Brand Building and Structural Change in the Scotch Whisky Industry since 1975

S. R. H. Jones

Business History, 2003, vol. 45, issue 3, 72-89

Abstract: The stagnation in demand for Scotch whisky from the late 1970s encouraged leading producers to switch from a production-driven to a market-driven approach to their industry. Their attempts to add value by building brands have been regarded by some commentators as simply an extension of existing practices. This article argues that a radical shift took place in the marketing mix in the mid-1980s, with attention increasingly paid to ensuring an optimal balance between product, price, promotion and place. The adoption of a strategy with a more focused approach to brand-building resulted in major structural changes in the Scotch whisky industry as firms integrated forwards so as to ensure that quasi-rents were not dissipated. Acquisitions and joint ventures with other international alcoholic beverage producers also occurred in an effort to increase global market coverage.

Date: 2003
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DOI: 10.1080/713999319

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