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Mobile Rebates: An Instant Solution for Alcohol Brands

The alcohol industry has seen major changes over the past few years, alcohol rebate blog creative.jpgsuch as shifting consumer behavior, a new drinking generation of millennials, as well as technological advancements. For the alcohol industry to adapt to these changes, these factors must be considered when marketing to consumers.

On top of the shifting marketplace, alcohol brands have the added legal responsibilities to ensure they’re not marketing to underage consumers or encouraging over-consumption.

With advanced technology, however, mobile rebates provide the technology needed to address legal responsibilities and overcome retailer restrictions, while also appealing to millennials and the shifting behavior of consumers.

Alcohol Marketplace

The alcohol industry will always be a dynamic market, fluctuating with consumer behaviors, demographic shifts and seasonality. These factors should be taken into consideration when marketing to consumers.

Consumer Behaviors

As consumers lead increasingly urban and on-the-go lifestyles, they are demanding more convenient shopping experiences. This is causing small format retail categories – drug, dollar, and convenience stores – to outgrow larger format stores by almost 400%. And based on the stats, consumers are already turning to small format stores for their alcohol purchases. In 2014, the convenience channel sold 59% of all of beer sold in retail channels.

This growth in small format retail means that alcohol brands must continue to shift their focus to appeal to the modern-day consumer and grow sales in drug, dollar and convenience stores.

Seasonality

It comes as no surprise that beer, wine and spirit sales fluctuate based on the weather.  

Beer witnesses the biggest jump in sales during the summer season. Roughly a third of beer sales in the US take place between Memorial Day and Labor Day. The most critical week of that time frame is July Fourth, when sales are traditionally 30-40% higher than the average week.

Wine witnesses its highest peak in sales during the winter season, but typically decreases during spring and early summer. It witnesses a rise in sales again towards the end of summer and beginning of fall.

Spirits see less fluctuation in sales than beer and wine, as spirits are flexible and popular in different cocktails throughout the year. However, spirits do see a decline in sales in November, but they peak in January.

Demographic Shifts

Millennials are currently a key demographic for the alcoholic beverage market not only because of their purchasing power, but also because they are all now of legal drinking age and experimenting with new alcohol brands like never before.

Millennials now account for 35% of US beer consumption, 32% of spirit consumption and 20% of wine consumption.

Millennials are also playing a role in the growth of small format retail, with the young generation now accounting for over one-third of all convenience store shoppers.

This young generation brings a whole new set of consumer behavior that marketers need to understand how to reach, no matter what season.

Mobile rebates provide a simple solution for alcohol brands to adapt to the changes in the marketplace, while also addressing legal responsibilities and retailer integration.

In light of the added complexities, though, the thought of mobile rebate campaigns can seem daunting to alcohol marketers. In this piece, we’ll demonstrate the simplicity of mobile rebates by discussing:

  • How to adapt to the changing market with mobile rebates
  • The simplicity of adding mobile rebates to existing marketing campaigns
  • How mobile rebates provide insight into shopper behavior
  • Mobile rebate success story

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