No producer wants to feel like their business is simply dictated by trends and not backed by individual vision and a solid plan. However, if 2020 taught us anything, it’s to be strategic, targeted and, most of all, flexible.
To understand what consumers want in 2021 and beyond, Beverage Master Magazine gathered some trend data and talked with Holly McHugh, marketing associate for Imbibe, a beverage development company focused on the formulation, customization and commercialization of cutting-edge beverage products that provide a “bolt-on R&D function” for companies without R&D or that need to expand in this area.
So—What’s New?
Taking stock of the past year and establishing aspects of revision is still a personal and professional journey. Still, maybe some of these indicators will resonate as either extensions of current practices or sparks of innovation.
People are Eager forTo-go and Online Options
“The pandemic changed the way we shop, socialize, entertain and more,” McHugh said. “This created a need for CPG (consumer packaged goods) brands to offer products that provide an escape from the mundane but can be enjoyed at home.”
In December 2020, Forbes reported that “total eCommerce penetration experienced 10 years of growth March through May 2020.” It cited research from IWSR that stressed “online sales of alcohol in the U.S. alone are expected to grow by more than 80%” in 2021. The IWSR analysis indicated that “beverage alcohol eCommerce value grew by 42% in 2020,” and the forecast is that the U.S. will overtake China “as the world’s largest beverage alcohol e-Commerce market by the end of 2021.”
Quite simply, customers are fond of the convenience and expanse of options online ordering provides. In major and secondary market areas, consumers use platforms like Drizly to browse various selections and receive their purchases within 60 minutes. Many local producers also have access to DoorDash and other delivery services, regulations permitting. “Ghost bars” — extensions of virtual or cloud bars or restaurants often accessed only through third-party delivery services — also saw an increase in consumer interest as producers found new ways to lower overhead but expand product offerings and brand awareness.
Do-it-yourself kits, mixology classes, premium bar selections, unusual or over-the-top experimental selections and other experienced-based offerings continue to drive consumer interest in 2021. They also still desire personal connections with makers.
Non-standard Products Continue to Rise
Hard seltzer, cider, tea, kombucha and beer tap into consumers’ desire to balance healthy libations with beverage-driven exploration.
For example, pandemic purchases of hard seltzer, in particular, rose significantly in 2020, moving beyond previous limitations of seasonality, and there’s no stopping point yet. Nielsen reported that “Hard seltzer-correlated ready-to-drink cocktails drove $120 million in U.S. off-premise sales in the 52-week period ending June 2020, while growing at a 127% rate compared with the previous year.” That growth, Nielsen states, “opened the doors to an even broader array of new and bolder flavor options accompanying the base liquid, and it’s allowing manufacturers to expand the limits of what ‘hard seltzer’ means.”
Zero-proof spirits, especially those enhanced with adaptogens – herbal substances that promote wellness – botanicals and CBD also have growth potential.
As regulations shift, CBD- and even THC-infused products are positioned for a meteoric rise, according to a 2020 report by Grant View Research. “The global cannabis beverages market size is expected to reach USD 2.8 Billion by 2025 at a CAGR (compounded annual growth rate) of 17.8 percent.” While some consumers might opt for THC’s “therapeutic effects along with the euphoria it provides,” Grant View Research indicated, people consider CBD products differently.
“Lack of psychoactive effect in the CBD drinks is widening its scope for usage of the drinks in medical purposes. Many consumers are considering CBD drinks as a wellness and anti-inflammatory products, such as kombucha, a probiotic drink. This drink can potentially be used for treating chronic pain, anxiety, substance use disorders and central nervous system diseases. These factors are expected to boost the adoption of the product, resulting in the growth of the segment,” the report outlined.
Health is Front and Center
“Since the onset of the pandemic, improving physical and mental health has become a top priority for consumers,” McHugh said. Imbibe’s trendspotting indicated a sharp uptick in non-alcoholic wellness beverages and other forms of “permissible indulgence.” While this doesn’t seem to align with alcohol initially, it presents opportunities to consider communications and branding that acknowledge aspects of a healthy lifestyle.
Spirit-forward classics, which celebrated resurgence in 2020, aren’t slowing down in the new year and might provide another way to acknowledge the balance of responsible consumption that focuses on taste and experience.
Combating stress with beverages, otherwise known as mood boosters, that allow for clarity, relaxation and sleep is another trend for 2021, similarly to non-traditional offerings.
There’s a Greater Awareness of Ethical Practices and Cultural Appropriation
In addition to a greater interest in immunity and mood-boosting beverages, McHugh said there’s an increased demand for global products and flavors — with a caveat.
While culinary tourism is at a high, panelists at Bar Convent Brooklyn last fall stressed that consumers would continue to share dollars and social media influence with businesses that are more progressive when addressing workplace inequalities, sexism, racism and other societal concerns. They want inclusion and diversity, but from the originators. For example, tiki bars are replaced with nautical or tropical themes; an introduction to popular new tequila includes cultural history from someone in the Latinx community; and a closer examination of whether the producers’ table includes people of color and women, especially when it involves other rising spirit trends such as sake, soju, South American spirits and Japanese whiskey.
Value and Safety Still Prevail
While this really isn’t a surprise, it’s simply a reminder that we can’t move into what was once normal just yet.
“Economic uncertainty created demand for value, which we anticipate will be evident through increased sales in multi-use and multi-pack products and private label innovation,” McHugh said. “Safety is something we always think about in the industry in the sense that we don’t want to sell a product that could be dangerous to the consumer, but concern about safety has been heightened by the pandemic. Consumers are purchasing groceries online now more than ever, paying closer attention to product packaging and checking what safety precautions food service establishments are taking before eating out or ordering in.”
How to Use the ‘Gram to Maximize Your Craft Beverage Brand
By: Chris Mulvaney, President (CMDS)
What three things do Tito’s, Blue Chair Bay Rum and Trillium Brewing Company have in common? All three have mastered the ‘gram game and have boosted their brand success by putting out a consistent cross-formula of brand content, brand awareness and maximizing audience engagement across the ever-growing social media platform.
Whether you are a craft brewer, startup spirit producer or global drinks company, your social media presence should be at the top of your priority list. But how exactly can crafters use Instagram to grow their business?
Instagram is a visually appealing social media platform. In recent years, it has started to dominate Facebook in that it is not as overcrowded and expensive. The beauty of Instagram is that brands can still establish an organic relationship with their followers and can develop brand personas, becoming known for a certain tone, content and style. They can build their brand immensely just by being an active user. Also, the influencer market has never been so powerful for brand awareness.
Instagram Strategy
Once you get a grasp of the platform, then you must define your social media strategy to gain the right followers and maximize engagement.
This should include:
• Increasing brand awareness.
• Driving website traffic.
• Increasing website engagement to generate leads and drive sales.
• Increasing customer retention, engagement, and followers.
How can a brand stand out in an increasingly competitive market?
• Quality products, first and foremost.
• Great marketing.
After that, tell your brand story through photos, partnerships, video and human interaction. Think about what separates your product from others in the market. This isn’t something that’s achieved by one post, but over time, and means connecting your product to something much wider than the drink itself.
For example, Mexican brand, Corona, understands the appeal of their beverage isn’t just the beer itself. A Corona and lime brings to mind vacations, beaches, relaxation and sun.
They’ve fully embraced this as their brand, tying the image of plunging a fresh lime into a cold Corona to diving headfirst into the waters of a clear blue ocean.
Organic Media vs. Paid Media
In the past, the goal of most marketers on Instagram tended towards growing a big following, then continuously publishing content that’s relevant to their brand and audience. One important point to realize, however, is that just because you have 1000 followers doesn’t mean every time you post all 1000 of them will see that post.
In fact, the reality is a much smaller percentage of them will ever see your post and that’s where the term “organic reach” comes in.
Organic
One of the most important things to understand about social media marketing is that the way companies can succeed on social media will be entirely dependent on whether they can create an organic experience for users.
Organic reach determines how many of your followers will see your post without you paying.
This concept of organic reach is prevalent on Instagram since the algorithms used to determine who will see your content at any given time are based primarily on engagement.
Tips to Get More Organic Reach:
• Feed your audience with more value.
• Upload at least two posts a day.
• Make use of all the features (posts, stories, comments, hashtags).
• Use attention-grabbing headlines.
• Use paid sites like Sprout Social to understand the industry atmosphere and create an ongoing dialogue with your audience.
Paid Distribution
Due to changes in organic reach over the years, companies have been forced to rethink their social media strategies, and in many cases begin exploring other avenues to reach their users on social media, specifically through paid distribution.
Utilizing paid channels has a number of benefits because it can target users based on demographic information, behavior and interests. Because of this, marketers are able to drill down to specific audiences.
Seven Steps to Success
Gaining followers and engagement isn’t about simply posting once a week and hoping for the best. In fact, a successful strategy on Instagram should include concrete goals, an ongoing content calendar, a scientific approach to who you’re trying to reach and how many people you expect to interact with.
The following are seven important steps to grow your brand on Instagram.
1. Be consistent: It’s important to define a core strategy for your brand. It should be consistent across all channels and the narrative should be easy to follow. You’ll need to balance product content, campaign content and brand content to be most effective.
How to maximize consistency on the Instagram platform:
• Post stories often.
• Like and comment on posts.
• Run a contest.
• Post engaging captions.
• Offer free advice or information.
• Post during active hours.
• Use Instagram ads (paid distribution).
• Have a strong visual brand strategy.
2. Use clever alcohol hashtags: Using clever alcohol-related hashtags can help get your brand trending online or inspire a sense of community with your customers.
Studies have shown the optimal number of hashtags to use in Instagram consistently is seven. However, even more important is to define your hashtags, include them on packaging and don’t change them too often to make sure fans can refer to you easily.
3. Use Influencers: The influencer market has never been so powerful. There are hiring sites for influencers that will allow you to enhance your brand and vision through them. It’s a great way to promote engagement because it boosts brand awareness fast and increases your potential to go viral.
4. Keep the “social” in social media: A great way to inspire your fans is to use social media to inspire real world engagement. Your brand will get the most out of social media by catering to the interactive experience. It’s important to be part of the conversation around social events which will resonate with your market – both in terms of pre-planned campaigns and via reactive content.
Just having a social media account is not enough. Successful brewing and spirit brands actively encourage their fans to engage with their accounts. Many have received some serious engagement by re-posting user generated photos.
Whether you’re sponsoring a national event, or you can be reactive in a more local way, providing up-to-date content and being part of the conversation will help to keep your brand relevant.
5. Offer a Backstage Pass: Take your followers behind the scenes. Let your audience peek behind the curtain and see how their favorite drinks are made. Post photos of the start-up days, of the staff living life and having real experiences.
6. Connect to a Cause: Just as social media users don’t only care about likes and clicks, drinkers don’t care solely about their alcohol. More and more, consumers care about the ethics behind the products they’re buying. Remember, they are buying a brand.
For example, New Belgium Brewing Company put meaning behind their message with their #FindingCommonGround campaign, which not only connects their outdoorsy aesthetic brand to a public land cause, but raised over $250,000 for charity.
It’s worth the investment, on multiple levels, to put some of your efforts into giving back.
7. Partner with other brands: A drink is better with friends. Likewise, a brand is better in a partnership.
Consider doubling up your power for promotions with a complimentary brand. Partnerships are especially good on Instagram for giveaways, allowing you to expand your offer and reach two different audiences.
Make sure to find a brand aligned with your goals, and of similar size to get maximum value from a partnership.
Don’t Make TheseCommon Instagram Mistakes
Common mistakes brands can make on Instagram can hurt them exponentially. Here are some important ones to avoid:
• Sharing more reposts than original content.
• Taking too long to respond to comments.
• Favoring quantity over quality.
• Misusing hashtags.
• Buying likes and fake followers.
• Not paying attention to analytics.
Recap
Craft beverage companies have a product that is in demand, but they are working in an increasingly competitive market. Digital marketing allows them to stay ahead of the game through creative branding and audience engagement.
As a recap, here are some main social media tips as discussed above:
• Get to know how the Instagram platform works.
• Define your social media strategy.
• Tell your brand story.
• Utilize organic search and paid distribution.
• Be consistent.
• Use hashtags.
• Use influencers.
• Inspire real world engagement.
• Take your followers behind the scenes.
• Connect to a cause.
• Partner with other brands.
• Keep it going; don’t stop!
The Last Gulp
If craft beverage companies hope to engage consumers and boost their sales in this competitive market, they have to adopt a social media strategy that ensures success. While there is no cookie-cutter formula to success on Instagram, there is a pattern that works across the platform if utilized properly.
The realness is in the engagement and knowing how to maximize your followers and their engagement. So keep thinking: just how can you brew up a social media campaign as unique as your beverage?
Chris Mulvaney is a business developer, entrepreneur, and an award-winning creative marketing strategist. His extensive professional background includes working with some of the world’s leading brands – and personally helping clients refine their corporate vision and generate the kind of eye-popping results that too many companies only dream about. Visit… cmdsonline.com
By:
Nichole Gunn, Vice President of Marketing
& Creative Services, Incentive Solutions
The first years after launching an incentive program are an
exciting time for craft beer producers: supply chain trading partners, drawn by
the excitement of new promotions and an improved channel partner experience,
are more responsive, more motivated and more likely to recommend the brand’s
products to restaurants and retailers. During this time, craft beer producers
often experience a period of rapid sales growth or improvement in other KPIs
the program was designed to target, such as improved partner data profiles or
increased referral business. The incentive program’s ROI grows exponentially.
However, often after 12-30
months, growth begins to stagnate and the ROI curve starts to flatten. If left
unaddressed once an incentive program’s novelty starts wearing off and supply
chain trading partners become habituated to the program’s value proposition,
the incentive program’s ROI may start to decline, leaving craft beer producers
scrambling to find ways to replicate the program’s success.
The good news is that by
planning ahead, craft beer producers can anticipate this drop off in interest
level and continuously improve their incentive program in order to sustain a
competitive advantage in their channel.
Keeping Incentive Programs Fresh
(and Profitable!)
In order to stay relevant,
a channel incentive program has to be able to evolve with the interests of its
participants, scale its value proposition over time and respond rapidly to the
tactics of the competition. Below are several factors that craft beer producers
can focus on in order to continue to drive ROI once program growth begins to
stagnate:
• Personalizing brand
interactions to build loyalty.
• Re-launching the program
with updated features and branding.
Ideally¬, these are all
elements that craft beer producers will consider from the inception of the
program, with plans for program expansion at certain intervals. However, these
factors can also be incorporated to bring new life to existing programs.
Evolving Incentive Program
Technology
Today, incentive programs
are a technology platform, and craft beer producers should be as mindful in
selecting incentive program technology as they are in selecting any B2B
software platform. From an administrative standpoint, this means choosing an
incentive platform that integrates with existing CRMs and other business
software and provides streamlined admin tools and generates detailed reports on
engagement and ROI.
However, perhaps more
importantly, craft beer producers should focus on selecting incentive software
that is fully supported and will be continuously updated to improve the user
experience for their supply chain trading partners. More and more, B2B
customers expect a seamless B2C-style user experience. Partners will be less
likely to engage with a rewards program that uses stale, outdated software, no
matter how exciting the reward offering.
Additionally, agility is
key. Craft beer producers should look for incentive software that allows them
to quickly go to market, adapt to the tactics of the competition and launch new
promotions. These factors will offer an edge when it comes to maintaining
engagement throughout the lifetime of their program.
Incorporating Elements of
Gamification
Gamification is the use of
game-like elements – such as points-scoring, interactive leaderboards and other
competitive components – to increase engagement with a web-based application,
such as an incentive program. Gamification is a powerful tool that supply chain
trading partners already seek out in their day-to-day lives, from collecting
likes on their Facebook page to scoring achievements on Peloton bikes.
When interest in the
program begins to stagnate several years after launch, adding gamification
features can give the program new life. Interactive trivia, spin-to-wins,
badges and achievements, personalized leaderboards and limited-time point
bonuses make the program more compelling and can give a sustainable boost to
the program’s effectiveness over time. Additionally, by not relying strictly on
reward value to drive engagement, craft beer producers can help lower program
costs to increase their ROI.
Adding New, Richer
Reward-Earning Opportunities
As mentioned earlier, one
of the reasons an incentive program can lose its effectiveness overtime is that
participants become habituated to the program’s value proposition. Top
performing supply chain trading partners may have already redeemed for their
most coveted rewards and find themselves with more points than they know what
to do with. The competition may have launched their own reward program with
comparable, or even more compelling, rewards.
It’s up to craft beer
producers to constantly up the ante with their program’s value proposition. For
instance, launching a points-based merchandise reward program alongside an
existing debit or gift card program will offer new value for participants.
Elevate a points-based program by offering top performers a concierge service
to redeem for custom rewards – using their points to buy a new truck, renovate
their home or pay for their child’s college tuition will personalize the reward
experience and boost the program’s value proposition in a way the competition
will struggle to match.
Additionally, incentive
travel promotions can be added onto any program type, giving craft beer
producers an opportunity to connect with their supply chain trading partners on
a deeply personal level. Given recent restrictions, the demand for incentive
travel is projected to be particularly high once it is deemed safer.
If minimizing rewards cost
is a concern, try setting higher qualification thresholds for these more
exclusive reward opportunities. Doing so can also help tap into supply chain
trading partners’ competitive drive, keeping them more engaged as they compete
for a limited number of higher tier rewards.
Personalizing Brand Interactions
to Build Loyalty
In their early stages,
incentive programs are typically geared toward growth. However, if well
designed, the program will be able to convert that initial interest and
motivation into brand loyalty over time. Loyalty is about more than rewards;
rewards appeal to self-interest while loyalty is rooted in creating mutual
interest. Craft beer producers can create this loyalty by using their incentive
program to provide a highly personalized experience and to help their channel
partners become more effective salespeople.
This personalization
should extend through every phase of the incentive program, from designing
program communication to be relevant to each segment of their channel partners
to basing reward selection on participant lifestyle and interests. Craft beer
producer can use engagement metrics from their incentive program to identify
which of their supply chain trading partners have a high level of buy-in and
which of their partners might need a little more help. They can provide
enablement to their partners by providing online courses and certifications and
using their incentive program as a platform to educate partners on their brand
and product lines, equipping them to more effectively sell their products.
By using personalization
and focusing on partner experience, craft beer producers can build loyalty with
their supply chain trading partners in ways that make extrinsic rewards less
important. This makes trading partners drastically less likely to lose interest
in the program.
Re-Launching the Program with Updated Features and Branding
Finally, when the growth
of an incentive program begins to stagnate, it might be a sign that it’s time
to re-launch the program. A program re-launch gives craft beer producers the
opportunity to step back and figure out what their prior program did
effectively, as well as what they can do better. During this time, craft beer
producers should also explore other pain points they would like their new
program to target.
A pause between programs
can help build anticipation, as supply chain trading partners realize the value
proposition of the previous program that they had begun to take for granted.
Once the new program launches, with updated branding and new features, supply
chain trading partners will enthusiastically re-enroll and craft beer producers
will experience a renewed period of growth. Better yet, by using the knowledge
gained from the previous program, craft beer producers can make their
re-launched program even more effective than the first.
Planning Ahead for Program
Management
Additionally, craft beer
producers can enlist the help of incentive companies to design and manage their
programs. Just like crafting an excellent brew requires years of experience, so
too does managing an effective incentive program. Working alongside an
incentive company with a proven track record can help craft beer producers
avoid potential pitfalls and take advantage of decades of experience in
managing successful programs.
Whether a craft beer
producer is looking to launch their first program or improve a program that is
currently underperforming, the initial investment of partnering with an
incentive company can pay dividends down the road.
Nichole Gunn is the VP of Marketing and Creative Services at Incentive Solutions (www.incentivesolutions.com), an Atlanta-based incentive company that specializes in helping B2B companies improve their channel sales, build customer loyalty, and motivate their employees. Nichole Gunn can be reached at ngunn@incentivesolutions.com.
America’s Beer Distributors: Fueling Jobs, Generating Economic Growth & Delivering Value to Local Communities. (PRNewsFoto/National Beer Wholesalers Association)
By: Nichole Gunn, Vice President of Marketing and Creative Services, Incentive Solutions
From improving market penetration to increasing sales volume for a
specific product, craft beer producers rely on their indirect salesforce to
accomplish their strategic goals. Incentive rewards can help craft beer
producers create win-win scenarios for their indirect salesforce and influence
their selling behaviors in ways that benefit the brand. However, not all
rewards are created equal. The effectiveness of an incentive reward program
depends on choosing rewards that capture the attention of wholesale and
distributor sales reps and provide sufficient motivation for them to go the
extra mile.
When choosing rewards that
appeal to their target audience, it’s important for craft beer producers to
focus on the following factors:
• Value Proposition: Will
these rewards provide sufficient value to your indirect sales reps to justify
their efforts and maintain their interest?
• Personalization: Will
these rewards feel meaningful to participants on a personal level, creating an
emotional impact?
• Scalability: Will your
reward selection give you the ability to tailor your value proposition to
different segments of your audience, from easily attainable rewards for new
participants to exclusive rewards for top performers?
• Memorability: How long
will this reward keep your brand top-of-mind with participants?
• Participant Lifestyle:
Which types of rewards appeal to your participants’ interests and align with
their lifestyles?
• Competition: If your
competitors are running a rewards program, how will your program provide a more
compelling value to your participants?
Additionally, craft beer
producers need to consider how their reward selection ties into their
overarching goals, as well as their budget. Will it be more profitable to focus
on providing more attainable, less personalized rewards to drive short-term
growth or to develop high value, highly personalized rewards to solidify
long-term loyalty? Or, perhaps, some craft beer producers will be interested in
a mix of both. Either way, it’s important for craft beer producers to view
their incentive reward program as an investment rather than a cost and
concentrate on choosing rewards that help them achieve their goals in a
profitable, cost-effective manner.
Types of Incentive Rewards
Today’s incentive reward
programs provide a variety of different reward types that craft beer producers
can offer to their participants. These include gift card and debit card
rewards, points-based merchandise rewards and group incentive travel. Each of
these reward types has various strengths and weaknesses, depending on the goals
of a craft beer producer and the makeup of their target audience.
For instance, gift card
and debit card rewards are highly scalable and provide an easy to understand
value proposition. However, this comes at the expense of personalization. While
a branded, reloadable debit card will keep your brand top-of-mind longer than
cash commission, it doesn’t provide much in the way of social value and will
not necessarily make a distributor sales rep feel warm and fuzzy about your
brand. With e-delivery options and reloadable cards, gift card and debit card
rewards can be awarded almost instantly, making them best-suited for SPIFFs
(short-term incentive promotions) or for sales promotions for a wide audience.
Merchandise rewards, on
the other hand, have trophy value and provide tangible rewards that indirect
sales reps will associate with your brand for much longer. With an online
rewards catalog that’s chock full of millions of exciting rewards, from digital
movie rentals and Netflix subscriptions to home theaters, a points-based
merchandise program is highly scalable and allows participants to choose
personalized rewards that fit into their lifestyle and match their level of
performance. Online merchandise rewards allow craft beer producers to
incentivize sales growth across each segment of their salesforce, while also
inspiring loyalty in top accounts with higher value, more personalized rewards.
Of the different reward
types, group incentive travel is the most memorable and emotionally impactful.
By rewarding top-performing indirect sales reps with a trip to an exclusive
locale like Tahiti or Venice, craft beer producers will have the opportunity to
really personalize their relationship with their wholesale and distributor
sales reps and create memories they won’t soon forget. However, incentive
travel isn’t very scalable. Typically reserved for top accounts, incentive
travel is better suited for building loyalty and solidifying long-term
relationships. Additionally, it’s worth noting that while the effects of
Covid-19 have put a damper on incentive travel events, demand for these trips
will be through the roof when travel resumes, and many vendors will be
motivated to provide great deals for craft beer producers who plan ahead.
Setting Reward Parameters
An important component of
reward program strategy is determining how participants will be rewarded. Craft
beer producers should consider which specific actions participants must take in
order to accumulate reward points and whether different actions have different
strategic values in helping them achieve their goals.
For instance, if a craft
beer producer’s goal is to increase overall sales, then it might make sense to
assign reward points to distributor sales reps based on overall sales volume.
But it also might be beneficial to provide point bonuses for first time sales,
sales on a new or underperforming product line, completing online educational
courses or providing referrals. All of these actions can help facilitate sales
growth in the long-term and provide distributor sales reps with a clear path
toward maximizing the value they receive from the program.
Additionally, setting
qualification thresholds and offering tiered rewards can help craft beer
producers make their program more cost-effective. For instance, it might make
sense to require distributor sales reps to sell a certain amount of beverages
before they qualify for the program or to offer a group incentive travel trip
for the top 25 performers each quarter, in addition to a card or points-based
merchandise program for the other sales reps. Doing so allows craft beer
producers to allocate their reward spend toward their most valuable supply
chain trading partners, while limiting expenditure on sales reps who may not
offer as much long-term value.
In addition to tiering
rewards based on performance, craft beer producers can leverage this strategy
to target different hierarchical segments of their indirect salesforce,
offering higher value rewards like incentive travel to sales managers while
running a points-based merchandise or card program for the individual reps who
work under them. This allows craft beer producers to incentivize from the
top-up or the bottom-down, maximizing their influence within their sales
channel.
Online incentive
technology offers craft beer producers the ability to easily segment their
audience, change parameters, automatically allocate points and track the impact
of these decisions on their ROI through dashboards and custom reports. For
craft beer producers, it’s important to have the flexibility to quickly adjust
elements of their reward program strategy, while minimizing the man hours
necessary to manage their program.
Expanding on the Reward
Experience
Rewards are exciting and
provide an easily understood value proposition, making them an effective tool
for marketing an incentive program; but rewards are only a small component of
the value an incentive program creates for craft beer producers, as well as
their supply chain trading partners. An incentive reward program provides new
touchpoints to improve the partner experience, such as:
• An integrated digital
hub, where indirect sales reps can connect to learn more about the brand,
explore the latest incentive promotions, track their progress and redeem for
rewards;
• A communication platform
that craft beer producers can use to send customized communication and
automated alerts via email, SMS, push notifications and direct mail;
• Customizable enrollment
forms that craft beer producers can use to capture data about their indirect
sales reps in order to personalize their sales and marketing;
• Data collection tools
that make it easy for indirect sales reps to upload sales invoices or scan QR
codes in order to verify their sales claims and earn points;
• Elements of gamification
such as leaderboards, spin-to-wins and limited time bonuses to keep sales reps
more consistently engaged;
• Online surveys and
analytics tools that help craft beer producers better understand the members of
their channel and provide a more rewarding partner experience; and
• Interactive quizzes and
online training platforms to help indirect sales reps become more informed,
effective advocates of the brand.
The appeal of earning a
reward channels indirect sales reps into this funnel and keeps them invested in
the communication they receive through the program. But, more importantly, the
reward program itself provides an entire ecosystem for more personalized
communication and engaging brand interactions between craft beer producers and
members of their channels. By focusing on the partner experience, both before
and after earning a reward, craft beer producers have the opportunity to
maximize the effectiveness of their reward program, solidify brand preference
among their supply chain trading partners, differentiate their brand and target
long-term strategic initiatives.
Nichole Gunn is the VP of Marketing and Creative Services at Incentive Solutions (www.incentivesolutions.com), an Atlanta-based incentive company that specializes in helping B2B companies improve their channel sales, build customer loyalty, and motivate their employees. Nichole Gunn can be reached at ngunn@incentivesngunn@incentivesolutions.comolutions.com.
There are currently more than 7300 regional breweries, brewpubs and microbreweries in the United States. Even during difficult times, the popularity of the craft brewery continues to grow. For many home brewers and beer aficionados, the prospect of owning and operating their own brewery is a dream come true. It’s an opportunity to expand their personal recipes that they have refined over the years as a hobbyist and share them with a wider audience.
Making your mark within
the industry is not an easy task to accomplish. Perfecting your craft is an
important start in staying relevant. But satisfying your regulars and marketing
through word of mouth is just the beginning. It’s the additional, day-to-day
business details that become so incredibly important. Maintaining your brand
and ensuring that it reaches the widest audience possible will help you to
stand out in a crowded market.
Brand Identity
One of the benefits of
owning and operating your business is the freedom associated with developing
its brand. From the name to the logo, this is an opportunity for you to work
closely with your business partners to establish something catchy and unique,
while also cutting through the clutter and staying top of mind with your
customers. But once you’ve picked out your colors and have come up with a
memorable catch phrase that highlights your craft, what’s next?
In today’s market it’s not
uncommon to promote your brand through a variety of related products. Whether
that’s pint glasses and coasters, umbrellas, signage or an oversized Jenga set
reserved for outdoor events, merchandising your business in creative and unique
ways is critical. But there are numerous moving parts that inevitably get in
the way. Working with your local Kinkos and your cousin (twice removed) to help
with the graphical design will only get you so far.
Properly sourcing your
merchandise is an indispensable asset to your overall brand marketing
initiatives. Working closely with a partner capable of assisting with the
delivery of your products can make an immense difference in your day-to-day
operation.
Understanding the
ins-and-outs of product sourcing often includes first-hand experience in
knowing what works and what does not. These conversations can help steer you in
the right direction, while also shielding you from potential missteps.
Promoting your brand with a Point of Sale (POS) system capable of delivering
the best return on investment (ROI) in a growing market will help you to
realize even greater success.
Off-Premise Initiatives
Traditionally, craft beer
has primarily been sold on-premise. The experience of enjoying a freshly tapped
beer while socializing at your local brewery is one of the reasons the craft
beer industry has stayed consistently strong. When combined with ongoing
marketing and merchandising efforts, off-premise sales has the strong potential
to develop into an additional sales and distribution plan.
Some beer aficionados
might argue that traditional retail sales takes away from the uniqueness of the
craft beer experience and no longer differentiates itself from large national
brands. However, retailers are very much in tune with consumer preferences and
will always be looking for opportunities to emulate the success of on-premise
craft breweries through off-premise sales.
It’s important for every
craft brewery to take the steps necessary to continue promoting their name and
their brand. As such, there are several opportunities worth considering for an
off-premise strategy:
• Stand Out in a Crowded
Space: Whether you’re positioned within a local liquor store or the corner
grocer, make sure your branding is prominently displayed and catches the eye of
every customer. Proudly present your most popular beer or newest recipe on
shelves, stackers and corrugated risers that clearly exhibit your branding.
Make sure the colors are bold and vibrant, and that the wording can be read
from across the aisle. Take pride in your craft and give it the attention it
deserves.
• Small Idea, Big Impact:
Even the smallest idea can have the biggest impact when it comes to branding
and product marketing. Sticky shelf talkers, ceiling danglers, window clings
and floor placements. Make it so that no matter where the customer is looking,
your brand is sure to grab their attention. And it’s not always about how big
of an impression you make or how much real estate your branding utilizes. A
strategically placed logo can help even the most undecisive beer drinkers make
the right choice.
• Your Fans are Your
Biggest Advocates: Don’t overthink it. The practicality of the idea often
becomes the biggest win for off-premise business. Let your fans do the “heavy
lifting”. Selling a variety of tote, lunch coolers and brown paper bags, each
with your branding clearly identified for everyone to see, is a great way to
continue getting your name out there. Used at work, on vacation or attending
any number of social events, your biggest fans will be promoting their favorite
beer without ever saying a word.
• The Signs Are Everywhere:
Chalk-based A-frame menu boards. LED light boxes. Laser cut, digitally printed
hardboard wood. What do all these different types of signage have in common?
They’re the most classic form of beer advertising you can think of. People of
all ages collect them and prominently display them in their homes, garages and
on the walls of the businesses they own. They catch your eye, make a statement
and get you thinking about one thing, and one thing only – BEER!
Product Management
Having access to your own,
business-specific e-commerce website is an opportunity to more effectively
manage your growing list of products. When conveniently organized by category,
a robust e-commerce solution is more likely to yield an increase in the number
of merchandising orders placed. By providing your sales group, wholesalers and
consumers 24/7 virtual access to your products, you’re removing yourself from
the time-consuming difficulties and headaches of manual maintenance and upkeep.
An effective e-commerce
portal is not only a reliable source for managing your inventory in an
organized fashion, it can also be seamlessly updated to accommodate for new
products and inventive promotional efforts. Including pre-order windows and
making them available to your distributors will help to better gauge the
potential success of your latest product promotions before taking the plunge
and jumping head first into a new initiative.
Planning for the upcoming
year’s promotions, brand launches and seasonal programs is an important
function critical to the ongoing success of your business. Having access to
online ordering is a great resource to take advantage of when working toward
upcoming events. Providing your distributors access to your ecommerce site
makes the process of managing and expanding your brand a seamless activity.
However, maintaining your
inventory and shipment data can often be challenging. Working from a
comprehensive and reliable report – one that details the data needed to drive a
successful program – saves time and increases productivity, allowing you to
focus more on your craft. Accessing these reports, whenever needed, makes the
process of future inventory planning and promotional efforts even easier and
more sustainable.
Inventory Optimization
Space is a commodity.
You’ll never have enough and will always be needing more. When owning and
operating your craft brewery, you’ll quickly realize that as more of your space
is consumed by branded merchandise, less will be available for that essential,
behind-the-scenes equipment – brewing systems, canning lines, tanks, fermenters
and more. Working with a total fulfillment partner opens up the possibility of
maintaining and safely storing your merchandise stock.
At its core, inventory
optimization and supply planning answers the question about how much
merchandising inventory should be carried. Working with your fulfillment
partner, you’ll be able to better understand the complexities of supply and
demand and more accurately identify inventory targets. By maintaining
appropriate levels of merchandising stock you’ll greatly reduce the chances of
inventory obsolescence, thereby freeing up capital that can be applied
elsewhere throughout your business.
Fulfillment partners often
include consignment opportunities, giving you the option to store your products
offsite while still retaining ownership. As the products begin to ship, you’ll
be able to track how much inventory sold and work closely with your fulfillment
provider on the transactional details.
When tied directly with
your unique e-commerce platform you’ll have even greater flexibility and
control over the number of products sold, understand when and how they have
shipped and be able to effectively report – from week-to-week and
month-to-month – for better management of your business’s overall expenses and
profits.
Pre-orders are also
designed to increase profitability. Utilizing your fulfillment partner’s
expertise in identifying products that are best suited to both order windows
and the make-and-ship process, you’ll capitalize on an effective solution to
the POS puzzle. This pre-order option provides greater overall flexibility when
planning for upcoming events and seasonal placement.
Dedicated Support
Whether it’s the account
manager, sourcing, logistics or warehouse, the various touchpoints of a
fulfillment team provide the support needed to effectively operate your
business. Their focus is helping you maintain yours. In doing so, you’ll have
greater opportunities to further pursue your passion.
A committed support team
should be analyzing your POS operations on a quarterly, bi-annual and annual
basis, and provide feedback to assist with any changes that may be needed.
Their long-standing relationships within the industry are designed to support
your needs and ensure that your business realizes continued success.
Your merchandising efforts
are directly connected to establishing your brand and helping your business
thrive in an increasingly competitive market. Aligning yourself with a
reputable fulfillment program will assist you in meeting the goals you have
established for your business. When done well, your brand will realize the
greatest potential to reach more customers and leave lasting impressions.
By: Nichole Gunn, Vice President of Marketing and Creative Services, Incentive Solutions
In order to stay competitive in today’s distribution channel, craft beer producers must be able to digitally engage their supply chain trading partners and effectively communicate across channels. However, this can seem like a tall order! Between the need for integrated technology, gaps in partner data, and interorganizational goals that might not always be aligned, craft beer producers often struggle to utilize technology to sell through and with their partners.
When facing these
challenges, a channel incentive program might not be the first solution that
springs to mind. After all, most people associate incentive programs with
rewards rather than considering how that program fits in as part of an
effective channel management tech stack. However, today’s channel incentive
programs are software-driven, offering craft beer producers a platform to
provide connected, omnichannel partner experiences, improve communication, and
collect important partner data to inform their sales and marketing strategies.
Creating Engagement Before and After the Reward
While offering incentive
rewards can be an exciting way to differentiate the brand and drum up initial
engagement, the real value proposition for craft beer producers occurs in the
opportunities for growth and improved communication that the program creates.
Motivating and
facilitating digital engagement is a major focus of today’s channel incentive
programs. Depending on their scope, these programs can provide:
● An integrated digital
hub where channel partners can learn more about the brand, while exploring the
latest incentive promotions;
● Automated communication
touchpoints, such as email, SMS, push notifications, monthly statements, and
website announcements;
● Custom enrollment forms
and survey tools to round out partner profiles and fill in missing gaps in
data;
● A branded mobile app
where partners can easily upload sales invoices and other documents in order to
earn reward points;
● Gamification- and
education-based platforms to increase engagement and help supply chain trading
partners become better representatives of the brand; and
● Streamlined
administrative tools and reporting dashboards that enable craft beer producers
to easily manage their programs and monitor success.
These components help make the brand more
accessible to supply chain trading partners, while giving craft beer producers
tools to consistently engage partners across digital channels. Better yet, all
of these platforms exist in a space where supply chain trading partners have
the opportunity to earn rewards. This means that supply chain trading partners
will be more likely to engage with the brand interactions they experience
through the channel incentive program, whether via email, SMS, apps or other digital
platforms
Integrating Incentive Programs with a Website
Providing a seamless user
experience is an integral element of effective digital engagement. Modern
channel incentive programs allow craft beer producers to integrate their
rewards program with their existing website or partner portal.
This helps craft beer
producers accomplish several goals. First, it drives supply chain trading
partners to the website, where they can gain additional exposure to the brand
and its product lines. Secondly, creating a single sign-on reduces the need for
partners to keep track of additional URLs or login information, making them
more likely to engage with the brand. Finally, offering channel partners the
ability to redeem for rewards directly from a company website provides positive
reinforcement that partners will associate with your brand in the future.
Leveraging Automation for More Efficient Communication
When it comes to channel
partnerships, communication is key. While smaller craft beer producers can be
accustomed to operating exclusively with manual processes and analog customer
experiences, what happens when it’s time to scale a go-to-market strategy?
Channel incentive programs
give craft beer producers the ability to automate a large portion of their
channel marketing. With triggered emails, SMS, push notifications, and website
announcements, incentive program software allow craft beer producers to
efficiently communicate with members of their channel based on specific
parameters. Additionally, if craft beer producers are pressed for time, some
incentive companies even provide the option to outsource entire custom,
end-to-end incentive marketing campaigns.
Collecting Data to Provide a Connected Customer Experience
For craft beer producers,
a channel incentive program is a valuable opportunity to learn more about the
distributor and wholesaler sales reps who make up their channel. Reward-earning
opportunities motivate supply chain trading partners to share information that
craft beer producers would otherwise struggle to obtain. From firmographic
data, to contact information, engagement metrics, and buying habits, craft beer
producers can use this data to inform their sales and marketing strategies and
further personalize their sales and marketing strategies.
By integrating this data
with their existing CRM or ERP, craft beer producers can maintain a more
accurate picture of the buyer experience. For instance, craft beer producers
can see which distributor and wholesaler sales reps are engaging with a certain
promotion in order to create relevant cross-sell and up-sell opportunities.
They can view which accounts (or even regions) need to be nurtured or
reengaged. Having this visibility into the sales channel helps craft beer
producers anticipate the needs of their supply chain trading partners and
allocate their marketing spend more intelligently.
Additionally, sales claim
submission and verification tools make it easier for distributor and wholesaler
sales reps to exchange data at the point of sale. Some craft beer producers use
this as an opportunity to gain information about customers further down the
supply chain in order to glean insight about the retailers and restaurants that
sell their beer to end-users. Survey tools allow supply chain trading members
to offer feedback, which can be used to further personalize sales and marketing
strategies.
Using Gamification to Make Programs More Engaging
Elements of gamification,
such as trivia, leaderboards and spin-to-wins, can be incorporated into
incentive program websites to drive more regular engagement in between
reward-earning opportunities. These make the programs more interesting for
participants, while offering additional tools to shape the behavior of supply
chain trading partners. For instance, daily trivia can be utilized to keep
channel partners coming back to the website, while assigning limited-time bonus
points for selling specific products or completing other CTAs (calls to action)
are another great incentive. This makes for a more rewarding channel partner
experience – even before partners ever redeem a reward!
In addition, interactive
quizzes and training modules make your supply chain trading partners more
knowledgeable and effective representatives of the brand. Sales reps sell what
they know and providing sales enablement is a great way to build brand
preference with an indirect salesforce. Plus, these educational modules give
sales reps the chance to earn rewards, further increasing the value proposition
of an incentive program.
Streamlining the Administrative Experience
In addition to the benefits of incentive program technology for channel sales and marketing, another important consideration for craft beer producers is ease-of-use from an administrative standpoint. How complicated is implementation? What are the time-costs of managing the program? How much flexibility is there for adjusting the program website or setting new promotions? Will there be ongoing strategic support from the incentive company?
Today, cloud-based,
modular incentive software has streamlined the admin experience. Programs can
be launched in as little as eight weeks. With easy-to-use administrator
dashboards and drag-and-drop editors, sales and marketing managers at craft
beer producers can quickly make changes to their program. Plus, custom reports
help them monitor their program and measure ROI.
Additionally, some
companies offer teams of incentive specialists to manage the program. According
to a 2019 survey of our clients, many of whom are in the beverage manufacturing
industry, more than 70 percent spent less than two hours a week performing
administrative responsibility for their incentive program.
Sustaining a Competitive
Advantage
In short, a channel
incentive program acts as an entire digital ecosystem for partner engagement,
an important competitive advantage for craft beer producers who rely on supply
chain trading partners in order to go to market. Compared to other industries,
the craft beer production industry is still in the early stages of adopting
channel incentive strategies, giving those who jump on board soon a major
competitive edge. Being among the first to roll out a channel incentive program
for distributor and wholesaler sales reps represents a major opportunity to
capture mindshare and share-of-wallet.
However, it’s important
for craft beer producers to keep an eye on the future. Technology is evolving
at a rapid rate and the craft beer distribution channel is notoriously
competitive. When shopping for incentive program providers, make sure to choose
one that fully supports their software and has definite outlines for future
development. Moreover, look for a provider that offers the ability to quickly
enhance and expand a program in response to competition. That way, it’s easier
to capitalize on the present opportunity, while planning ahead for the future,
and staying one step ahead of industry competitors.
Nichole Gunn is the VP of Marketing and Creative Services at Incentive Solutions (www.incentivesolutions.com), an Atlanta-based incentive company that specializes in helping B2B companies improve their channel sales, build customer loyalty, and motivate their employees. Nichole Gunn can be reached at ngunn@incentivesolutions.com.
Social Distancing Doesn’t Apply to Your Social Media Efforts
By:
Tracey L. Kelley
It’s no surprise that time spent online during the height of the
pandemic increased exponentially. Data from Nielsen specifically tracking
social media usage indicates that on platforms such as TikTok and Instagram,
there was a 25% spike in mobile engagement, and a soaring 75% of ad content
placed by influencers. While usage is expected to flatten a bit by the end of
the year, there’s still a slight uptick of average minutes per day people
peruse social networks: 82 minutes now, compared to a 2019 forecast of 76
minutes.
How does this data impact
social connection with your audience? Now more than ever, refine your brand and
your community presence to cultivate content people are willing to notice.
Share the Story of Your
Community
Craft beverage producers
repeatedly demonstrated these past few months how quickly they could pivot to
accommodate not only the needs of their business but also those of their
employees and the community as a whole. Many of these efforts were the
feel-good stories major news agencies were eager to feature in bleak times.
Ruby Benoit is Head of Craftiness and Founder of Craft Good Business, a company in Southern California specializing in helping craft beverage companies create and implement marketing plans and events. She told Beverage Master Magazine that storytelling holds considerable clout in social media messaging.
“Since consumers are
turning to social media to evaluate brands even more so now, storytelling
creates a connection and helps keep you top of mind,” she said. “Your audience
wants to see what your brand is all about: What do you stand for? What is your
purpose? And it’s critical to show your community efforts: decide on how you
have a unique, positive impact on society. Whatever your stance is, communicate
with your customers and all stakeholders in an authentic way.”
Brands should stick to
providing great experiences, as well as dedicate energy to remaining consistent
and genuine in their messaging to win customer support, according to the media
team of Happy Medium, a full-service digital creative agency in Des Moines,
Iowa.
“Overall, audiences tend
to react well to community involvement because it’s inspirational and
aspirational. If your team is volunteering, share a photo of employees at the
volunteer event. If you made a charitable donation, ask the recipient to share
digital assets that align with the cause you’re helping them support,” the
Happy Medium team said. “This demonstrates how your brand builds and supports
communities in a way that’s relatable and impactful. Write a brief caption
about why the cause you’re supporting is relevant to the brand. Always tag the
organization!”
Chad Richards is vice president of Firebelly, a “social media marketing agency on a mission since 2007” based in Indianapolis. Firebelly has worked with 450 North Brewing Company, Gnarly Grove Hard Cider and Upland Brewing Company, as well as wineries and restaurants. Richards also recommended taking a less self-serving approach. “Whatever you do, make sure the hero is the charity or community you’re supporting. Nothing elicits eye rolls faster than ‘Look at us—we’re so charitable!’”
The continuing flux of the
pandemic’s ongoing impact creates many levels of marketing uncertainty.
Managing social media right now might feel more like a scattershot than a
targeted approach. Richards said storytelling will pull you through.
“Humans like stories, and
we’re storytellers by nature. It’s how we connect to one another, and right
now, people are seeking connection more than ever,” Richards said. “Don’t worry
about trying to be creative or clever—just be honest.”
Marry Content to Audience
Some producers believe they must extend concerted effort across all platforms to reach all people, all the time. Realistically, it’s more effective to shorten the funnel to one or two channels that hit the sweet spot of your consumer base. Benoit offered a collective summary aggregated in early 2020 by Hootsuite, the social media management platform, which you can find here: https://blog.hootsuite.com/social-media-demographics/.
You may have favorite
channels based on your preferences, but where is your audience? As a brief but
interesting example, here are just a few statistics from the Hootsuite
summary—focusing on the U.S. for simplicity—such as:
• 75% of adults who
identify as Hispanic use Facebook more than Black and White adults. Most users
of this platform “live in urban areas, followed by suburban and rural.”
• 83% of women age 25–54
use Pinterest—more than Instagram, Twitter and Snapchat. Also, “one out of
every two millennials use Pinterest,” and 59% discover products there.
• 28% of Black Americans
use LinkedIn, compared to 26% of White Americans. This platform is “most
popular among 25- to 49-year-olds.”
• 43% of Black Americans
use Instagram, “followed by 38% Hispanic and 32% White Americans.” Users also
mostly live in urban communities, then suburban and rural areas.
• 44% of young adults age
18 to 24 use Twitter, compared to 26% of people age 30 to 49.
• 78% of Hispanic internet
users watch YouTube, followed by 76% and 71% of Black and White users,
respectively. This channel “reaches more 18- to 34-year-olds and 18- to
49-year-olds than any cable network in the U.S.”
The key for the next few
months is to strategize with social media professionals to develop messages
that not only communicate with individuals of your loyal base but also others
who might not know who you are and what you provide.
Happy Medium advised using interactive content whenever possible to build confidence and trust. “Customers are more likely to engage with content that entertains, educates and tells an authentic story. Engaging customers with your content makes your brand more memorable and creates a deeper connection,” the media team said. “Try incorporating polls [or] question and answer stickers. Feature the people who make your brand what it is in Instagram stories or by hosting a live stream—both of these are growing social trends that bolster higher engagement and should be a staple to any social media strategy.”
Don’t feel you have to do
all the heavy lifting of brand awareness and connection alone. Once again,
Richards said, think about potential alliances. “Get your product into the
hands of influencers—allowing people to learn about your product via someone they
already trust or admire. And think outside the box. These don’t have to be
craft beverage or foodie influencers. A travel, fashion or beauty influencer
could easily weave your brand and product into their story.”
If the budget allows,
boost your social media ad views. “I realize they may be a luxury in times like
these, but ads really are the fastest way to get the right message to the right
people in the right places,” he said. “Many brands have cut their ad spends, so
the marketplace is less competitive right now. You’ll get more for your money
if you’re able to participate.”
Here are some other content considerations:
• Promote your best
practices for safety and cleanliness to reassure and comfort people who want to
visit the taproom but express concern about contagions.
• Develop clear, concise
messaging both on your site and through social media regarding all procedures,
special events, advance registration practices, bottle shop services,
state-sanctioned curbside sales and other issues. These continual and timely
updates speak when you can’t, so it’s worth the time investment to update them
daily.
• Take a tip from wineries
by boosting virtual hospitality efforts. Live streaming, which experienced
quite a boost during the height of the pandemic, continues to grow in
popularity across all platforms.
Additionally, ask your
followers what they might be interested in, and listen carefully. Their
suggestions might differ from what you’ve tried before, but now is the time to
take advantage of fresh ideas.
Social Media Ideas for the 12–18
Months
“Flexible consistency” is
the action plan for your social media efforts now—and the foreseeable future.
Maybe your marketing manager is temporarily furloughed. Or your state allowed
gradual reopening, but a summer resurgence in COVID cases forced closure or
hour limitations again, and you’re not sure how to engage with purpose. It’s
still an essential business practice to like and respond to all posts your
establishment is tagged in—that’s the basic approach.
The media team at Happy
Medium suggested three other areas of focus:
• Post consistently. While
so much consumer activity has slowed during this period, it’s especially
important for brands to stay top-of-mind with their consumers. Even if operations
are currently paused, still send at least a couple of posts per week.
• Stay positive. Audiences
overloaded with COVID-19 messaging over the past few months are starting to
become jaded to overused marketing verbiage. Send positive messages while still
being respectful to the current situation.
• Don’t post content
exclusively directed at sales: share photos and stories about your team,
industry news or fun facts about your operations.
A 2017 study from the
American Express Customer Service Barometer reported that Americans are “more
likely to post about good experiences (53%) than poor experiences (35%).” So
reaffirming authentic engagement is what Benoit advised.
• If you haven’t already,
create a give-back campaign that helps people in the community such as
frontline workers, teachers and others in need. For example, a distillery might
do a canned food drive and invite customers to participate.
• Engage with customers
through a social media sweepstakes: they post a creative picture or video of
themselves enjoying your beer, spirit, cider or mead. Then, the individual’s
photo or video with the most likes wins a day with the craft producer when
social distancing is over.
• Host a virtual ‘Meet the
Brewer’ event where the master brewer leads participants through a curated beer
and food pairing and interacts with participants. This creates connection and
promotes valuable partnerships with local restaurants also in need of exposure.
Finally, be realistic,
Richards told Beverage Master Magazine. He provided these
points:
• Be
flexible.
These are unique times, and we’re not sure what will happen next. That’s okay.
Nobody does. Be prepared to update your plan and approach as needed.
• Think
short term.
Take it month-by-month or maybe even week-by-week. Any really long-term
campaign planning will likely be disrupted.
• Show
vulnerability. If you’re struggling, say so. It makes you relatable, and people
will want to support you and come to your rescue.
“Know that it’s okay to ‘not know.’” Uncertainty is uncomfortable—especially when it comes to business and finances—but we’re all in the same boat right now. A ‘best guess’ is sometimes the best you can do.”
At press time, details
about the future economic impact of the pandemic are in constant fluctuation.
However, most forecasters are certain greater challenges loom large.
It’s not for a lack of
effort. There were many expedient pivots in the craft beverage industry, from
the much-lauded manufacturing of hand sanitizer and flipping stale beer into
whiskey to crafting subscription boxes and extending off-premise sales.
So, now what? We asked business consultants to provide their
perspectives, and they eagerly offered frank but encouraging relaunch and
repositioning action steps we hope spark ideas. Our experts include:
Jacob Halls, partner, and Rick Laxague, partner, Craft Beverage Consultantsin Columbia, Missouri. Halls advises in areas of business strategy, compliance and marketing and distribution. Laxague provides plans for distribution, operations and sales and marketing. Laxague said, “Our experts have a combined 150 years in the alcoholic beverage industry, with deep knowledge in everything from sales and distribution, production and regulatory compliance to marketing, package design, event planning, IT, (social) media, hospitality and even values-based executive coaching.”
Scott Schiller, managing director of Thoroughbred Spirits Group, which specializes in helping new and established spirit companies. Schiller said, “Since 2009, our Chicago-based company has helped launch more than 30 distilleries, designed over 50 spirits brands and facilitated three exits.”
Beverage Master Magazine
(BM): Right now, there’s still considerable uncertainty in the beer, cider and
spirits industries. Is this a time to wait and see what happens, or an
opportunity to take proactive steps?
Jacob Halls (JH): Be proactive—successful
companies see their environment and adapt to it. Waiting to see what happens to
you takes you out of an element of control of the direction of your company.
See the changes in the hospitality climate and take note of how they’re not
going to be going back to how they were anytime soon and adapt accordingly.
Consider:
1. Were your on-premise sales
80% of your business? Find a way to team up with your prime on-premise accounts
to set up partnered order pairs if the state allows curbside/delivery alcohol
sales. For example, if you have 200 kegs, sell them directly from the taproom.
2. Slow down production in the
areas where your sales drastically diminished, and shift to areas that have
picked up.
3. Are you currently doing
curbside sales at your taproom to supplement that revenue generation? Have you
created a gift card program? Have you developed an online sales system and
where legal, delivery/distribution program for your products and merchandise? Have
you explored every option of new streams of sales? How have you maintained
connection with your customer base?
Adapt—or Get Ready to Sell Your Equipment
Rick Laxague (RL): Be proactive now! If
you’re not analyzing your business right now and what the new normal looks like
for your brand post-COVID, chances are you won’t recover from this.
Scott Schiller(SS): The spirits business is recession resilient, not recession-proof. I’m not an economist, but at the time of writing this, I don’t foresee the economy recovering quickly. As such, there’s no better time for the well-prepared—whether existing or those in the wings to enter the industry.
I take no pride in writing
this, but there are many distilleries, and companies in general, at risk before
COVID. Unfortunately, COVID is forcing their hand. The knowledgeable,
well-financed, nimble and diversified—such as those with a healthy combination
of on- and off-premise ratios and affordable price points—have the potential to
flourish. For the distiller in planning, there’s likely to be less competition
and a healthy offering of used equipment.
BM: In your
estimation, how much of a shift do you think the pandemic and its aftermath
will make in the industry?
JH: I don’t want to sound grim, but the taprooms, bars and restaurants
will take the largest hit, which passes to the alcohol producers for a decrease
in on-premises sales. Walking around or
dancing shoulder-to-shoulder in a club for three hours isn’t going to be viewed
as normal for a while. If an establishment’s happy hour was its primary
earnings time-of-day, and it could seat 200 people with the average space
between seats being two feet, how many people concerned about this will want to
sit that close to someone?
As businesses adapt, seating
space becomes less per square foot. In order to earn the same dollars-per-hour,
something has to change in the pricing or the amount of staff—both of which can
drastically change customer flow and demographic of the restaurant. Service may
go down with fewer staff, causing a less-positive experience and fewer return
visits.
If the prices have to go
up in order to maintain the same level of staffing, then some customers may now
be priced out of the establishment, as they’re financially affected by the
pandemic as well.
The brands of alcohol
purchased by the establishment may also change: a package by the smaller craft
producer that’s normally $45 per case or $200 per keg may be passed over for a
cheaper $23 case and $60 keg in order for the establishment to maintain its
customer service level of staffing and pricing.
Something will have to
give. Bars, restaurants, wineries, breweries, cideries, meaderies and
distilleries will suffer and, in many cases, cease doing enough business to
survive their existing debt loads.
RL: It’s obvious that all
segments of the industry have seen growth from new entries—that is, companies
and brands opening in the past eight or more years. Some of these segments have
triple-digit growth. This caused the glass for the consumer to be overflowing
with overloads in brand, flavor, style and marketing. There’s no loyalty to a
brand in the new 21–28 age range due to the influx of offerings. To stop the
glass from overflowing, you have the following options:
1. Get a bigger glass.
2. More space in retail
stores, as the stores aren’t getting any bigger. B: More stores, but with the
cost of real estate and larger corporate retail stores the “A locations” are
gone and a “C location” won’t deliver a ROI.
3. Turn off the faucet. Stop
the “overflow abundance.” The thinning of the crowd needed to happen, but it’s
unfortunate that a worldwide pandemic life scare is what it took. Think of
Mother Nature and our farmers who produce ingredients to make these beverages.
They burn off their fields after harvest to create new healthy growth for the
coming year.
SS: The mid-size and larger distillers will benefit from this
pandemic. Part of what has hindered their typical growth patterns is the number
of new entrants and the plethora of local distillers who often gain favor.
The second tier puts an
incredible focus on companies that provide their quickest pathway to
recovery/profitability, which will likely cause some brands to have even less
attention. I believe some brands will be delisted before that dance plays out.
Once we reach the third
tier, the on-trade will rely on brands that provide value and support.
Off-trade is doing very well, but I don’t foresee these profits being poured
into unsupported/unknown craft brands, as consumer confidence isn’t likely to
be there to warrant the investment to carry them.
BM:In what ways is a relaunch
plan essential now, and how can a producer formulate one? What might it entail?
JH: I tend to have three or more plans for almost every situation—you
can never be too ready, but you can always be underprepared. One may ask how to prepare as a producer. In
order to plan, know your business history:
• Where have you struggled
before?
• Where were you suffering
most recently?
• How agile is your
marketing team to communicate your company’s changes, and in a tone that
maintains a positive message?
• How agile is your
production team in shifting from kegs to package?
• How able is your
operations team to facilitate the changes that need done: ordering disposable
growlers, cans, contactless delivery material, etc.
• How able are you as the
proprietor to manage the economic responsibilities needed to maintain changes
in your company?
• Are you able to make
hard decisions as needed?
• Laying off or
furloughing a long-time employee is incredibly hard to do. Do you have a
support system yourself for this?
Account for everything
that has happened and can happen.
RL: What is the saying: “You
have one chance to make a good impression?” Well, now you have a second chance!
Look at your original business plan and model and select all the positives—then
write a new one. You can remove things you did wrong and implement those you
thought of after the fact. You know more now, but not everything. So source out
what you don’t know, a.k.a, “phone an expert.”
SS: No matter how this pandemic is influencing your business, it’s vital to create a strategic plan with several pathways and outcomes, for there is only one who is all-knowing in this unknown, and that is neither you nor me.
With plans in place,
financial models need to be built to ascertain how much time you have, and
along with an awareness of critical decisions and time periods. Assigning
weights to the various outcomes also allows you to make a calculated risk
assessment on what should even be attempted.
BM:
What top
three action items do you recommend to producers right now?
JH:
1. Don’t produce just to
produce unless you need to burn through raw materials already purchased. If you
can, barrel-age or delay the release dates to maintain the production/release
rate to sales rates.
2. Take a cold look at your
finances. The hardest part of that is being honest with yourself. Don’t let ego
make the decisions.
3. Be as proactive in your
community as possible. If you can, develop a T-shirt that’s available online or
curbside with 100% of the proceeds going to support your furloughed taproom
staff or a local community cause. Work with your distributors in other
communities outside your own to be supportive there as well. Be part of the
community, even if you’re not local—keep your face seen in a positive way.
RL:
1. Evaluate finances. What
can you afford to do, and what can you afford not to do, have or upgrade?
2. Branding. What can you
improve upon from a brand perspective—as in, how to reach the consumer and
engage with them? Get them to stop scrolling, and “like” (buy) your brand. I
think virtual happy hours will be a popular thing moving forward for friends and
families apart.
3. Distribution. Improve
your relationship with the distributor network. This also means having adequate
sales-brand representation to work with your distribution network to secure
those placements.
SS:
1. Center yourself and get
extra clear on your definition of success.
2. Develop a rock-solid
strategic plan and financial model.
3. Get your team informed and
aligned, from front-line workers to investors. Prepare them mentally and
emotionally for what’s at hand. Ensure that you have the right warriors, and
that you have the leadership and wisdom to see them through.
BM:
In what ways can producers work within their
communities and develop new marketing strategies to rebuild their businesses?
JH: As mentioned above, team
up with distributors, businesses that supported your brand well, and charities
and causes that are positively helping communities during this pandemic.
RL: Thank the community for the support during this crisis. If you
have a loyalty program, use an email marketing platform to send a direct thank
you letter to the zip codes where members reside. Make it a bounce back:
“Thanks for the support, bring this letter in for a ½ off item,” or a similar
promotion.
SS: Every business is in this together, and every business is going
to need help. Distilleries and other craft producers have always been important
members of communities, from supporting other local businesses such as farms
and utility companies; to offering dependable and well-paid jobs from
production to sales to executives; and of course, providing extensive tax
revenue for their municipalities and states.
Distillers switched gears
during world wars, and are doing so now during the pandemic. This is an amazing
time to be a leading light in the community and an essential economic engine in
a town’s rebirth. We often say “support local.” This is a two-way street and
right now, distillers can lead.
BM:
Finally, “no revenue” is an obvious answer to
the question, “Should I close?” But in the current over-expanded market, what
other answers might a producer consider?
JH:
SKU
reduction. If you have a brand that’s working and some that are lagging, but
they’re being produced to fill out the portfolio to make your brand more
attractive to distributors, grocery, C-store sets or franchise restaurant chain
mandates—cut them! Focus on what’s working and do it well.
RL: Be humble. It’s more
admirable to ask for help than to never build a new door to walk through. Also
consider:
1. What’s your quality of
life? Health, stress levels, missing kids’ activities because you must run the
business and so on. This pandemic has brought families together. More meals in
groups, board game conversation and outdoor life vs. a face in a phone all the
time.
2. Are you staying true to
the mantra, integrity and goal of why you opened the business? Some people will
say no—they’re just trying to keep up.
SS: This pandemic will
hopefully be the toughest business challenge you’ll ever face in your lifetime.
As such, it presents an excellent opportunity to confirm your commitment to
your business:
1. Is it your life’s
calling/purpose?
2. Do you have the energy and
resources to start back from where you were in the early years?
3. What will your personal
and financial well-being look like if it takes two years to get to where you
were at the end of 2019?
If you have the fortitude and the wisdom, you
can work through this. And the field will likely be even greener if you can
make it through the next 730 days.
By: By Nichole Gunn, Vice President of Marketing and Creative Services, Incentive Solutions
When it comes to improving
your go-to-market strategy, incentives can be a powerful tool that craft beer
producers can use to motivate distributors and wholesalers to sell their
product. Incentive programs help craft beer producers build mindshare with distributors
and wholesalers, differentiate their product, provide enablement to indirect
sales reps and collect important data throughout their channel.
However, it is important
to be mindful of your marketing spend and to focus on designing your program to
generate a meaningful ROI. Keep in mind that an incentive program is about more
than just rewards.
Keys to Creating an Effective Incentive Program
While the specifics of
incentive program design will be as varied and unique as the craft beer producers
who use them, below are several overarching principles that can be utilized to
create effective incentives for supply chain trading partners:
1. Choose a specific, measurable goal for your program.
2. Analyze your audience and your competitive situation.
3. Offer rewards that are
relevant to your target audience.
4. Structure promotions to
target KPIs (key performance indicators) that bring you closer to your goal.
5. Consistently market your
program to stay top of mind of with your indirect sales reps.
6. Use digital platforms to
drive your program and measure results.
By following these six
steps, craft beer producers can establish effective incentive programs that
give them a sustainable competitive advantage in their channel and allow them
to focus more of their attention on where it belongs – crafting great beer that
their customers will love!
Choosing a Specific, Measurable
Goal
In order to achieve a
meaningful ROI, it’s important to begin with the end in mind. Why do you want
to launch an incentive program? What do you hope this program will accomplish?
How will you measure success? The more specific you are when answering these
questions, the more informed you will be when making decisions to empower your
goals.
Possible program goals
craft beer producers use incentive programs to accomplish include:
• Generating brand
awareness;
• Increasing sales for a
specific product or region;
• Driving incremental
growth among supply chain trading partners;
• Gathering data to
improve partner profiles;
• Capturing market share
and gaining access to new verticals; and
• Building loyalty with
wholesale and distributor sales reps.
While an effective channel
incentive program can accomplish all of these things, it’s best to start small
and narrow your focus to just one or two goals. Doing so will help you sell
other members of your organization on the idea of launching an incentive
program and will allow you to more effectively measure the results. Plus, you can
always scale your program to accomplish additional goals once you know it’s
working.
Analyzing Your Audience and Your
Competitive Situation
When building an incentive
program, you have to put yourself in the shoes of the wholesale and distributor
sales reps you’re attempting to motivate. What do you know about their
lifestyle? What are the things that excite them? What information can you
provide to make selling your products easier for them? The more you understand
about your target audience, the better equipped you will be to create
incentives that inspire them and align your goals with theirs.
In the competitive craft
beer channel, each of these reps is responsible for selling multiple products
from dozens of brands. The battle for mindshare is fierce. Chances are, some of
your competitors are already running an incentive program or using other
channel marketing promotions. It’s up to you to take a look at what your
competitors are doing and to create an incentive program that is more engaging and
compelling than theirs.
Offering Relevant Rewards to Your Target Audience
According to the COLLOQUY
Loyalty Census, the average American household is enrolled in more than 18
loyalty programs. Of those, they actively participate in fewer than half. In
order for your incentive program to accomplish its goals, you have to stand out
from the competition by offering rewards that enhance your value proposition
and feel necessary to your participants.
The more closely you can
match your incentive rewards to the lifestyle and interests of your
participants, the more effective your program will be. However, it’s important
to choose rewards that align with varying levels of performance, while fitting
into your overall budget. Luckily, there are plenty of options!
For SPIFFs, rebates or
programs with a wide range of participants, debit card and gift card rewards
provide flexibility, convenience and wide appeal. Online merchandise rewards
are more personalized and scalable, ranging from easily-earned “point burner”
items like movie tickets for part-time customers, to exclusive, high-end
merchandise and custom reward fulfillment for higher-performing supply chain
partners. Group incentive travel is memorable and emotionally impactful,
perfect for building loyalty with your top wholesale and distributor sales
reps. Although incentive travel events are currently on hold for the
foreseeable future, demand for travel rewards will be extremely high when the
shutdown ends. This will not last forever, and there will be compelling
bargains to be had as resorts and hotels at top destinations endeavor to resume
business.
Additionally, you can use a mix of rewards and tier them for different levels of performance or segments of your channel. For instance, it might make sense to offer an online points program for individual sales reps, while running an incentive travel promotion for the brand managers at the distributor level.
Structuring Promotions to Target Strategic KPIs
Incentives work by modifying the behaviors of your wholesale and
distributor sales reps. Each step these reps take that bring you closer to your
goal is also known as a KPI (key performance indicator). KPIs can be measured
to predict or prove program success. For instance, the more participants that
enroll in your program, the more likely they are to sell your product.
Enrollment bonuses are a common incentive promotion, but you can also reward
points bonuses for KPIs such as:
• Attending tradeshows or
taking online certification courses;
• Participating in product-related trivia and quizzes;
• Providing referrals;
• Filling out surveys or
updating their contact information; or
• Making a first-time sale
of a specific product.
However, priorities
change! For craft beer distributors, it’s important to have the ability to set
multiple promotions and change reward parameters to target strategic
initiatives, capitalize on analytics and respond to the tactics of the
competition.
Marketing Your Program to Stay Top of Mind
Once you have outlined
your strategy and structure, the next step is to spread the word. Incentive
programs create an easily communicated value proposition, but it’s necessary to
consistently reach out and engage with your wholesale and distributor sales
reps over a variety of channels.
From program launch to
reward redemption, you should be communicating with your supply chain trading
partners across email, SMS, web platforms, direct mailers, flyers and phone
calls. Get them excited about participating in your program, educate them on
your brand, inform them about new promotions and remind them about the rewards
they have the opportunity to earn. Your incentive program provides the chance
to personalize your communication with your indirect sales reps in a way that
may be otherwise difficult to achieve in the craft beer distribution channel.
Additionally, you can use analytics to spot opportunities for growth or which
accounts you should reengage and create targeted marketing campaigns for those
accounts.
Using Digital Platforms to Drive Your Program
Finally, you have to
consider the user experience of engaging with your platform, as well as the
administrative functions you need to successfully manage your program. Today’s
incentive programs, like most business platforms, are software-driven. Gone are
the days of analog catalogs, manual processes and investing in channel
marketing strategies that don’t produce measurable results.
When exploring potential
incentive program providers, craft beer producers should ask themselves
questions such as:
• Does this incentive
program software integrate with my CRM and other existing platforms?
• How will this program
software help me capture the data and analytics I need to improve my channel
marketing?
• How will this program
software improve my ability to communicate with my supply chain trading
partners?
• Will my reward program
website present an engaging and accessible user-experience that is a strong
reflection of my brand?
• What other features, such
as gamification and sales enablement tools, does this platform include to keep
participants engaged and to help them succeed?
Luckily, these are areas
where the incentive industry has made exciting strides over the last decade or
so. As data, analytics, automation and providing digitally connected channel
partner experiences continue to become increasingly important, incentive
companies have shifted their focus from just providing reward fulfillment to
offering complete channel sales and marketing solutions.
This focus on technology
has made launching and managing an incentive program less time intensive. In a
2019 survey, Incentive Solutions found that 70 percent of our clients,
including several notable craft beer producers, spend less than two hours a week
managing their incentive program. Additionally, some incentive companies
provide the option to take full responsibility for program management to free
up your resources for other priorities.
After all, chances are you
didn’t get into the craft beer industry to manage channel partners and set
parameters for sales promotions. You got into it because you are passionate
about brewing great beer!
Nichole Gunn is the VP of Marketing and Creative Services at Incentive Solutions (www.incentivesolutions.com), an Atlanta-based incentive company that specializes in helping B2B companies improve their channel sales, build customer loyalty, and motivate their employees. Nichole Gunn can be reached at ngunn@incentivesolutions.com.
There is a compelling evolution in the industry and from our
vantage point, the industry is changing rapidly, every month – week – day! As our country continues to change at the
same rate, so must the beverage leaders to address this rapid evolution.
Change, however, is difficult and having agility built into your company is critical
to success. But, what is success? Many companies struggle with this notion.
When asked “what is your one year and five year plan?” many just do not have an
answer. This results in confusion at the top and bottom of your organization,
as well as with the investment community. Planning is not rocket science but it
is one of the most critical functions that leaders do for their company and
intellectual property (IP). How does your craft company create, maintain and
maybe even increase value?
The number of phone calls we receive at Baker Tilly regarding mergers and acquisitions (M&A) for craft companies has increased significantly during past 18 months. This is a testament to the state of the industry. You can certainly see cognitive dissonance with the hype in relation to the number of brewers, distillers and even distributor licenses issued and in process vs. our M&A conversations.
What is not apparent, is how thin these companies are running. Many are not capitalized appropriately, have poor information systems, lack qualified management, have incomplete infrastructure, understaffed expansion markets, equipment requiring upgrades, and a limited understanding of their customers and markets. Just because sales are up (and that’s not for many brewers) doesn’t mean they are financially sound. There are many investors that haven’t seen any return on their investment and are being asked for more financial support in order for the business to become profitable.
It is not surprising that investors and over-worked managers are looking for an exit. Unfortunately, for many companies, valuations may be disappointing and in some cases, there is little to no interest from new investors in a craft company. These companies have failed to distinguish themselves in the increasing competitive and volatile marketplace. M&A is not a solution for many due to current sales trends, market share and financial performance. Waiting for a deal to break through and rescue investors is only an option for those with well-run operations.
To overcome this
situation, a solid strategic understanding of your business and a supporting
plan is necessary. We are frequently asked, “How do I do this when I am so
busy?” The last thing you want to say to yourself is that we completed our
business plan a few years ago and everything is fine. Can your business really
be fine with the amount and speed of change with consumer and retail demands?
How you answer this question is how people are viewing you both internally and
externally. There are very large companies with plenty of resources looking at
your industry with plans and strategies to capture opportunities and improve
operating performance with an appropriate funding. You must do what they are
doing with a clear strategy and diligent planning processes that address the
consumer, retailer and aggressively play to your strengths as a company.
Understanding your
industry, the trends within it and where you fit, is a critical first step The
beer, wine, spirit and alcohol industries remain highly concentrated in the
hands of the largest suppliers. There are now approximately 9,000 brewers in
the United States and five of them control approximately 80% of the market
share. Currently, there is a record number of distillers and distributors with
licenses and many had aspirations of becoming a top-volume, successful operator
in their city, state, region or even country. It was common to bootstrap the
start-up phase while seeing others raise money from investors. Many began with
multiple founders and received support from family members. Few were able to
jump into business with all of the right funding for their business plan. No
matter how it transpired, everyone is feeling the pressure of shifting demand,
innovation, SKU rationale, minimum wage challenges and receding retail traction
for their brands.
Smaller operators are
trying to keep up with new entries as well as capture interest from
distributors and retailers by blitzing the market with innovations or riding
the wave of the latest consumer fads. Hazy IPA’s, craft spirits, cider, spiked
seltzer, Kombucha and CBD-infused concoctions are all part of the buzz.
Distributors want to make the most profit and retailers want to see SKUs with
high rate of sale. Analytics matter and if you have not figured out how
important it is to transcend beyond the ranking and distribution reports of the
past, then you are missing the boat on getting your team focused on what
matters most. Did you notice that the largest brewer on the planet just
released a spiked seltzer of their own instead of buying one? What does this
signal? Could it be they recognize small brand values are receding?
The share of the pie
continues to get smaller as more people seek licenses to brew, distill and/or
distribute. What we are clearly seeing is the inability to support these
numbers at the retail or distributor level. Those who signed up to own a brewer
and scale it to multiple cities or states are finding it nearly impossible to
make that vision come true.
They are being transformed
into bars and restaurants. Outside sales at retail are too costly to support
and rate of sale with those SKUs is not keeping up with the standards set by
many retailers. Small is fine and perhaps the best way to stay true to what you
do best. Most off-premise retailers (grocery, convenience, packaged liquor
stores) segment brands for the masses. From a supplier standpoint, it is
critical that you have the relationship with your key distributors. How your
brands fit into their local strategy is one of the most important aspects in
your relationship. Owning your marketplace is a great way to stay small, grow
organically and be ready to scale up once the business plan indicates success.
As stated earlier, with 9,000 brewers in the industry, gaining higher market
share than your peers should be the first priority.
Which companies will grow
and which ones won’t? Let’s go beyond the obvious characteristics like quality.
If you really want success, then you must listen to the consumer and those
closest to the front line. Take action and do not deny what you are seeing in
the data or what distributors, retailers and consumers are telling you. There
are plenty of new avenues for consumers to order, understand and even receive
delivery of your product. Disruptors in the market such as Amazon Prime, Provi,
goPuff and Barley Sober are changing the buying habits of consumers. Do not try
to push a rope – pouring additional effort into something that is not getting
traction will upset everyone in the supply chain. Create a strong plan that
covers all the bases and includes funding and support from all stakeholders.
What we are seeing is that
the successful and valuable companies are those that are the most agile and
adaptable. Meaning, they have identified the complexities within their
operations and streamlined them with the help of business intelligence so they
can spend more time focusing on growth. The traditional approach of just adding
bodies to the mix is both costly and ineffective. Having a sound plan for brand
growth driven by data is how you win. As we all know, the consumer is driving
this complexity. Whatever generation you want to target, there is segmentation
happening. How they spend their money needs to be a factor that is applied to
your planning and innovation. The next factor to consider is the occasion in
which the consumers are consuming. Developing your mix shift within each
segment and brand is a very key factor when planning for the now and future.
Addressing these consumer behaviors is critical for knowing what brands and
SKUs to carry.
Connecting the back-office
fundamentals with the front line is another solid key to success. Link your
back office to your front line employees. Speed and trust is critical in the
beverage environment as retailers shift from on and off premise to all premise.
We see great success when the plan fits the market strategy. It is a process of
zooming out and then zooming back in to understand your product attributes and
how they are perceived by consumers to ultimately achieve your objective and
satisfy retailer needs.
Retailers have less and
less time for a sales pitch on your latest brand. Technology has made it easy
for them to figure it out on their own. Your plan of attack should consider
their desire to get to the point of the pitch and be right about how well it
will sell. Call frequencies of your sales team should be developed with the
retailer’s business needs and schedules in mind.
Shareholder expectations
and funding requirements are issues for everyone. Getting the most out of your
resources and applying solid growth strategies are foundational pillars that
keep the focus of your company on profitable growth.
To lead in the 21st century, craft beverage
companies have to rely on innovation and planning. The traditional route to
market is not the same as yesterday. To be successful, understand your internal
strengths and protect your brands and processes. These should be the
cornerstones of your plan and that plan should be a working document that
increases both trust and speed to market for your entire organization.
