Transcript Beer, Wine and Liquor Industry Overview

Advertising Effectiveness:
Beer, Wine, & Liquor Stores
April 2011
Applying Advertising Effectiveness to
Your Sales Efforts

ROI - at the forefront of our customer’s investment decisions. Our key
customers expect us to understand their business, provide ad design
guidance and ROI metrics on their print investments.

Effective ads maximize ad recall and increase purchase
consideration by the consumer.
 Maximize advertising momentum during prime selling seasons
when people are shopping for our customer’s products and
services.
 Do the math – calculate the local number of adults shopping or
purchasing based on the market research. (See slide 4)
 Understand the common elements that successful ads share:
layout, deals, headlines, color and size.
 For RAM testing markets, if your advertiser’s ad scores above or
below the median, review those elements to understand
performance.
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Food Services Sales Are
Highest in July and December
Source: Estimates of Monthly Retail and Food Services sales by Kind of Business: 2009. 2010 U.S. Census Bureau.
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$435
Amount the average adult spends on alcoholic
beverages each year.
Source: Consumer Expenditure Survey, U.S. Bureau of Labor Statistics, October, 2010.
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67%
Of consumers drink alcoholic beverages.
Source: Newport, Frank. “U.S. Drinking Rate Edges Up Slightly to 25-Year High.” www.gallup.com. July 30, 2010.
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Age
Percentage of adults that
drink alcoholic beverages
18-34
72%
35-54
72%
55+
59%
Source: Newport, Frank. “U.S. Drinking Rate Edges Up Slightly to 25-Year High.” www.gallup.com. July 30, 2010.
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Household
Income
Percentage of adults that
drink alcoholic beverages
<$20K
46%
$20K-$29,999
51%
$30K-$49,999
66%
$50K-$74,999
78%
$75K+
81%
Source: Newport, Frank. “U.S. Drinking Rate Edges Up Slightly to 25-Year High.” www.gallup.com. July 30, 2010.
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Education Level
Percentage of adults that
drink alcoholic beverages
High School
Education or Less
58%
Some College
70%
College Graduate
79%
Post Graduate
Degree
74%
Source: Newport, Frank. “U.S. Drinking Rate Edges Up Slightly to 25-Year High.” www.gallup.com. July 30, 2010.
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Men that drink
alcohol
prefer beer
over wine or
liquor.
Source: Newport, Frank. “U.S. Drinking Rate Edges Up Slightly to 25-Year High.” www.gallup.com. July 30, 2010.
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Women that drink
alcohol
prefer wine over
beer or liquor.
Source: Newport, Frank. “U.S. Drinking Rate Edges Up Slightly to 25-Year High.” www.gallup.com. July 30, 2010.
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Drinkers 55 and
older choose
wine as their
preferred
beverage.
Source: Newport, Frank. “U.S. Drinking Rate Edges Up Slightly to 25-Year High.” www.gallup.com. July 30, 2010.
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Locations Where Surveyed Consumers Purchased Beer, Wine, and Spirits in 2009.
Store Type
Beer
Wine
Spirits
Grocery
75%
62%
30%
Specialty Grocery
7%
16%
3%
Limited Grocery
2%
3%
1%
Club
22%
25%
17%
Drug Store
13%
9%
11%
Convenience Store
26%
3%
3%
Small Liquor Store
21%
22%
39%
Large Liquor Chain
12%
18%
31%
Mass Merchandiser
27%
19%
7%
Source: Nielsen Marketing Charts, 2009.
Use Smaller Frequent Ads Throughout the Year
Previous Knowledge of Your
Business
Weekly
Every Other Week
Monthly
34
15
14
Source: RAM 2009; Consumer previous knowledge scores based on
advertising frequency testing over 13 weeks.
Ad Size Significantly Affects Ad Recall
Half Page
8.8%
compared to quarter page
Full Page
22%
compared to half page
Arrow indicates variance between ad sizes 10/25/09-10/25/10
US RAM Reference Data – 363 Quarter Pg; 435 Half; Pg 935 Full
Pg
Effective Ads Increase Ad Recall
Strong Headlines
Well written, bold, and
prominent.
Advertisers are Easy to
Identify
Sizable logos with good
placement.
Clear Visual Hierarchies
Ads are centered around a
primary focal point while
displaying secondary images.
Effective Ads Increase Ad Recall
Visual Layouts
+14% above median
Organized Layouts
+18% above median
Great Deals
+14% above median
Source: RAM US Data Alcoholic Beverages ROP Ad Recall Median of 44%
based on 118 ads between 7/1/05 – 3/28/11
Methodology
• RAM – Research and Analysis of Media - is a complete
research and analysis system to measure how newspaper ads
and articles are read and understood.
• Measures include ad recall, brand, message, and purchase
consideration of print and web advertising.
• Consists of a database of over 17,800 advertisement and news
article references with survey interviews reaching 6.9 million
adults. (RAM US Data October, 2010)
• Ongoing internet-based survey developed to measure print
and online media’s effectiveness (advertising and news).
• Incentive based internet panels are made up of subscribers
and non-subscribers (over 25,700 panelists in Gannett markets).
• Results are weighted based on gender, age and reader
frequency of adults 18 and older in the market.