Enhancing Brand Engagement: Diageo's Innovative Approach with AI for Consumer Insights

Don Julio tequila. Source: Diageo.

Don Julio tequila. Source: Diageo.

Diageo's global head of planning for breakthrough innovation, Ana dela Guardia, shared that the company is leveraging AI to gain deeper insights into the behavior of actual consumers. Understanding real consumer behavior is crucial for Diageo as they seek new paths for innovation beyond just their products. Ana highlighted the increasing gap between what consumers say and what they actually do, emphasizing the importance of bridging this divide.

To address this issue, Diageo has partnered with AI-powered consultancy Codec AI to understand consumers' behavior. This collaboration has resulted in the creation of an interactive experience for the Tequila Don Julio brand using the Apple Vision Pro app.

During The Marketing Society's Digital Day on 9 May, a representative mentioned that AI allows them to better connect with consumers by providing insights into their lives and helping make decisions based on data.

Codec AI's algorithms were instrumental in assisting Diageo in categorizing and organizing millions of content URLs based on common interests, values, and behaviors. This allowed Diageo to identify the cultural communities that its target audience actively participates in. This is crucial from a brand perspective as it provides insight into genuine behavior rather than accidental actions.

This is a different way of building brands, and it uses deep-grounded consumer insights

Diageo, Ana dela Guardia

Guardia highlighted that brands which innovate and stay culturally relevant to consumers experience six times faster growth compared to those that do not. She stressed the significance of identifying existing communities to benefit from their "halo power" by engaging with them.

"It's amazing how this algorithm enhances with a broader passion," she mentioned. The technology helps identify the "passions and interests" of consumers, enabling the brand to engage with them in a truly authentic manner.

Furthermore, she highlighted that it observes "real behavior, not unintentional." Instead of focusing on conversations, the technology analyzes the content people are interacting with, providing valuable insights through AI technology.

Leveraging AI for Consumer Insights

Diageo has utilized AI-powered technology to gain a deeper understanding of consumers who enjoy Tequila Don Julio. Through this technology, the company discovered that tequila enthusiasts are always looking for innovative ways to enhance their knowledge of the spirit. This insight prompted the development of the Apple Vision Pro app.

Guardia mentioned a unique approach to brand building that relies on in-depth consumer understanding.

The Don Julio app on Apple Vision Pro will highlight four important stages in the making of Don Julio tequila: harvesting agave, baking piñas, distilling liquid, and aging the tequila.

Guardia mentioned that the latest technology will allow customers to have a personalized experience with the brand from their own home.

Guardia explained that they chose to launch with Apple Vision Pro after recognizing that Don Julio's audience consists of "tastemakers" and people who enjoy staying informed.

“They want to be the first to experience the world and share it with their communities”.

Mission to innovate

Diageo has introduced a new initiative as part of its mission to go beyond just selling drinks in bottles. The goal is to boost business growth and create more value for the company. To support this effort, a new team focused on 'breakthrough innovation' was established by Diageo in January.

Guardia described the dedicated team by saying, "We operate within our own unique ecosystem."

The main goal is to introduce innovative solutions that will drive significant growth and bring benefits to Diageo, customers, and the community.

Innovation has always been important for our business. Our CEO, Debra Crew, emphasized this commitment to innovation in November, calling it one of our company's key pillars for growth. She mentioned, "Even though we have amazing traditional brands, we are always moving forward, not staying in one place."

Editor's P/S:

The article highlights the transformative power of AI in the consumer insights and innovation landscape. Diageo's partnership with Codec AI has enabled them to bridge the gap between consumer perceptions and actual behavior, providing invaluable insights into their target audience. By leveraging AI algorithms to categorize and analyze content URLs, Diageo has identified cultural communities and their passions, allowing them to engage with consumers in a truly authentic and relevant manner. This deep understanding of consumer behavior has fueled the development of innovative products and experiences, such as the Apple Vision Pro app for Tequila Don Julio, which caters to the brand's discerning audience.

The article also emphasizes the strategic importance of innovation for Diageo. The establishment of a dedicated 'breakthrough innovation' team reflects the company's commitment to driving growth and creating value beyond traditional product offerings. This team operates independently within its own ecosystem, fostering a culture of creativity and experimentation. The CEO's emphasis on innovation as a key pillar for growth underscores Diageo's forward-thinking mindset and its determination to stay ahead of the curve in a rapidly evolving consumer landscape.