Guinness Insider Relationship Marketing Program

Background

Duty increases in 2004 and 2005, translated into an 18 to 20% price hike, hit the beer and stout market hard. Guinness faced huge competition for share of throat in the market. The key challenge faced was the diminishing brand commitment from current drinkers, due to an intense price war from lager beers, an ageing base of loyal Guinness consumers, who now drink less, and long term Guinness drinkers feeling that their support and loyalty have not been acknowledged and rewarded. Guinness’ challenge was to motivate these loyal drinkers to choose Guinness on more occasions and enhance their brand loyalty.

Idea

The GUINNESS Insider newspaper was created as the anchor communication sent to members every two months. Each newspaper was personalised with the member’s name and membership number on the cover, and content was crafted and delivered with substance in mind, fulfilling members’ need for knowledge, conversation topics and one-upmanship (so that they could be seen by their peers as being ‘in the know’). The Insider newspaper covered current affairs, food reviews, smart tips on travel and finance, Guinness promotions and other Guinness members’ views on life and topical issues. These members actively shared their views and suggestions to help shape the newspaper.

Exclusive activities and privileges were also extended to members through the pages of the Insider. There were invitations to appreciation nights, brewery visits, bonding activities and cash-prize games, as well as opportunities to test drive newly launched Mercedes and Volvo models. Two key moments singled out as occasions for recognition and reward were members’ birthdays and Chinese New Year. For these, personalised DM packs were sent to members - peanuts, which symbolise longevity in China, on their birthday, and an empty almanac at Chinese New Year. Chinese almanacs usually contain daily predictions - but a Guinness drinker is a man of substance who doesn't need predictions but writes his own destiny. A Member-Get-Member activity also encouraged members to recruit their Guinness drinking buddies into the programme.

Results

The database of high value drinkers has seen a five-fold growth (to 32,000). There has been 22.6% consumption growth among Guinness drinkers who have been members for one year or less and a 9.3% consumption growth among members over non-members. In telephone interviews, 88% say that they were impressed by the mailings and look forward to more. Brand health scores are an all-time high and the campaign achieved a positive ROI despite the sales-tax price hike for two consecutive years.

Target Audience

Loyal drinkers are Guinness Foreign Extra Stout drinkers who drink at least once a month, are Chinese men, aged 35+ and prefer to be communicated with in Chinese. Consumer insight research has found that Guinness members are mature and confident, down-to-earth, love their family and are loyal to friends. They work hard for the family and balance their responsibilities with ‘small indulgences’ such as drinking with friends. Usually motivated by success, status and money, they think Guinness is a real man’s drink, and have been supporting the drink over the past 10 years. They are fierce observers of Chinese customs and traditions and the most important festival that they celebrate is Chinese New Year.

Size

30,000 individuals

Our Thoughts

In Malaysia, Guinness have used direct marketing above any other channel to build their brand and drive consumption, despite Government hikes in duty on alcohol. Indeed, the top campaign in 2005 The Won Report was the Guinness ‘Ancestors’ work. This is a great example of how knowing exactly who your target audience is aids and abets sharper, more effective creative ideas.