Diageo CEO admits it got into a ‘vicious cycle’ on marketing investment
Josh StephensonDiageo’s interim CEO believes the business was chasing growth by increasing marketing spend rather than investing in the areas of the business primed for growth.
Diageo’s interim CEO believes the business was chasing growth by increasing marketing spend rather than investing in the areas of the business primed for growth.
Since it kicked off its Premier League sponsorship, Guinness has become the number one beer for the football watching occasion in the on-trade, but its ambitions are much longer-term, as it looks to drive a deeper connection with the sport.
Every one in nine pints in Britain is now a Guinness, with the brand having made significant headway among women and younger adults, audiences which are traditionally harder to reach for beer brands.
Diageo, which saw profit decline 27.8% in the year to the end of June, will not chase pure cost-cutting at the expense of its brands, insists its interim CEO.
By tapping into “brand truths”, playing with memory structures and prioritising collaboration Diageo is targeting “triple wins”, says design boss Jeremy Lindley.
Diageo has driven strong growth in its tequila portfolio in North America and is now seeking to take this success worldwide. It’s on a mission to convey the versatility of tequila and its potential far beyond the lime and shots occasion.
With ready-to-drink the fastest growing category in alcohol, Smirnoff Ice believes it is perfectly positioned to attract Gen Z consumers.
In response to global uncertainty and heightened promotions among competitors, Diageo has continued its push into smaller-sized premium products to appeal to cash-strapped consumers.
Through brands including Smirnoff and Guinness, Diageo is investing in accessibility across advertising, design and experiences.
Accepting that not every innovation will succeed and learning to “celebrate the kills” is key to creating a culture where teams can push forward and grow, says Diageo’s breakthrough innovation director.
With Guinness becoming the official beer partner of the Premier League, as well as its partnership with the Six Nations tournament, how do non-drinkers really feel about the brand?
The Johnnie Walker and Guinness owner cut marketing spend by 2% in the first half of the year, as its new CFO puts the emphasis on “rigour” and returns.
Around one in ten pints sold in Great Britain is now a Guinness, with its parent company hailing brand-building, its Premier League sponsorship and 0.0 as key components in another strong period of growth.
By reframing the discussion around drinking culture, Guinness drove sales of its alcohol-free beer and changed perceptions of Ireland’s national day.
Two decades into its premiumisation strategy, Diageo believes a balanced approach to innovation has helped the drinks giant become an “in-culture brand builder”.
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