May 13, 2024, Digital Marketing News, Christy McDonald
Diageo, a predominant player in the alcohol industry, is turning to artificial intelligence (AI) to gain a comprehensive understanding of its consumers to boost its brand-development strategy. The new approach focuses predominantly on the actual behaviours of consumers, instead of just their expressed preferences.
Diageo’s AI initiative, marks a shift away from standard strategies, focusing on the actions of the consumers as opposed to their words. This innovative use of AI allows the company to explore actual consumption habits through machine learning, modifying product lines and marketing strategies accordingly. This step into tech demonstrates Diageo’s desire to be at the forefront of consumer analytics in the alcohol industry.
Global chief of planning for forward-thinking innovation, Ana dela Guardia, has detailed the company’s collaboration with an AI-driven consultancy. This collaboration assists in the identification, organization, and differentiation of varied content URLs, bringing to the foreground subcultures that interact with Diageo’s products and offering a chance for a revamp based on these insights.
Guardia stressed the importance of brands resonating culturally with consumers, citing that these brands are likely to develop six times faster. She highlighted the advantage of leveraging insights from the customer base, providing a means to align a brand’s offer with consumer preferences and expectations. Brands following this approach not only foster brand growth, but also cultivate long-lasting loyalty, promoting brand sustainability.
AI has provided Diageo with intricate info on their consumers.
Utilizing AI for enhanced consumer analytics in Diageo’s strategy
This in-depth consumer understanding, coupled with predictive analytical capabilities, allows for the personalisation of the customer journey while optimising marketing strategies. Real-time adjustments can be made based on the consumer’s response, driving efficiency and customer satisfaction.
Diageo utilized this AI understanding in its work with their brand, Tequila Don Julio. The AI findings showed consumers continually look for new ways to enjoy the drink. Diageo used this to develop an interactive experience via an app, which explains the tequila production process, offers personalized cocktail recipes, and provides insights into the brand’s heritage and craftsmanship. The implementation of AI in this manner not only bolstered Diageo’s relationship with its customers but also increased brand appreciation for Tequila Don Julio.
Diageo’s dedication to breaking free from the typical ‘liquid in a bottle’ concept resulted in the formation of a ‘pioneering innovation’ team. Their focus is on fostering substantial growth and adding value to Diageo, its consumers, and society on the whole. This vision aligns with that of CEO Debra Crew, who views innovation as a crucial aspect of the company’s growth strategy for 2024.