Mumbai: Diageo has launched the X Series by McDowell’s & Co., marking an expansion into white spirits and dark rum. The lineup includes Vodka, Dry Gin, Citron Rum, and Dark Rum, reflecting the brand’s move into new categories. The aim is to reimagine the way in which consumers experiment with liquids. The focus the company explains rests on honest ingredients, unique recipes and new packaging. It is looking to leverage the rise in cocktail culture with consumers moving beyond traditional whiskey as they want better drinking experiences. Consumers both young and old are getting more experimental. That is the market opportunity.
The goal is to share things up and top redefine fun for young men and women. who are ready to experiment with something that is fresh and exciting. Diageo India VP, portfolio head marketing Varun Koorichh said speaking to Medianews4u.com that the growth in the spirits market will be 10-12 per cent CAGR in the next three to four years.
The Indian consumer is willing to experiment with more and more kinds of liquids as disposable incomes increase. The consumer for the X Series is highly experimental. They have a big repertoire and continue to experiment with a lot of flavours.
Digital Focus: “They are younger and very active on digital. So automatically all of our marketing initiatives are geared more towards that. So we have to be present on digital explain the product with the right kind of advocacy.
“We have to use the right kinds of influencers etc. This category relies a lot on experiences. So choosing the right events places which are about connect occasions because connect is the larger space at which McDowell’s operates.” The company is associating with the NH7 Weekender. The company has its own IP called McDowell’s Yaari Jam. The aim is to take it to the next level and see that it is a premium experience for the consumer.
It is not about No. 1 which it used to be. It is about choosing the right singers that resonate very well with this younger audience. When asked the content creation strategy that can help drive a strong brand narrative he said that if one looks at the ad landscape it has changed in the past two to three years. It is more about purposeful brand positioning. This has happened in the post pandemic era and everyone is starting to take notice of what these brands are doing and they are for the consumers.
Purposeful Marketing: He said that learnings are coming from Gen Z consumers who are intelligent. Brands have to ensure that whatever they do they stand by it. McDowell’s associated with actor Kartik Aaryan to push Soda. He enacts a scene in an ad for his hearing impaired friend. The aim is to reflect the under representation of people with different abilities. This is more important than an ad that has a lot of song and dance. Aaryan resonates well with the brand and he has a boy next door image. “He has worked very hard. He is an outsider. His family is not from the industry.”
He said that Diageo was one of the first companies to drive purposeful positioning. “This is what we believe in and this is what we will keep doing.” He said that McDowells’ marketing strategy focusses on being consistent across a sustained period not just focussing on the festive season. Doing something in short bursts and getting out of it is not effective he feels.
McDowell’s he said is a national brand. The plan is to evolve with the times and ensure that as new consumers come in the company meets them with the right content and celebrities. At the national level the company will choose the right celebrity who resonates with the brand to push the Yaari IP. For McDowell’s partnering with celebrities is about getting the right people at the right time given that they are super active. “This is the strategy and we will continue to evolve with it.”
Advertising Category Adjacent Products: When asked about the government’s proposed stringent guidelines on surrogate marketing he said that Diageo is about self-regulation. “We follow the norms very closely. All of our extensions are done following all the rules and guidelines. We take umbrage to the term surrogate advertising because we are all about the brand extension. It is a very legitimate business with honest P&Ls. It is not about advertising things slyly that the Government has asked us not to. Whatever we advertise are category adjacent products. We push water, soda which are things that you need to make a good drink. So it is not like we are trying to hoodwink anybody. It is a brand extension. If you look at the numbers they are pretty huge. These are legitimate businesses.”
He mentioned outlets in Haryana Punjab where the company’s water sells like hot cakes. There is a straight through and through connection and the water business is seeing 20 -25 per cent growth year on year.
Experiential Marketing: When asked about experiential marketing he noted that it is important across categories as it is the moment of truth like the IPL. “It is a sporting event. Families are out. Beverages will be consumed. So experiential is extremely important across categories especially alcohol. That is because people have a point of view on it and they spend money on it.”
The aim is to ensure that whatever experience the company is participating in whether it is a festival dinner or a rooftop brunch the company has to activate the right cohort of consumers. So if it is McDowell’s which plays in the connect occasion then it is all about friendships. So the company has to identify what those experiences are where friends come in together like NH7 Weekender. The aim is to bring in newness to the association year on year. That is something that he said he takes pride in.
Tech and AI: Tech and AI play an important role he noted as it takes the consumer experience to the next level. This can help drive amazing consumer engagement activities also. This way consumers feel even more proud about associating themselves with McDowell’s. The X Series targets consumers who are about the selfie culture. So how does one ensure that by associating with an experience McDowells can take things to the next level?
These young consumers are born into the digital world he added. For them there is no national versus international as they have friends everywhere. Experiential marketing is important as it is a place where consumers are actually interacting with the product in the right setting, experience. Creating digital content from the experiential experiences will be important. An influencer strategy has to be very strong going forward given that consumers are themselves influencers. “If you give the right experience, right content then sharing happens automatically. You have to stay fresh and give the most relevant experience. That will feed into the digital content strategy.” Doubling down on the digital strategy and associate with influencers who resonate well with brands is key. Having a strong content culture is important for McDowell’s through things like Yaari Jam.
McDowell’s he said has a beautiful heritage and history. Older consumers will remember all the advertising. McDowell’s he said is the number one whiskey in the world and it comes from a point where it knows alcohol. “This is the right for us to get into the premiumisation journey. Consumers want it. The journey comes from young consumer learnings. They have more disposable income and are well versed with are flavours, liquids, cocktails, mixers.” He said that since they are young they have no history with McDowell’s that the older consumers have. The X Series may be the entry point. McDowell’s will have a strong endorsement.
In terms of upscale premium alcohol consumption trends he said that consumers want to drink better not more. More women are coming into the category on social occasions. Alcohol is becoming more accessible.
