walker whiskey and Smirnoff vodka, they bought in May last year the cachaçaria cearense for $ 900 million.
Diageo wants to revitalize the category, passing through a fall in Brazil, and win market outside of Ceará, where is about 70% of its revenue.
Ahead of the company's restructuring project is the Brazilian Renato Gonzalez, who took over as General Director of the Ypióca group in September, after working as an Executive of Diageo in Jamaica, Holland and Mexico.
The strategy to grow focuses on brand repositioning and expansion of the distribution area, says Gonzalez. Let's make the largest campaign ever made by the Ypióca group. The marketing budget is at least ten times larger, he said, without revealing the numbers.
One of the strategies of the Ypióca group, also adopted by competitors, is to highlight the rum as a typical Brazilian drink. The company tries to pass an image of sophistication of the product. Bring an international celebrity as impact poster boy and puts the mark on another level, says the Director of marketing for Ypióca group, Eduardo Bendzius.
The changes are not restricted to communication. The product portfolio of the Ypióca group is being reviewed. Three flavors were already eliminated and the company is testing new products. Out of line, for example, the cachaça of red fruits.
Products that tried to imitate other drinks, such as vodka, were taken. The idea is to innovate while keeping the focus on rum Bendzius said. The new labels should focus on higher quality products, such as aged cachaças.
The rum is the second most consumed alcoholic beverage category in Brazil, second only to the beer, according to Nielsen. Consumption fell 6% by volume last year to 363 million liters.
According to Nielsen's Service Manager, Claudio Czarnobai, the fall is related to a migration to other beverages with higher status, such as whiskey and vodka, which had high 9% and 3% in volume sold last year. People want to be seen with the fashion brands. And, in recent years, international brands entered strongly in Brazilian radar, explains.
In revenue, however, earned 8% more cachaças in 2012, a total of $ 5 billion. According to an analyst at Nielsen, the increase is due to high prices and the consumer demand for more labels.