The 50:50 & #BANNER1 & # joint venture between liquor majors Radico Khaitan and Diageo is planning to launch two new whiskey brands in the Indian market. It is learnt that the two brands will be in the low and mid end categories of the mass market.
agencyfaqs! has learnt from sources close to the development that the creative duties of the two brands have been awarded to Leo Burnett and McCann-Erickson. Both agencies are currently working on the brand names and packaging designs for the two products.
Sources close to the development declined to reveal the exact size of the business, saying that it would be premature to do so. However, the source said that the media spends will be substantial and at par with other liquor brands. But when agencyfaqs! probed further, it learnt that the media spends on the the two brands will be in the range of Rs 25-30 crore.
The pitch for the business was called in November 2006 and it saw the participation of quite a few leading agencies.
In fact, the liquor company had asked for a strategic presentation rather than a creative one. It is also learnt that the participating agencies presented case studies on liquor brands in the same category in the Indian market.
The JV is seen as part of Radico's overseas expansion plans, while Diageo hopes to leverage profits from Radico Khaitan's distribution and marketing strength. Diageo owns premium scotch brands such as Johnnie Walker and vodka brands such as Smirnoff, which are quite popular in the Indian market. Radico, on the other hand, already has strong whiskey brands such as 8PM and Whytehall in the Indian market.
© 2006 agencyfaqs!