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Alcohol Beverages Sponsored by

GuinnessIrish International BBDO

‘Changing the Course of a Superbrand’

COMPANY PROFILE(See page 29)

INtROduCtION ANd BACkGROuNd

It is a once in a lifetime opportunity to work on a world superbrand like Guinness. In Ireland Guinness has a unique place in the hearts and minds of us all. But back in 2006 we were drinking less and less of it as the core of regular drinkers aged, drinking habits changed, pub culture dwindled and younger, more strident drink brands snapped at its heels.

This is the story of how we have turned the course of Guinness so that it can weather the stormy seas of the Irish drinks market and surge ahead into a bright future as the pre-eminent beer brand in Ireland and an icon of the nation.

It was 2006, Guinness volume and share performance was coming under increasing pressure due to macro market and consumer trends - the brand was facing a volume trajectory of minus 8% per annum.

From 2002 marketing efforts had succeeded in slowing the decline in older Guinness adorers. But these guys were visiting the pub less and less and were incorporating more and more brands into their repertoire. It was imperative

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to broaden the appeal of the brand outside of the traditional 40+ year-olds loyal base.

In recent years there had been a significant increase in the number of ‘twentysomething’ men in the country and these are the people who deliver beer volume. All major beer and cider brands target these drinkers so the battle for a share of their minds would be intense; so we needed to develop a plan that was relevant, dynamic and massively engaging.

Marketing Objectives

Guinness accounts for 37% of Diageo Ireland’s sales (source: Diageo Internal Data) and Ireland is the hub of the Guinness brand’s world empire so the success of Guinness in Ireland was paramount to the future success of the parent company.

The marketing objectives were set out as:-

• To arrest the decline in Guinness volumes and begin to build back volume in the new (post smoking ban, post Celtic Tiger, changed attitudes to drink driving etc.) drinking landscape.

• To increase volume by 4% in the burgeoning take-home market where Guinness, as the archetypical ‘pub pint’, did not enjoy such a high regard.

• To move to a recruitment strategy based on more consumers, whatever their commitment to brand, drinking an additional serve of Guinness.

• To not alienate existing regular Guinness drinkers who accounted for 93% of the current volume (Source: Landsdowne Tracker)

• To recruit new regular drinkers by turning the regard ‘twentysomethings’ had for the Guinness brand into a love of the brand and make it more relevant to the way they thought and lived.

the task

Research told us that while the crucial ‘twentysomething’ target market admired the Guinness brand but they thought of it as their dad’s drink – rather staid and predictable. Importantly they only considered drinking it on highly ritualised occasions such as when meeting for a quiet chat with a mate mid-week, out with their dad, on occasional visits to a ‘real pint pub’, some sporting occasions or on a weekend in the West.

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It became clear that major task was to break Guinness out of the restricted image and occasion confines it was in danger of being consigned to without loosing the potent emotional strengths that it possessed.

the targets

Tight evaluation criteria were set to measure the success of the new strategy. To help achieve the share and volume targets we needed a positive shift across key brand image statements amongst the new target market within 12 months of the new campaign breaking.

cOMMunicatiOns task

We set ourselves the communications task of re-establishing the magic of the Guinness product and making the Guinness brand magnetic to new generation of Irish beer drinkers.

Most importantly we needed a ‘superidea’ that would integrate all the communication activities required to promote all the occasions, product formats and sponsorship properties Guinness ‘owned’. To work at the new frontiers of communications thinking we would require to change the perceptions of the new marketing aware, advertising literate and technologically savvy target market.

Diageo as world leaders in the drive to encourage sensible drinking rigidly adhere to a code of conduct that goes beyond any other voluntary or legislative controls. So at all times, from strategy to execution, we had to have a responsible attitude to the marketing of the brand.

the strategy

understanding the target consumerWe used quantitative and qualitative research to get a detailed picture of our new target market; we became so familiar with him we gave him a name - ‘Tom’. We identified:-

“He lives a fast-paced life with many claims on his time and many brands vying for a share of his pocket. He is always looking for heightened, more intense and fulfilling experiences.

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Silver Award - Alcohol BeveragesGuinness Irish International BBDO

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“He is grounded and keeps it real, rolling with the pressures and choices in his life, getting the most out of work and play. He sees the potential not the problem. He wants to be seen as adventurous, energetic, individualistic, popular and spontaneous but not chaotic or out of control.” The analysis gave us a key consumer insight‘Tom’ wants to create and take advantage of the many exciting possibilities in life.

Interrogating the productMore than any other alcohol brand Guinness is rich in powerful product truths. So we went and talked to the target market about the attributes of the unique Guinness liquid and see which of them would fit best with their wants, needs and desires.

‘Tom’ was interested in them all. All the brands he really valued, from trainers to cars and from crisps to TVs, had a strong product truth at their heart. He was interested in a drink whose appeal was grounded on more than just image. But one product truth stood out from the rest.

The energy and magic of the pour/serve/settle of the liquid. Expressing the truth as a benefit We needed to link the power of the product to how ‘Tom’ wanted to live life. Where these two discoveries met lay the key brand benefit to unlock growth.

• The surge of the Guinness liquid spoke to ‘Tom’ of the energy and vitality he valued so much.

• The surge was seen to stand for the dynamism and energy ‘Tom’ believed in.

• The surge was unique to Guinness - no other beer demonstrates its truth so well.

• The surge represents the randomness from which possibilities grow.

The sweet spot lay somewhere amongst ‘Surge’ and ‘Possibilities’. Permutations were tried and rejected until one expression emerged:-

“Guinness surges with life’s possibilities”

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‘Tom’ would believe this because he believed the unique Guinness surge has an energy and vitality that no other beer can match. He would be motivated to reassess the brand because the surge of Guinness in the glass speaks to him of power, possibilities, energy and dynamism.

ThE IdEa and CommunICaTIon aCTIvITy ThE BrIEf

We then set out to use this benefit as the link between what ‘Tom’ thought at that point in time summarised as: Guinness is a brand I respect and admire. But I think it is too staid and traditional for me to drink regularly.

To what we wanted him to think in the future:Guinness is an exciting and dynamic brand that connects with how I see my world.

Then we set tonal guidelines to ensure that all communications had the right ‘feel’ for the audience and the pre-existing brand equity.

The communications must be energetic and reflect the iconic status and substance of the Guinness brand.

Three creative teams were put to work and more than nineteen separate concepts developed. These were narrowed down to just four.

These concepts were rigorously analysed to see if they contained the necessary stretch for all the brand’s communication needs. Three passed the tests but would ‘Tom’ be engaged and motivated by them? Would they pass muster with heartland Guinness drinkers?

In late 2006, working with Sadek Wynberg Millward Brown we tested these concepts in group discussions and in-depth interviews.

Out of this qualitative research two concepts emerged. One was good at directly establishing the underlying brand truth that ‘Guinness surges’. The other developed the communication into more emotive territory of potential and opportunities. Both offered possibilities!

Creative development was undertaken to bring these two concepts together.

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And from this research we identified the pure expression of the idea that drove the communication.

“Guinness surges with life’s possibilities by surprising people with the energy held inside us all”.

The two scripts we refined became the commercials ‘Music Machine’ to introduce the new direction and ‘Dot’ to carry it on. With the unifying campaign line:-

‘Guinness, It’s Alive Inside’.

These scripts were then developed into animatics for quantitative testing using MBLink©. As we suspected ‘Music Machine’ – which concentrated on the life inside the liquid - was identified as the commercial to begin to change the course of Guinness. ‘Dot’ - less direct and a more radical shift - needed to be set up first.

Initiative Media embarked on planning how to get a new message in front of the new target. The overall media strategy was defined as:-

• Continue to protect the Guinness share-of-voice in a fiercely competitive media market. To effect change, Guinness had to shout loudest to be noticed by people who had other brands and other things on their minds.

• Using technology and innovation to engage a target market who wanted to take advantage of the many exciting possibilities in their lives.

Three key media were identified to deliver the plan:-

TelevisionTo effectively reach the younger core target market of 25 to 35 year-olds would require

• Very specific time buying. • A greater use of the Sky platform and late night programming. • Introducing a qualitative element to the strategy - selecting programmes

that reflected a feeling of being alive inside.

OutdoorOutdoor has a high level of innovation with the constant development of new formats, special builds and its own digital revolution. So outdoor was an ideal way to heighten the advertising experience and create a feeling of life and

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‘talkability’ around the brand. So as well as the usual outdoor sites Guinness has run:-

• The first use of holograms• Electroluminescence sites• LED screens• Dublin Airport arrival doors• Pizza-boxes• Reverse graffiti

…constantly interacting with the target audience in energetic and surprising ways.

DigitalAgain Guinness has been at the forefront of innovation:

• On-line ‘Islands’ have been used to launch television commercials.• Newsfeeds on Facebook to build involvement in sponsorships. • The increase in Internet access through mobiles has led to the opportunity

of advertising alongside the creation of a mini-site to drive recruitment.

The overall media strategy is about reaching the audience where they go to be entertained and informed. Demonstrating, through the media choice, that Guinness is a dynamic, magnetic brand that is in touch with how ‘Tom’ lives today…to paraphrase that well known aphorism - the media is the message.

Sponsorships‘Tom’ is passionate about The Guinness Hurling Championship and The Irish Rugby Team. The challenge was to make this passion more consistent with the new direction for the brand.

‘Surprising people with the energy held inside us all’ was a powerful springboard to creating above and below-the-line communications that would power up these sponsorships bringing them into line with all the other communications without loosing their magic.

• Rugby was supported with a new television commercial ‘From the Earth’.

• The longterm Guinness sponsorship of The Hurling Championships has been taken in a more energetic and involving direction with the advent of the Hurling Cubed roadshow.

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The ResulTs

The data reveals a clear progression from, and relationship between, engaging advertising, through increased brand salience among the specific target market identified, to a step-change in penetration and, ultimately, increased market-share. These effects have occurred with our target ‘Tom’ and the marketing challenge of re-introducing the new cohort of younger drinkers to Guinness, has been met.

Response to the advertisingPre-testing of the Music Machine concept was extermely promising. According to Lansdowne, respondents saw the concept as ‘interesting and distinctive and conceptually strong’. (Lansdowne Advertising Diagnostics – October 2007). Thanks to its ‘excitement’, ‘energy’ and ‘power’ they concluded that the concept had the potential to lead ‘consumers to a new feeling for Guinness’, and, importantly given the target market of 25-34’s, the advertising was seen to deliver a ‘young and modern feeling … starting a sense of re-appraisal for non-drinkers’.

(Ref Fig 1) Post-testing revealed an execution that delivered on engagement,

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Key Ratings Summary ‘Music Machine’

0.02

0.28

-0.35

1.72

-0.09Affect

BrandedMemorability

Diff vs.

CAWI

Norm

Communication

Brand Appeal

Engagement

Enjoyment

Branding

Understanding

F08

CAWI

Norm

3.61

7.68

3.73

4.61

3.27

3.70

5.96

3.71

4.33

3.62

Guinness

(Adopt/Accept/Avail)

‘Music Machine’

CAWI

Sept 07

3.55

3.65

3.14

Guinness

(Adorers)

‘Music Machine’

CAWI

Sept 07

4.51

6.01

AAA’s Adorers

Is a brand full of energy and movement 73% 53%

Is a brand that is vibrant and full of life 68% 55%

Is a brand full of potential and possibilities 54% 35%

3.90

4.13

3.52

Guinness

GDIC

(Adorers)

‘Tremors’

CAWI

Sept 07

4.90

7.83

Source: Lansdowne Market Research, September 2007

Fig 1

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communicating a sense of a brand full of energy, vibrancy and possibilities for its target audience of non-drinkers.

As one respondent put it “…this is a very trendy kind of ad, typical of Guinness. As a young person I can see the ad is aimed at the younger generation”

Another said ‘“I think this is a really good ad, something totally out of left field.’ Clearly, ‘Music Machine’ achieved its core objective of prompting re-apprasial amongst a new generation of Guinness drinkers.

BRand awaReness

(Ref Fig 2) Guinness spontaneous brand awareness increased from mid-50’s to mid-60’s in direct response to the ‘Alive Inside’ campaign.

(Ref Fig 3) Crucially, spontaneous brand awareness among the core target, 25-34 yr old non-drinkers, increased by 5 points from 27% to 32% in direct response to the advertising. Note: When SOV dipped so did awareness.

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Source: Lansdowne Research

Spontaneous Awareness for GNS is rising around Alive

Inside for all ages in Particular among 35-44 year olds

IOI - 3MMT

Fig 2

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Brand Commitment and affiliation

(Ref Fig 4) After ‘It’s Alive Inside’, strength of affiliation to Guinness improved significantly. This was most evident amongst those who had previously been most distant from the brand; so, outright rejection among 25-34’s fell from 40.4% in 2006 to 29.6%, while the proportion of those deemed ‘available’ to Guinness or ‘acceptors’ of the brand rose from 24% to 35% (MAT June 07 to June 08)

(Ref Fig 5) Brand Affinity among 25-34 yr olds increased from 21% to 24% in ROI and 20% to 23.8% in NI.

(Ref Fig 6) The net effect was to cause a step-change in brand penetration, from 21.3% to 25.6 among 25-34’s, or 13,379 new Guinness drinkers, a promising consumer base for the future.

market Share In a beer market that’s been under pressure (LAD -2.1% MAT June 07 to June 08 – Source: Nielsen), Guinness market share has increased during the period

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Source: Lansdowne Research

Spontaneous Awarenesss ROI 25-34 non drinkers

0

5

10

15

20

25

30

35

40

Sep 0

6

Oct 0

6

Nov

06

Dec

06

Jan

07

Feb 07

Mar

07

Apr

07

May

07

Jun

07

Jul 0

7

Aug

07

Sep 0

7

Oct 0

7

Nov

07

Dec

07

Jan

08

Feb 08

Mar

08

Apr

08

May

08

Jun

08

First mention Total spont SOV

ROI big increase in awareness

after launch of campaign sees drop with drop in sov…

1. ACTIVITY GOAL: Increase Top of Mind

Awareness among 25-34 yr old non drinkers

from 4% to ??% by June F09.

Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08

5,416,278 3,809,672 3,436,519 4,972,774 1,827,848 2,603,524 3,012,524 3,873,685 5,950,021 5,095,046 4,486,323 5,074,893 7,941,767 4,164,001 3,792,892 4,870,686 2,247,057 2,472,775 2,583,126 3,912,743 5,197,504

Total mentions

Jun

07

MAT

Jun

08

MAT

Guinness 25.88 27.22

Beamish 3.87 6.01

Murphys 6.59 7.23

Tracking awarness among non target is

confusing. It could drop because the non-

drinkers of the past are now drinkers.

Fig 3

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Source: Lansdowne Research

10.7 9.9 8.8 10.4

15.8 17.516.6 13.9

8.3 6.86.4 8.1

4.96.8 7.1

16.811.5 12.5

16.6

9.2

11.414.7

15.5

34.337.8

34.029.0

4.8

Jun

05

MAT

Jun

06

MAT

Jun

07

MAT

Jun

08

MAT

Reject

Accepters

Occasional Adopters

Regular Adopters

Loyal Adorers

Staunch Adorers

Jun

05

MAT

Jun

06

MAT

Jun

07

MAT

Jun

08

MAT

4As per Age target ROI

25-40 Male ROI 25-34 Males ROI

ROI: Trend of 4As over Time

Growth in Adorers/Acceptors and Decrease in Rejecters

Available

9.0 7.6 6.3 8.0

13.6 15.313.4

12.9

7.9 7.27.6

8.2

5.27.2

6.8

16.911.5 13.5

18.1

10.2

12.816.7

16.5

36.840.4

35.329.6

5.5

Reject

Accepters

Occasional Adopters

Regular Adopters

Loyal Adorers

Staunch Adorers

Available

Fig 4

Source: Lansdowne Research

36

14.3

21.5

35.7

53.3

40

19.3

28.8

38.3

57.3

35

9.3

24.3

36.3

51.5

37

12.7

28.1

35.3

54.3

Absolutes of Affinity up and Quality for Guinness.

Mat

June ‘07

%

Total Males

18-24 Males

25-34 Males

35-44 Males

45+ Males

Absolutes of Affinity

Mat

June ‘08

%

Total Males

18-24 Males

25-34 Males

35-44 Males

45+ Males

Absolutes for Quality

Mat

June ‘07

%

Mat

June ‘08

%

ROI NI

29

13.7

20

29.5

39.7

31

17.6

22.7

30.9

40.5

29

15.6

23.8

26.1

38.5

34

18.3

30

31.6

44.4

Fig 5

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of ‘It’s Alive Inside’. Share in the on-trade sector rose from 33.8% to 34.7%, at the expense of ciders and lagers, while off-trade share also increased, with a 5.6% rise in volume from FY07 to FY08 (surpassing the 4% target).

RetuRn on Investment

With the brand having recruited 13,000 new 25-34 year-old drinkers, increased share is hardly surprising and the brand did so by 0.9% of the total LAD market. This market is valued at €3.189bn in the Republic alone, making the brand’s share rise worth €28.7m in sales revenue.

This share rise in itself covers the brand’s entire Republic of Ireland A&P investment.

According to the latest figures (August 28th 2008) an increase of A&P spend of €6 million has given a +2.3% increase in net sales versus a -7% decline in the previous financial year. This is directly attributable to “It’s Alive Inside” and is the first growth year for Guinness sales in the 21st century.

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Source: Lansdowne Research

28.5

n/a

n/a

0.9

0.6

25.2

0.5

1.1

24.1

10.1

26.1

0.3

0.7

25.6

11.7

28.5

n/a

n/a

1.5

0.7

21.3

0.3

0.9

20.9

9.1

25.6

0.3

0.0

24.9

12.9

25-34

Beamish

Murphys

On trade

Off trade

MAT

Jun ’06

%

MAT

Jun ’07

%

MAT

Jun ’08

%

R4M

Jun ’06

%

R4M

Jun ’07

%

R4M

Jun ’08

%

ROI 25-34 Male: 374,874 P12M: 311,145

Penetration increase from 21.3 to 25.6: 4.3% of 311,145 =

13,379 new P4W consumers in F08 which is promising for F09

Guinness

Guinness growth among 25-34 males

GNS ON TRADE – OFF TRADE SPLIT

Fig 6

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