Simon Mowbray reports on a joint Christmas drinks initiative that was designed to give independents a sporting chance against the big boys
The growth of field marketing has been phenomenal and the figures being ploughed into this business are increasingly impressive.
A sophisticated network of agencies is out there touting for business and instore activity aimed at prising trade from rival brands is now a multi-million pound industry.
So it is hardly surprising that The Grocer is increasingly being approached by field marketing agencies trying to persuade us to flag up the alleged merits of their particular contribution to the grocery trade. The industry’s Bible is, of course, not in the business of extolling the virtues of anything without hard proof.
So we invited one agency, and its client, to put its money where its mouth was and let us follow it through every step of a major field marketing project.
Step up beer industry giant Interbrew, maker of Britain’s number one lager brand Stella Artois, and its field marketing partner FDS. The two companies have run a Christmas promotion for independents for three years and this Christmas’ ‘Space Race’ initiative was its biggest yet.
The aim of the £55,000, 12-week scheme was simple - to get as much product into independent stores as possible in the pre-Christmas period and then persuade shoppers to choose the Interbrew brands ahead of rival offerings.
Almost 1,300 retailers opted to take part, their reward being the promise of free stock depending on how many SKUs and cases of Stella and sister brand Castlemaine XXXX (Tennents, in Scotland) they kept on display. Further incentives for the best displays of £5,000 prizes and extra free stock were also aimed at making retailers take part, plus visits from an FDS merchandising specialist to help out with in-store displays.
But did it work? Well, Interbrew thinks so. According to the company’s figures, this year’s initiative almost doubled the number of cases on display in participating stores from 16,795 last year to 30,467. The number of different SKUs stocked by retailers also rose, to an average of just under four per store.
However, speak to the four retailers we surveyed and a more mixed picture emerges with the age-old gripe of their
A 180-strong taskforce from field marketing specialist FDS ran this year’s Space Race promotion on Interbrew’s behalf.
The 1,278 retailers taking part received visits from a field rep who helped with in-store displays.
Each rep carried extra stock with them in case of a shortfall. Their aim was to maximise retailers’ floor and chiller displays, making sure they were stocking as many SKUs as was feasible.
Retailers then receive free stock after Christmas depending on how many SKUs and cases they display.inability to compete with the multiples on price still raising its head. Peter Mann, joint owner of Nisa member Manns Food Store in Farley Hill, Luton, says: “This year the trade on drink for us was terrible because of the crazy prices in the supermarkets so it is difficult to say whether the scheme with Interbrew worked or not. Sales of Stella were at the same level as a typical week but the unknown quantity is what would have happened if we had not had the advice on in-store displays.” However, Mann believes Interbrew deserves praise for running the scheme. “At least they go out of their way to help the independents and in previous years we have seen the benefits more clearly.”
Harnaik Singh, owner of the nearby Binnings store, says his trade on the Interbrew brands fared better than usual, although he insists it had more to do with his pricing policy than help from Interbrew.
“My best price was on 24 bottles of Stella at £10.99, but I did that deliberately to compete with the multiples. I was effectively taking a loss on my profit margin just to keep people coming into the store.”
He adds: “I haven’t spoken to Interbrew about the problems we face over pricing because I don’t believe they will help us.”
Nevertheless, two of the retailers we surveyed remain more upbeat in the aftermath of this year’s promotion. Unish Patel, manager of the Limbury Liquor Store in Luton and a self-confessed sceptic of the scheme before Christmas, says: “I must admit that Interbrew’s idea for our display did work. The way they laid it in the centre of the store caught everyone’s eye and definitely helped sales.
“We were not making much money on some SKUs but at least we were getting people into the store.”
Iraj Ajir, owner of Greens Store in Dunstable, agrees that joining forces with Interbrew was worthwhile: “Christmas for small shops like ours is not great any more, but we did better than we did last year.”
Steve Young, national account manager for the initiative at Interbrew, takes the mixed response in his stride: “There is a consistent growth in the value and volume of Stella as a result of this promotion.”
The growth of field marketing has been phenomenal and the figures being ploughed into this business are increasingly impressive.
A sophisticated network of agencies is out there touting for business and instore activity aimed at prising trade from rival brands is now a multi-million pound industry.
So it is hardly surprising that The Grocer is increasingly being approached by field marketing agencies trying to persuade us to flag up the alleged merits of their particular contribution to the grocery trade. The industry’s Bible is, of course, not in the business of extolling the virtues of anything without hard proof.
So we invited one agency, and its client, to put its money where its mouth was and let us follow it through every step of a major field marketing project.
Step up beer industry giant Interbrew, maker of Britain’s number one lager brand Stella Artois, and its field marketing partner FDS. The two companies have run a Christmas promotion for independents for three years and this Christmas’ ‘Space Race’ initiative was its biggest yet.
The aim of the £55,000, 12-week scheme was simple - to get as much product into independent stores as possible in the pre-Christmas period and then persuade shoppers to choose the Interbrew brands ahead of rival offerings.
Almost 1,300 retailers opted to take part, their reward being the promise of free stock depending on how many SKUs and cases of Stella and sister brand Castlemaine XXXX (Tennents, in Scotland) they kept on display. Further incentives for the best displays of £5,000 prizes and extra free stock were also aimed at making retailers take part, plus visits from an FDS merchandising specialist to help out with in-store displays.
But did it work? Well, Interbrew thinks so. According to the company’s figures, this year’s initiative almost doubled the number of cases on display in participating stores from 16,795 last year to 30,467. The number of different SKUs stocked by retailers also rose, to an average of just under four per store.
However, speak to the four retailers we surveyed and a more mixed picture emerges with the age-old gripe of their
A 180-strong taskforce from field marketing specialist FDS ran this year’s Space Race promotion on Interbrew’s behalf.
The 1,278 retailers taking part received visits from a field rep who helped with in-store displays.
Each rep carried extra stock with them in case of a shortfall. Their aim was to maximise retailers’ floor and chiller displays, making sure they were stocking as many SKUs as was feasible.
Retailers then receive free stock after Christmas depending on how many SKUs and cases they display.inability to compete with the multiples on price still raising its head. Peter Mann, joint owner of Nisa member Manns Food Store in Farley Hill, Luton, says: “This year the trade on drink for us was terrible because of the crazy prices in the supermarkets so it is difficult to say whether the scheme with Interbrew worked or not. Sales of Stella were at the same level as a typical week but the unknown quantity is what would have happened if we had not had the advice on in-store displays.” However, Mann believes Interbrew deserves praise for running the scheme. “At least they go out of their way to help the independents and in previous years we have seen the benefits more clearly.”
Harnaik Singh, owner of the nearby Binnings store, says his trade on the Interbrew brands fared better than usual, although he insists it had more to do with his pricing policy than help from Interbrew.
“My best price was on 24 bottles of Stella at £10.99, but I did that deliberately to compete with the multiples. I was effectively taking a loss on my profit margin just to keep people coming into the store.”
He adds: “I haven’t spoken to Interbrew about the problems we face over pricing because I don’t believe they will help us.”
Nevertheless, two of the retailers we surveyed remain more upbeat in the aftermath of this year’s promotion. Unish Patel, manager of the Limbury Liquor Store in Luton and a self-confessed sceptic of the scheme before Christmas, says: “I must admit that Interbrew’s idea for our display did work. The way they laid it in the centre of the store caught everyone’s eye and definitely helped sales.
“We were not making much money on some SKUs but at least we were getting people into the store.”
Iraj Ajir, owner of Greens Store in Dunstable, agrees that joining forces with Interbrew was worthwhile: “Christmas for small shops like ours is not great any more, but we did better than we did last year.”
Steve Young, national account manager for the initiative at Interbrew, takes the mixed response in his stride: “There is a consistent growth in the value and volume of Stella as a result of this promotion.”
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