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Adam Ben-Yousef is Global Marketing Effectiveness Director at Diageo. For the last 18 months, he has been leading a transformation programme at the organisation. In his talk at EffWeek 2017, he describes his first year in the role.

Includes a look at the custom software solution the Diageo marketing effectiveness team commissioned. Essential watch for anyone involved in creating a marketing effectiveness culture at their organisation. Scroll down for key learnings if you prefer to read or watch a three-minute interview with Adam if you are short on time.

Key Learnings

Find out:

Prerequisites to tackling marketing effectiveness
The business purpose of marketing
Who makes decisions about marketing and how are those decisions made?
Diageo’s approach to embedding marketing effectiveness: measurement, software and training
What have they achieved through this programme


 

Prerequisites to tackling marketing effectiveness

(timecode 2.09) There are three prerequisites a business needs to understand before it can start factoring marketing effectiveness into all its investment decisions.

  • Absolute clarity on business purpose of marketing
  • Clarity on key decisions about marketing investment which deliver that
  • Clarity on how the decisions get made

This gets us under the skin of how we make better investment decisions and allows us to start to improve that process.

Related content: Watch Fran Cassidy present Culture First at Effweek 2017 – research into how you create an effectiveness culture

The business purpose of marketing

(timecode 2.51) Marketing exists to create demand for your companies product, full stop.

That might be demand next week, next month, or three years from now. But at some point, every marketing investment must create demand otherwise it is a waste money. This message is sometimes resisted because people feel it threatens creativity or a particular channel that they are a specialist in, or that looking at sales automatically means short-termism.

Illustration of a map with the caption 'articulate strategy at the start'

Who makes decisions about marketing and how are those decisions made?

(timecode 6.18)This is crucial to understand because once the investment is committed it’s very hard to tweak it. Many people are involved in making the investment decision and some of them, such as suppliers, might have vested interests, we must question why a particular figure was chosen, who chose it and why. You have to be able to separate strategic decisions from tactical decisions.

Diageo wanted to improve decision-making. This was the beginning of what we now call our marketing catalyst programme at the centre of which is some fairly cutting edge software.

Related content: Watch Sandra Fazackerly, Telefonica and Ian Armstrong, Jaguar, discuss how they embed marketing effectiveness culture in their organisations

Diageo’s approach to embedding marketing effectiveness: measurement, software and training

(timecode 9:25) Focussing on the software in isolation is to miss the bigger picture. Diageo started by being very clear on the change they were trying to create and built the software around that. Here is the list of necessities for the business they identified:

  • The capability they sought had to sit with the decision maker, not individual departments or agencies as that is not scalable
  • Clear consistent performance metrics everywhere
  • Had to dovetail into existing decision making business processes
  • Applicable to marketing in both most and least developed markets in the world without resorting to the lowest common denominator
  • Complete buy-in from senior leadership from the outset

(timecode 12.16) Diageo already used econometric analysis and Marketing Mix Modelling to measure outcomes. But it wasn’t cost effective to scale up econometrics in smaller markets.

Additionally, too few marketers really understood what they were seeing when they looked at the results from Diageo’s measurement and modelling partners.

At this point, Diageo started to gravitate towards a software solution. One that could be used by everyone in the company.

Illustration showing the solution Diageo implemented to embed marketing effectiveness

Key to this was the involvement of their key business partners such as agencies. The resulting software was a true partnership between the main software developer, media modelling and media agencies.

(timecode 14:34) Video of the Diageo marketing catalyst software demonstrating it’s two complementary tools, the strategic allocation module to help the leadership allocate budget strategically, and the growth driver module to help brand and marketing managers make the best choices tactically.

The final pieces of the puzzle have been to put in place financial targets and incentives across the company linked to marketing performance both for short and long-term. And to roll out a training programme around the world.

What have they achieved through this programme

  • The Diageo Marketing Catalyst programme is over-delivering its business case
  • Key aspects of the technology developed for the software are very much world first
  • Positive engagement from the Diageo marketing community, people are  genuinely excited
  • In one year the system has become the official way of doing marketing business planning
  • 500 active users at Diageo, this will double in the coming months
  • Launching at a rate of one per week in new countries, all are completely different markets but it is working everywhere.

Related content

“Just what the industry needs, great collaboration between clients and agencies on the topics that drive business growth.”

Bridget Angear, Joint Chief Strategy Officer at AMV BBDO

“It’s great to see the IPA in the UK bring the whole industry and particularly the trade bodies together to focus on effectiveness. This new Marketing Effectiveness initiative will enable people across the industry to work together to build on best practice.”

David Wheldon, Chief Marketing Officer, RBS

“Effectiveness is a team sport, so it was great to see the industry in the widest sense, come together. In an increasingly diverse and fragmented world, only by using all parts of the brain will we solve effectiveness challenges and design our campaigns to deliver short and long term value. That’s why what happens next is important – if the IPA can help facilitate progress on this with a long-term initiative around Marketing Effectiveness, we’ll definitely crack it.”

Bart Michels, Global CEO Kantar Added Value and Country Leader Kantar UK

“The time spent at #EffWeek was extraordinarily effective. It was great to hear the diverse views from all areas of the industry. All tied together with the common themes of accountability and effectiveness.”

Andrew Canter, Global CEO, BCMA

“It has been a privilege to be part of the inaugural Effectiveness Week. The agenda is one which we at O2 UK feel passionately about. To see and hear perspectives across the industry demonstrates how the breadth of marketing effectiveness is increasingly being valued within businesses. Data, insight, social, customer experience, test and learn, ROI, these are all fundamentals and were covered expansively at the event”.

Sandra Fazackerley, Marketing & Consumer, Telefónica UK Limited

“The full week of effectiveness events brought into clear focus the need for marketers to use data and insight to achieve the key business objectives of growth and profits. Marketers today are in a better position to quantify their knowledge of customers and measure the ability of investments in marketing to increase brand and shareholder value.”

Chris Combemale, Group CEO, DMA