Contact: Katie Broome
Deloitte
Public Relations
+ 44 (0) 207 303 6359
As the World Cup starts retailers and brewers will be watching the effects of sponsorship, advertising and product promotions on the sales of beer. Research from the business advisory firm, Deloitte, reveals 50% of British consumers believe brand is more important than price when choosing which beer* to buy.
Retailers keen to cash in on the boost of sales of beer during the World Cup may struggle to predict how much they need to satisfy demand. According to Deloitte, using England’s performance in the World Cup as a forecasting tool could be dangerous.
Tim Wilson, director in consulting at Deloitte said: “Getting the right amount of beer into the store to meet consumer demand is not an easy task. Last time there was a European Nations game some supermarkets ran out of beer, so the pressure is really on.”
Over half of consumers leave their beer buying to the very last minute. Beer is a strong impulse purchase with three quarters (76%) of consumers saying they will buy beer as part of the grocery shop even if they had not planned to do so. There could be several mad-rush trips to supermarkets and off licenses ahead of each big game putting more pressure on retail outlets to meet demand.
“The weather is a strong indicator of how much beer we will buy and predictable sunny weather encourages us to plan BBQs for the weekend. Smart retailers will keep their eye on the weather forecast rather than track England’s performance in the World Cup to work out how much beer they will need. ”
The survey shows 76% of consumers prefer to buy beer at the supermarket where beer is bought as part of the grocery shop. This is highest amongst women (82%) whereas men prefer the off licence. “Having lost out to the supermarkets at Christmas, this is another chance for off licences to take some share of the beer market back from the big grocers by offering chilled beer ready to be consumed at home or in front of a big screen, particularly for younger football fans. Our research shows that 18-24 is the smallest age group to buy beer in supermarkets, and the largest age group buying beer in off licences and convenience stores.”
Multi-pack offers are five times more likely to persuade customers to make a purchase than advertising or, even large displays in store which according to the research is the least effective method.
If consumers favourite brand of beer was not on the shelf over half (52%) would choose another brand. This is especially true for the 25-34 age group (71%). Almost 20% of consumers in our survey would leave and return to the store later which could mean a lost sale, whereas 23% will try another retailer.
Wilson added: “Consumers can be persuaded to drop their usual brand if they find the right offer at the right price. It seems that the grocers’ ability to fund additional price cuts on the major beer brands should enable them to emerge the winners during the World Cup.”
The Scots (71%) and those from the North East (73%) know which brand of beer they plan to purchase before a shopping trip. Also 27% of Brits are easily persuaded to go for a good offer on beer and 17% would forgo their favourite beer if a better offer on a different beer was available. This is most likely amongst the 25-34 age group.
Ends
*For the purposes of the research, all references to beer also include lager and cider.
About this survey
The survey findings were based on consumer data obtained by market research undertaken by TNS Global on behalf of Deloitte on 2-4th December 2005. 984 adults aged 18+ were interviewed and the respondents were selected according to a quota sample designed to be representative of all adults in Great Britain.
About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Known as an employer of choice for innovative human resources programmes, it is dedicated to helping its clients and people excel. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other’s omissions. Services are provided by member firms or their subsidiaries and not by DTT.
Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.
The information contained in this press release is correct at the time of going to press.
