THE "BOOMER" AS TARGET CONSUMER

FOR ALL RETAILERS

In my work preparing for my consulting to customers, my training of employees and in my efforts on this very blog, I do a great amount of reading. In order to enable me to read as much as possible, wherever and whenever I can, I carry one of the new book reading devices. It enables me to take numerous publications with me, in my briefcase, which previously would have had to be carried in a foot locker. While I highly recommend them, this is not a commercial for those devices. I am simply pointing out the numerous sources I use in my efforts to offer smart suggestions to the retailers in the Beverage Alcohol Maqrket (BAM).

Here is one of those suggestions. One of the market segments, which has until recently been ignored, is that of the "Baby Boomers." I know what you're thinking..."In the BAM, we target the male and female drinker from Legal Drinking Age (LDA) to 39 or 49, depending on the product being promoted.

Well, I am here tom tell you that there is a push occurring right now, to incorporate these older consumers into the mix. Many large consumer oriented corporations have begun to realize there is a big difference between the old target market and today's new one. The Boomers have something the younger group lacks...they are spending money at retail.

Some large consumer product companies have begun to expand their targets in marketing their brands to these customers. Proctor & Gamble, Johnson & Johnson, New Balance Shoes and Red Bull energy drink are just a few examples of companies that have already begun expanding their efforts with regard to age. They see a group which has been ignored by the huge marketing instruments currently used to determine where to focus for maximum return. They are now recognizing a group that not only has some money to spend, but likes to spend it on name brand items. The Boomers have a significant amount of disposable income (as well as time), especially for the products and services our industry offers.

The Boomer as a shopper, is more of a shopper than the usual retail customer. He or she will spend more time in your establishment, looking for the "Better Beers," or the trendy new bourbons. People know what they like and the older consumer is even more set in his or her ways. They will keep looking until they find whatever it is for which they are searching.

In the package store, this is a great tool to use against the huge box stores. Those guys keep a minimum of alcohol brands in inventory. If an item doesn't move at the rate they feel is correct, that item is dropped. You, as the "neighborhood expert," can carry some items especially for a customer who can't find it anywhere else. This is a perfect fit for working with the Boomers.

As a smart retailer (bar, restaurant or package store), it is up to you to begin to look at your specific, local market from a broader brush aspect. Don't wait for your suppliers to address this subject. Sooner of later, they will. But by that time, they will be addressing it with all of your competitors too. Be the first one out of the blocks on this. Get started today by incorporating the Boomers into your 2010 business plan. It can only add to your bottom line and improve your Return On Investment (ROI).

NOTE: For more Pro Beer Posts click on the line "older posts" at the bottom of any page.

We invite your comments, questions and/or suggestions. To add one, simply go to the end of any post and click on the word "comments," in "comments links to this post." This will take you to a site where you can leave your thoughts.

Business consulting is offered, as well as training seminars for suppliers, distributors and retailers. Contact us for information on specific details, time lines and costs.

Thank you for your support. Happy and prosperous Holidays to All!

Don Apostolos
The Apostolos Pro Beer Post

973.692.9585

dapostolos@optonline.net

DEVELOPING NEW NICHES

FOR ALL RETAILERS

In the retail alcohol beverage business, we are always looking for that new opportunity to increase customer count and sales. We are not alone. Every industry from fast food to automobiles is looking for that same opportunity. The thing that makes it harder for us is we are in a highly regulated industry. We are hamstrung when it comes to exactly to whom we can advertise and promote, as well as how we can do it and when.

Here are a few examples of great "niche expansion" ideas. While none are alcohol related, they show how some marketers are "forward thinkers," moving outside the lines to obtain more customers:

- FAST FOOD BRUNCH (Carl's Jr.)...A continuation of their already solid breakfast business, into their big lunchtime segment. This is normally a dead time on their clock. By offering brunch specials they can accommodate two groups of customers at the same time. It also adds dollars (and profit) to those dead hours.

- THE 4th MEAL (Taco Bell)...The intelligent creation of a new meal. Now, at Taco Bell, they have added to the usual breakfast, lunch and dinner mentality. The 4th meal is usually eaten late at night, predominantly by young adults (a key to fast food success) after a night out with friends. A great way to sample potentially new consumers, leading to visits during normal dining hours.

- LATE NIGHT RICE KRISPIES (Kellogg's)...This television ad does a great job of penetrating the long established thought that breakfast cereal is just for the morning meal. By showing a mother offering her daughter a bowl of Rice Krispies before bed time, Kellogg's is attempting to establish and penetrate a new niche...Rice Krispies as a healthy, late night snack. Not just a good idea, but one that is "mother approved."

Having been in the beverage alcohol industry my entire life, I have seen more ideas come and go than most people could ever imagine. When I see an idea that has merit, I feel obligated to pass it on to current retailers. This includes brand new ideas as well as old ones which have been recycled with a modern twist.

Here are a few ideas to consider:

- THE STARTER BUCKET (On premise)...As the waitperson approaches the table, he/she places two items on the table. The first is a carafe of water containing thinly sliced lemons. The second is the "starter bucket." This bucket contains one bottle each of the following:
1) An imported beer
2) A domestic premium beer
3) A domestic or imported light beer
4) A craft beer
5) A seasonal beer
6) A soda, juice or bottled water

While the starter bucket is not free (it must be marked as such), it offers the customers a chance to sample a beer, soda, juice or water they may have never tried. Additionally, it can "get the ball rolling" early, enabling the customer to have a drink before they actually place their order. Obviously, this idea is for tables of proven drinking age. Share this idea with your distributors, asking them to help you with this program. Let them compete to be a part of your creative business.

A SMART APPETIZER (On premise)...Whether or not your place has an Hispanic theme or menu, offer your customers an appetizer of nachos and salsa. The offering is fairly inexpensive and its salt content helps to generate a strong thirst in your patrons. This is perfect for generating incremental cold beer sales.

RECIPE HAND-OUTS AT THE REGISTER (Off premise)...By stacking or stuffing alcohol/food recipes at check out, you can offer your customer a nice, value added piece for their future use. Because these recipes all contain a beer, spirit or wine ingredient, the customer can return to buy that item, in order to complete the recipe. This effort not only gives your customers something extra (at no charge), but it may also lead to plus sales and profit for you.

Try one of these ideas and see if it has the positive impact for you that I have seen it have elsewhere.

We invite your comments, questions and/or suggestions. To offer one, simply go to the end of any post and click "comments," in "the comments link to this post." That will take you to a site where you can leave your thoughts.

We also offer performance audits and training seminars. Contact us for information on specific details, time lines and costs.

Thank you foor your support. Happy (and profitable) holidays to all.

Don Apostolos
The Apostolos Pro Beer Post
973.692.9585

dapostolos@optonline.net