Onsite pushes customers to try drinks

Customers are more likely to test new products in on-premises marketplaces, according to a recent On Premise Consumer Pulse report from CGA by NielsenIQ.

The On Premise Consumer Pulse Reports are monthly reports that provide insight into customer behaviors in the Australian on-premises market.

In an episode of Beer is a conversationANZ James Phillips, director of customer solutions for CGA by NielsenIQ, looked at various trends outlined in the September report, including the importance of on-premises presence in creating consumer value.

“It’s a really interesting balance in Australia because around 70% of sales actually go through door-to-door commerce and not on-premises,” he explained.

“But what consumers have on the ground is a much deeper and richer experience with the drinks.”

It’s that experience, Phillip explained, that drives customers to purchase products, in order to recreate experiences at home.

“I think something like 62% of consumers would say they would try again if they enjoyed the drink on the spot,” he said.

“But in fact, we’re seeing the flow of people who really enjoyed that experience going back into the business and planning to produce that experience for themselves at home.”

According to Phillips, having a strong onsite presence is important for brands to win new customers.

“If you’re launching new products, it’s really important to find those consumers where they’re ready and open to experimentation and get that trial from them so you can win with the brand as a whole,” he said. -he declares.

“Thanks to the wealth of experiences, they have the ability to build this brand equity with them also on site.”

Another area of ​​focus for the report was the growth of NoLo and whether customers were incentivized to purchase these products in the onsite space.

Phillips explained that while NoLo data is powered by “loyal” consumers, it also sees a significant drop in penetration numbers.

“What we see when we explore the low NoLo data here in Australia as well is that we see a very strong and loyal sort of consumer,” he said.

“So people looking to moderate, and they moderate without alcohol; abstain, find products without alcohol so there is definitely a place for that.

“But then we also see this big chunk of rejections, and that’s also in a bunch of other markets, I think it was even bigger in New Zealand, actually, where there’s a huge percentage.

“So people seek, I think, health and well-being through moderation, and moderation doesn’t necessarily mean zero or abstention.

“I also look at the value perspective of NoLo and sometimes I see it in that the price differential between NoLo and alcoholics can be quite small.

“So it’s become a big segment and it’s definitely something that suppliers are talking about.

“But if it’s going to be a real rough area in the future, who knows, but we’re actually seeing the opposite right now here on site.”

You can find the full Consumer Pulse report here here.

Listen to the full Beer is a Conversation with James Phillips below.

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