Due to rising affluence and increasing levels of health consciousness, growth in alcohol consumption has slowed in Western markets in recent years, while the sales of brands perceived as ‘premium quality’ have risen.
Online PR News – 05-July-2010 – – Dallas, TX: ReportsandReports announce it Premiumization Strategies in Alcoholic Drinks: Innovating to drive value through brand and product enhancement Market Research Report in its Store.
Due to rising affluence and increasing levels of health consciousness, growth in alcohol consumption has slowed in Western markets in recent years, while the sales of brands perceived as ‘premium quality’ have risen. Meanwhile in the developing world, wealthier consumers are following the same trends, whilst lower-income consumers are increasing their consumption of beer and other branded alcoholic drinks as they are increasingly able to afford them. Consumption occasions have has also changed. In markets that traditionally have a strong on-trade focus such as the UK, people are drinking more at home than in bars, restaurants and clubs – a trend that was established by the time of the 2007-2010 global financial crisis, but that was also exacerbated by its impact on incomes.
This report will evaluate the growth and importance of premium alcoholic drinks across beer, cider, flavored alcoholic beverages (FABs), spirits and wine. It will provide insight into effective premiumization strategies and make recommendations on how premium brands can succeed in an economically challenging and competitive market.
• Over the next 10 years, 1.2bn people in Asia- Pacific will be born into or move into the global middle class, representing the largest single expansion in consumer spending power ever recorded.
• Using unique flavors and ingredients has become a focus area for differentiating products and adding perceived value, as they can enhance a drink’s positioning of authenticity, heritage, quality, or exclusivity.
• Consumers increasingly want to know the story behind a brand, as part of the discovery that sets them apart from others and giving them ‘insider’ status into a perceived exclusive world.
• As consumers seek out masstige products due to the challenging economic environments, manufacturers and retailers are looking beyond price to image, packaging, and marketing to deliver an affordable premium experience.
• Dos Equis premium beer has grown in the US based on a positioning as ‘interesting’, meeting consumers’ self-expression needs. Heineken and Samuel Adams have struggled in the same market, as competition has eroded their uniqueness and points of difference.
Use this report to...
• Understand the underlying economic, social, and psychological consumer drivers of premiumization and how they have evolved.
• Review case studies highlighting strategies that manufacturers are using to drive consumers to their premium brands, reclaiming premium status and defending against masstige brands.
• Learn how product attributes (e.g. sensory features) and brand attributes (e.g. ego gratification) can be used to drive up the price of alcoholic drinks.
• Identify the fastest growing alcoholic drinks segments and sales channels and learn the long term impact of the recession on consumer behavior.
• Compare the opportunities for premiumization by market and assess the future challenges and opportunities for developing high-end products in the future.
• Gain insight into the intelligence on changing economic and market forces and how they are influencing premiumization strategies.
• Premiumization involves persuading consumers to pay more for the same volume of alcohol, by providing them with product and brand attributes that fit with their desire to improve their lives, or their perception of their lives.
• The key consumer-level factors that drive premiumization are the desire to improve social status, the desire to improve taste experience, and the desire to have a better understanding of the products they consume.
• The global financial crisis has slowed the trend towards greater going-out spend in total, while continuing to hit on-trade drinking behaviors. This has reduced the opportunity for premium drinks launches, which have tended to start in the on-trade.
• Due to the recession and low consumer confidence, going-out spending has fallen in developed markets and there is evidence of consumers switching to cheaper brands of alcohol. However, growth remains strong in the developing world.
• The concept of ‘masstige’ and democratized luxury has affected consumers across all income groups. Going forward, consumers will continue to expect to pay bargain prices for high-quality products, and retailers will force manufacturers to oblige.
Your questions answered...
• How has the recession impacted consumer behavior with regards to purchasing premium alcoholic drinks and how will this influence future consumer trends?
• What obstacles do marketers face selling Western-style premium alcoholic drinks in China and India, and how can they be overcome?
• What challenges will premium brands face in the future and how can they maintain or enhance their premium positioning?
• What are the key consumer drivers of premiumization in alcoholic drinks and how have they changed over time?
• How have specific brands used premiumization strategies to drive sales?
• How big of a threat are private label and masstige brands to premiumization?
• How can marketers deal with declining onpremise sales and what new opportunities for premium brands exist in this channel?
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