The Evolution of Diageo Brand Asset Management

Nic Lund

Programme Manager

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> Overview> Diageo & Brand Asset Management

> The Challenges> Technology> Change Management> Agency Compliance > Content

> The Solution> SmartLibrary> The SmartBrand Portal

> Return on Investment> Cost Savings> Improved Ways of Working

> Q&A

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Diageo

> Diageo plc is the world’s leading premium drinks business.

> Outstanding collection of brands across spirits, wine and beer.

> Approaching 200 brands in its portfolio,

> Production, management and distribution of assets across 180 countries

……..so it’s imperative for us to keep a tight rein on our brand assets.

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You may not know Diageo, but you know our brands…..

Beer Guinness, Red Stripe, Harp…..

Whisk(e)y Johnnie Walker, J&B, Talisker, Bushmills, Buchannan’s, Crown Royal, Bell’s…….

Vodka & Gin Smirnoff, Tanqueray, Gordon’s, Kettle One…..

Tequila Don Julio, Jose Cuervo

Rum Captain Morgan, Pampero, Cacique, Zacapa, Bundaberg,

Liqueurs etc Baileys, Godiva, Goldschlager, PIMMS……

Wine Sterling, Chalone, Beaulieu, Acacia, Rosenblum, Justerini & Brooks, Blossom Hill …..

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Programme Start-up

> In 2002, Diageo launched a specific Brand Asset Management programme

> The BAM programme took a holistic approach > Change internal ways of working,> Changing the interaction with third party suppliers who

all contribute to the creation, evolution and maintenance of our assets.

> The programme was managed from within Global Marketing Procurement, but from the outset drew together a cross functional team including Marketing, Legal and Information Services as well as Procurement

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The early years

> Diageo is a large and complex business, consequently IP is a central issue.

> The team need to address the core legal & IP requirements before any technology was considered> Terms & Conditions> Contractual terms with 3rd Parties

> Agencies

> Joint Ventures

> Distributors

> User access permissions> Historical usage rights for core materials

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The first enabler

> While the programme was focused on delivering a change in the way Diageo and its partners worked, and strove to find ways to embed those changes, it also required an enabling tool to focus the changes around

> The first iteration of the enabler was the Diageo SmartLibrary – the asset library

> Delivered in 2005

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Initial benefits

> Diageo needed an online library of great brand materials that marketers and agencies around the world could access when they needed them.

> The great value for Diageo was that it would ensure timeliness and brand consistency – and significantly reduce the cost of asset distribution.

> The business recognised that one of the great strengths that SmartLibrary would bring was a far greater ability to track and control intellectual property and usage rights for the assets created for Diageo by its third party partners.

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The Challenges

> 1. Finding the right technology solution and provider to work in partnership with Diageo

> 2. Internal change management to align geographically dispersed brand teams and functions

> 3. Agencies providing brand assets for upload

> 4. Ensuring the content in the Library had clear usage rights.

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The next steps

> The initial version of Diageo SmartLibrary enabled Diageo establish the fundamentals of Brand Asset Management.

> The real step-change in usage and content occurred when, in partnership with VYRE, the project team developed and implemented the enabler that brought the programme to life:

……….the Diageo SmartBrand portal.

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The SmartBrand Portal

Asset Library

Online project management/approval

Search & Spin,Brand information

VAP & POSonline ordering

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The SmartBrand Portal

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SmartLibrary

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SmartApprove

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SmartSpace

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Key Success Factors

Partnership> The way that VYRE understood Diageo’s needs and

created a technology solution that fitted Diageo’s culture and made it far easier for third party partners to comply with Diageo’s requirements.

Change Management> Involving users in development> Sponsorship from leadership teams> Cross Functional project board> Great communications plan

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Return on InvestmentThe Diageo Brand Asset Management programme is a

complex undertaking> high number of brands it includes,> the variation on brand assets and the wide span of

territories in which the company operates. Therefore It was neither a cheap nor a quick process to

get right. > Two key areas of investment

> Initial set up costs> Ongoing programme costs

> Two types of benefits> Measureable financial benefits> Ways of working/efficiencies

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Initial InvestmentThere were three areas of initial investment:

> Internal resource – the cross functional project team created to manage the first phase of the project;

> External legal resource, engaged to ensure that terms and conditions, contracts and ways of working were in line with best practice; and

> The technology selected to create SmartLibrary

Payback – 4 years.

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Ongoing InvestmentOngoing investment now covers:

> Internal resource – a central team in global marketing procurement, with a wider virtual team across brands, functions and geographies.

> Third party asset management companies, aligned by brand and geographies, to support the management of our assets, metadata taxonomy, file formats etc; and

> Development & Hosting fees. In September 2007, SmartBrand got a significant upgrade providing a new look and feel that makes the most of the new technology available from VYRE.

The SmartBrand tool is dynamic, and Diageo will continue to incorporate new functionalities where they’re appropriate and aligned to business requirements

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Financial BenefitsIn terms of costs, these are derived from elements taken

out of the business. Primarily these are from two areas:

> The cost of potential duplication of creative materials in markets; and

> The cost of CD distribution for materials.

> By tracking the volume, type and onward usage of downloads from the tool, Diageo can accurately estimate the actual costs avoided in the business. By benchmarking with agencies and local markets to verify the assumptions made in estimating the benefits, it is possible to verify the cost saving.

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Additional Benefits> Intellectual Property and usage rights management

> Brand Consistency and quality

> Process Efficiency

> Process compliance

> Search and Spin (internal/agency sharing of best practice)

> The growth from delivering SmartBrand is driving the payback ratio to 1:10 over the last 12 months.

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Testimonial“ Our innovative approach to Brand Asset Management plays an increasingly pivotal role in supporting Diageo’s marketing activities. The SmartBrand portal has delivered a significant increase in re-use and adaptation of our core brand assets, thus making our A&P spend go further in our markets and giving greater global brand consistency.The portal is now helping to ensure that our marketing materials are appropriate for our local markets by enabling their approval against internal and external codes of practice. The flexibility and capability of the VYRE Unify platform has enabled us to meet the demanding business requirements across multiple geographies, brands and internal functions”

Mike Mirrlees – Global Category Director

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Testimonial“Without question, SmartBrand is the best rights management tool I have ever come across. The SmartLibrary module clearly spells out the IP rights we have and those we don’t which means substantially less risk of accidentally mis-using an asset and being sued. The clarity of IP rights, combined with the powerful permissions controls delivers an enviable solution. And coupled with that, the SmartApprove module provides a great and easy to use workflow to ensure that all of our executions are reviewed and approved against our marketing code, a code we take very seriously as a business.”

Stuart Casey - Senior Counsel IP

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Any Questions?