1. Why is a product placement often more effective than a television commercial? Tequila Avin is a...

1. Why is a product placement often more effective than a television commercial? Tequila Avión is a company created in 2009 by Ken Austin and Kenny Dichter aiming at producing, promoting and distributing Avión, a premium tequila that is produced by fifth generation agave growers in Mexico.

Avión’s distinct flavours are achieved through a combination of slow-roasting at lower temperatures to protect the natural flavours of the agave and an ultra-slow filtration process that creates an unusually smooth taste profile. Tequila Avión defines their target customer group as females aged 25–34 and males aged 35–45.

The Tequila Avión brand became famous in the US market by a product placement in 2010. The spirit played a major role in the seventh (2010) season of the HBO series Entourage, which saw the character Turtle trying to convince his actor friend Vince to promote the brand. Since Tequila Avión was still so new in 2010, it was sold only in two states at the time, so most viewers assumed it was just an invention of the show’s writers.

The challenge for the management was to make it available in stores and bars — and fast in order to capitalise on its new-found fame.

In 2012, the company Tequila Avión announced the signing of a joint venture agreement with Pernod Ricard for the purpose of producing and promoting tequila brand Avión. Pernod Ricard will hold a minority interest

(20 per cent stake) in this joint venture and will be the exclusive worldwide distributor of the brand.

Also in 2012 the first TV commercial was created for Tequila Avión.

By late 2014, Pernod Richard invested over $100 million in order to gain the majority stake in the Tequila Avion company.