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August 2019
5 Min read

How do beer producers lose thousands of EUR due to staff negligence?

Irina Yaroshenko

International Sales Manager +4314120126

5/5 - (2 votes)

This particular negative experience of one of our clients is worth sharing. 

Speaking about the market for the production of alcoholic and low-alcohol products, it will be no surprise to anyone that it is a “red ocean” – with a high number of offers and competition, but, at the same time, with a steady market.

To promote their products, companies allocate huge funds for outdoor advertising, which in many countries is regulated by local legislation. In this regard, the main method of promotion remains direct cooperation with distributors and retailers.

Speaking about the promotion of products with the help of bars, cafes, and restaurants, the task of any beer producer is to provide his future customer with the most frequent number of contacts with the products, so that he gives preference to it from the whole range of goods.

To do this, a company needs to follow the implementation of 3 consecutive steps:

  1. Provide a bar with products. The presence of your products in a bar is the first obvious and necessary step for its implementation (marketing)
  2. Ensure that a specific brand of beer is present on the menu. In addition to the menu, the brand mark can be visible on the drought pump.
  3. Monitor the recommendation of your product. This stage includes informing staff about the benefits of your particular beer brand, conducting motivational training sessions, as well as developing a system of incentive programs for bartenders.

Naturally, the high-quality observance of all these stages implies a large cash outlay on each of them.

Today we want to share the experience of one of our clients – beer producers, who invested hundreds of thousands of euros in promoting their beers in bars, but this did not lead to an increase in sales.

We developed the “Mystery Shopping” program in order to evaluate:

  • the effectiveness of informing visitors about 2 particular brands of beer
  • compliance with quality standards for serving the drink
  • beer presence on the menu
  • presentation in the location itself

The results of our investigation speak for themselves:

  1. Presence on the menu
    In 83.6% of the cases, one sort of beer was generally absent in the bar menu, 44.7% – the same applied to the second sort.
    In 11.9% of cases – both sorts of beer were missing altogether from the menu or no menu was available at all.
  2. Bartender’s awareness of the sort of beer
    (The key question sounded like: What brands of good quality lager do you have?)
    In 12% of cases, they recommended trying the beer of other brands. In some countries, this indicator reached up to 30% (Switzerland – 21%, Norway – 25%, Finland – 30%).
    That is, every third visitor was offered to try beer from other manufacturers that were not part of the motivational program for bartenders.
  3. Key Product Standards Performance. On the graph below you may observe compliance with the key product standards. Naturally, the basic taste of beer depends on compliance with the standards of its delivery – Glass positioning, size of the head, temperature and pour.
    As a result of our study, none of the indicators, unfortunately, did meet the specified standards (Glass positioning – 34%, Head – 34%, temperature – 58%, Pour – 74%.), which resulted in a bad first impression of this particular brand.
  4. Customer satisfaction. Customer satisfaction is the basis for building brand loyalty, which increases the chances that the customer will invite his friends to a glass of your beer next Friday. On the graph below you may observe the results of our study, which showed a middle level of satisfaction with contact with a beer brand – below average.

Based on the results, we can only predict a deterioration in sales due to not improving the motivational training for bartenders and we suggest conducting a new wave of Mystery shopping investigations.

5/5 - (2 votes)
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