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
CharacterisAcs of Winning Global Brands
EffecAve Brands Study of 250 Global brands
“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
“….. 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
Inspiring Men Across the World to Progress
IsI
IJohnnie Walker -‐ Inspiring
Men Across the World to Progress
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
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
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
The resul9ng Purposeful Posi9oning ....
Johnnie Walker inspires men to progress
Needed a consistent visual expression globally
• DisAncAve • Own able • Powerful • ResonaAng • Enduring
The icon was turned around to walk forward...
…in order to ‘brand’ progress with Johnnie Walker
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
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
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)
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
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
Through the line China program
On Line
Public celebraAons
On Premise On Premise – Icon JW outlets in
Shanghai and Beijing
In Store In store
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
First step – building local affinity Haile Gebrselassie
Target the high end with Africa specific experiences for Blue Label
Further localize the story to make it even more emoAonally relevant – to the
emerging middle class
Localize the experience – bring the product and users even closer to home
Address economic barrier -‐ unit price and access in the emerging middle class locaAons –
the shibeens
200 cl -‐ $5.43 for 6 servings = equal to pint of Guinness
60% Growth in South Africa since launch Launched in Ghana and Nigeria
750 cl 200 cl
Johnnie Walker Global Sales ($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
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