Consumers Are Beginning To Take Risks And Try New Things: Anand Kripalu, CEO & MD, Diageo

The success of any organisation is defined by the vision of its leadership. What makes some brands more successful than others is a mix of many factors. Sharing his perspective with into the making of formidable brands, Anand Kripalu, CEO & MD, Diageo India believes that organizational transformation with evolving demands is a key factor that defines success in today's competitive environment.

"What we want to be in the future is very different from the past. We want to retain some things for sure and get rid of some things we don't believe in. Having put in place the required compliance, zero tolerance for corruption, ethical marketing of alcohol we have decided to make Diageo India a great place to work. We have also made many organizational changes, which is all about changing the hard part of the organisation like structure, role and responsibilities", stated Kripalu.

Sharing that transforming the cultural part was a bigger challenge in the process of organizational makeover, Kripalu said, "In fact changing the soft part of the organisation is the hardest part. We are now embarking on creating that cement to make the soft part of the company something that all our people would love to be part of."

While speaking about the need for brands to experiment and engage customers in an imaginative way, Kripalu explained, "It just goes back to who understands the consumers better. The global trend in beer is not about drinking Budweiser or drinking the same beer every day. It's about trying different beers. In fact, now the word craft beers are being increasingly used, where you have unique tastes and every pub and every brewer has their own its own unique craft beer. This is how the consumer taste is evolving. I think there will always be a role for central, mainstream brands that deliver the same promise and same experience every time. But watch out for the emerging trends where consumers are beginning to take risks and try new things."

Citing the example of evolving consumer preference to try out new things and need for established brands to keep up a pace with the shifting trends, Kripalu added, "A Vodka brand name Tito's has taken the US market by storm. It started as a craft brand and it proves how consumers' tastes are evolving. At home, Paper Boat is a brilliant example of this. Their product ideas are something that we have all grown with and it brings back the memories of the childhood. I would say that they have successfully created a brand around consumer understanding that is better than most of the big soft drink companies were able to find and that's how brands get evolved."

Sharing his definition of successful brands, Kripalu stated, "Successful brands have a business model that delivers consumer insights more efficiently than anyone else."

Commenting on the impact of demonetization and GST on businesses across sectors, Kripalu said, "It has been a tough year for us. I believe it is very easy to be a good leader in bad times, but real leaders are those who are able to inspire their teams in difficult times."

(These views were expressed at the launch of BW Businessworld's 13th Marketing Whitebook in Ritz Carlton, Bengaluru on August 29, 2017)