Pernod Ricard

Pernod Ricard selected ProProcure to create an online marketing collateral procurement environment that ensured their global strategic business objectives would be met. The end result is fast, transparent and widely adopted.

The Client

Pernod Ricard is the world’s co-leader in wines and spirits. Through a global acquisition strategy this multi-national powerhouse has numerous global brands under its umbrella including Absolut Vodka, Chivas Regal, Malibu, Beefeater, Campo Viejo and Jacobs Creek.

The company is rightly proud of its organisational model based on decentralisation and control of distribution.

Pernod Ricard is made up of Brand Companies and Market Companies representing over 18,000 employees in 70 countries. Autonomous and accountable; the Market Companies take the global brand strategy defined by the Brand Companies and adapt it locally. This flexible and responsive organisation ensures the best understanding of the specifics of each market and the expectations of its consumers.

Pernod Ricard has considerable marketing procurement requirements, and, like all multi-national brand owners, it must achieve multi-national brand communication through consistent and high quality marketing collateral.

The Challenge

For Pernod Ricard Point of Sale (PoS) collateral represents a huge marketing opportunity for the various consumer brand owners. Once a brand ID has been determined, it must be clearly communicated through branded materials including 3d displays, posters, promotional items and other marketing collateral that convey the essence of a brand to increasingly sophisticated consumers.

Pernod Ricard wished to leverage the buying power of the entire group in harmony with their de-centralised management structure. Though cost savings was one of the major objectives, improving the quality and consistency of branded marketing collateral was of equal importance.

The challenge of reducing costs while achieving brand consistency across many countries is a difficult one. Multi-national brands have margins to maintain and the marketing procurement process is often based on a fragmented and complex supply chain. The end result can frequently be inconsistent/poor quality materials at sub-optimal pricing.

The Pernod Ricard approach was to establish The Demeter Project, an internal project to look at the procurement of PoS materials for the group as a whole.

A European steering committee was set-up and one of their first steps was to invite 232 suppliers to showcase their best PoS materials under one roof. By assessing quality of service, prices, and other key criteria, they reduced this number down to 103 suppliers, with whom they negotiated. This process alone ultimately resulted in a saving of 22%.

The next logical step for the committee was to select the marketing collateral procurement solution provider to work with to deliver the new procurement strategy into every market. Pernod Ricard chose ProProcure.

Pernod Ricard Business Objectives

  • Optimise marketing collateral spend/budget
  • Leverage total buying power to reduce costs for all markets
  • Improve the quality and consistency of PoS materials in local markets
  • Improve total visibility over a complex category of spend, marketing collateral
  • Make the marketing procurement process more efficient
  • Increase co-operation within the group, improving procurement ROI
  • Protect the integrity of each and every brand within very market.

Return on investment (ROI)

Using ProProcure’s Marketing Spend Management Solutions has vastly increased the efficiency of Pernod Ricard’s procurement process. Additionally users are steered to pre-approved branded promotional materials only and suppliers are consistently challenged to raise their game.

More specifically since it was initiated in early 2008, the Demeter Project has delivered the following benefits to Pernod Ricard:

  • Consolidation and refinement of all brand marketing procurement
  • Cost saving of 22%
  • Higher quality and brand consistent marketing materials
  • Group wide reduction of indirect spend
  • Creation of a new supply chain and communications model
  • Adoption across the organisation which has helped reduce off-contract spend.

Hear from the client

Julian Welch, Marketing Services Manager for Chivas

Brothers at Pernod Ricard says:

“Having worked with ProProcure for a number of years we were confident that they could configure their technology to create an online environment that allowed our strategic objectives to be met. The end result is a process that is fast, transparent and widely adopted.

We use the ProProcure platform to manage approved marketing collateral for the various Pernod Ricard brands and the purchasing of these materials from our preferred supplier network. We also co-ordinate regional procurement using the in-built order aggregation tools and can measure our cost savings in real time.

The ProProcure team working with Pernod Ricard have integrated with our business and take a very proactive approach to supporting us.”

Going forward

The Demeter Project currently encompasses Pernod Ricard’s marketing collateral procurement activities in Europe. A phased roll out is now underway to Asia, America, and in time, all of the Pernod Ricard markets.