We were recently reading about Radico Khaitan and came across some interesting insights about
8 PM whisky brand
Magic moments
A small thread 🧵(1/n)
8 PM whisky brand
Magic moments
A small thread 🧵(1/n)
8PM was the first whisky brand in the country to hit the 1 Million cases sold mark within 1 year of its launch
Magic Moments’ had a 50% of the entire vodka market share in the country
But it wasn't always easy for the company (2/n)
Magic Moments’ had a 50% of the entire vodka market share in the country
But it wasn't always easy for the company (2/n)
When the family assets were divided, Abhishek Khaitan and his father Lalit Khaitan got Rampur distillery
At the time the company was losing Rs 10 Cr each year and had liabilities of Rs 40 Cr. The company had recently lost its biggest client Shaw Wallace (3/n)
At the time the company was losing Rs 10 Cr each year and had liabilities of Rs 40 Cr. The company had recently lost its biggest client Shaw Wallace (3/n)
Abhishek didn't give up and took up a bigger challenge
During a short course at Harvard he learnt that commodities come at the bottom of the pyramid while brands come at the top
He decided that he didn't want to be a bottler anymore and would have his own brand (4/n)
During a short course at Harvard he learnt that commodities come at the bottom of the pyramid while brands come at the top
He decided that he didn't want to be a bottler anymore and would have his own brand (4/n)
It was not easy convincing his father and the senior management
With the capital that the company had they could make just one attempt and if it failed the company would go bankrupt
Eventually, Abhishek convinced everyone and started work on the whisky brand 8PM (5/n)
With the capital that the company had they could make just one attempt and if it failed the company would go bankrupt
Eventually, Abhishek convinced everyone and started work on the whisky brand 8PM (5/n)
Abhishek had been in love with some ads by Cadbury’s & Fevicol
he asked around and found that the man behind them was Prasoon Pandey
They hired him to market ‘8PM’
When Prasoon first presented, Abhishek was shocked, there was no glamour and it was black & white (6/n)
he asked around and found that the man behind them was Prasoon Pandey
They hired him to market ‘8PM’
When Prasoon first presented, Abhishek was shocked, there was no glamour and it was black & white (6/n)
The ad was presented to the mgmt who at the end of the ppt asked what the ad even meant
Abhishek was dismayed, but due to lack of time and budget and due to Prasoon’s conviction went ahead with it
The ad went on to become one of the greatest hits youtube.com (7/n)
Abhishek was dismayed, but due to lack of time and budget and due to Prasoon’s conviction went ahead with it
The ad went on to become one of the greatest hits youtube.com (7/n)
Magic moments - During a trip to US, Abhishek noticed that a major part of the population there was drinking Vodka
He realised that it was one of the most sold liquors around the world and was a personal favourite amongst youngsters and women (8/n)
He realised that it was one of the most sold liquors around the world and was a personal favourite amongst youngsters and women (8/n)
Given the changing culture in India, he identified it to be a great opportunity and thus began work on another iconic brand ‘Magic Moments’
They spent a long time perfecting the blend and imported grain spirits from France specially for this purpose (9/n)
They spent a long time perfecting the blend and imported grain spirits from France specially for this purpose (9/n)
Even the labeling wasn’t done the traditional way and they made over 15 trips to Germany to get hold of direct printing technology
These measures gave them the confidence to price it at a premium (10/n)
These measures gave them the confidence to price it at a premium (10/n)
He said ‘If White Mischief was earning x then Magic Moments should earn 5x’ And he finally achieved that
In 2 years, Magic Moments had a market share of over 60% in the prestige segment in Vodka
Disclosure: Not a reco to buy/sell, nor do we have any coverage on the stock (end)
In 2 years, Magic Moments had a market share of over 60% in the prestige segment in Vodka
Disclosure: Not a reco to buy/sell, nor do we have any coverage on the stock (end)
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