Dalmore Brand Analysis: Strategies for Elite Customer Acquisition

This report provides a comprehensive analysis of the Dalmore brand, a luxury single malt whiskey. It examines the brand's history, target market (primarily affluent businessmen), competitive environment, and current branding strategies. The report highlights Dalmore's positioning as an exclusive brand, its flagship partnerships, and the "Bravery" brand vision. It also analyzes the whiskey market, including key trends and competitor strategies. The report then proposes recommendations to extend the branding strategy, focusing on attracting elite women customers through digital marketing, collaborations with high-end restaurants, and adjustments to the website's theme to be more appealing. The report includes detailed sections on product/service mix, retail, and digital strategies, culminating in a conclusion summarizing the findings and recommendations.

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Dalmore Brand 1
Executive Summary
The present report has discussed the branding strategy of Dalmore, which is a brand of the
company Whyte & Mackay. The company has tied up and flagships with several leading
restaurants and hotels. It caters to the preference of the elite businessmen of the country. The
business report has presented a branding strategy for the elite women customers. A branding
strategy has been proposed to attract these customers. Currently, most the users have an access to
the internet; therefore, it can be used for the marketing strategy. The current theme of the website
is very dark. The company should change it to lighter themes to attract the women customers. In
addition to it, the company can make collaborations with high end family restaurants.

Dalmore Brand 2
Table of Contents
Introduction to Dalmore Brand Single Malt....................................................................................2
History of the Brand.....................................................................................................................2
Reference Market of the Organization.........................................................................................2
Competitiveness of the Environment...........................................................................................3
Characterization of the Target Customers of the Company.........................................................5
Vision of the Brand......................................................................................................................5
Positioning of the Brand..............................................................................................................5
Brand Contract.............................................................................................................................5
Narrative and Codes of Brand......................................................................................................6
Summary......................................................................................................................................6
Recommendations to Extend Branding Strategy.............................................................................7
Evolution of the Target Market....................................................................................................7
Product/service mix and the possible extension strategy.............................................................8
The retail strategy.........................................................................................................................9
The digital strategy.....................................................................................................................11
Conclusion.................................................................................................................................13
References..................................................................................................................................14

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Dalmore Brand 4
Introduction to Dalmore Brand Single Malt
Dalmore is a luxurious brand in the industry of premium whiskey. Dalmore distillery was built in
1839 by Alexander Matheson and following his death, the distillery was sold to the Mackenzies
in 1891. After a series of acquisitions, the company was finally acquired by Whyte & Mackay,
under the business tycoon Vijay Mallya’s United Brand Group. The company is famous for
creating high class, exclusive and luxurious brands, which appeals to the affluent customers all
across the globe. The company sells one of the best quality single malt whiskeys to different
customers all across the world. The company has a long history and export whiskey all across the
globe. The company has a world class refinery and manufactures high quality whiskeys.
However, previously, the company struggled to attribute a specific brand image for the
organization.
Previously, Dalmore did not have any sense of its identity or any belief as a brand. It is important
for the companies to create a specific brand value so that the organization can connect to
different generations of whiskey drinkers. In the recent years, the company has developed a
specific value of the brand, Bravery which provides an ideal platform to enhance the distribution
of the organization’s products. The new brand image of the organization has been crucial in
combining the heritage, product and the modern culture of the organization1. These branding
initiatives of the organization have increased the sales magnificently. There are several aspects
1 Bruwer, J. and R. Johnson, ‘Place-based marketing and regional branding strategy
perspectives in the California wine industry’, Journal of Consumer Marketing, vol. 27, no. 2010,
pp. 5-16.

Dalmore Brand 5
such as the marketing campaigns on the social media such as Facebook, Twitter and Instagram,
which has increased the market share of the organization.
History of the Brand
The history of the organization began in 1263. Colin of Kintail, saved his King from the attack of
Royal stag. This act of bravery and decisiveness was rewarded by the King by offering him
motto “I shine, not burn.” and he was awarded a 12-pointed Royal Stag as the crest of the clan. It
created the foundation of the distillery. The Dalmore distillery was established in 1839, and it
was founded by Alexander Matheson. Then after, the company took several initiatives to create a
perfect production location, where natural resources can be used for producing a single walt
whiskey. After the foundation of the company, the founders searched for a perfect location to
gain access to the natural resources and developing infrastructure for producing whiskey.
Later, the distillery was taken over by the brothers of Clan Mackenzie in 1867 and they offered
two different things to the company, which was handed over to them by generations. It includes
the emblem of their clan, which is the symbol of royal stag. Till now, the company focuses on
the customer satisfaction as it delivers unique taste, dedicated to the sourcing of fine woods, and
commits the time so that whiskey matures to perfection.
Reference Market of the Organization
The company has evolved to present itself as a luxurious brand. The organization has developed
its marketing strategy to target the affluent customer segments in different countries. In the UK,
the company targets the affluent customers over the age of forty. Most of the customers of the
company are affluent businessmen. In other countries, these countries have high demand for
whiskey. The company targets the people in the age group of 25 to 40, which are the middle

Dalmore Brand 6
class customers. In Russia, the cost of Whiskey is more than the cost of a single bottle of vodka;
however, there are a large number of customers from the middle class segment. Therefore, the
company targets this section of customers2. The target customers of the Dalmore Brand can be
characterized on the basis of following features:
Demographic characteristics Mostly men, within the age group 40 and more
Psychographic characteristics Customers, who are attracted towards luxury
and premium brands. Mostly, affluent lifestyle
Behavioral characteristics The luxury seekers who are conscious of the
quality of the product
Geographic characteristics People from all across the globe
Competitiveness of the Environment
The whiskey market is the third largest market segment and the fastest growing industry in the
international spirit market. It is expected that the Compound Annual Growth Rate (CAGR) of the
whiskey industry will be about 5% between the years 2016 to 2020, which is good for the
industry3. According to the market trends, the demand for the premium whiskey is rising in the
potential markets of the USA and the UK. The growing demand in these markets is one of the
key drivers for the growth of the market4. There are several other factors such as the increase in
the disposable income of the middle class and the increased demand for the premium whiskey
2 S. Lepitak, "We are trying to learn to be a global business" - Whyte & Mackay
marketing director Cara Chambers talks brand strategy, Russia and Diageo. 2013. (Accessed 14
March 2018).
3 Technavio. (2015). Global Whiskey Market 2016-2020 (Accessed 14 March 2018).
4 Technavio. (2015). Global Whiskey Market 2016-2020 (Accessed 14 March 2018).

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brands, which has increased the growth of this market5. Whiskey is considered as an affordable
luxury, which can drive the manufacturers towards premium brand offerings.
There are also growing trends such as the demand for the organic scotch whiskey, which has
enhanced the demand of the growth of the market. The organic distilleries of Whiskey are
avoiding the use of artificial colors, which is helping the whiskey distilleries to target the
customers, who are conscious about their health. A significant number of customers consider that
whiskey is an affordable luxury; therefore, the manufacturers have launched premium and super-
premium brands.
There are three main categories in the scotch whiskey market, which are malt scotch, grain
scotch and blend scotch. The blend scotch has a market share of 79% and this market segment is
growing due to the high demand from the customers.
The highest demand for the whisky emerges from the European market, which account for 34%
sales of the whiskey. Turkey is also an emerging market for the organization. Other than that,
there are also several other markets of France, Spain and Germany, which accounts for
significant sales of the whiskey manufacturing organizations.
It can be critiqued that the global whiskey market is quite fragmented due to the presence of
several small and large whiskey suppliers. There are several competitive factors such as quality
of the product, pricing, innovation capability of the brand, customer service, distribution and the
promotion, which can help the companies in developing their brand. In the current market
5 Johnson, R. and J. Bruwer, 2007. ‘Regional brand image and perceived wine quality: the
consumer perspective’ International Journal of Wine Business Research, vol. 19 no. 4, 2007, pp.
276-297.

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scenario, the companies are focusing on reducing the product and price to combat the enhanced
market competition6. In the markets of the USA and the UK, there is a growing demand for the
Irish Whiskeys and the American Bourbon. These types of whiskey have a higher demand than
usual; therefore, it is projected that these brands will grow at a CAGR OF 8% to 7%7. The
product segmentation of whiskey can be divided into Scotch whisky, US whisky, Canadian
whisky and the Irish whisky. The Indian whiskey products are also growing substantially.
Dalmore is a popular brand, which is popularly becoming the most consumed Whiskey in the
world.
In the recent times, whiskey is growing popular in all the age groups and motivating vendors to
establish target markets. There are several companies, which are emerging from Japan, Croatia,
Taiwan, China, New Zealand and Sweden, which are enhancing the competition in the whiskey
market.
The market trends also states that whiskey sales will be beneficial for the big distillers; however,
small companies will not benefit from the projected growth. The operations of these companies
are facilitated by the purchase and the sale of bulk whiskey and the price is determined by the
6 Reportlinker. (2016). Global Scotch Whiskey Market 2015-2019. (Accessed 14 March
2018).
7 McLoughlin, G. (2015). Whiskey growth 'will benefit the big distillers most'. (Accessed 14
March 2018).

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fluctuations in the demand and supply of the product8. There are also several companies, which
have built a major brand without owning a distillery.
The growth in the whiskey industry is also characterized by the entry barriers in the whiskey
industry. These entry barriers pertain to the production side of whisky as the establishment of a
distillery requires that the company wait for at least three years, before entering the distribution.
There is a regulation, which states that scotch must be matured for three years, before they can
be sold to the consumer companies9.
Characterization of the Target Customers of the Company
In the recent years, the company has made substantial efforts to position itself as a luxurious
brand. The company has adopted the vision or the style statement of Bravery platform. It has
assisted the company in establishing a unique brand image and associating with the luxury
seeking customers of the world10. It has created flagship marketing with several companies,
hotels and the event organizers. As such, the company has established as the leading suppliers of
several multinational hotels. The premium brands of the company are sold to Michelin star
restaurants or 5 star hotels of Paris.
8 Lockshin, L., Rasmussen, M. and F. Cleary, The nature and roles of a wine
brand. Australia and New Zealand Wine Industry Journal, vol. 15 no. 4, 2000, pp. 17-24.
9 McLoughlin, G. (2015). Whiskey growth 'will benefit the big distillers most'. (Accessed
14 March 2018).
10 Vrontis, D., Thrassou, A. and M. Rossi, ‘Italian wine firms: strategic branding and
financial performance’, International Journal of Organizational Analysis, vol. 19, no. 4, 2011,
pp. 288-304.

Dalmore Brand 10
Vision of the Brand
The company aims to become an exclusive brand. It has aimed to develop hubs and flagships in
different cities of London, Paris and New York. The vision of the brand is to produce qualitative
product, and provide luxurious amenities. The company aims to achieve unparalleled expertise
and intimate knowledge about whiskey distillation, which can help the organization to create
super luxury single malt whiskey.
Positioning of the Brand
The company has positioned itself as an exclusive and extremely luxurious brand. It caters to the
needs of the affluent men of the society. Recently, the company has launched a triple-matured
single malt 40 years old whiskey, which is worth 6000 euros/per bottle. It was the celebration of
the 50th anniversary of the founder of the company, Richard Paterson. The company tries to
position itself with the top 10% of the competition. The company desires to become pinnacle
brand in the whiskey category. In order to maintain the brand image, the company has used the
key symbol of pricing.
Brand Contract
The brand contract refers to the promises that a brand makes with its customers. The company
has made a strategy to position itself as an exclusive brand for the most affluent society of the
world. In this regard, the company has taken several initiatives such as creating flagships with
the most of the Michigan star restaurants and the five star hotels. It also promotes itself to the
whiskey tasting events. The company promises to offer exclusive taste and quality whiskey to
the customers11. The customers tasting the whiskey will feel elite and special. The vision
11 Bruwer, J. and House, M, ‘Has the era of regional branding arrived for the Australian
wine industry?’ Some perspectives, 2003.

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statement of the organization is “To the Brave”, which associates with the history of the
organization. It has created a bold identity for the organization which also indicates the strong
heritage of the distillery.
It is the only whiskey tasting company, which offers single malt whiskey in the six cask finish.
The whiskey is matured in American White oak Ex-bourbon casks, and then it is divided into
different casks, such as small batch bourbon, Matusalem Oloroso Sherry, Cabaret Sauignon,
Port, Maderia and Marsala12.
Narrative and Codes of Brand
Dalmore is an ultra-premium brand, which has recently changed its visual merchandizing
standards to enhance the brand image of the organization. The current brand strategy of the
organization is to design a better whiskey appearance for the consumers.
It is one of the fastest growing ultra-premium brands, which offers unique single malt whiskey to
the consumers. It is available finest restaurants and outlets. The company also has a strong
reputation among the whiskey connoisseurs as the single malt whiskey has a long history and
finesse. It is considered as the leading rare whiskey investment choice. The company has
developed a new visual identity with its emblem to connect more with the customers and make
them aware of the excellent heritage and its innovations regarding the casks and the dynamic
ageing of the whiskey. The expertise and the knowledge of the organization assist the company
are producing the sumptuous and layered single malt whiskey.
12 Mario. (2018). To the Brave: The Dalmore. (Accessed 15 March 2018)