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The Chivas Regal Effect, copyright Picturejockey : Navin Harish 2005-2012

5th March 2013

The Chivas Regal Effect

“Despite our best efforts, our sales chart is still flat.”

“Yeah, I know. We have to figure out a way of increasing our profits or we will die.”

“Why don't we increase the price of our whisky?”

“That is the dumbest thing I have heard. Theoretically it will increase the profit but the decline in sales because of higher cost will actually mean even less profit. I think we should lower the price. Lower price will increase sales and profits.”

“In an idea world, not in the world we live in mate.”

“What do you mean?”

“We must increase the price of the whisky and not just that, we will make it look pricey as well.”

“And how do you suppose to do that?”

“See most people don't judge whisky by the taste. They go by perception. If a whisky costs more, is placed next to whiskies that are better, people will automatically assume it is a better whisky. Perception is more real than reality my friend.”

“Do you think it will work.”

“Oh, yes. It will.”

This is called the The Chivas Regal Effect - people assume something is better because it is expensive. This is how Chivas Regal became famous- by increasing their prices. Think about it, when you hear whisky connoisseurs or people pretending to be whisky connoisseurs talking about their favorite whisky, it is almost always some Single Malt. None of them say "I like Chivas Regal" or I love Johnny Walker". No, it is always some single malt that you have ever heard about. Inspite of that, have you wondered why the most famous and largest selling whiskies are whiskies like Chivas Regal. The answer is The Chivas Regal Effect.

Whisky Bottles

Here are some more shots of Whiskey Bottles.