SWOT Social Media Analysis & Strategy

by

Ryan Benvenuti

Background and Company Culture

Bacardi Limited is the largest privately held, family-owned spirits (liquor) company in the world. Originally known for its famous-labeled Bacardi white rum, it now has a portfolio of more than 200 brands and labels. Bacardi Limited was founded in 1862 in Santiago de Cuba by Don Facundo Bacardi y Masso, and has remained family-owned for seven generations. Bacardi employs 6,000 people, manufactures at 27 facilities in 16 markets on four continents, with sales in more than 150 countries. In its 150-year history, Bacardi rum has more than 550 awards for quality and product profile, making it the world’s most awarded rum.

Background and Company Culture

Bacardi Limited refers to the Bacardi group of companies, including Bacardi International Limited and Bacardi U.S.A., Inc. which is located in Coral Gables, Florida. Bacardi Limited markets Bacardi brand rums – reportedly the #1-selling rum in the world – and the Martini & Rossi brand of sparkling wines and vermouth. It sells other premium spirits, such as Dewar's Blended Scotch whisky, Bombay gin, Bénédictine liqueur, Cazdores Blue Agave tequila, and Grey Goose vodka. The United States remains Bacardi’s top market and the company puts most of its resources behind its six core premium brands.

SWOT Analysis STRENGTHS

• One of the world’s most recognized brands and leading spirits and other forms of alcohol that has a name-recognition along with a strong brand and product portfolio and history.

• Strong Corporate Social Responsibility campaigns and social involvement.

• Visually appealing photos/videos on Facebook, LinkedIn and Instagram (Bacardi U.S.A., Inc. when it comes to Instagram).

• Tagging and sponsoring highly influential/famous people, mostly in the music industry.

• Associating with big events like music festivals/concerts, and posting them on their social media sites. (Ex: Tomorrow Land/ Live Nation).

• They post at a high frequency which allows users to connect with them on a regular basis.

• High volume and velocity of conversations, comments, likes and shares across all platforms like Facebook, LinkedIn and Twitter.

• Effectively engaging with consumers internationally by having separate social media profiles for different countries and distributors (Ex: Bacardi USA, Inc. or BacardiCananda)

SWOT Analysis WEAKNESSES

• Alcohol-related problems in society such as binge drinking and anti-social behavior mean that all contributing factors, including advertising and marketing using of social media, remain under intense scrutiny.

• Social media advertising has increased exposure and awareness to non-adults. Using desirable images, fun music and portrayed appealing lifestyles, this advertising can be viewed as increasingly influential and even encouraging non-adults to drink alcohol.

• The company has separate websites and social media platforms for their various brands and distributors – they have a decentralized online and social media presence.

• Has an overly segmented target markets (younger age and club/bar scene).

• Company is seen as only associated with rum spirits.

• Constricts to limited postings that conflicts with it’s various social media platforms (ex: LinkedIn shares press releases while Facebook shares music events).

SWOT Analysis OPPORTUNITIES

• Favorable trends in the cocktail market based on consumer preference

• Strategic acquisitions and partnerships

• Market for premium spirits is increasing

• Emerging markets in Asia (especially China) and India, with social media users expanding in these markets as well

• Number of social media users who access the social media via mobile devices are increasing

• Additional sources of revenue by increasing social media followers and attracting new consumers

SWOT Analysis THREATS

• Stringent governmental regulations and strict advertising regulations

• Global economic slowdown

• Intense competition in premium spirits category with increasing popularity of other less expensive spirits and liquor brands

• Liquor marketing and advertising prone to fads and trends not followed by all consumers

• Privacy issues like identity theft

• Competitors gaining a stronger social media presence and allocating existing and potential customers

Current Social Media SitesFACEBOOK

Strongest platform with over 8 millions “likes” and fansPostings currently used only for sharing music campaigns and club/bar

scenes

Current Social Media SitesTWITTER

Moderate platform with over 90,000 followers and over 7,000 tweets

Current Social Media SitesPINTEREST

Strong platform that is updated regularly but only used to offer rum recipes for both food and drink

Current Social Media SitesLINKEDIN

Moderate platform with over 120,000 followersPostings currently used only for relevant press releases, news articles and

blogs

Current Social Media SitesINSTAGRAM (Bacardi U.S.A., Inc.)

Moderately engaging profile with over 22,000 followersDoes not represent the Bacardi Limited Instagram profile, which is very weak and non-active

Purpose/Objectives for Social Media

When using social media marketing, Bacardi Limited is committed to encourage the responsible use of their products to ensure that their marketing does not promote inappropriate alcohol consumption, while reinforcing a responsible drinking message. Their marketing and advertising uses a range of tools to support this objective and they focus on making certain that their communications are aimed primarily at adult consumers. Continuing to take their marketing campaign to new heights, Bacardi Limited continues to create dynamic opportunities designed to bring people together to celebrate live music, sports, and other community events that bring together family, friends and legendary cocktails.

Target Audience/Group for Social Media

• Men and women ages of 25 to 44 years old in the X and Y generations

• Individuals who live in metropolitan and urban areas of the North America, South America, Europe and Asia

• Tertiary college students (i.e., seniors) and young professionals

• Overall consumers who enjoy music, sports, community events and the nightlife

Uses for Social Media• Company logo/signage and colors branded on profiles.

• Promotional activities are shared and displayed such as sponsorships of events that include, but not limited to, sports, music, electronics, restaurants, clubs/bars and the community. Also sponsors charitable and/or non-profit events for the community.

• Free and discounted products, services and sponsorships can be found on their postings.

• Introduces new and existing products and services through events and aligning specific brands with art and culture.

• Frequent press releases and news articles.

• Offers rum recipes for both food and cocktails.

Social Media Tools Social Media Networks

1. FACEBOOK:• Advantages: while being the strongest promotional tool that receives the most

attention, 90% of all social media participants use Facebook – great source to raise brand awareness and participation with live events and sponsorships.

• Disadvantages: does not post consistently nor shares enough press releases and news articles.

2. LINKEDIN:• Advantages: offers a professional brand image along with being a great source

for press release and news articles.• Disadvantages: does not post consistently nor shares enough promotions,

sponsorships and live events.

Blogging Sites

1. TWITTER:• Advantages: another social promotional tool that expands to the entire social

media audience.• Disadvantages: does not tweet consistently nor shares enough press releases

and news articles.

Achievements with using Social Media

Overall, their unparalleled marketing distribution platforms that now include several social media platforms and tools reaches millions of fans and future consumers, while live events (which usually incudes music) bring people together and strengthen brand awareness among their target audiences. These specific events that they sponsor are a natural way to bring people together, and Bacardi’s depth of touch points spanning sponsorships, advertising and social media, mobile and digital promotions are a perfect way for Bacardi to bring consumers together in a relevant and engaging way on social media platforms.

Improvements with using Social Media

Bacardi Limited needs to move their marketing towards a centralized social media system or a more concentrated marketing effort when using social media while ensuring their platforms are interlinked and consistent with one another. Example: what’s posted on the Bacardi Limited profile needs to be posted on the Bacardi U.S.A., Inc. profile, and vice versa. This can be done by: Postings and tweets needs to be shared on all platforms on a almost daily

basis. All content must include relevant information, whether it’s a products,

sponsorships, community events, press releases, news, blogs, etc.

Bacardi Limited needs to expand their target audience by sharing and posting more sponsorships, campaigns and community events that include: Locations other than bars and clubs, such as non-profit and charitable

events, sporting events, community events, and live concerts. Locations that embrace other forms of music besides hip-hop (such as

pop, electronic and rock that goes as far back as the 1980’s) while including other genres of electronic music (not just modern “club” music).

Future Strategy using Social Media

Bacardi Limited needs to realize that half their target audience (and possible future consumers) is not embracing their products the same way they were 10 years ago. The need to expand their horizons while focusing their attention to accept that today’s X and Y generations are the only ones who are the legal drinking age yet still have the energy of someone who is not. That today’s X and Y generations are still the most professional and whose lives no longer involve the club/bar scene but also other social events. That today’s X and Y generations do not only listen to modern pop and hip-hop music. That today’s X and Y generations still remain the heaviest internet users that spend more and more of their time interacting with each other on social media. While increasing these methods at a slow but more significant pace, Bacardi Limited’s social media platforms and tools will surely receive more attention and followers, and thus becoming more cost-effective when allocating their marketing resources towards social media.

References 1. Bacardi Limited (2015). Retrieved from www.bacardilimited.com 2. Bacardi Group USA, Inc. (2015). Retrieved from http://www.bacardiusa.com/

3. Advertising Standards Authority / Stakeholder Consultation Event Report (2008). Alcohol advertising – the right measure? Retrieved from https://www.asa.org.uk/~/media/Files/ASA/Reports/ASAAlcoholEventReportNov08.ashx 4. Blatchford, J. (2011). Manifested Marketing - Marketing Blog. Retrieved from https://manifestedmarketing.wordpress.com/tag/bacardi/ 5. Bacardi Nights (2012) Integrated Marketing Communications Plan. Retrieved from https://marcthornton.files.wordpress.com/2012/09/mktg2203-bacardi-summer-nights.pdf

6. Aase, L. (2007). Facebook vs. Second Life: No Contest. Retrieved from Social Media University, Global: http://social-media-university-global.org/2007/09/facebook-vs-second-life-no-contest/

7. Morgan, B. (2015, August 31). When Brands Try To Hard On Social Media. Retrieved from http://www.forbes.com/sites/blakemorgan/2015/08/31/when-brands-try-too-hard-on-social-media/

8. Schaefer, M. (2014). Social Media Explained: Untangling the World’s Most Misunderstood Business Trend