Diageo hails marketing strategy for sales bump

Diageo ramped up spending on marketing in the final half of 2011 as it looked to exploit the growing popularity of brands such as Johnnie Walker and Guinness in emerging markets.

Madonna’s latest music video featuring Diageo’s Smirnoff

The company has switched focus to emerging markets and is now focussing effort in the faster growing regions of the world.

Marketing spend in developing markets increased by 20% in the six months to 31 December, compared to a 10% bump across the world.

Increased investment in brand building helped lift emerging markets sales by 18%, twice the 7% rate seen in the rest of the world.

Paul Walsh, chief executive of Diageo, says that the gains “result from the investment made in building brands”.

He adds: “In an uncertain economic environment we have again demonstrated the benefits of our geographic diversity and brand range.”

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