Member Spotlight:
Diageo is a world leader in beverage alcohol and owns brands that include, amongst others, Johnnie Walker, Baileys, Smirnoff and Guinness. As a global company, Diageo employs more than 28,000 talented people, and their products are sold in more than 180 countries around the world.
Diageo brand Guinness is the #1 stout in the world and sells over 90 million litres per year. Guinness is also inextricably linked with the sport of rugby and Rory Sheridan, Diageo Head of Sponsorship Western Europe (pictured), shares some of his thoughts on why the brand engages with consumers so successfully.
When did the Pro12 sponsorship start
and how long does it run for?
Guinness is a long standing sponsor of rugby having sponsored various teams and tournaments over the past three decades. Currently Guinness are official sponsors of the RBS6Nations, the four national unions of England, Scotland, Wales and Ireland, official beer of Premiership Rugby, and at provincial level with some of Europe’s elite teams including Leinster, Munster and London Irish. The Guinness Pro 12 partnership, the focus of this ESA Spotlight, commenced at the beginning of the 2014 Pro12 season for an initial 2 year term.
How did Diageo come to work with the Pro12 tournament?
Longer term momentum in terms of the appeal of rugby is strong in Western Europe and the platform has allowed us to engage with a high majority of our consumers in the past.
As the interests and demand for Rugby experiences is growing among our customer base, we identified the Pro12 as a competition that could help our brand to do even more in the game and help us to be ‘always-on’ in rugby – from 6 Nations at the start of the year to Guinness Series at the end of the year, and now with the Guinness Pro12 to be virtually year round with rugby.
At a brand level, Rugby and Guinness are inextricably linked, sharing the same values hence making Rugby a perfect fit for Guinness and a proven platform for communicating our brand point of view. Our ambition or ‘bigger picture’ is to continue to grow our brand in parallel with the rugby momentum in our marketplace by creating compelling content and enhancing our brand capital.
How is the effectiveness of the relationship measured? What metrics do you use?
We have developed a mix of tailored models and metrics that enable us to monitor our sponsorships performance on an ongoing basis. They include a blend of commercial metrics relating to sales, as well as consumer brand equity building measures. We have established indicators that help steer all our decision making – from revenue based returns on our investment to how many consumers are reached and effected by the sponsorship – and not just in percentage terms, but down to real numbers of people.
We draw on a range of sources externally including bigger picture industry indicators. For example, Guinness emerged in industry recognised Onside* research as the Irish public’s most admired Sponsor in Q1 2015 – and the Guinness Pro12 was voted by industry peers in the same survey as a top 3 best in class sponsorship of 2014 – accolades that are valued highly, especially given that the sponsorship had been in play for just 4 months.
What learnings have you gained from the relationship so far?
The Guinness Pro12 sponsorship has allowed our business to demonstrate even deeper commitment to rugby fans in our support of their game by being consistent and familiar across the rugby year. Being with the rugby fan at regular points on the supporters’ journey has helped Guinness build even stronger relationships with our consumers, and helps make more of our fit on this maturing sponsorship platform.
Are there areas in which the relationship is offering back something surprising that you hadn’t planned for?
We were pleased at the instant positive reaction the public expressed toward our Pro12 tie-up once announced, and the overwhelming sense that Guinness was a ‘perfect match’ for the event. Onside research suggests that within the 1st half of the 1st season of the sponsorship, Guinness had reached almost 1 in 2 Irish adults through the new partnership – a remarkable phase 1 reach at such an early stage.
What are the 3 key bits of advice you can offer to other sponsors of a similar ilk, now that you’ve gone through the process and are in the midst of the relationship?
1 – Look on it as a relationship rather than a sponsorship. It is vital that it works for both sides and that it is seen as a relationship. The best sponsorships are built on a foundation of trust, and common understanding, that it will be after the deal is signed that the real opportunity for both sides will be uncovered.
2 – Have a clear business case around what you want, why you are doing it and how it will deliver. If this is clear, the business can quickly view this as a worthwhile investment rather than an unproven cost.
3 – Break-through. Ensure you are creating something new that will bring value to the sport and its fans. It could be a new experience on match day, exclusive content, or access to players via a different way. Always ask: are you adding value and creating something new for fans to enjoy and share?
What challenges have you encountered, and how have they been overcome?
Our agreement with the rights holder was finalised at a point close to the commencement of the new season, requiring fast pace in terms of planning and decision-making on a lot factors that would contribute to the successful launch announcement of our involvement. We managed to achieve such a quick win with the Guinness Pro12 by assigning a special team of internal and external experts that helped us fast track a lot of the steps in the process generally required for Diageo to deliver on our highest standards for sponsorship.
* For more information on the Irish sponsorship market please refer to the Onside 2015 report that’s located in our library here.