Guest Column
Action Steps for Selling
By Howard R. Jacobson
I love it when Joan Rivers asks, "Can we talk?"
Interestingly, she does all the talking and we do all the listening. As we enter 1998, all
of us -- suppliers, distributors and retailers -- need to be good listeners, by listening
to each other's observations as well as to the consumer's attitudes and preferences.
When the wine division of Canandaigua Brands "re-engineered" in 1996, we
de-centralized our organization to better position the company with our customers:
retailers, distributors and consumers.
As part of the "re-engineering" project, we interviewed over 50 customers,
conducted more than 20 consumer focus groups, commissioned a wine market structure study,
assigned eight consulting firms and met with 100 grocery, drug and wine/liquor retailers.
While all this "listening" ferments in preparation for "bottling" in
this year, let me share some of what we have learned.
Regarding consumption habits, industry research and buying patterns show that the wine
purchase is "occasion-driven." Among legal age drinkers, 17% of them consume 80%
of all wine. Not only are they trading up, but they are purchasing more than in the
previous 12-month period. We have also learned that whether you are an infrequent
purchaser or a "cork sniffer," you drink wine from numerous wine categories, box
wines to premium wines. The research also shows that occasions where wine is consumed are
likely to be food-oriented.
Here is a simple "action step" you can take based on this information: Get
creative and match either the food you sell or foods popular in your area to wine
selections that you feature. A simple sign calling out "Dunnewood Wines... the
perfect chardonnay when you are serving soft-shell crabs," has more potential than
simply stacking the product in the fish department or an endcap. Another sign to prompt a
purchase could be: "Having pasta tonight? We suggest Estate Cellars Merlot as the
perfect choice."
Industry research also suggests a lack of brand loyalty -- a consumer willing to
experiment with wines not previously sampled. An "action step" could be: setting
up small displays featuring new releases, package changes and new vintages together to
excite the trial impulse. Use a simple sign like, "New Releases," or "Taste
the 1994 cabernets from Deer Valley, Inglenook and Santa Carolina. Try one tonight."
When wine consumers intend to buy wine, they plan the type, color, size, not
necessarily the brand. Since the retail environment is setting shelves by type, why not
take this "action step": Display six to 10 different brands of merlot
together with a sign, "The Hot Red of the 1990s -- sample one tonight"?
There is growth in all price classes of table wine and wine shoppers, whether purchased
by an occasional consumer or a cork sniffer. The action step here would be setting up
displays that feature box wines, fighting varietals and premium wines together, to allow
shoppers the opportunity to purchase wines for their different wine-consuming occasions.
"An Almaden box for the picnic and Marcus James Merlot for tonight." This
reinforces the idea of having a glass of wine with each meal and drives more occasion
purchases.
So, what is this thing called "category management?" Situated deep in
consumer products' tradition, grocery, drug and general market retailers use suppliers to
assist them in managing categories, not brands. Category managers are advisors who review
sales trends, consumer data, space-to-sales ratios and product mix opportunities. Beer has
Budweiser, Miller and Coors. Soda has Coke and Pepsi, and wine has Canandaigua and Gallo.
To really participate in properly managing shelf and display space, we all have to
listen with an objective ear turned to data-based selling. Use the data to set
shelves. Inventory the correct mix that reflects the store's selling format and most of
all, do not over-face or over-display! Make sure retail shelves and displays have proper
sales-to-space ratios that reflect sales trends and opportunities.
OK, enough talking...I'm ready to listen to the "ring" of some
extra wine sales.
Howard R. Jacobson is senior vice president, customer business centers, for
Canandaigua Wine Company, Inc.
Please Note: Some pictures or diagrams
are only available through the printed media.
From the January/February 1998 issue of
Beverage and Food Dynamics.
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