RTD Tax... Answer to binge drinking or political spin?

Shopaholic has been out and about of late, schmoozing at industry events and listening to discussions on the latest in industry news.

The latest Liquor Merchants Association of Australia breakfast last week provided an avenue for discussion on the topical problem of binge drinking and the governments “answer” - a tax on RTDs.

Being the newest member of the LMAA, it is only fitting that Shopaholic expresses opinion on these issues.

The lack of personal responsibility in regard to binge drinking was a major issue of conjecture at the breakfast forum. The onus of putting responsibility to the individual has been lost in this debate.

One only has to look at the successful transformation of attitudes for cigarettes and drink driving as evidence. In both these cases the onus was on the individual to take responsibility for their behaviour.

In regard to binge drinking, the government seems to be putting a larger onus on alcohol manufacturers than they are on the individuals who drink to excess.

Sure alcohol marketers have a role to play. They need to ensure they promote responsible service of alcohol and never promote excessive drinking. Marketers need to make sure this is communicated in advertisements and never be open to misinterpretation. But to excessively tax a single product type, certainly does little more than encourage product substitution. It is not helping get to the bottom of this issue.

Until a larger responsibility is placed on the individual and it is an offence to be drunk in a public place, a tax on RTDs is little more than political spin.

P.S Watch out for the June edition of National Liquor News for analysis on how wine marketers can target the next generation of drinkers – the 18 - 25s.

Straight from the shopper's mouth.

You may have noticed that TorchMedia has recently been spruiking research regarding shopper attitudes towards in-store advertising.

Here’s the low down. A the end of last year, TorchMedia commissioned Directional Insights, a research firm that specialises in shopping behaviour, to carry out interviews and accompanied shops with a cross-section of grocery shoppers, in order to discover the impact of in-store advertising. By accompanied shops I mean they stalked people while they were doing their grocery shopping to observe their behaviour.

Directional Insights then came back to TorchMedia with their findings, including filmed vox pops interviews, which can be found here.

Shopaholic has put together a little summary of the results, the implications for marketers, and some tips on how you can use TorchMedia to tap into shopper attitudes and behaviour.

BETTER THAN TV

Shoppers today are more influenced by in-store media than television commercials. When asked about TV advertising, most shoppers said it has little or no impact on their purchase decisions.

MARKETING IDEA:
Link your TV advertising to your in-store marketing for twice the punch. This is called “pull-through” from the couch to the cash register.

TORCHMEDIA TIP
TorchMedia enables brands to “pull-through” from the couch to the car park to the cash register, with media formats located outside supermarkets at key transit and entry points, and in-store in the aisle and at the cash register.

SPEND IS SOLID

Shoppers say they are spending the same – not less – than before the ‘global financial crisis’. Grocery budgets, unlike other spending behaviour, are holding strong.

MARKETING IDEA:
Use occasion-based messaging in-store to increase your brand’s relevance to a shopper’s life. For example, ‘perfect for when friends drop by’, ‘put one in the kids’ lunchbox’.

TORCHMEDIA TIP
The TorchMedia “Take” format is popular as a way to present recipe ideas and other product usage to shoppers, increasing the relevance of your brand to the shopper’s everyday life.


MORE SHOPPING, MORE OFTEN

While we are trading down in value, we are shopping more often than before. Main grocery buyers are more conducting “top-up shops”, visiting the supermarket once or twice a week to top up on essentials and fresh ingredients.

MARKETING IDEA:
It might be possible to group your brand with complementary products, like pasta and sauce. With more shoppers looking for “dinner tonight”, the right positioning can pay off.

TORCHMEDIA TIP
If product grouping is not possible, why not use in-store media to communicate the link between your brand and a matching product. Decals on floor and fridge can act as a pointer to other products in the store.


THE LIST STILL EXISTS

Shoppers are still using a list – though they only write down categories, not specific brands. This opens up opportunity for marketers to encourage “brand switching” via in-store media.

MARKETING IDEA:
If your messaging is about brand trial and brand switching, make sure your in-store communication is primarily about the product – feature the packaging and even the variant prominently, before you consider brand messaging.

TORCHMEDIA TIP
TorchMedia is now offering sampling in-store alongside its “Take” format at shelf, the perfect complement to show the relevance of your product.