Cristina Diezhandino, Global Chief Marketing Officer of Diageo, shares invaluable insights into the fundamental themes that drive Diageo’s success. Her perspectives provide a comprehensive understanding of how Diageo continues to lead the spirits industry while staying true to its storied past.
Here are the key marketing learnings from her approach, which can serve as valuable takeaways for marketers across industries.
The Business of Socialising
Diageo, a global leader in the beverage alcohol industry, is fundamentally in the business of socialising. Cristina Diezhandino articulated this with remarkable clarity, emphasising that Diageo’s brands are deeply embedded in social interactions and celebrations worldwide. From intimate gatherings at home to grand celebrations at bars and restaurants, Diageo’s products play a pivotal role in facilitating meaningful social experiences.
“Post-COVID, one of the most pressing desires from everyone was the real wish to spend time with people, the real wish to socialize with family and friends,” Diezhandino noted. This observation underscores the universal human need for connection, which Diageo’s portfolio of brands uniquely caters to. Iconic names like Johnnie Walker, Guinness, and Talisker have become synonymous with celebration and togetherness.
Diezhandino highlighted the emotional resonance of Diageo’s brands, stating, “Our brands have a role in that space that makes them relevant in a way that is special.” This special relevance is not just about the quality of the products but also about their ability to enhance social experiences, making moments memorable. Whether it’s a casual Friday night drink or a significant life event, Diageo’s brands are there to enrich the experience, fostering a sense of connection and celebration.
Marketing Lesson 1: Embrace the Business of Socializing
- Focus on Social Experiences: Position your brand as an enabler of social interactions. Diageo’s brands enhance gatherings and celebrations, making them an integral part of memorable moments.
- Understand Consumer Desires: Post-COVID, the desire to socialize increased significantly. Align your brand with these fundamental human needs to create deep emotional connections with consumers.
Balancing Brand Heritage and Innovation
One of the key challenges and triumphs of Diezhandino’s role as CMO is maintaining the heritage of Diageo’s iconic brands while driving innovation to keep them relevant in a rapidly changing market. She eloquently described this as being a “custodian of phenomenal iconic brands” and simultaneously being “proud innovators.”
Diageo’s brands, some of which have been around for centuries, carry a rich legacy that commands respect. Diezhandino mentioned, “Once you go to Scotland and spend time in Scotland, understand the land, the distilleries, how things are made and the master blenders, the art that goes within, it’s incredible.” This deep appreciation for the craftsmanship and history of brands like Johnnie Walker, which has been around since 1820, highlights the importance of heritage in Diageo’s strategy.
However, heritage alone is not enough to sustain relevance in today’s fast-paced world. Diezhandino stressed the need for innovation, stating, “We are very proud innovators… thinking about the future is very present, and we care a lot about that.” Diageo’s commitment to innovation is evident in their continuous efforts to develop new products and packaging solutions that meet contemporary consumer demands.
Marketing Lesson 2: Leverage Brand Heritage
- Respect Brand Legacy: Value the history and craftsmanship behind your brand. Heritage can be a powerful tool to build trust and authenticity.
- Tell the Brand Story: Share the rich stories and traditions of your brand to engage and educate consumers, fostering a deeper connection.
Marketing Lesson 3: Drive Continuous Innovation
- Stay Ahead of Trends: Constantly innovate to meet evolving consumer demands. Diageo invests in new product developments and sustainable packaging solutions.
- Balance Tradition with Modernity: While honoring the brand’s past, introduce contemporary elements to stay relevant. This balance attracts both loyal customers and new audiences.
The Fusion of Creativity and Precision
Cristina Diezhandino’s leadership philosophy embodies a balanced approach she calls “creativity with precision.” This principle combines the beauty and art of branding with rigorous business acumen. “We are effectively investing funds that come from shareholders and we must ensure that investment is well spent,” she explained. This approach ensures that while Diageo’s brands continue to inspire and delight consumers, they also deliver tangible business results.
Marketing Lesson 4: Foster Creativity with Precision
- Combine Art and Science: Blend creative brilliance with precise business strategies. Ensure that your creative efforts are backed by data and deliver measurable results.
- Embrace Technology: Utilize advanced tools and technologies to enhance precision in marketing efforts. This approach can improve decision-making and ROI.
Commitment to Sustainability
Sustainability is a significant driver of innovation at Diageo. Diezhandino emphasized that the company prioritizes doing the work first and then communicating their efforts. This commitment is evident in initiatives like the development of paper bottles and circular packaging.
Marketing Lesson 5: Commit to Sustainability
- Prioritize Environmental Stewardship: Implement sustainable practices in product development and packaging. Diageo’s initiatives like paper bottles and circular packaging highlight their commitment to reducing environmental impact.
- Communicate Your Efforts: While focusing on actions, share your sustainability achievements with consumers to build brand credibility and loyalty.
A Diverse and Inclusive Culture
Diezhandino also highlighted the importance of diversity, equity, and inclusion in Diageo’s marketing strategy. This commitment extends to the makeup of teams, agency partnerships, and the content they produce.
Marketing Lesson 6: Cultivate a Diverse and Inclusive Culture
- Promote Diversity and Inclusion: Ensure your teams and marketing content reflect diversity. This approach not only broadens perspectives but also resonates with a wider audience.
- Collaborate with External Partners: Work with agencies and partners who share your commitment to diversity and inclusion to create more impactful campaigns.
Emotional Intelligence in Leadership
Effective leadership, especially in times of crisis, involves maintaining composure and providing reassurance. Diezhandino’s approach combines trust in her team’s abilities with detailed engagement, fostering a collaborative and motivated work environment.
Marketing Lesson 7: Lead with Emotional Intelligence
- Provide Balance and Stability: In times of crisis, maintain composure and provide reassurance. Effective leadership involves navigating challenges with a calm and balanced approach.
- Empower Your Team: Trust in your team’s abilities while staying engaged with their work. This balance of autonomy and support fosters a collaborative and motivated work environment.
Marketing as a Business Leadership Function
Diezhandino emphasized that to be a successful marketer, one must be seen as a business leader within the organization. This involves building strong relationships with financial leaders and demonstrating the impact of marketing investments on business results.
Marketing Lesson 8: Be a Business Leader First
- Focus on Business Outcomes: Elevate the marketing function by demonstrating its impact on business results. Marketers should be seen as key business leaders within the organization.
- Build Credibility: Develop a strong relationship with financial leaders like the CFO to ensure marketing investments are recognized and valued for their contributions to the business.
Conclusion
Cristina Diezhandino’s insights shed light on how Diageo navigates the complexities of being a global leader in the spirits industry. By positioning itself firmly in the business of socializing, Diageo ensures its brands remain integral to social experiences worldwide. Simultaneously, the delicate balance between honoring brand heritage and driving innovation ensures that these brands stay relevant and engaging in a dynamic market.
As Diezhandino and her team continue to champion both the legacy and the future of Diageo’s brands, they exemplify a model of marketing leadership that is as committed to preserving the past as it is to pioneering the future. This dual focus not only secures Diageo’s place in the hearts of consumers today but also promises a continued legacy of excellence and innovation for generations to come.
Watch full interview here: https://www.youtube.com/watch?v=Mmxr2Gj6VGM&t=1442s
