Thursday, 21 March 2013

Marketing pressure !

Just at a time when desperate moves are being considered to reduce the alcohol violence on our streets, the push to increase profits has created marketing plans that give an incentive for buying more to get a price discount.

In particular, this has created an added marketing pressure on liquor sales.   It is now common to see bottled wine displayed with a duplicate price tag - one price at a higher rate for a single bottle buy - and another much lower price if the purchase forms part of buying a dozen bottles.

The popular wine cask is also included in this new strategy.  Buy two in the one purchase and you get a discount.  The same applies to beer - and just about every liquor outlet is now taking part in this "buy in bulk " form of promotion.

The same strategy is worming it's way into the grocery aisles.  We are seeing offers that try and persuade shoppers to buy two or three of the items on offer with the incentive being a sharp price drop, compared to the single item price.   Unfortunately, this disadvantages those on limited incomes because these days so many people are forced to buy their groceries on a day by day basis.    The weekly shopping spree is now reserved for the more affluent in our society.

Unfortunately it sends the wrong message when it is applied to an addictive substance like alcohol.   Shoppers are encourages to buy two cartons of beer when they have probably entered the store with the intention of purchasing a single carton.  A big price drop is a huge incentive, but it also has an influence on the amount of liquor consumed.    Availability figures largely in the decisions reached by many people.

Quantity is becoming an influencing factor in the offerings of the wine club industry.   Many people buy a wine selection delivered each month on a discount plan and it became the custom to drum up trade by offering a complimentary bottle with each pack purchase.  Competition saw this extended to the present situation - when the traditional dozen has extended to a pack of sixteen bottles, four of which are deemed " complimentary ".

We seem stuck between the legitimate aspirations of commerce to boost profits by increasing sales and the need to curb alcohol consumption to make our cities a safer place for their residents.   One thing is sure.   If people have a surplus of alcohol there is a very good chance that they will drink it to excess.

The industry would be wise to curb further expansion of this marketing plan - before a heavy handed government feels forced to take action !

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