Advertise with fastmoving.co.za
 
 

Keeping consumers loyal

Nov 23rd 2011, 08:15

November 2011
Keeping consumers loyal
The festive season is soon upon on us, which means consumers will be stocking up on their favourite liquor beverages for the holidays. This is an important time for liquor retailers and they need to ensure that they capture their share of the spike in consumers spending.

Traditional supermarket retailers such as Spar, Pick n Pay and Shoprite have aggressively opened smaller format convenience type outlets and that must be having an impact on the shopping patterns and will also enable consumers to access national promotions without the inconvenience of having to travel to a large format store or a wholesaler.

Promotional based marketing strategies work well in the liquor sector and largely determine where consumers shop for their preferred brands. However, these strategies do little to promote customer loyalty and often result in reduced basket sizes and decreased margins for the retailer.

To keep consumers buying from their stores only, instead of at the competition, retailers need to focus more on the shopper rather than the products. Short term loyalty programmes can be a very effective tool to protect margins and increase customer spend in a period where promotional activity is frenetic.

The idea of getting four free high quality wine glasses after spending your allocated liquor budget certainly holds more appeal than tearing off to another liquor retailer to save R15 on a case of beers.

Although this concept may be new to retailers in South Africa, short term loyalty marketing programmes have been used successfully by a number of retailers overseas. They work by offering consumers a free reward that has a perceived high value, as a result of purchasing at a particular retail outlet within a fixed period of time.

A typical programme would use a stamp collection method where consumers collect a certain number of stamps to build a set. They remain loyal to that store because they can only complete the set by making purchases (and collecting stamps) from that store.

As South African retail becomes more difficult to operate in as a result of new competition, liquor retailers, in particular independent liquor stores, will need to think out the box to remain profitable. A short-term loyal marketing strategy may just be what’s needed to achieve this in its ability to keep consumers loyal.

Wendy Smith and Craig Ballantyne
wendy@fastmoving.co.za

Please feel free to make comments or raise new issues by emailing the editor
wendy@fastmoving.co.za
Featured Clients
· DGB
DGB(Pty)Ltd was formally established in 1990, although our true roots extend over 300 years when winemaking began at the Boschendal and Bellingham farms in the Cape Winelands. In fact, we were doing things a little differently in the 1940’s already, when Douglas Green pioneered the wholesale sales model for wine in Paarl.
· Bottega, by Profumi D’Italia
The Bottega and Alexander brands are the result of the work of three generations of Italians involved in the world of wine, grappa and organic foods. Their premises are located in a 19th century farmstead 45km from Venice in the romantic Prosecco grape growing area of Conegliano Veneto.
Events
Salt & wine pairing dinner with oriental flair in Die Bergkelder

INDUSTRY NEWS
The Cape Wine Academy reaches 100 000 students milestone
Since its inception 32 years ago in 1979, over 100 000 students have enrolled for various Cape Wine Academy courses throughout South Africa. Approximately 50 000 of these students attended various tertiary institutions at which the Cape Wine Academy provides the wine module. These institutions include cookery schools and universities.

For most of the 18-25 year olds attending the wine courses, this is their first exposure to many of the wine brands.
· Versus Wines Gets a Colourful New Look
· Jak de Priester live at Durbanville Hills
· Limoncino : The Lemon liqueur with Grappa
· Christmas lunch treat with Monis Muscadel
· Culinary Christmas favourites at Durbanville Hills wines
· Alto’s new concept parties hit the mark
· Liquor licence moratorium stays
· Cheers to new wine markets
· African roots create market for SABMiller
· Rupert wines appoints new MD
· SABMiller invests $295m in Peru subsidiary
· Greenbottle targets wine with paper bottle
· Heineken, Coca-Cola Hellenic to raise stakes in European JV
· New Belgian craft beer lands in UK market
· C&C Group snaps up second largest cider brand in North America
· Diageo serves up Smirnoff cocktail in new bag-in-box
· Canadian wineries team up to form joint venture
· Odom-Southern buys Washington wine wholesaler Cavatappi
NEW PRODUCTS
Summer debut for Fleur du Cap Unfiltered Sauvignon Blanc 2011
Fleur du Cap, acclaimed for exceptionally elegant Unfiltered wines, has released a new Sauvignon Blanc vintage that will work its magic this summer. From rich Namibian oysters, asparagus and crisp salads doused in vinaigrette to spicy Thai dishes, new Fleur du Cap Unfiltered Sauvignon Blanc 2011 is the quintessential summer food wine.

 

PACKAGING UPDATES
Nampak invests almost R1 Billion in glass packaging
Earlier this month, Nampak announced that it has acquired the other 50% share in its glass packaging business from Wiegand-Glas for R938 million.
· Consol’s R1,9bn green plant opens
AWARDS AND PRODUCT REVIEWS
Distell feted by New York
Distell has been awarded the title of Distillery of the Year, winning the only double gold medal of the show at the 2011 New York International Spirits Competition. This is the first time the company has entered the event that attracted over 300 entries from 30 nations worldwide.
· Franschhoek Cellar hits the Top 10 Sauvignon Blanc List
· Fleur du Cap reaps FNB Sauvignon Blanc Top 10 ranking
· KWV Brandy rakes in local and international awards
· OBIKWA Sauvignon Blanc 2011 wins Best Value Award
To advertise:
Cape Town
Vivienne Ayerst

Tel: 021 423 8213 or 082 921 5468
vivienne@fastmoving.co.za
Johannesburg
Tina Baney

Tel: 012 654 9855 or 083 251 6874
Email: tina@fastmoving.co.za
For editorial:
Wendy Smith

Tel: 021 465 6910
Email: wendy@fastmoving.co.za