It is not easy to concentrate in conversation with James Thompson. He is, after all, sat within arm’s length of an enormous bar stocked with an intimidating volume of booze.
The marketing and innovation director of Diageo Asia-Pacific has just concluded a pitch for Guinness and has plenty to talk about. He leans forward in his chair and talks earnestly about a long, intense process that saw Saatchi & Saatchi replaced with BBDO as his agency for the famous stout.
The decision to end Diageo’s relationship with Saatchi & Saatchi in Asia was difficult emotionally, he says, but not intellectually. I don’t abandon relationships lightly. But with no disrespect to the past, we are going into a new era. We’re looking forward, not back. Consumers spontaneously applauded the winning idea.
Not that he’ll reveal what that is, of course. But insiders say a strategic shift will mean the end of the ‘Greatness’ positioning created during Saatchi & Saatchi’s tenure, and that says something about the sort of marketer Thompson is.
James is a grown-up who is able to look at creative work on its merits without getting hung up on what’s gone before, says a source close to the review. He said that Diageo needed to take an arrogance-check. Greatness is a wonderful line. But it’s not what consumers are thinking or feeling about Guinness.
However, Asians are not about to see the sort of Guinness advertising that has wowed the British public for decades either. The white horses crashing through waves in ‘Surfer’, recently voted the best UK commercial of all time, would mystify consumers here, Thompson says. We need to create advertising that works for Asia. Good work travels, but we need to be careful not to force it on each market.
China in particular is where Thompson wants to build the brand. Guinness has enjoyed muted success beyond Malaysia and Indonesia, ironically where restrictions on alcohol advertising are the most severe. In Singapore, Guinness sells well too, but as in other parts of Southeast Asia suffers from being the beverage of choice of uncles in coffeeshops, admits Thompson.
To resolve this image problem, he wants to target the 25- to 35-year-old demographic with creative ideas built on great insights. We want ideas that challenge us, that scare us, he says. And if this means ads that will please awards juries, so much the better.
It’s not just agencies who love awards. Award-winning agencies attract the best talent, and that benefits our business. It becomes a virtuous circle.
The black stuff is what lured Thompson to Diageo 14 years ago, after 10 years at Unilever. Guinness is a marketer’s dream, he explains. It is the reason I joined the company. It means a lot to me personally. I care deeply about the brand.
However, it was Smirnoff that made him stay with Diageo, and Johnnie Walker, the company’s biggest business in the region, that brought him to Asia, he says. Along with Windsor, Diageo’s flagship whisky brand in Korea (which is currently under review), these are the company’s pillar brands, which take up much of Thompson’s time. As does worrying about the heightening barriers to marketing them. Few countries in Asia are completely free of restrictions on alcohol advertising, as governments - like in Thailand recently - blame it for societal ills.
Alcohol is potentially an enjoyable part of life and has a right to be, says Thompson. But we are committed to working with governments on advertising regulations. It’s never a question of finding ways to get around them.
On the contrary, Diageo is confronting the issue head-on by promoting its commitment to drinking responsibly, a word Thompson does not tire from using. Last month’s sponsorship deal linking Smirnoff with Manchester United as responsible drinking partners is Diageo’s latest attempt to show itself as an ethical company.
Thompson’s most pressing concern, however, is the company’s sluggish performance in Asia. Sales crept up by just one per cent last year; profits fell by 12 per cent.
We’ve doubled our headcount in 12 months, ahead of growth. We’re putting our money where our mouth is. We’re seeing growth in social drinking. Female consumption is on the rise too. Looking long term, the omens are good.
James Thompson’s CV
2007 Marketing and innovations director, Diageo Asia-Pacific
2004 President, global marketing (vodka, rum, ready-to-drink brands) Diageo
2002 SVP, priority brands, Diageo North America
1999 VP, marketing, Guinness Bass Import Company, USA
1999 Innovations and strategic planning controller, Guinness UK
1996 President, Guinness Canada
1984-94 Various marketing roles, Unilever UK, US and Europe
