Teaching)an)“old)dog,)new)tricks”) Teaching)an)“old)dog ... ·...

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Teaching an “old dog new tricks” – how Johnnie Walker modified a global approach to crack markets” Teaching an “old dog, new tricks” How Johnnie Walker adapted a successful global strategy to accelerate growth in emerging markets

Transcript of Teaching)an)“old)dog,)new)tricks”) Teaching)an)“old)dog ... ·...

Page 1: Teaching)an)“old)dog,)new)tricks”) Teaching)an)“old)dog ... · Evolu9on:#The#Johnnie#Walker#Brand#Growth#Model:# Based)on)very)clear)stages)of)brand)development New markets

Teaching  an  “old  dog  new  tricks”  –  how  Johnnie  Walker  modified  a  

global  approach  to  crack  markets”  

Teaching  an  “old  dog,  new  tricks”  

How  Johnnie  Walker  adapted  a  successful  global  strategy  to  accelerate  

growth  in  emerging  markets  

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CharacterisAcs  of  Winning  Global  Brands  

EffecAve  Brands  Study  of  250  Global  brands  

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“The most successful “global brands” find a universal insight that resonates with target consumers. There is no such thing

as a ‘global consumer’, just millions (make that billions) of individual ones. That said, what great brands do

magnificently well is zero on those consumers’ sweet spots”.

De  Swann  Arons  and  Van  Den  Driest,      The  Global  Brand  CEO  

It  all  starts  with  insight  –    a  universal  truth  

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“…..  we  need  to  think  about  universal  need,  about  the  bigger  values  of  hope  and  dreams…..you  know  the  drivers  of  our  lives.    We  need  to  ask  ourselves,  what  can  I  do  to  ignite  people’s  spirit”  

Tex  Gunning,  AkzoNobel  DecoraAve  Paints  Division  CEO  

Delivered  by  a  Purposeful  posi9oning  

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Inspiring  Men  Across  the  World  to  Progress  

IsI  

IJohnnie  Walker  -­‐  Inspiring  

Men  Across  the  World  to  Progress  

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Johnnie  Walker  Sales  Volumes  1996-­‐1999  

9 .5

10

10 .5

11

11.5

12

1996 1997 1998 1999

Million  9L  cases

Diffuse  Brand  Ageing  user  base  Fragmented  Management  

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We  focused  first  on  the  posi9oning  and  crea9ve  idea  First  priority  -­‐-­‐  get  the  brand  posi9oning  right    

•  Universal  human  insight    -­‐  the  universal  truth  

•  Purposeful  posiAoning    -­‐  the  brand  essence    

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Key  learning…..  

•  Whisky  category  is  all  about  success  (status)  

•  The  definiAon  of  success  was  changing  

•  Progress  was  the  most  powerful  expression  of  success  in  the  21st  century  

Men  across  the  world  desire  to  make  progress  in  their  lives  

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The  resul9ng  Purposeful  Posi9oning  ....  

Johnnie  Walker  inspires  men  to  progress  

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 Needed  a  consistent  visual  expression  globally  

•  DisAncAve  •  Own  able  •  Powerful  •  ResonaAng  •  Enduring  

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The  icon  was  turned  around  to  walk  forward...  

…in  order  to  ‘brand’  progress  with  Johnnie  Walker  

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Johnnie  Walker  Global  Sales  ($B)  

2.0

2.5

3 .0

3 .5

4 .0

4 .5

5.0

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Value  Sales  $  billion

KEEP WALKING

2008  IPA  EffecAveness  Award  Gold  –  Best  Global  Campaign  of  Decade  

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Two  phases  of  development  

•  Ini9ally  control  the  launch  to  insure  quality  and  consistency  –  minimal  variaAon  of  the  adverAsing  and  “growth  strategies”  

•  Accelerate  growth  in  emerging  economies  via  a  more  tailored  approach  – Addressing  stages  of  growth  – Considering  unique  compeAAve  situaAons  – AdapAng  to  cultural  nuances  

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Evolu9on:  The  Johnnie  Walker  Brand  Growth  Model:  Based  on  very  clear  stages  of  brand  development  

New markets where the

brand is just launched.

Early stage of brand

development – basic category credentials but not does yet

enjoy a distinct identity and emotional

attributes less developed.

Differentiated & powerful brand

Mature brand – risk of

becoming main stream

! " # $

Volu

me

Time (years)

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Understanding  and  Modeling    Cultural  Differences  

Ephemeral  

Behavioral    

Cultural  

Material  

Short  term  semioAc  difference  driven  by  “pop  culture”        

Specific  to  category  –  e.g.  locaAon,  rituals  and  or  occasion    

Commonly  held  learned  behaviors  unique  to  culture,  religion  or  society  

O_en  rooted  in  economics    -­‐e.g.  wealth  aspiraAon    

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Addressing  the  Chinese  Market  Opportunity  –  2008  -­‐  2010  

•  Johnnie  Walker  was  relaAvely  unknown  and  quite  aloof  –  Chivas  Regal  dominated  the  market  

•  DefiniAon  of  progress  was  different  –  shared  vs.  individual  

•  “Keep  Walking”  idea  was  abstract  –  not  connected  with  Chinese  drinking  experience  

•  Iconography  was  not  established  –  brand  not  visible  •  Retail  was  Chivas  dominated  

Building  Affinity  and  Accessibility  

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Through  the  line  China  program  

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On  Line  

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Public  celebraAons  

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On  Premise  On  Premise  –    Icon  JW  outlets  in  

Shanghai  and  Beijing  

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In  Store  In  store  

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Accelera9ng  Growth  in  Africa  

•  Spirits  consumpAon  underdeveloped  vs  rest  of  world  –  e.g.  0.3  L/year  in  Ghana  vs.  7.4  in  USA  

•  Large  beer  markets  •  Scotch  very  small  and  exclusive  •  Johnnie  Walker  not  well  known  •  Split  economic  opportuniAes  emerging  

– Tiny  elite  –  but  growing  –  did  drink  Scotch  – Emerging  middle  class  –  largely  drink  beer  

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First  step  –  building  local  affinity    Haile  Gebrselassie    

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Target  the  high  end  with    Africa  specific  experiences  for  Blue  Label  

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 Further  localize  the  story  to  make  it    even  more  emoAonally  relevant  –  to  the  

emerging  middle  class    

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Localize  the  experience    –  bring  the  product  and  users  even  closer  to  home    

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Address    economic  barrier  -­‐    unit  price  and  access  in  the  emerging  middle  class  locaAons  –  

the  shibeens  

200  cl  -­‐  $5.43  for  6  servings    =  equal  to  pint  of  Guinness  

60%  Growth  in  South  Africa  since  launch    Launched  in  Ghana  and  Nigeria  

750  cl   200  cl  

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Johnnie  Walker  Global  Sales  ($B)  

2.0

2.5

3 .0

3 .5

4 .0

4 .5

5.0

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Value  Sales  $  billion

KEEP WALKING

2013  

Driven  by  accelerated  Emerging  Market  growth  

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Key  Lessons  

•  Global  Growth  Model  – Universal  truth  – Purposeful  posiAoning  –  Immersive  experience  

•  Staged  growth  tacAcs  for  maturity    – Adapt  for  local  culture    – Adjust    for  local  issues  

•  Emerging  Market  PrioriAes  – Build  affinity  and  accessibility    

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