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From the six pathways to a blue ocean strategy, SKY Vodka can follow path three: chain of buyers, path five: Functional orientation only, and path six: Time. The key ingredient of the blue ocean strategy is technology. As vodka consumers in China are mostly those who are from the developed regions who are familiar with Western brands, the trend shows that when brands such as Baileys Irish Cream and Absolute Vodka redesign their bottles to seem more elegant or fashionable thereby increasing brand awareness, they attracted a larger customer ease (Remuneration Passport, 2014).
Considering this, we have recommended that SKY Vodka focus on technological innovation as a differentiation strategy in the design of their bottles. A supporting factor to this is that more than 40% of urban Chinese expressed that they viewed new technology exiting and wish to use as much as possible (Ericson, 2010). While competing brands have successfully designed the packaging of their bottles to appear trendy, none have included technological innovation in their packaging style, such as including a thermometer on the packaging.
By applying such innovations in the bottling designs, SKY Vodka can move what can be argued as a market where emotional orientation is emphasized through brand identity and design to a new functional orientation, which has not been explored. Price The prices of SKY Vodka’s competing brands such as Sunroof, Absolute and Finland range from CCNY 85 – 315 for mall and 750 ml per bottle depending on the sales location (see appendix #) with an approximate average of CCNY 187.
Consequently, the price of SKY Vodka’s products should remain in the region of CCNY 150 to 200. However, as the recommended new product which includes technological features to the bottling designs a feasible price would be slight higher, and as such offering both the standard SKY Vodka product and the new product would attract both customer segments which are standard vodka consumers and alcohol consumers with an interest for innovation. Therefore, the pricing will reflect a combination of a cost plus and perceived value pricing strategy.
Due to the nature of the product, both two-way and one-way communication tools will be critical. Communicating in a two-way format for beverages, food and tech at fairs and exhibitions as well as on social media may attract interest from supermarkets and wholesalers as well as independent customers. In terms of one way communication, utilizing stands in duty free points at international airports with connections to china may an excellent source of promotion which may well be a two-way communication tool.
Combining this with advertising in television, magazines, outdoor and PR may attract considerable interest in the brand and its new product. The largest emphasis should be placed on fairs and exhibitions as a blue ocean product such as this requires effective and consumer-valued information. Place Porter, M. (1980). Competitive Strategy. Techniques for Analyzing Industries and Competitors. [e-Journal].