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

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  • S. R. H. Jones

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.

Suggested Citation

  • S. R. H. Jones, 2003. "Brand Building and Structural Change in the Scotch Whisky Industry since 1975," Business History, Taylor & Francis Journals, vol. 45(3), pages 72-89.
    • Handle: RePEc:taf:bushst:v:45:y:2003:i:3:p:72-89
    DOI: 10.1080/713999319
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