How holistic is your approach to making decisions on the most important marketing lever?
Getting the right pricing strategy is very critical for CPG companies - more so in the alcoholic beverages (AlcoBev) category in India, because AlcoBev is a highly regulated industry subject to high taxes coupled with restrictions on distribution and mass media communications. This renders it very price sensitive and highly competitive. At Diageo India, we have developed an integrated brand pricing framework that encompasses the following dimensions: (i) consumers' current sensitivity to brand price; (ii) behavioural equity measure (total $ value that is the sum of functional and emotional benefits provided to the consumer by the brand, over and above price); and (iii) drivers of equity. This holistic framework enables maneuvering pricing in the market for the short-term while getting the right balance between price and total brand value, as perceived by consumers in the longer run and also driving actionability in terms of building up equity.
The company, Pernod Ricard, is looking to increase sales and market share, has identified that one potential channel to achieve this goal is online sales. This will increase online and offline sales. This business objective triggered the need to achieve a deeper understanding of the liquor shopper; understanding their needs, interest and shopping pathways in order to influence their decision in the right place, moment and form.
Consumption patterns and motivations are constantly changing with the complex developments in society as a whole. In the present study recent trends in the consumption of tobacco and alcohol are analysed. Data from surveys measuring use and non- use of tobacco and alcohol in Norway in 1979 and 1981 are used for describing changes in the patterns of consumption. Through bi- and multivariate analyses relationships between a set of demographic variables and use of the stimulants are assessed. An evaluation of the changes in the demographic structure of users and non-users is used for analysing possible future trends in the consumption.
The paper discusses the influence of more non-married women, more working women, more supermarket shopping and a generally increased need to share activities with their husbands, as reasons why women are encroaching into traditionally male markets.
The paper sets out to show the unique role that carefully executed qualitative research can play in providing a detailed understanding of consumer behaviour within a given market, and of the attitudes, imagery, wants and needs which underlie and determine that behaviour. The contribution that qualitative research can make is illustrated through a case history of research carried out for a regional brewery group operating in the North-West of England: The Greenall Whitley Group. The paper describes the company and its history and outlines the reason why research was initiated. It goes on to describe the research method used (group discussions), the research findings at each stage of research (there were two stages of research separated by an interval of one year), and the recommendations which were made to the client. The research brief was wide open: to explore consumer drinking and pub-going behaviour in the clients marketing region, and to provide information about consumers attitudes towards pubs and beers generally, and towards Greenall Whitley pubs and beers in particular. The objective of the research could also be stated quite simply: to help an already successful brewery group to increase its success and profitability. The paper indicates the type and quality of data gathered, illustrates how these have been translated into marketing and advertising action, and demonstrates the success of the project.