Warc, 5 August 2013
LONDON: Diageo, the spirits group, is attempting to drive up
premium sales in Western Europe by focusing on experiential marketing.
In spite of the financial challenges which are discernible
in many of the region's leading markets, John Kennedy, president of Diageo's
Western European operation, was optimistic about its prospects.
"Europe is the global luxury capital," he told
Bloomberg. "We're talking about affordable luxuries, not driving a Porsche
through the centre of town."
To tap this potential, the firm is providing unique
experiences for affluent customers, rather than simply relying on conventional
communications.
"We're not going to just make a television
advert," said Kennedy. "We'll have big, spectacular experiential
marketing."
One example of this has been chartering a luxury yacht for
the John Walker & Sons Voyager campaign, which hopes to raise awareness of
offerings like Odyssey, a whiskey commanding £750 per bottle.
As detailed by an entry to the Warc Prize for Innovation,
this trip began in Asia Pacific, but has recently visited cities like London
and Athens. High-profile celebrity parties are a key component of the
initiative.
Diageo is also weighing up whether to build a Johnnie Walker
sales branch for Europe, having opened two such "houses" in China -
based in Shanghai and Beijing - where the typical bottle sold costs £1,500.
At present, single-malt whiskies make up the body of
Diageo's reserve brand sales in Europe, a category which expanded by 11% last
year.
Marketing expenditure on its reserve brands has increased in
Western Europe, where the company has cut back its investment in promotions.
Ciroc vodka and Don Julio tequila are among the other
premium brands with particular room for growth, according to Kennedy.
Data sourced from Bloomberg; additional content by Warc
staff
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