Brands are constantly seeking innovative ways to elevate customer experiences and Pernod Ricard India, a leader in the premium spirits market, has embraced artificial intelligence (AI) to refine its approach to consumer engagement, marketing, and even internal operations. I recently spoke with Simon de Beauregard, the company's Chief Transformation Officer, to delve into their AI-driven strategies and explore how they’re shaping the future of luxury in India.
PD: How does AI align with Pernod Ricard’s brand identity and enhance the customer experience?
Simon de Beauregard: At Pernod Ricard, we are creators of what we call "conviviality" – the art of being together, sharing moments of joy, and fostering connections. AI helps us achieve this by enabling us to be truly consumer-centric. We use AI and digital data throughout our organization, from understanding consumer preferences to marketing, distribution, and sales forecasting. This allows us to offer the perfect option for each consumer in an increasingly complex market.
PD: Could you share specific examples of how AI insights have shaped customer interactions to feel more luxurious and meaningful?
Simon: One example is our “Maestria” program, a portfolio strategy program based on understanding specific consumer moments. We surveyed 18,000 consumers to map these moments of consumption and then tailored our portfolio and advertising accordingly. This involved understanding not just what they were consuming but also who they were with, where they were, and the overall context. To manage this complex data, we use AI and machine learning.
Another example is our sales execution program, “D-Star,” which uses AI to equip our field teams with the data they need to know precisely which brands, SKUs, and formats to offer in each store and how often to visit. This data empowers them to build even better relationships with retailers. For example, with Chivas, we've seen conversion rates increase significantly when targeting new accounts.
On the consumer side, we’ve used AI to create immersive experiences. Our “One Billion Films for One Billion Fans” campaign let cricket and Royal Stag fans upload their photos to be incorporated into personalized films featuring their favorite players. We used generative AI to create these films, something fairly innovative for an alcohol beverage company.
PD: How does Pernod Ricard envision the future of luxury in India, and what role will AI play in shaping consumer expectations?
Simon: AI will redefine what consumers expect from all brands, including luxury brands. Consumers are accustomed to instant responses, personalized services, and customized experiences. We are adapting quickly by using AI to provide such tailored experiences. In India, we sometimes face regulatory limitations, unlike markets like China or the US. However, AI is already happening and influencing consumer expectations.
PD: Anticipating trends is crucial in the luxury market. How does Pernod Ricard’s AI strategy help you stay ahead of the curve and understand the evolving desires of the luxury consumer?
Simon: Our AI initiatives, including “Maestria” and our digital programs, have given us a competitive advantage. Listening to consumers is key, both through large-scale surveys like Maestria and through social listening tools. This helps us stay close to consumer trends and adapt our launches and activations accordingly. We’re also investing in training our employees to leverage AI tools like video creation and music generation software to develop campaigns and ideas much faster.
PD: How did this embrace of AI come about, especially within a luxury brand, which can often be more traditional in its approach?
Simon: It's been a journey of several years. Programs like “D-Star” and “Maestria” are five or six years old. We recognize that in today’s fast-paced, data-driven environment, successful businesses leverage data to make quick, informed decisions. We combine AI with the expertise and experience of our Indian team, who deeply understand our brands and the local market. Our Harvard Business School case study is a testament to our success in this area.
PD: My final question concerns ethics. How does Pernod Ricard India ensure that its AI-driven strategies honour and protect the exclusivity and privacy that luxury clients expect?
Simon: This is a crucial question for us. We strictly adhere to global and local laws regarding data privacy, often exceeding the requirements. We have dedicated teams working on data governance and compliance. We never compromise on these ethical considerations.