Pernod Ricard’s Conviviality Platform powers growth

Drinks giant Pernod Ricard is investing 16% of net sales in advertising and promotion, and credits its Conviviality Platform with helping it increase brand equity, brand awareness, brand consideration and drive higher return on investment. 

What is the Conviviality Platform?

• The Conviviality Platform, explained in a Capital Markets Day presentation last year, seeks to deliver moments of conviviality by blending the three major assets of the business: an extensive brand portfolio, global routes to market and empowered teams.
• This is driven by digital programs such as Maestria (portfolio strategy), Vista Rev-Up (promotional efficiency) and D-Star (sales force automation).
• Ultimately, it’s about leveraging data and tech to develop a more granular understanding of consumer needs and then deliver a more accurate matching of fragmented demand. That in turn enables the business to activate more brands with the right level of spend.

Why data and technology matter

The Conviviality Platform has been central to moving from six to eight brands activated across the globe to 15 to 20 brands; CEO Alexandre Ricard refers to this as “precision at scale”.

Takeaways 

• Premium-plus brands have driven around 80% of business growth over the past year; the prestige segment has grown at more than 15%. 
• Ten percent global organic net sales growth was largely driven by strong pricing execution.
• The RTD category is one of the fastest-growing in North America, where co-branded options are now being developed (eg Absolut vodka and Ocean Spray juice).

Key quote

“We will be a lot more precise in terms of our strategic planning and execution on the brands we activate everywhere in the world” – Alexandre Ricard, CEO, Pernod Ricard, speaking in an earnings call.

Sourced from Seeking Alpha

[Image: Pernod Ricard]