• Business Week, Wednesday, January 18, 2006 12:15 PM

Feeling the sting of stiff competition, Absolut vodka is taking drastic marketing steps. Not only will the super-premium Swedish vodka brand begin advertising on TV for the first time, but it is also rolling out its first new ad campaign in a quarter of a century. "With the number of new vodka brands and the amount of advertising people are exposed to increasing all the time, it's important for us to stand out amidst the clutter," says Eva Kemp-Forsberg, marketing vice-president for V&S Absolut Spirits. Absolut is now feeling the pinch as a slew of new brands and flavors hit the market. In recent years, more than 100 vodkas have launched in the U.S. alone, helping knock Absolut's share down from 58 percent in 1999 to 36.5 percent in 2004. The new ads feature classic moments in history and position the liquor as "The Absolute Vodka." They show what they call other classics that are "absolutes" in pop culture, such as footage from the Apollo moon landing under the banner "Absolute Road Trip." Another spot shows Marilyn Monroe entertaining troops with the tag line "Absolute Morale Booster."

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