Problem: Vodka is a clear, odorless and tasteless alcoholic beverage made by a process of distillation. All vodka, indeed all alcoholic beverages including whiskey and gin, have minute traces of chemical impurities in them even after being distilled. Although they cannot be tasted or otherwise detected by drinkers, the leftover chemicals are thought by many people to cause some of the symptoms of a hangover, especially headaches. By an additional distillation of the alcohol, the residual chemicals in vodka can be substantially reduced.

Suppose a spirits company wishes to introduce to the market a new brand of vodka that has undergone an additional distillation process. It will be the only brand on the market that is almost completely free of residual chemicals. The company approaches you, a marketing consultant for the spirits industry, for your opinion about how successful the new brand will be if they introduce it. Assume the brand of vodka has not yet been introduced to the market. From your knowledge of segmentation and positioning, how successful do you think the vodka would be. State clearly whether or not you would recommend the new brand be introduced, and explain briefly how you assessed the likelihood of the success or failure of the brand. Provide justifications and citations for your responses.