RAKIA MARKETING MISTAKES AND HOW TO AVOID THEM

Abstract

The aim of this paper is to improve the business of Serbian brandy (rakia) producers. One of the main reasons for the bankruptcy of small businesses is their self-confidence in the uniqueness and quality of their products and the indirect determination of high prices. With a marketing approach, i.e. knowing the wishes and attitudes of consumers and with proper communication with target markets, this mistake can be avoided. Using the 4P marketing mix model, the marketing mistakes made by small distilleries were highlighted. Comparing the Serbian brandy market with the whiskey market, which is more than a billion times bigger, the author argues that Serbian rakia producers neither know their consumers nor know what flavors and types of brandy they can place on the market. The author concludes that the basic problem in the marketing of Serbian brandies is the determination of unrealistically high prices above the purchasing power of consumers, which is the result of a completely unrealistic and unfounded attitude that Serbian rakia is among the highest quality spirits in the world. This paper is the first work that focuses on the marketing of local Serbian brandies, which is its greatest value. The contribution of this paper is that it abounds in practical advice and instructions on how to increase the success of Serbian brandy producers in the market of spirits.