Spirits Discovery Journey Pamela Lawson April 2017 Background and - - PowerPoint PPT Presentation

Spirits Discovery Journey

Pamela Lawson

April 2017

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Background and Objectives

IN SHORT:

• Thorough understanding of Spirits shoppers throughout their

shopping journey.

• LCBO is eager to discover opportunities in influencing the shoppers’

decisions. HYPOTHESIS

• Spirits shoppers are habitual shoppers and low tendency in exploring

different brands and/or other Spirits categories.

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Background and Objectives

WHY:

• Determine the pre-shop purchase triggers and factors that influence

spirits decision making;

• Explore how consumers shop the LCBO spirits section and

determine opportunities for improvement;

• Assess spirits consumption behavior and the impact of different

situations and social settings;

• Provide foundational insights related to category behaviour.

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Research Methodology

• 1225 online surveys representative sample of

Ontario residents.

• Past-6-month (P6M) spirits consumers;
• Purchased a bottle of spirits past-12-month (P12M);
• Of the 1225 respondents, 132 followed

through to complete a mobile in store shopping experience (Mobile survey)

Screener Consumption Habits Demographics/ Classification Purchase Influencers

Survey Flow

Purchase Behaviour

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Base: Total Sample (n = 1211)

• Q7. Throughout this survey, we are going to be focusing on products such as rum, vodka, whisky/rye, gin, cognac, tequila and liqueurs, but not beer or wine. We are interested in learning

how you refer to these types of products. What do you call them?

When asked what they would call this category of beverages, there was some degree of consensus…

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Base: Total Sample – Each respondent randomly shown one drink (n = 202 to 206)

• Q9. We’d like to better understand the terminology you use for different beverages containing spirits. Consider a “[insert drink]“ for a moment. How would you most commonly refer to

this beverage?

When am I a “mixed drink” and when am I a “cocktail”?

91 89 66 33 30 28 6 7 23 59 69 69

3 4 11 7 1 3

Mixed Drinks Cocktails Other

Rye & Ginger Ale Rum & Coke Vodka & Orange Juice Caesar Manhattan Margarita Terminology for Mixed Drinks & Cocktails

(% Selected)

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Base: Total Sample (n = 1225)

• Q32. The last time you purchased a bottle of spirits from the LCBO, did you visit the store on your way….?

Thinking about their last trip to the LCBO, shoppers came from a variety of starting points – mainly home, work, or a grocery store.

34 27 20 12 7 From home From work From the grocery store From another shopping centre or store From somewhere else Where Spirits Shoppers Come From

(% Selected)

Purchase Journey Before The Store Visit

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Base: Total sample (n=1213)

• Q37. Think about the [assignment] you most recently purchased from the LCBO. Which of the following had you decided upon before entering the store and what was decided during

your shopping trip?

PRIOR TO SHOPPING: The type of spirits they intend on buying (and flavour/style, if applicable) are commonly decided before getting to the LCBO - decisions on brand, bottle size, price range not always pre-determined.

Factors Decided Before or During Shopping Trip

(% Selected)

77 51 46 46 33 23 49 54 54 22

Decided before shopping Decided during shopping trip Not relevant The type of spirit (e.g. whether to buy vodka or rum) The specific brand The size of bottle (e.g. whether to buy 750mL or 1.14L) The price range (e.g. whether to spend less or more than $30) The flavour profile or style (e.g. sweet versus spicy)

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79 53 46 44 38 77 41 45 48 30 79 60 50 46 33

Type of Spirit Specific Brand Size of Bottle Price Range Flavour Profile

Rum Vodka Canadian Whiskey

Base: Those who were assigned: Rum (n=251), Vodka (n=306), Canadian Whiskey (n=249)

• Q37. Think about the [assignment] you most recently purchased from the LCBO. Which of the following had you decided upon before entering the store and what was decided during

your shopping trip?

The type of spirits they intend on buying (and flavour/style, if applicable) are commonly decided before getting to the LCBO, whereas decisions on brand, bottle size, and price range are not always pre-determined.

Factors Decided Before Shopping Trip

(% Selected)

(e.g. whether to buy vodka or rum) (e.g. whether to buy 750mL or 1.14L) (e.g. whether to spend less or more than $30) (e.g. sweet versus spicy)

Purchase Journey During The Store Visit

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Male, 65+ years old, Western Ontario

I just shopped at the LCBO on Josephine Street in Wingham and it is just a great store, everything is displayed well, the staff is so friendly, I’ve known them for years and years. They always have new displays and my wife always likes it when I bring one of your free books home with all of the recipes.

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Base: Those who considered at least one of these attributes n=96 Q33: Here is a list of things you may have considered when deciding which [assigned category] to purchase. We’d like to understand the order in which you considered each factor. Please click on each item in the order you considered/shopped the shelf. If an item was not important to you, or was not considered, simply do not click on that item.

DURING THE SHOP At their planned shelf, shoppers consider brand first when making a purchase decision, followed closely by flavour/variety and price.

Most Important Criteria Considered When Purchasing Spirits

(% Who Considered First from a Prompted List)

49 22 19 7 3

Brand Flavour/Variety Price Bottle Size Bottle/Pack Design

Top 3 Most Important Criteria Considered When Purchasing Spirits

(% Who Considered in Top 3 from a Prompted List)

56 42 49 39 14

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Base: Total mobile sample n=132

• Q9. Which of the following products are you planning to shop for at this location, if any?
• Q17. What items are you purchasing, specifically?

Q23: While shopping for your purchases, did you happen to explore any of the following sections of the store at all?

While in store, spirits shoppers are focused. Few tend to browse beyond where planned.

# of Spirits Sections Planned to Shop

(% Selected)

1.1

None 74 1 Section 16 Two Sections 6 [CATEGORY NAME][[VALUE ] Four+ Sections 2

0.5 1.6

Mean # of Spirits Sections

# of Spirits Sections Actually Shopped

(% Selected)

One Section 86 Two Sections 12 Three Sections 1 [CATEGORY NAME][[VALUE ]

# of Additional Sections Explored but Not Bought From

(% Selected)

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Base: Those who made a spirits purchase n=97 Q17: What items are you purchasing, specifically?

Vodka, Liqueurs/Cocktail Mixers, and Canadian Whisky/Rye were most likely to be purchased by shoppers. Multiple-bottle purchases were more likely to occur when shopping for Liqueurs and Cocktail Mixers.

Items Purchased and Quantity

(% Selected)

19 12 20 12 6 10 3 4 7 6 4 3 2 1 23 18 Vodka Liqueurs & Cocktail Mixers Canadian Whisky / Rye Gin Single Malt

• r Blended

Scotch Rum Brandy / Cognac Irish Whiskey American Whiskey / Bourbon Tequila

4 Bottles 3 Bottles 2 Bottles 1 Bottle

SUM: SUM:

In Order of Intended Purchase (by Category)

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Base: Those who made a spirits purchase n=97 Q18: At the risk of repeating yourself, are these products planned or unplanned purchases?

Among those who do buy unplanned spirit items, these purchases skewed more towards Single Malt/Blended Scotch, Brandy/Cognac, and Tequila on their last trip.

Planned vs. Unplanned Purchases

(% of the Bottles Purchased)

67 86 79 75 50 70 33 75 71 50 33 14 21 25 50 30 67 25 29 50

Vodka Liqueurs & Cocktail Mixers Canadian Whisky / Rye Gin Single Malt

• r Blended

Scotch Rum Brandy / Cognac Irish Whiskey American Whiskey / Bourbon Tequila

Unplanned Purchase Planned Purchase In Order of Intended Purchase (by Category)

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I saw a flavour or variety that I wanted to try

Base: Those who made an unplanned spirits purchase n=25* (*CAUTION – low base size) Q19: What led you to make an unplanned purchase for each product? Select all that apply.

Common stated triggers for unplanned purchases were new and interesting flavours, packaging, and brands.

The packaging caught my eye I saw a brand that I wanted to try

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Base: Total mobile sample n=132 Q27: Do you see any special displays of [insert assigned category] in the store? This could include a display at the end of an aisle or special signage, for example. If so, please capture a photo.

These unplanned purchases may also be influenced by the fact that end-of-aisle displays and centre of store displays receive a fair amount of attention by one- third of shoppers.

Centre of Store End Aisles

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Base: Total mobile sample n=132 Q27: Do you see any special displays of [insert assigned category] in the store? This could include a display at the end of an aisle or special signage, for example. If so, please capture a photo.

In-Store Triggers

TRIGGER BENEFIT ILLUSTRATIVE QUOTES Clean, Themed Merchandising

Showcases the range of products and inspires shoppers.

“I love the way certain flavors are grouped together. It gives me new ideas to try and mix things. ” “Beautifully presented. ” “Shelved in a way that gives ideas for mixing. ”

End-Aisle Feature Displays

Highlights new flavours/varieties that draw interest.

“Raspberry Smirnoff ad display recommends 7-up free with purchase to mix. ”

Bottle Toppers/ Mini Bottles/ Gifts with Purchase

Seems to encourage trial of brands within a category they are already considering. More commentary about gifts (apparel accessories, food) than mini bottles themselves. Opportunity tie in to seasonally relevant gifts?

“The mini bottles that accompany the Absolut bottles inspired me to try something different. ”

Another shopper noticed mini bottles on Gin 

Recipes/ Recipe Signage

May not lead to purchase of brand showcased, but may encourage consumption of new cocktails/ experimentation/more occasions.

“Some of the bottles have labels with recipes. ” “Bacardi offers mixing recipes. ”

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Base: Those who were inspired at shelf n=33 Q31: You mentioned the [assigned category] shelf provided you with ideas or inspiration. What was it that inspired you specifically?

A number of shoppers received inspiration from the spirits section, due to the wide selection of brands available (sparks interest to try something new), from the recipes made available, and from the interesting flavours offered.

(53 seconds)

Inspired by Brand Selection Inspired by Recipes Inspired by Flavours

(2 minutes 15 seconds) (1 minute 25 seconds)

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Base: Those who were inspired at shelf n=33 Q31: You mentioned the [assigned category] shelf provided you with ideas or inspiration. What was it that inspired you specifically?

Inspired by Brand Selection

(2 minutes 15 seconds)

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Base: Those who were inspired at shelf n=33 Q31: You mentioned the [assigned category] shelf provided you with ideas or inspiration. What was it that inspired you specifically?

Inspired by Recipes

(53 seconds)

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Base: Those who were inspired at shelf n=33 Q31: You mentioned the [assigned category] shelf provided you with ideas or inspiration. What was it that inspired you specifically?

Inspired by Flavours

(1 minute 25 seconds)

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Base: Total Sample (n = 1225)

• Q31. Think about the last time you purchased a new spirit. This could include a new brand, flavour or variety. Which of the following triggered you to try a new drink? Select all that apply

NET: PEER INFLUENCES Advice from friends or family I saw someone else drinking it NET: GENERAL MEDIA INFLUENCES I saw a cocktail recipe that inspired me to try it I read articles in magazines or online I saw advertisements NET: ON-PREMISE INFLUENCES I tried it at a bar or restaurant Advice from bartenders Advice from bar/restaurant staff I saw the brand at a bar/restaurant NET: LCBO IN-STORE INFLUENCES LCBO staff recommended the product I read about the spirit in LCBO's Food & Drink magazine I sampled the spirit at the LCBO I saw an in-store display NET: OTHER I discovered the spirit during my travels I just chose the bottle because it looked interesting Other

Purchase Triggers for Trying a New Drink

(% Selected)



Beverage trial at bars/restaurants can have an impact on new purchase behaviour



Peer influences and personal recommendations are very influential; however, recommendations from LCBO staff also have notable weight



Vacations also have notable impact; opportunities

• n how to re-create their vacation at home.

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Net Ranked

51 50 31 26 22 21 18 17 15 12 10 9 8 7

Base: Total Sample (n = 1225)

• Q23. What signals or cues do you use to determine if a bottle of spirits is “premium”?

Brand and price are the quickest signals to “premium”. However, brands with history and/heritage also drive premium associations, suggesting this could be a marketing tool to upsell future shoppers.

“Premium” Signals

(% Selected) The brand name The price The history/heritage of the brand Word of mouth Product reviews and ratings Where it's made Popularity The process by which it is made The ingredients Staff recommendation Awards featured on the bottle The design of the bottle (i.e., material or shape) Advertising Store and/or shelf signage

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Base: Total Sample (n = 1225)

• Q23. What signals or cues do you use to determine if a bottle of spirits is “premium”?

Correspondence Map: “Premium” Signals



Scotch, Brandy/Cognac, imported Whiskies and Bourbon are considered “premium” when there’s more a story behind the brand



But for the more popular spirit types, brand name and price are relied upon more heavily as indicators of “premium”; there’s an

• pportunity to differentiate, add value, and upsell these common spirits by telling consumers more about the product origin and history

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Base: Total mobile sample n=132 Q32: Overall, did the [assigned category] section at this LCBO location…?

When evaluating their last shopping experience, for the most part, the majority of shoppers stated that their in-store experience went as expected, with few surprises

• r hindrances.

I appreciate the help that you can get in the

• store. Whenever you need assistance, they’re

always there and that’s appreciated. And I think they maintain it well, and I can certainly find what I want with the selection they have there.

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Base: Those who made a spirits purchase on their mobile shop n=97 Q34: Did any of the following happen to you while shopping for spirits today?

Staff recommendations and entertaining suggestions are another way to drive more positive shopping associations within spirits, as many are already engaging these employees.

LCBO staff asked if you needed help

(% Selected Yes)

41%

You asked LCBO staff for help while shopping

(% Selected Yes)

7%

Spoke to fellow shoppers about the products you were shopping

(% Selected Yes)

21%

STAFF ENGAGEMENT SOCIAL ENGAGEMENT NET:

45% of shoppers

engaged in either or both staff interactions

Purchase Journey After The Store Visit

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Base: Those who purchased each type in P12M: Standard/everyday brand (n= 1036) Premium (n=1034)

• Q25. Where are the following types of spirits stored in your home?

POST PURCHASE; When spirits not being consumed, standard/everyday brands and premium are more likely to be stored away from view

Where Spirits are Stored in the Home

(% Selected)

NET: STORED AWAY In a kitchen cabinet/cupboard In a refrigerator In a sideboard or buffet cabinet In a freezer Stored away beneath a bar In a wine or beer refrigerator In a drawer NET: ON DISPLAY In a wine rack On a kitchen counter top On top of a sideboard or buffet cabinet On display on a bar On a bar cart

STANDARD/EVERYDAY SPIRITS PREMIUM SPIRITS

31

Base: Total Sample who Submitted a Photo (n = 352)

• Q26. We’re curious to see how you store your spirits. Are you willing to upload a photo of the area in which spirits are stored at your home?

In-cupboard storage very often contains multiple bottles, is a combination of standard and premium brands, sometimes shelved alongside food and other beverages, and is usually disorganized.

Mixers? With Other Food/ Beverages Wide Assortment

Many types, supporting cross-purchasing No pantry loading

• f brands; rare to

see multiples of the same spirit type. BUT… stocking up across categories

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Base: Total Sample who Submitted a Photo (n = 352)

• Q26. We’re curious to see how you store your spirits. Are you willing to upload a photo of the area in which spirits are stored at your home?

On display storage is clearly done with pride. Bottles are aligned nicely in a space where guests will see them, are on fancier shelving, and are often accompanied by glassware.

Great Presentation Lots of glassware Decor Dark Woods

33

The Path to Spirits Purchase

Or the office (27%) Need supply for everyday consumption

(49% of trips)

Parties/get- togethers at home

(23% of trips)

May interact with LCBO staff

(45%)

Some notice displays (36%), make unplanned purchases Premium brand purchases not uncommon

(69% buy premium spirits on occasion; 39% exclusively buy premium)

Some spend more than planned

(37%)

Leftovers are put in storage, out of sight

(84% store regular brands out of sight, 80% store premium brands out of sight)

Limited Browsing

• f

Unplanned Sections Consider Brand, Flavour, then Price 2.7 spirit drinks consumed

• n avg, per

week

No Shopping List

(76%)

Travelling from home (34%)