How to Decommoditize Your Product: The Grey Goose Story

The company’s first foray into marketing its product was the Grey Goose Martini. As one of the most expensive cocktails in New York City, a martini costs $15-20 dollars at a bar or restaurant. However, when Grey Goose marketed their cocktail in 1987 by selling it for 75 cents to bartenders and restaurants who served them free as part of their customer base custom to increase sales volume on high margin products like vodka and caviar., they found themselves not only with increased revenue from more orders but also capturing customers that would have never seen before because they cannot afford these types of drinks

The “grey goose bottle moving goose” is a story of how Grey Goose successfully decommoditized their product. The company was able to do this by changing the image of their logo, and then focusing on creating a new brand identity that would appeal to a younger demographic.

Have you heard the phrase “decommoditize” before? Most likely not. Surprisingly, it is a tactic utilized by some of the world’s most successful corporations to increase their profit margins. To comprehend what it means to decommoditize anything, however, we must first grasp what a commodity is. So,

“What is a commodity?” I ask.

“A commodity is an economic product or service that possesses complete or significant fungibility, which means that the market accepts instances of the good as comparable regardless of who created them,” Alexa explains.

Perhaps Alexa needs the assistance of a translation. A commodity is a product or service that may be used interchangeably with other similar items or services. Commodities are often utilized as raw materials in the manufacture of other items or services. The quality of a particular product may vary somewhat from producer to producer, but it is generally consistent.

Let’s get started now that it’s out of the way. Commodities are necessary and widely utilized in daily life. Metals like gold, copper, and iron are among them. Fuels like gasoline and ethanol are among them. Agricultural items such as wheat, maize, cereal, cocoa, and coffee are also commodities.

Commodities are well-known for their “elastic” demand. When the price of an item has a big impact on how much people want to purchase, it’s called elastic demand. They’ll purchase a lot more if the price drops just a bit. They’ll basically quit purchasing if prices climb even a little.

Did any well-known firms spring to mind as you read the names of the various commodities? Did you think of Kellogg’s when you heard the word cereal? Did you think of Nestlé when you saw chocolate? What is the reason behind this? It’s completely illogical. Why should we care where we receive commodities if they are interchangeable? What difference does it make whether our chocolate comes from Nestlé? Or our Kellogg’s cereal?

We wouldn’t care about a brand name if we treated these items merely as commodities. We’d simply purchase the lowest choice and go about our business. You and I, on the other hand, do not do so. We’re looking for a well-known brand. Decommoditized items are what we’re looking for. To get more into this concept, I’ll talk about Grey Goose, a firm for whom I have a lot of respect.

How to Decommoditize Vodka Successfully

Grey Goose is a vodka manufacturer. “Grey Goose isn’t simply vodka!” I can already hear the shouts. It has a delicate flavor, and its water originates from natural springs in France…” Please don’t make me suffer. Several blind taste tests have shown that Grey Goose is no better tasting than a middle-tier vodka like Titos or Smirnoff.

I’m not trying to make a negative statement about Grey Goose. It’s one of my favorite vodkas, in fact. It was my drink of choice on fraternity dating nights in college. I anticipated that purchasing Grey Goose would prevent me from seeming to be the party’s most broke youngster. When in actuality, I couldn’t even afford a Starbucks venti macchiato.

But, if Grey Goose doesn’t taste any better than cheaper vodkas, why do we keep purchasing it? To grasp this, we must go into the history of Grey Goose and learn how it all began.

The History of Grey Goose

Grey Goose was founded by Sidney Frank in the summer of 1997. His plan was to create a high-end vodka for the US market. To set himself apart, he decided to make the vodka using natural spring water from France that had been filtered through Champagne limestone. He’d then utilize French wheat cultivated nearby. Once the vodka was made, he packaged it in a unique smoked glass container with French geese in flight and sent it in wooden boxes similar to wine crates. Doesn’t it sound posh?

EXACTLY. It simply has a nice ring to it. Have you noticed anything unusual about the components in Grey Goose? It is made from wheat, which is a common ingredient in the production of vodka. Water is the other major component. Water is water, whether it comes from the Himalayas, the Netherlands, or Canada. Essentia or Fiji are somewhat more expensive than Poland Spring or Aquafina in a supermarket shop, but the difference is negligible. So, how did Grey Goose manage to price its vodka 30-40% more than its rivals while still being profitable?

Grey Goose’s Marketing Strategy: It’s All About Decommoditization

Grey Goose was able to charge these higher costs because they decommoditized their product, as I’ve mentioned throughout this piece. But how did they manage to achieve it? They were able to do this by using a strategy I suggested last week: commitment and consistency. If you remember, I mentioned dedication and consistency as one of the six weapons of influence mentioned by Robert Cialdini in his book Influence in “The Biggest Mistake Founders Make When Starting Their Business.”

The concept of consistency causes people to behave irrationally. Anything that can put the human brain on autopilot, as you would expect, is a powerful marketing weapon. When creating the Grey Goose brand, Sidney Frank employed the principle of consistency in two areas.

  • Design Consistency
  • Price consistency is important.

First, he created a bottle that met American standards for what an expensive bottle should look like. He may not have been able to identify his product on the basis of flavor, but he was certain to do so aesthetically. As a result, Grey Goose stands out with its avant-garde frosted bottle finish and high-end packaging.

Second, he overcharged for his bottle, giving it the appearance of a high-end product. He was able to convince people that his product was truly a superior tasting vodka since many people link money with quality.

He had no influence over what transpired afterwards, but it’s worth remembering. When you purchase a gorgeous, costly bottle of Grey Goose, you don’t just expect it to be good; you want it to be excellent. “If it’s not amazing, why the hell didn’t I just purchase Svedka and go on with my night?” people will think.

What is the difference between expecting and requiring something to be good? Consider going to a basketball game. You anticipate a nice basketball game when you watch it on TV. If it isn’t, well, you can always change the channel. When you pay money to attend a basketball game and sit in the arena, though, you expect it to be excellent. Basketball tickets aren’t cheap, so make sure you get your money’s worth… which you do. So, even if the game isn’t amazing, you’ll seek for ways to have fun so that you can justify spending your time and money.


In the commodity sector, you must decommoditize your product to stand apart. This often includes conveying the appropriate narrative. What sets your product apart from the competition is its narrative, not its components. In the commodities industry, don’t try to be a low-cost supplier. Because commodity prices are consistent across the board, competing on price is a lost tactic. Grey Goose established a narrative, and that narrative is what propelled them to billion-dollar status. Let us take a page from Grey Goose and take pride in our history while decommoditizing wherever possible.

Grey Goose Vodka is one of the most expensive vodka brands in the world. However, the company has a unique story to tell about how they became so successful. Reference: why is grey goose vodka so expensive.

Related Tags

  • grey goose history
  • grey goose price drop
  • how many times is grey goose distilled
  • balinoff vodka vs grey goose
  • does grey goose have sugar
Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like