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2013 Digital IQ Index: Spirits
2013 Digital IQ Index: Spirits
2013 Digital IQ Index: Spirits
2013 Digital IQ Index: Spirits
2013 Digital IQ Index: Spirits
2013 Digital IQ Index: Spirits
2013 Digital IQ Index: Spirits
2013 Digital IQ Index: Spirits
2013 Digital IQ Index: Spirits
2013 Digital IQ Index: Spirits
2013 Digital IQ Index: Spirits
2013 Digital IQ Index: Spirits
2013 Digital IQ Index: Spirits
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2013 Digital IQ Index: Spirits

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The inaugural Digital IQ Index®: Spirits study benchmarks the digital competence of 69 Spirits brands on more than 675 data points across four dimensions: Site, Digital Marketing, Social Media, and …

The inaugural Digital IQ Index®: Spirits study benchmarks the digital competence of 69 Spirits brands on more than 675 data points across four dimensions: Site, Digital Marketing, Social Media, and Mobile.

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  • 1. Excerpt from the 2013 Digital IQ Index ® : Spirits To access the full report, contact membership@L2ThinkTank.om January 8, 2013 SCOTT GALLOWAY NYU Stern© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED Spirits © L2 2013 L2ThinkTank.com 1
  • 2. Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2013 Digital IQ Index ® : Spirits To access the full report, contact membership@L2ThinkTank.om Thirst The Spirits industry is a digital laggard when compared to its prestige peers. Strong regulation Watch the Spirits Video Click to Play and an opaque online path to purchase coupled with baby boomer executive leadership has resulted in digital underinvestment. However, we believe the industry is poised to evolve from a patchwork of pet projects to a hotbed of digital innovation as several factors converge: • Digitally savvy Millennials will be the next decade’s • Fifty percent of all retail purchases now begin online.1 display ads, 34 percent to search engine marketing and 59 primary engine of growth. The 78 million-strong cohort Although regulation, to date, has hamstrung e-commerce percent to digital video. Spending on mobile is expected to encompasses the most active consumers of alcohol for Spirits, brands and retailers are starting to get in the increase 71 percent.2 and social media. Millennials are 50 percent more likely game. Evidence includes Diageo’s enterprise site to cite user-generated content as their primary influence thebar.com. As e-commerce comes into focus, Spirits Digital IQ = Shareholder Value on purchase decisions. brands have a seminal opportunity to leverage advances This study attempts to quantify the digital competence of in technology and processing power to establish direct 69 global Spirits brands. Our aim is to provide a robust tool • The returns on Spirits brands’ traditional marketing relationships with their end consumers. to diagnose digital strengths and weaknesses and help investments, including high-budget TV campaigns, brands achieve greater return on incremental investment. celebrity endorsement contracts, and event • Creative digital programming provides a brand “halo” Like the medium we are assessing, our methodology partnerships, are increasingly recognized via extended effect, strengthening a marque’s association with is dynamic and we hope you will reach out to us with engagement online. From Diddy’s prolific tweeting for innovation. Digital is the marketing equivalent of “skinny comments that improve our methodology, investigation, and Cîroc to Johnnie Walker’s “House of Walker” program, jeans,” helping a brand appear younger and hipper. brands are leveraging digital programming to build As Spirits brands increasingly reallocate capital from findings. You can reach me at scott@stern.nyu.edu. equity and capture market share. traditional broadcast and print to digital channels, there is an opportunity to sprinkle an Apple—and Burberry—like • The emergence of a “cocktail culture” makes digital pixie dust across their range of products. programming a practical place to invest in educating consumers about mixology. • The shift is beginning; alcohol marketers plan to increase Scott Galloway digital spending 43 percent in 2013. Specifically, they Professor of Marketing, NYU Stern expect to allocate an additional 36 percent to digital Founder, L2 2. “Beer, Wine & Spirits: Engaging Millennials (and Drinkers of All Ages) via Social Channels,” 1. “The Local and Mobile Future of eCommerce,” Ian Griffith, BevSites, April 15, 2011. eMarketer, September 17, 2012.© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 2
  • 3. Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2013 Digital IQ Index ® : Spirits To access the full report, contact membership@L2ThinkTank.om ABOUT THE RANKING The Methodology Mobile Site Innovation 20% 30% • Compatibility • SMS • Functionality • Geolocal (Foursquare) • Load Time • Other Mobile Initiatives Mobile Mobile Applications Site • Availability Functionality & Content 80% Brand Translation 20% • Popularity • Age Gateway • Aesthetics Compatibility, optimization, and • Functionality • Site Technology
 • Messaging & Visuals marketing on smartphones and tablets • iPhone/iPad/Android   Differentiation • Navigation & Site Search • Retail Locator & Account
Capture • Brand Content • Product Page
 • EU5 Presence 30% Brand presence, community size, content, and engagement Facebook YouTube • Likes • Views Social Media • Growth • Number of Uploads ng 0% ti ke • Tabs & Applications • Subscriber Growth Search Blog Mentions ar 2 • Responsivenes • Viral Videos • Traffic & User Generated Content • Engagement • YouTube Search Visibility ta lM ia, an d • Web Authority • Mentions igi • Sentiment Twitter Emerging Social Media m ed ts • SEO & SEM: • Followers D tal for Email Marketing igi g ef • Instagram Advertising & Innovation • Growth , d tin • Frequency rch ke • Google+ • Display • Frequency • Pinterest ea mar S l • Retargeting • Content • Programming ai • Brand Initiatives • Social Media Integration em • Promotion Digital IQ ClassesGenius  140+ Gifted  110–139 Average  90–109 Challenged  70–89 Feeble  < 70Digital competence is a point of Brands are experimenting and innovating across site, Digital presence is Investment in digital is limited or Investment does notcompetitive differentiation for these mobile, and social media platforms. Brands integrate functional yet predictable. inconsistent across platforms. match opportunity.brands. Campaigns are consistently digital in both offline events and wider marketing. Success in one dimension doesintegrated across dimensions and not influence the others.promote path to purchase.© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 3
  • 4. Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2013 Digital IQ Index ® : Spirits To access the full report, contact membership@L2ThinkTank.om GENIUS Absolut Bacardi Jim Beam GIFTED Johnnie Walker Smirnoff DIGITAL IQ RANKING Hennessy Maker’s Mark Sailor Jerry Jack Daniel’s Grey Goose Jägermeister Captain MorganRANK BRAND DIGITAL IQ RANK BRAND DIGITAL IQ RANK BRAND DIGITAL IQ Belvedere Cîroc gifted AVERAGE Jameson Baileys Irish Cream 4 137 11 122 Stolichnaya Chivas Regal Crown Royal Southern Comfort Diageo Mast-Jägermeister Ballantine’s1 Malibu 140 Patrón Sauza The Glenlivet 5 135 12 121 Rémy Martin Ketel One Hendrick’s Gin Cointreau Diageo Diageo The Macallan Woodford Reserve Pernod Ricard GENIUS CHALLENGED The Balvenie 6 13 Havana Club 130 116 Kahlúa Finlandia Courvoisier Moët Hennessy Moët Hennessy Campari Don Julio Beefeater el Jimador Highland Park1 140 7 128 14 112 Jose Cuervo Knob Creek Laphroaig Ardbeg Beam Inc. Diageo gifted Grant’s Svedka Average Glenfiddich Grand Marnier Glenmorangie 7 15 R Bacardi GENIUS 128 108 Tanqueray Skyy Disaronno William Grant & Sons Pernod Ricard Bombay Sapphire Bushmills St-Germain FEEBLE Martell Cognac 9 127 16 103 The Famous Grouse Wild Turkey1 140 Brown-Forman Diageo Three Olives Bulleit Bourbon Dewar’s Ultimat Vodka Russian Standard The Botanist J&B 10 123 16 103 1800 Tequila Aberlour Mount Gay Rum Beam Inc. GENIUS Bacardi William Grant & Sons*© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED *Owned by SPI Group but distributed through William Grant & Sons through 2013. 4
  • 5. Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2013 Digital IQ Index ® : Spirits To access the full report, contact membership@L2ThinkTank.om GENIUS Absolut Bacardi Jim Beam GIFTED Johnnie Walker Smirnoff DIGITAL IQ RANKING Hennessy Maker’s Mark Sailor Jerry Jack Daniel’s Grey Goose Jägermeister Captain MorganRANK BRAND DIGITAL IQ RANK BRAND DIGITAL IQ RANK BRAND DIGITAL IQ Belvedere Cîroc Average challenged AVERAGE Jameson Baileys Irish Cream 18 102 24 96 32 89 Stolichnaya Chivas Regal Crown Royal Southern Comfort Pernod Ricard Pernod Ricard William Grant & Sons Ballantine’s Malibu Patrón Sauza The Glenlivet 19 101 26 94 32 89 Rémy Martin Ketel One Hendrick’s Gin Diageo Rémy Cointreau Pernod Ricard Cointreau The Macallan Woodford Reserve CHALLENGED The Balvenie 20 27 32 Havana Club 99 93 89 Kahlúa Finlandia Courvoisier Brown-Forman Diageo Pernod Ricard Campari Don Julio Beefeater el Jimador Highland Park 21 98 28 92 35 87 Jose Cuervo Knob Creek Laphroaig Ardbeg Pernod Ricard William Grant & Sons Brown-Forman Grant’s Svedka Glenfiddich Grand Marnier 21 29 36 Glenmorangie 98 91 86 Tanqueray Skyy Disaronno Pernod Ricard Rémy Cointreau Beam Inc. Bombay Sapphire Bushmills St-Germain FEEBLE Martell Cognac 23 97 29 91 37 85 The Famous Grouse Wild Turkey Three Olives Bulleit Bourbon The Patrón Spirits Company The Edrington Group Gruppo Campari Dewar’s Ultimat Vodka Russian Standard The Botanist J&B 24 96 31 90 37 85 1800 Tequila Aberlour Mount Gay Rum Beam Inc. Brown-Forman Average Diageo*© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED *Owned by Tequila Don Julio, S.A. de C.V. but distributed by Diageo. 5
  • 6. Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2013 Digital IQ Index ® : Spirits To access the full report, contact membership@L2ThinkTank.om GENIUS Absolut Bacardi Jim Beam GIFTED Johnnie Walker Smirnoff DIGITAL IQ RANKING Hennessy Maker’s Mark Sailor Jerry Jack Daniel’s Grey Goose Jägermeister Captain MorganRANK BRAND DIGITAL IQ RANK BRAND DIGITAL IQ RANK BRAND DIGITAL IQ Belvedere Cîroc challenged AVERAGE Jameson Baileys Irish Cream 46 84 46 79 53 73 Stolichnaya Chivas Regal Crown Royal Southern Comfort Pernod Ricard William Grant & Sons ILLVA Saronno Holding Ballantine’s Malibu Patrón Sauza The Glenlivet 46 84 46 79 54 71 Rémy Martin Ketel One Hendrick’s Gin Brown-Forman Constellation Brands Bacardi Cointreau The Macallan Woodford Reserve CHALLENGED The Balvenie 48 48 55 Havana Club 83 77 70 Kahlúa Finlandia Courvoisier The Edrington Group William Grant & Sons Diageo Campari Don Julio Beefeater el Jimador Highland Park 48 83 48 77 55 70 Jose Cuervo Knob Creek Laphroaig Ardbeg Diageo Moët Hennessy Cooper Spirits International challenged Grant’s Svedka feeble Glenfiddich Grand Marnier Glenmorangie 50 83 50 76 57 69 Tanqueray Skyy Disaronno Beam Inc. Moët Hennessy Pernod Ricard Bombay Sapphire Bushmills St-Germain FEEBLE Martell Cognac 50 81 50 76 57 69 The Famous Grouse Wild Turkey Three Olives Bulleit Bourbon Beam Inc. Diageo The Edrington Group Dewar’s Ultimat Vodka Russian Standard The Botanist J&B 52 80 52 74 59 67 1800 Tequila Aberlour Mount Gay Rum Moët Hennessy Gruppo Campari Gruppo Campari© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 6
  • 7. Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2013 Digital IQ Index ® : Spirits To access the full report, contact membership@L2ThinkTank.om GENIUS Absolut Bacardi Jim Beam GIFTED Johnnie Walker Smirnoff DIGITAL IQ RANKING Hennessy Maker’s Mark Sailor Jerry Jack Daniel’s Grey Goose Jägermeister Captain MorganRANK BRAND DIGITAL IQ RANK BRAND DIGITAL IQ Belvedere Cîroc AVERAGE feeble Jameson Baileys Irish Cream 60 67 Stolichnaya 66 50 Chivas Regal Crown Royal Southern Comfort Proximo Spirits Proximo Spirits Ballantine’s Malibu Patrón Sauza The Glenlivet 61 62 68 39 Rémy Martin Ketel One Hendrick’s Gin Cointreau Diageo Pernod Ricard The Macallan Woodford Reserve CHALLENGED The Balvenie Havana Club 61 62 68 39 Kahlúa Finlandia Courvoisier Bacardi Rémy Cointreau feeble Campari Don Julio Beefeater el Jimador Highland Park 63 61 Jose Cuervo Knob Creek Laphroaig Ardbeg The Patrón Spirits Company Grant’s Svedka Glenfiddich Grand Marnier Glenmorangie 64 58 Tanqueray Skyy Disaronno Roust Bombay Sapphire Bushmills St-Germain FEEBLE Martell Cognac 65 The Famous Grouse 57 Wild Turkey Three Olives Bulleit Bourbon Rémy Cointreau Dewar’s Ultimat Vodka Russian Standard The Botanist J&B 66 53 1800 Tequila Aberlour Mount Gay Rum Diageo© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 7
  • 8. Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2013 Digital IQ Index ® : Spirits To access the full report, contact membership@L2ThinkTank.om Key Findings Retail Locator Site Features Percent of Sites with the Following Path to Purchase December 2012, n=25 While regulatory constraints prevent end-to-end e-commerce, top brands are utilizing their sites to drive users to on and offline points of purchase. Thirty-six percent of brands incorporate retail locators (taking an average of two clicks from the main page to find a destination). Just 84% 40 percent of brands with retail locators featured maps Locator hosted on brand site and directions, and only eight percent auto-detect location through IP addresses. The Beam locator is ubiquitous across the parent’s six brands, though it is not always deployed in the same way. In some cases, the locator is fully integrated into the brand site (Jim Beam) while in others, it is incorporated through a pop- up window (Maker’s Mark) or a separate URL (Knob Creek). Diageo’s Don Julio and Crown Royal both link to thebar.com for retail locations while Brown-Forman’s el Jimador and Southern Comfort use Google Maps. 72% Search by address/zip 32% Search by specific products 56% Distinguish between bar/restaurant/retail 8% Auto detect location by IP address 40% Include map directions© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 8
  • 9. Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2013 Digital IQ Index ® : Spirits To access the full report, contact membership@L2ThinkTank.om Key Findings Account Data Collection Account Features Loyalty December 2012, n=25 December 2012, n=25 Only 36 percent of brands offer account sign-up through 68% their sites, suggesting a significant missed opportunity. 64% Brands with account functionality captured between six and 48% 30 data points upon sign-up with an average of 16.5. This 44% ranged from mailing address (64 percent), opt-ins for direct 36% 32% 32% mail (44 percent), and mobile alerts (36 percent), as well 28% 28% as varying degrees of consumer product preferences (28 percent) and consumption habits (32 percent). Incentives also varied. Some brands lured loyalty members with news and events that went largely unseen. Others provided rewards like personalized bottle labels or bags. Patrón and Laphroaig were among the strongest, offering Mailing Opt-In for Opt-In for Consumption Product Account Access to Personalization Incorporate bottle registration/lookup, which allows the brands to track Address Direct Mail Mobile Alerts Habits Preferences Program is Events Features Facebook Branded on Site Connect purchase location and habits. The Account Continuum 68% Percent of Brands With the Following Features: December 2012, n=25 48% 32% 16% 8% 4% Branded Account Access to Offline Events Dedicated Section of Site Event Signup via Site Product Purchase Tracking Transactional Loyalty Program or Microsite Sophistication© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 9
  • 10. Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2013 Digital IQ Index ® : Spirits To access the full report, contact membership@L2ThinkTank.om Key Findings Facebook Top 10: Facebook Brands Presence on the big three social media platforms, Facebook, Number of “Likes” by Aggregate Global Community Size Twitter, and YouTube, is nearly ubiquitous at 100 percent, 94 December 2012 percent, and 94 percent, respectively, and experimentation on emerging social media platforms is rapidly increasing. Although Facebook serves as the hub for most social activity, community sizes lag other industries. The average U.S. Facebook community was just over 500,000, while global brand communities averaged just over one million, incorporating regional and product-specific pages. The importance of social media to the industry cannot be 8,139,366 likes 7,188,711 likes overstated, especially given the regulations around site. Smirnoff Jack Daniel’s n=53 n=39 According to April 2011 data from ROI Research, 15 percent of users purchased an alcoholic beverage as a result of content encountered on a social network. Though this rate of influence lags auto and food, at 21 percent, it exceeds personal care and non-alcoholic beverages (13 percent and eight percent, respectively).3 5,819,603 likes 5,369,753 likes 4,053,885 likes Key Bacardi Johnnie Walker Captain Morgan n=20 n=51 n=33 Europe North America Asia South America Africa/MENA Global 3,618,879 likes 3,320,414 likes 2,801,254 likes 2,138,178 likes 1,933,097 likes Baileys Irish Cream Absolut Jose Cuervo Skyy Hennessy Total “Likes” n=20 n=47 n=18 n=12 n=28 3. “Beer, Wine & Spirits: Engaging Millennials (and Drinkers of All Ages) via Social Channels,” Debby Garbato, eMarketer, September 17, 2012.© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 10
  • 11. Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2013 Digital IQ Index ® : Spirits To access the full report, contact membership@L2ThinkTank.om Mobile Site Feature Adoption Percent of Mobile Sites With the Following Features Key Findings December 2012, n=23 Mobile While almost 60 percent rely on the desktop version, only one third of brands in the Index offer a mobile-optimized Links to Social Media Retail Location Promotes App Mobile Site Search site. Despite the proliferation of smartphones, seven percent of sites are entirely flash-based and do not load on iOS 91% 32% 9% 5% devices. Given that experts estimate upwards of 50 percent or more of mobile searches have some sort of local intent,4 the industry is missing an opportunity to direct consumers Mobile Application Adoption Rates to a point of purchase or to engage at point of consumption. Brands With a Presence on the Following December 2012, n=69 In the app space brands are active on both iOS and Android, though Apple remains the most popular mobile app platform with more than half of brands maintaining an iPhone app. Brands are starting to provide directions, retailers’ contact info, and product information within their apps.5 Most apps include 29% 29% some sort of interactive feature, ranging from Sailor Jerry’s 50% virtual tattoo creator and tattoo artist finder to the Jack Daniel’s iPad iPhone Android Bar Call app that expedites the process of ordering Jack at a loud crowded bar. Other more retail-centric apps include location-based functionality, such as the Laphroaig bar locator or the Cîroc Celebration Guide with bar/restaurant locator. Mobile Site & HTML5 Adoption December 2012, n=69 7% Broken Site/Flash 33% Mobile Site 42% Non-HTML5 17% 4. “50% of Mobile Search Is Local,” Greg Sterling, Screenwerk, October 1, 2012. HTML5 5. “Customers Respond to Sites Whipped into Mobile Shape,” eMarketer, October 16, 2012.© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 11
  • 12. Inquire about your brand’s ranking: Info@L2ThinkTank.com Excerpt from the 2013 Digital IQ Index ® : Spirits To access the full report, contact membership@L2ThinkTank.om TABLE OF CONTENTS Click to Jump To: 4 Methodology 28 YouTube 30 In Search of Video 5 Digital IQ Rankings 31 Emerging Social Media 5 Genius 32 Pinterest: Wait and See 6 Gifted 33 The Big Picture 6 Average 34 Mobile 8 Challenged 9 Feeble 36 Flash of Genius 36 Beefeater: “Taking the (You)Tube” 11 Key Findings 37 Sauza: Make It With a Fireman 11 Digital IQ Distribution 38 Captain Morgan: Captain’s Conquest 12 Enterprise Value 39 Hennessy: Hennessy Artistry Series 13 Age Gate 40 Laphroaig & Maker’s Mark: Friends of Laphroaig and Ambassadors 14 Path to Purchase 41 Bacardi: “Unwrap the Night” 15 E-Commerce Integration 42 Cîroc & Malibu: Celebrity Creative Directors 16 The Power of Content 43 Smirnoff: Nightlife Exchange 17 Microsites 44 Maker’s Mark: The Cocktail Party 18 You’ve Got (No) Mail 45 Belvedere: Belvedere Red Forest 19 Loyalty 46 Ballantine’s: “Leave an Impression” 20 In Search of Search 47 Southern Comfort, el Jimador, & Finlandia: Email Tactics 21 Facebook 48 Hendrick’s: Voyage Into the Unusual 23 Size vs. Engagement 49 Dewar’s: Dewar’s Hub and TED Partnership 24 Facebook Community Size: Over and Under Achievers 25 Twitter 50 L2 Team 27 Celebrity Power 51 About L2© L2 2013 L2ThinkTank.com. REPRODUCTIONS AND DISTRIBUTION PROHIBITED 12
  • 13. Excerpt from the 2013 Digital IQ Index ® : Spirits To access the full report, contact membership@L2ThinkTank.om A Think Tank for DIGITAL INNOVATION51 East 12th Street, 2nd FloorNew York, NY 10003 © L 2 2013 L 2 ThinkTank.com Reproductions ProhibitedL2ThinkTank.com This report is the property of L2 Think Tank. No copyrighted materials may be reproduced, redistributed, or transferredinfo@L2ThinkTank.com without prior consent from L2. L2 reports are available to L2 Members for internal business purposes. 13

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