CPGMatters writes that Diageo is increasingly working with its retailer-customers on shopper marketing programs, especially to better understand how consumers shop the spirits category in the store.
“People are on autopilot when they’re shopping for, maybe, bread or other grocery staples,” said Shawn Fitzgerald, Diageo’s director of shopper planning. “But [spirits] are a more engagement-oriented shopper experience.”
“We had a tendency to focus on the big events, Fitzgerald added. “But the reality is that those occasions are the minority of the occasions. There are a lot of other, more frequent occasions that happen throughout the year.”
Diageo created a “Simply Cocktails” merchandising unit aimed at infrequent purchasers. The displays feature different spirits and complementary products. Each display comprises a particular level of difficulty. “Ready/Pour” is one, “Simple Mix” is the next step up, and “Easy Shake” is the highest level.
It’s a great example of applying insights. Diageo has partially extended the concept from in-store to pre-store with www.thebar.com and a related Facebook page. Diageo would be wise to expand its digital efforts, using individual purchase history where possible.
Enhancing in-store ideas such as “Simply Cocktails” with pre-store shopper marketing can be a powerful combination to influence year-round beer, wine and spirits consumption occasions. In particular, using purchase history to target individual shoppers may help marketers:
- Expand purchases among lighter buyers
- Identify which products to cross-promote (in cases where direct alcoholic beverage promotion is not possible)
- Recommend new items to try (correlations can exist between craft beer and wine, rum and flavored vodka, etc.)
- Avoid marketing messages to underage or non-drinkers.
Collaborating with both retailers and their third party marketing vendors can not only help alcoholic beverage marketers better target, but also comply with regulations around the direct exchange of funds from spirits companies to retailers. Diageo has a powerful idea that it can extend from the store back up the path to purchase.