At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices March2016
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At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
Introduction
Thebeerindustryhasundergonedrama2candprofoundchangesoverthepast20years.Inthat.mewehaveseentheriseofthecra7andmicrobrewerymovements,theconsolida.onoflargebrewersintoeverlargerconglomeratesandanexplosionintheamountofinforma.onanddiscussionaroundbeer-relatedtopics.Theadventofmobiletechnologyisalsohavinganimpactontheindustryandthatimpact–whichmanifestsitselfinconsumershelf-sidebehavior–isthefocusofthisreport.Ourreportexploresthecurrentstateofbeerpurchasebehavior,howsmartphoneusageattheshelfaffectsbuyingbehavior,anddelvesintotheprofilesandbehaviorsofsmartphonevs.non-smartphoneusers.AtXenoPsiwehavealongandsuccessfulhistoryofworkingeffec.velywithsomeoftheworld’smostpres.giousbeveragebrands.Ourinten.onwiththisreportistoapplysomeofthelessonswehavelearnedinthebeveragebusinesstotheworldofbeer.ThedatainthisreportisdesignedtohelpbeerbrandsbeLerunderstandtoday’sbeerconsumersandsuccessfullymarkettothem.
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At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
How Beer Purchasers At-Shelf Behavior Has Changed
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At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
Conventional Wisdom on At-Shelf Influences
DataSource:Technomic,Inc.,2012,SpecialTABReport:MillennialConsumerInsights
Bought for friends/friends favorite brand/drink 58%
47%
37%
26%
25%
23%
23%
19%
19%
16%
15%
12%
Sugges.onofafriend/familymember
ThePersonorpeopleIwaswith
Thecostofalcohol
MealortypeoffoodIwasea.ng
Boughtforfriends/friend'sfavoritebrand/drink
Suggestedbyastaffmember/employeeinaretailstore
Apromo.onontheproduct
Hadseenadver.singforit
Hadtrieditinabarorrestaurantpreviously
Materialsinthestore/point-of-purchasedisplay
Readorsawareviewinamagazine,onlineorbroadcastmedium
ResourceUsed
Howimportantwereeachofthefollowinginyourdecisiontotrythedrinkyouhadnothadbefore?
(N=1,064)
Inthebeverageindustry,wehavelongacceptedtrialofnewalcoholdrinks1tobeinfluencedbyawell-knowsetoffactors.Theseinclude:
81% Suggestion of a
friend/family member
12 76%
The person or people I was with
3 73% The cost of alcohol
$
4 60% A promotion on
the product
5 58% Bought for a friend/friend’s
favorite brand/drink
4
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At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
What Our Research Uncovered
$
50%
36%
27%
21%
18%
17%
12%
14%
11%
10%
4%
5%
Recommenda.onsfromfriendsorfamily
Theprice
Apromo.onordealattheretailstore
Readaboutitonline
Recommenda.onsfromstorestaff
Adver.singseenpriortothestorevisit
Awardsorexpertreviews
Materialsattheshelfdescribingthebeer
Readaboutitinamagazineornewspaper
Plannedmealortypeoffood
Anotherreason
Notsure/Don'tknow
ResourceUsed
WhatmoCvatesyoutobuyabrandofbeerataretailerthatyouhaveneverpurchasedbefore?Pleaseselectallthatapply.
(N=1,016)
Ournewna.onwidestudyhasfoundthattheinternet–specificallylearningaboutproductsonline-hasalmostdoubledinimportanceoverthelastfewyears.Today,itisnowthefourthmostimportantfactoraffec.ngpurchaseattheshelf
Q12.WhatmoBvatesyoutobuyabrandofbeerataretailerthatyouhaveneverpurchasedbefore?Pleaseselectallthatapply.
50% Suggestion of a
friend/family member
12 36%
The price
3 27% A promotion or deal
at the retail store
$
4 21% Read about it online
5 18% Recommendation from
store staff
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At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
Which spurred the question for us here at XenoPsi…
How can brands better effect purchase decision
SPECIFICALLY DURING AT-SHELF DECISION MAKING
At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
What Our Research Discovered
60% 1 in 2 Used a smartphone at
the shelf whenshoppingforbeer
Smartphone Users at the Shelf
2.5x More likely than non-smartphone users to
purchase more than they typically would at-shelf
10x More likely purchase a new beer brand every time they go to the shelf than non-
smartphone users
59% More time at shelf
making their purchase decision than non-smartphone users
26% More likely to purchase
beer weekly than non-smartphone users
We found smartphone use at the shelf was a major factor in spurring consumers to try new types of beer and to purchase more beer overall
QS7.Haveyoueverusedyoursmartphonewhenshoppinginaretailstoretohelpyoudecidewhatbeertopurchase?/Q2.HowoNendoyoupurchasebeerataretailstore(notatabarorrestaurant)?/Q5.Inthepast30days,howoNendidyoupurchaseabeeryouhavenevertriedbeforewhenyouwereataretailstore?/Q6.ThinkingaboutthelastBmeyoupurchasedbeerinaretailstore,howmuchBmedidyouspendinthestoredecidingwhattopurchase?/Q.8Onthisvisit,howmuchbeerdidyoupurchase?
At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
Smartphone Users are More Frequent Purchasers
71%Purchasebeeratleastonceperweek 47%Arelikelytotrynewbeerbrands
47% Open to New Brands
6.2Averageminutesspentattheshelf
EveryDay 2-3TimesPerWeek
OncePerWeek
EveryOtherWeek
OnceaMonthorLess
28.9%
34.9%
21.4%
7.7%
4.8%
29.6%
26.5%
17.5%
7.1%
21.7%
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Q2.HowoNendoyoupurchasebeerataretailstore(notatabarorrestaurant)?
Smartphone users are
50% more likely
to purchase beer every
day than non-smartphone
users
Smartphone users are
33% more likely
likely to purchase beer 2-3 times per
week than non-smartphone
users
Smartphone users are
18% more likely
to purchase beer once
per week than non-smartphone users
Overall,thosethatusesmartphonestoinformtheirbeerpurchaseare26%morelikelytopurchaseweeklythannon-smartphoneusers:
•71%ofsmartphoneusersbuybeeratleastonceperweek,comparedtoonly56%ofnon-smartphoneusers
SmarthphoneUsersforBeerDecisions(n=495) DoNotUseSmarthphoneUseforBeerDecisions(n=521)
At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
Smartphone Users are More Likely to Buy New Brands
71%Purchasebeeratleastonceperweek 6.2Averageminutesspentattheshelf
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Q5.Inthepast30days,howoNendidyoupurchaseabeeryouhavenevertriedbeforewhenyouwereataretailstore?
SmartphoneUser(N=495) Non-SmarthphoneUser(N=521)
EveryTime
MostofTheTime
O7en
Some.mes
Never
7.9%
18.4%
36.2%
31.9%
5.7%
0.8%
6.1%
16.3%
44.3%
32.4%
9.9TIMESMORE
LIKELY
3.0TIMESMORE
LIKELY
2.2TIMESMORE
LIKELY
1.4TIMESLESSLIKELY
PurchaseANever-Tried-BeforeBeer
5.7TIMESLESSLIKELY
Thosethatusedsmartphonedevicesweremuchmorelikelytopurchaseabeerthattheyhavenotpreviouslytried
•Ofthoseusingasmartphone,26%mosto7enoralwayschoseabeerthey’venevertriedbefore,comparedtoonly7%ofthosethatdon’tusetheirsmartphonedevice
At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
NumberofMinutesSpentatBeerShelfbyThoseUsingSmartphone
underaminute 1-4minutes 5-14minutes 15+minutes
Smartphone Users Spend More Time at the Shelf
NumberofMinutesSpentatBeerShelfbyThoseNotUsingSmartphone
underaminute 1-4minutes 5-14minutes 15+minutes
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Q6.ThinkingaboutthelastBmeyoupurchasedbeerinaretailstore,howmuchBmedidyouspendinthestoredecidingwhattopurchase?
6.2 Mean Number
of Minutes
3.9 Mean Number
of Minutes
Thosethatusesmartphonesspendmore.me-onaveragenearly60%-attheshelfthanthosewhodonotusetheirsmartphones
(N=495) (N=521)
At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
Smartphone Users Purchase More at the Shelf
TotalRespondents:AmountPurchased
81%
12%
7%
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Q8.Onthisvisit,howmuchbeerdidyoupurchase?
SmartphoneUsers:AmountPurchased
SameAmount LessThanTypical MoreThanTypical
75%
18%
7%
Non-SmartphoneUsers:AmountPurchased
87%
7%
6%
Whenaskedaboutthelast.metheypurchased,smartphoneuserswere2.5xmorelikelytopurchase“morethantheytypicallywould”comparedtonon-smartphoneusers
(N=495) (N=521)(N=1,016)
At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
So Who are These Smartphone Users?
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At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
Smartphone Users vs. Non-Smartphone Users
SmartphoneUsers Non-SmartphoneUsers
60%are<35 60%are>35
50%arecollegegraduates 37%arecollegeeducated
Nearlyathirdhaveincomesof>$75k Medianincomeof$53,000
50/50Android/iPhonesplit 61/32Android/iPhonesplit
20%purchasemostlycra7beer 70%purchasemostlymassmarketbeer
47%‘stronglyagree’thattheyliketotrynewbrandsofbeer
22%‘stronglyagree’thattheyliketotrynewbrandsofbeer
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At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
A Profile of Beer Purchasers Who Use Smartphones At-Shelf
Mostareyoungerinage:60%are<35
Affluent:Halfarecollegegraduatesand
aboutathirdhaveincome>$75K
Sociallyengagedinfluencers:+/-20%‘strongly
agree’that1)friends/colleagueslooktothemforopinion/advice,and
2)theyliketoshareinforma.onaboutinteres.ngbrandsor
products
SocialMediaUsers:SignificantlyMore
engagedwithsocialmedia(i.e.,accountac.vityand
purchasebehavior)thanthosewhodon’t
usesmartphonesat-shelf
Techsavvy:Significantlymorelikelyto
considerthemselvestechnologicallysavvy,tobethefirsttoknowaboutthelatesttechtrends,andareearlytechadopters
vcvc
Smartphoneuse:EqualsplitbetweenAndroidandiPhone
CraSbeerdrinkers:Nearly20%mostly
purchasecra7beersandanother24%drink
massmarketandcra7beersequally
Decidedlyopentotryingnewbeertypesandbrands:Nearlyhalf(47%)‘stronglyagree’thattheyliketotrynewbrandsofbeerand44%also‘stronglyagree’thattheyliketotrynewbeerstyles
Significantlymorelikelytobuyallkindsofalcohol(beer,liquor/spirits,wine,hard
cider)
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Purchasebeermorefrequently:71%buybeeratleast
onceperweek
v
At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
Smartphone Users Attitudes and Preferences
S7.Haveyoueverusedyoursmartphonewhenshoppinginaretailstoretohelpyoudecidewhatbeertopurchase?Q1.Pleasetellushowmuchyouagreeordisagreewiththefollowingstatements.
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Respondentswhohaveusedtheirsmartphonesin-storewhileshoppingforbeeraremoreopento,andinterestedin,tryingnewbrandsofbeercomparedtothosewhohaveneverusedtheirsmartphoneswhileshoppingforbeer.
StronglyAgree/Agree
TotalRespondents(N=1,016)
HaveUsedSmartphoneWhileBeerShopping
(N=495)
HaveNOTUsedSmartphoneWhileBeerShopping
(N=521)
Iamopentotryinganynewkindofbeer83% 91% 75%
Iliketotrynewbrandsofbeer 79% 89% 70%
Ienjoylearningaboutnewbeers 77% 90% 65%
Iliketotrynewtypesofbeers(e.g.,IPA,WheatBeer,Pilsner) 73% 87% 61%
IammorelikelytotryanewbrandofbeerifIcanreadanyinformaConaboutit 65% 83% 47%
ItendtosCckwithmyfavoritebrandsofbeer61% 53% 69%
ItendtosCckwiththetypesofbeerIamfamiliarwith 56% 49% 64%
•Whencomparedtoallrespondents,theyarealsomoreopentotryingnewbeerbrandsandlearningaboutnewtypesofbeers
At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
Examples of What Smartphone Users Are Doing At The Shelf
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At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
8%
11%
6%
10%
15%
14%
19%
16%
19%
16%
38%
48%
46%
22%
20%
27%
27%
24%
28%
26%
29%
27%
34%
24%
19%
23%
34%
30%
28%
29%
27%
22%
22%
22%
25%
24%
16%
12%
14%
23%
27%
25%
22%
24%
23%
21%
21%
17%
18%
15%
14%
11%
13%
13%
13%
12%
10%
12%
11%
12%
12%
8%
7%
7%
5%
Tosearchforinforma.on,reviews,orrecommenda.ononline
Tolookatinforma.onyouhavesaved
Lookupstoreinforma.on(e.g.direc.ons,storehours)
Textsomeoneforinforma.onorarecommenda.on
Touseanapptofindinforma.on,reviews,orarecommenda.on
Lookforcompe..vepricingatanotherretailer
Getapricematchatanotherstore
Locateaproductinanotherstoreiftheproductyouwantisoutofstock
Checkin-storeavailabilityofaproduct
Callsomeoneforinforma.onorarecommenda.on
Posttosocialmediaaboutmyexperienceinthestore
Paywithmobilepaymentsthatarenotstandardcreditcards(e.g.PayPal)
Contacttheretailer’scustomerservice
Never Some.mes(1-32%) O7en(33-65%) Mostofthe.me(66-99%) Ever.meIshop(100%)
70%
70%
67%
63%
61%
58%
55%
55%
54%
50%
38%
33%
31%
>OSen
Smartphone Users At-Shelf Behavior
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Q18:Howo7endoyouuseyoursmartphonetodothefollowingwhenyouaredecidingwhatbeertopurchaseataretailstore?
Every.meIshop(100%)
HowoCenaretheydoingthefollowingwiththeirsmartphonesduringbeerpurchases?(N=495)
At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
What They’re Searching For…
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Q20.Whenyousearchforinforma.onaboutbeeronyoursmartphone,whichofthefollowingdoyouuse?Pleaseselectallthatapply./Q22.Whatkindofinforma.ondoyousearchfor?Pleaseselectallthatapply.
Amongthosewhoregularlyusetheirsmartphonetosearchforinforma.onorrecommenda.ons,morethanhalfarelookingforinforma.onaboutspecificbeerstheyhavenottried.
•Whenlookingforbeerinforma.ononline,peoplearemostlikelytouseasearchengine,thoughsearchingonsocialmediaisalsopopular.
71%
31%
31%
29%
23%
20%
18%
2%
Asearchengine(e.g.,GoogleorBing)
Asocialmediaapp(e.g.,Facebook,Google+)
Ageneralbeerappwithreviewsandinforma.onaboutdifferentbrandsof
beer
Asocialmediawebsite(e.g.,Facebook,Google+)
Ageneralshoppingapp-notfromaspecificretailer
Ashoppingappfromaspecificretailer
Anappfromaspecificbeerbrand
Somethingelse
SourcesUsedToSearchForInformaCon/RecommendaCons
55%
48%
48%
45%
38%
38%
32%
29%
1%
<[VALUE]
Informa.onaboutaspecificbeeryouhavenottried
Acertaintypeofbeerstyle
Acertaintypeofbeerflavor
Lookingforsomethingsimilartoabeeryouhavetriedinthepast
Sales/Rebates
Informa.onaboutaspecificbeeryouhavetried
Beersfromapar.cularregion
Whatbeersarerecommendedforspecificmealsorfoods
Somethingelse(Pleasespecify):
Noneofthese
TypeofInformaConSearchedFor(amongSmartphoneUsersthatmostoSensearch)
0.5%
(N=495) (N=346)
At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
Wearealcoholmarke.ngexpertswhounderstandhowconsumersconnectandengagewithbrands.Wereachthirstytargetaudienceswithcompellingbrandmessagesthatincreasestrial,preference,
andul.mately,casesales.
Wehavethousandsofotherdatapointsandinsightsthatcouldchangethewayyoulookatat-shelfdecisionmakingintheBeerIndustry.
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What Does This Mean For Your Brands?
Let’s Continue the Discussion… [email protected]
WeatXenoPsiarealcoholmarke.ngexpertswhounderstandhowconsumersconnectandengagewithbrands.Wereachthirstytargetaudienceswithcompellingbrandmessages
thatincreasestrial,preference,andul.mately,casesales.
Wehavehundredsofaddi.onaldatapointsandinsightsthatwillchangethewayyouaffectat-shelfdecisionmaking.
At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
Methodology
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At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
Methodology
•XenoPsipartneredwithEqua.onResearchtoconductresearchintotheconsumerdecision-makingprocessattheshelfwhenpurchasingbeer.
•Datawascollectedviaa12minuteonlinequan.ta.vesurvey
•Respondentsrecruitedviaemailfromana.onallyrepresenta.vepanel
•TotalRespondents-1,016
•Screeningcriteria:
•21+
•Purchasedbeerataretailstoreinthepasttwoweeks
•Ownasmartphone
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At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
Appendix
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At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices
Survey Demographics: Total Respondents
TotalRespondents(n=1,016)
GenderMale 69%Female 31%
Age21-24 8%25-29 19%30-34 22%35-39 13%40-44 13%45-49 14%50-54 4%55-64 4%65+ 3%
MaritalStatusMarried 49%Nevermarried(single) 39%Widowed 2%Legallyseparated 1%Divorced 9%
EthnicityAsian 5%BlackorAfricanAmerican 8%Na.veAmerican,Eskimo,orAleut 2%Na.veHawaiianorotherPacificIslander <1%White 79%HispanicorLa.no 9%Other 1%Prefernottoanswer 1%
TotalRespondents(n=1,016)
Residen.alLoca.onDowntown/Urbanarea 10%Inacitybutnotdowntown 26%Suburbanarea 43%Ruralarea 21%
Educa.onGradeschoolorless <1%Somehighschool 3%Graduatedhighschool 22%Tradeortechnicalschool 6%Somecollege,nodegree 26%Graduatedcollege 31%Post-graduatework 3%Post-graduatedegree 9%
HouseholdIncomeLessthan$30,000 19%$30,000to$49,999 26%$50,000to$74,999 24%$75,000to$99,999 15%$100,000to$124,999 5%$125,000to$149,999 3%$150,000to$199,999 2%$200,000ormore 2%Prefernottosay 3%
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At-Shelf Decision Making in the Beer Industry: The Effect of Mobile Devices 24
THANK YOU At-ShelfDecisionMakingintheBeerIndustry:TheEffectofMobileDevices
60BroadSt.NewYork,[email protected]