Diageo Follows Food Marketing Trend

Norwalk, Conn. -- Numerous studies say consumers are eating more at home, providing food manufacturers the opportunity to get out in front of shoppers. Spirits and mixers are no different. While people are going out less often, they still have a taste for the fancy drinks they order at bars and restaurants.Yet research conducted on behalf of Diageo suggested sales could be higher were it not for three perceived barriers to making cocktails at home. In a 2007 Zoomerang survey, 37% of respondents said lacking all the necessary ingredients stood in the way of a homemade cocktail; 36% said prepping mixed drinks took too much work; and 27% said they lacked the know-how. Further shopper research revealed that from a consumer standpoint, "It's somewhat complicated to shop for a specific cocktail," says Jim Green, vice president, off-premise trade marketing, Diageo North America. "The liquor section is structured by category -- you have vodka, rum, tequila, and so on, separated and shelved by type." To buy all the necessary ingredients for a cocktail, shoppers need to go to different sections of the store, which is all the more daunting if they're not sure what is needed in the first place. In response, Diageo developed its Simply Cocktails program anchored by a one-stop "cocktail solutions center" -- a colorful merchandising program that pulls together all of the necessary ingredients for popular mixed drinks and also features the company's line of pre-mixed "Ready Pour" cocktails. The program rolled out in July to 1,800 retail outlets in 34 states after a three-month test period proved successful.A new concept in liquor merchandising, the center follows the lead of other categories, such as cross-merchandised foods that offer "quick meal solutions," Green says. The Simply Cocktails displays also feature "Easy Shake" solutions that pair spirits with corresponding all-in-one mixers, and "Simple Mix" solutions that group Diageo brands with mixers such as soda, tonic and juice.With eye-catching graphics and the tagline "great drinks made easy tonight," the in-store plan is designed to provide retailers with benefits such as shopper conversion, impulse purchases and increased purchase frequency. In addition, grouping the spirits and mixers increases basket ring, and the shopper-friendly format drives repeat business, Green says.Sales of spirit items rose significantly in stores where Simply Cocktails displays were tested from October through December 2008. For example, the ready-to-serve cocktails experienced an average sales lift of 30% to 35%. Shopper intercept research in the test markets revealed that 77% of people who came in contact with the display said they would purchase more of the featured products because of its presence; 57% would drink more cocktails at home; 53% would shop at the store more often; and 47% would tell friends and family about the display.In addition, 91% said the display provides useful information about mixing cocktails; 91% said it captures attention; 81% said it makes shopping easier; 71% said it inspires them to want to try new alcoholic beverages; 61% said the display makes the section of the store where it is placed more appealing; and 58% said they'd like to try to make more cocktails at home.The program's primary component is a flexible display that telescopes to various widths and heights to meet individual retailers' requirements, measuring 3 feet wide by 7 feet high when fully extended. It has wheels for mobility and holders for educational entertainment guides, with drink recipes and meal-pairing suggestions. The display can be broken down into its subsets, so there could be one unit each for Ready Pour, Easy Shake and Simple Mix products; or all can be showcased together. The program also includes an endcap, an in-line display to incorporate into shelving, an island display, floor and shelf graphics, and partnerships with the likes of Sandra Lee, whose Food Network show, "Semi-Homemade Cooking," dovetails with the "Simply Cocktails" philosophy."We work with small mom and pops on up to national chains," Green says, "so we needed a variety of merchandising tactics." Diageo worked with Colangelo Synergy Marketing, Darien, Conn., and Bish Creative Display, Lake Zurich, Ill., to develop the concept and create the P-O-P elements.The brightly colored headers -- with a somewhat feminine aesthetic featuring sky blue and peony pink to acknowledge that women dominate purchase decisions, even in the liquor aisle ã can be refreshed on a quarterly basis for seasonality and to highlight different cocktails.At Sigel's Fine Wines and Great Spirits, Dallas, manager Joe Whiddon positioned a display by the front door. "Customers can see it as soon as they walk in. If they're in a hurry, they can get in and out -- it's grab and go," he says. "It makes it easier for consumers who are either in a rush or don't know how to make something. At a glance, it tells them what to do."Research shows that 88% of all spirits consumption falls under three "everyday" types of occasions: relaxing and unwinding, casual get-togethers, and mealtimes.

Diageo Follows Food Marketing Trend

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