Brand loyalty is a thing of the past; consumers want to experiment: Varun Koorichh of Diageo

Mumbai: In times when consumers are spoiled with choices, brands need to constantly innovate or risk becoming irrelevant, said Varun Koorichh, VP Marketing and Portfolio Head, Diageo India, during the launch of McDowell’s & Co. X series in Mumbai.

Koorichh believes that "brand loyalty is a thing of the past—today, it's all about experimentation." 

He explained that after encountering a brand a few times, consumers may feel they've seen enough, making constant innovation crucial. "We need to focus on how agile we can be with new ideas," he said. "We regularly ask ourselves, can we be quick to enter and exit the market? Can we roll out as many limited-time offerings (LTOs) as possible?" This, he stressed, is key to keeping the brand exciting and relevant.

The company’s Chief Innovation Officer, Vikram Damodaran, reinforced Koorichh’s point of view, stating, “There is nothing that's going to be static.” 

He explained the balance brands must strike between offering comfort drinks and experimental options, especially for Gen Z consumers. “It gives you the freedom to give both,” he said, highlighting the House of McDowell's concept that allows for exploration while enjoying familiar favourites.

The "House of McDowell’s" consists of a diverse portfolio of alcoholic beverages designed to cater to various consumer preferences. It includes flagship whiskies like McDowell’s No. 1 and McDowell’s No. 1 Reserve, alongside vodkas and rums, such as McDowell’s No. 1 Vodka and Rum. Recently, Diageo introduced the X Series by McDowell’s & Co., its foray into the white spirits and dark rum space.

In their pursuit of innovation, Diageo harnesses the power of social listening and data collection to gain deeper insights into consumer behaviors and preferences. Koorichh emphasised the importance of meaningful engagement, stating, “Good marketing is about connecting with your consumer every day in the most effective way possible. However, it’s crucial not to bombard them with everything at once. Instead, we must strategically share our messages, piece by piece, in a timely and relevant manner to avoid content oversaturation.”

He further elaborated on Diageo’s adaptive marketing strategy, highlighting the importance of evolving alongside consumer trends. “We are evolving as the consumer is evolving. When we collaborate with trendy artists or influencers, we consciously avoid repeating the same faces from the previous year. Our focus is on identifying emerging talents and trends that resonate with our audience,” he explained. 

“As marketers, it’s about aligning with those who are currently capturing attention and will continue to do so.” This approach not only keeps the brand fresh but also ensures it remains in tune with the dynamic market landscape, said Koorichh.

Initiatives like in.thebar.com, an interactive platform for exploring cocktail recipes and sharing preferences, are what Koorichh further wants to build upon. 

The platform, which is part of Diageo’s digital ecosystem, focuses on providing cocktail recipes, mixology tips, and information on Diageo’s diverse range of beverages. It is designed to engage consumers and provide an interactive experience for making cocktails at home. Diageo uses the platform to strengthen its brand presence and support its drinks portfolio like Johnnie Walker, Baileys, Smirnoff, and more.

“We are seeing some good responses coming in, with about 30,000 - 50,000 consumers coming in and interacting with us. This level of engagement helps inform future product development.”

Damodaran also presented an example of Watch Your Whiskey, an AI-powered initiative by Diageo designed to help consumers discover their ideal single malt whisky. It works through an engaging digital experience that asks users 11 questions about their flavour preferences, such as how they feel about bananas or chilli. Using AI and machine learning, it then creates a personal flavour profile for the user, called a "Flavourprint," and recommends single malts based on those preferences. The program is accessible via mobile devices or web browsers.

As per Koorichh, throughout these efforts, brand recall is integrated with authenticity and meaningful storytelling. Such as McDowell's campaign with Kartik Aryan, which included learning sign language to reflect inclusivity. 

House of McDowell’s content featuring Kartik Aryan:

Koorichh added “Even sustainability forms a key element of our efforts. Example: the Ziro Music Festival is being held in Arunachal, an eco-friendly outdoor festival.”

For Diageo, Damodaran believes the focus isn't just on adopting new technology, but on innovating the technical aspects of their processes. He explained that while advancements like AI and data collection are important, the real value lies in scientific methods and improved processing technologies. By leveraging this science, Diageo can use consumer data to develop products and ideas that are ahead of the competition.

With innovative offerings from brands, consumer expectations continue to rise, creating a cycle where customers demand better options, and brands work to capitalise on these desires by introducing new choices. 

Damodaran sees this behaviour as a clear sign that consumers are increasingly seeking distinctiveness. He explained that in the prestige category, it's not just about luxury or prestige, but about standing out. By providing unique and differentiated propositions, brands can significantly influence consumer behaviour.

For the record, Diageo's "prestige category" refers to its range of high-end, luxury spirits for affluent consumers who seek premium, unique, and distinctive alcoholic beverages. The prestige category includes Johnnie Walker Blue Label, The Singleton, Tanqueray No. Ten, and rare single malt Scotch whiskies like Lagavulin and Talisker.

Koorichh shared with BestMediaInfo.com that although the brand continues to utilise traditional media, the largest portion of its advertising expenditure now goes toward social media and experiential marketing.

Koorichh highlighted, “In our marketing mix, we still engage in some mass media activation—such as TV, radio, and classic cinema—but this accounts for only about 15-20% of our efforts. The majority of our focus now shifted to social media and experiential marketing.”

For him, the proliferation of a successful brand recall is based on “Good marketing wherein we are talking to our consumers all day, every day, in the best possible manner, in the most topical way.”

As Diageo continues to innovate within the alco-bev category, the brand's focus extends beyond just peak periods like the festive season, aiming to maintain strong content engagement throughout the year. Koorichh explained, "My goal is for consumers to actively engage with our content year-round. The festive season is simply a reminder of our presence.” 

In fact, internally, Diageo professionals refer to Friendship Day as McDowell’s Day. “My hope is that one day we’ll achieve such strong brand recall that it resonates the same way with our consumers,” added Koorichh.

Moving ahead in the conversation, both Koorichh and Damodaran shed light on the evolving landscape of the Indian alco-bev sector. They emphasised that this transformation is largely driven by a younger consumer base with diverse preferences.

Damodaran elaborated on the immense potential of India's alco-bev market, stating, “India today accounts for 25% of the world's total beverage alcohol population. Every year, a significant number of individuals enter the legal drinking age, creating a tremendous opportunity for brands.” 

He noted that consumers aged 21 and older are increasingly seeking flavor, sessionability, and versatility in their drinks. “Sessionability refers to the ease of mixability, while versatility encompasses the variety of occasions where these drinks can be enjoyed, whether for convenience or experimentation,” he explained. This growing demand for crafted cocktails is particularly evident in bustling cities like Mumbai and Bangalore. They concurred that “word travels faster than the commodity itself,” highlighting the importance of experiential marketing in their strategy.

Koorichh offered a broader perspective on the market, stating, “The Indian alco-bev sector is currently valued at about $55 billion and is projected to reach approximately $74 billion in the next six to seven years.” This growth is largely attributed to increased spending, driven by higher disposable incomes in major cities as well as tier one and tier two markets.

He also pointed out that this trend is part of a larger urbanisation movement, which provides more people access to quality alcoholic beverages. “India as a society is becoming more accepting of alcohol, particularly with the rising presence of women in social drinking contexts. It’s about celebrating and exercising their right to enjoy a comfortable space for drinking and experimentation,” Koorichh noted, underscoring a significant shift in cultural attitudes towards alcohol consumption.

Wrapping up the conversation, both Koorichh and Damodaran asserted, the future is bright for a brand that adapts to its consumers, listens actively, and prioritises meaningful connections over traditional marketing methods. 

And for them, the latest McDowell’s X series stands as a testament to this evolving narrative, “inviting consumers to explore, experiment, and enjoy.”