The Business of Spirits
Nick Carr - Formerly Global Director of Pricing and Promotions at Diageo
With part of his career developed in marketing and working in global roles in Europe and Asia, Nick knows about consumer segmentation as much as pricing.
In this presentation, Nick explains the importance of understanding consumers' behaviour, demographics, social-economic groupings and motivations and identifies the type of occasions when they decide to enjoy a drink.
Markets are very diverse and are continually evolving so it is important to understand that a product or brand will not appeal to everyone. It is important to identify the more profitable segments and create a brand to appeal to these customers. Nick mentions also the importance of marketing and sales cost in the brand value chain and he puts special attention to the values set shared by the consumer and the brand in the drinking occasion. The bigger the overlap of these values, the bigger the connection.
Nicks offers excellent examples of brands and product positioning. A clear differentiation in the market provides a frame of reference for consumers against other brands. When combined with a clear consumer segmentation and occasions identification, the brand is developed for market activation.