Banking on the brand to give consumers a high

After quitting to work for Pepsi bottler Serm Suk for three years, Isaress Sundravorakul returned to Diageo Moet Hennessy (Thailand) in October to take on the post of marketing manager for all whisky brands.

Among his primary missions is to keep his consumers "looking good".

 "Competition has grown fiercer. [Our competitors] have slashed prices. But we still have confidence in our brands," he said.

"At this level [the upper market segment], what consumers are looking for is image ... You look good when you're drinking [Johnnie Walker] Black [Label]," he said.

Diageo's archrival Pernod Ricard slashed the price of its Chivas Regal Scotch to Bt899 a bottle during the New Year holiday period, compared to about Bt1,000 a bottle for Black Label. At present, a bottle of Chivas sells at Siam Jusco supermarkets for Bt998, compared with Bt1,099 for Black Label. Even in the secondary whisky segment - in which, unlike in the premium market, Diageo trails Pernod Ricard - the branding emphasis prevails; at Siam Jusco, the firm's Ben More retails for Bt285, versus Bt269 for a bottle of Pernod's 100 Pipers.

"We won't follow these price cuts, because we're confident that if you're getting your branding right, people will favour [your products, regardless of price]," he said.

The impact of the economic downturn has yet to be fully felt, and domestic demand for the products distributed by Diageo isn't falling as fast as some other segments, Isaress said in an exclusive interview with The Nation last month.

Isaress had planned to open his own business, but changed his mind to return to Diageo and take on the greater responsibilities and challenges of his new position. As marketing manager, Isaress is in charge not only of marketing, but also of all other aspects of the company's whisky business, including sales, finance and the supply chain.

"It's running almost like a company [unto itself]," said Isaress of his whisky division within Diageo.

Now 34, Isaress got a bachelor's degree in economics in the US. Despite his field of study, he chose to start his career as an advertising executive at JWT Bangkok.

"I thought it would be interesting to 'talk' with millions of people, and convince them to believe what you say. [Advertising work] is fascinating and challenging, because consumers' behaviour is hard to anticipate," he said.

After a stint with JWT, Isaress took a break to earn an MBA at the Sasin Graduate Institute of Business Administration. After Sasin, he joined Diageo for the first time in 2001 as assistant brand manager for Johnnie Walker Black Label, later earning a promotion to brand manager for Black Label, and finally to senior brand manager for Johnnie Walker's Black Label and Red Label.

In 2005, Isaress quit Diageo for Serm Suk. He admits it was a very difficult decision.

"At the time, it was a very dif-ficult decision for me, as I was still very much in love with Johnnie Walker. I believe in acting with integrity and doing the right thing, and I take pride in my work. So I told Serm Suk I would work for them for three years. I also told the management here of my plans three months in advance [of leaving]."

During his three years at Serm Suk, he worked closely with Dhitivute Bulsook, the firm's second-generation leader. His last position there was also as marketing manager. Isaress was responsible for non-carbonated drinks, including those under the Crystal, Lipton, Gatorade, Carabao Daeng and Tropicana Twister brands, and was instrumental in the launch of the Crystal soda brand.

Isaress said he left Diageo for Serm Suk because he wanted to learn about mass marketing. The thought processes and decision-making methods of consumers are totally different when purchasing a drink for Bt7 than they are when the purchase is a Bt600 to Bt700 bottle of whisky, he said.

Back at Diageo, aside from the larger responsibilities and fiercer competition, Isaress has faced many new challenges, including the stiffer regulations included in the new Alcohol Control Act. Nonetheless, he said, Diageo implemented many 'self-regulating' measures two years before the law became effective, some of them even stricter than the law requires, based on its 11-point Marketing Code of Conduct.

A ban on airing TV ads for alcoholic beverages before 10pm and

an increase in Internet use among its customers have prompted Diageo to make greater use

of digital and interactive media.

It currently allocates 10 per cent

to 15 per cent of its marketing

budget to these media, amount-

ing to somewhere between Bt500 million and Bt800 million per

year (including whisky and

other products), Isaress said.

"Also, we estimate that 20 per cent of total consumers are high-value consumers. We don't necessarily have to appeal to the mass market every time," he said.

Customer relationship management, or CRM, has become an important tool in the industry. Diageo has made direct contact with its consumers through e-mails, sending them tips on self-development such as "10 Books You Need To Read". Another important strategy has been to compile a consumer database. Diageo asks customers questions such as "Where will you be going out this summer?" The objective is to identify the interests of consumers and their behaviours, which allows the firm to place them in segments and to tailor its marketing to suit their needs, Isaress said.

Diageo has 200,000 to 300,000 consumers on its database, which is a sufficient number, but most are concentrated in Bangkok and surrounding areas, he said.

pichaya@nationgroup.com