Beverage Industry logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Beverage Industry logo
  • NEWS
    • R&D News
    • Supplier News
  • PRODUCTS
    • New Products
    • Reader's Choice Poll
  • CATEGORIES
    • Alternative Drinks
    • Beer
    • Bottled Water
    • Cannabis Beverages
    • Carbonated Soft Drinks
    • Energy Drinks & Shots
    • Juice & Juice Drinks
    • Plant-Based Beverages
    • Sports Drinks
    • Tea and Coffee
    • Wine & Spirits
  • R&D
    • Beverage R&D Features
    • Ingredient Spotlight
  • PACKAGING
    • New Packages
    • Packaging Equipment
    • Packaging Material
  • OPERATIONS
    • Distribution
    • Plant Focus
  • TOP LISTS
    • Beer Market Report
    • Executive of the Year
    • State of the Beverage Industry
    • Top 100 Beverage Companies
    • Truck Report
    • Wholesaler of the Year
  • MEDIA
    • eBook
    • Podcast
    • Polls
    • Videos
    • Webinars
  • DIRECTORIES
    • Annual Manual
    • Contract Packaging Guide
    • Take a Tour
  • MORE
    • Classifieds
    • Channel Strategies
    • eNewsletters
    • Events
      • Membrane Technology Forum
    • Interactive Product Spotlights
    • Market Insights
    • Sponsor Insights
    • Store
    • White Papers
  • EMAG
    • eMagazine
    • Archived Issues
    • Advertise
  • SIGN UP!

Connecting with consumers through merchandising

By Jennifer Zegler
May 11, 2012

Since 2008, the sports drink category has grown to include more than 650 UPCs, explained Susan Viamari, editor of Chicago-based SymphonyIRI Group’s Times & Trends, during the market research firm’s “Merchandising Trends” webinar in February. This product count included 12 sports drink brand launches that were so significant, she explained, that they qualified for SymphonyIRI’s New Product Pacesetter status in their respective launch years. Compounding the category’s growth, sports drinks also are competing for purchase in a market in which two-thirds of consumers want to curb spending by eliminating non-essential purchases, Viamari said.

In order to inspire purchase, sports drink marketers turned to merchandising, which in SymphonyIRI’s definition includes feature activity, in-store displays, combined feature and display promotions, and price-only actions. Viamari explained during the webinar that the sports drink category generally sells about two-thirds of its volume with merchandising support. Merchandising lift, or purchase rate, of promoted sports drinks measured at more than 7 percent, and volume sales of sports drinks also increased more than 7 percent for the 52 weeks ending Nov. 27, 2011, in food, drug and mass merchandise outlets, excluding Walmart, club and liquor stores, according to SymphonyIRI data.

The category’s embrace of merchandising is reflective of an overall retail trend, Viamari said.

“Before the economic downturn began, we saw a little bit of a tapering off of merchandising trends,” she noted during the webinar. “But since the downturn started, we have seen merchandising trends picking up, especially during the past year [when] we’ve seen an uptick in price-oriented tactics.”

With more consumers concerned about their budgets, SymphonyIRI’s research indicated that today’s shoppers are more likely to make purchasing decisions prior to entering a store. In addition, shoppers have been increasingly drawn to retailers that promise everyday low prices, Viamari noted. These strategies particularly appeal to cost-conscious consumers, explains Jon Hauptman, partner at Barrington, Ill.-based Willard Bishop LLC.

“Consumers are increasingly looking for stores in which they feel comfortable that they’ll find great prices and values across the store on every trip,” Hauptman says. “This means that consumers are more likely than ever to selectively shop for sale items at other non-core or primary stores. Weekly ads will continue to drive traffic, but their ability to strengthen loyalty appears to be diminishing.”

Although merchandising across channels remained relatively steady in 2011, SymphonyIRI’s Viamari noted that the drug store channel expanded its merchandising efforts in 2011. She indicated that 57 percent of categories in drug stores saw merchandising support increase during the measured time period.

 

Emphasizing effectiveness

Linking to the prevalence of pre-planning among shoppers, SymphonyIRI’s research showed that

49 percent of categories achieved a lift of 100 percent or more from feature-only merchandising during 2011, Viamari highlighted during the webinar. When feature activity was combined with displays in 2011, SymphonyIRI found that 84 percent of categories achieved purchase rates of 100 percent or more, she said.

When it comes to displays, Willard Bishop’s Hauptman recommends greater retailer control of end-cap displays.

“This includes ensuring that primary items on all end-caps offer significant savings and that the price and penny savings associated with the primary item are highlighted with large signage on or above the display,” he explains. “Retailers should also build savings and price-point criteria into their [direct-store distribution (DSD)] contracts since DSD end-cap promotions have a strong impact on a store’s price-value image.”

Carbonated beverages rank at the top of SymphonyIRI’s list of categories with the highest merchandising activity level, Viamari noted during the webinar. Soft drinks sell 75 percent of volume when linked to merchandising, but sports drink promotions showed the highest increase among beverages with a 2.3 point change compared to the previous year ending Nov. 27, 2011. The market research firm also noted that merchandising of energy drinks increased 4.6 points in 2011, which contrasts the 3.2 point drop in promotions of canned or bottled fruit juice in measured channels through the end of November.

Willard Bishop’s Hauptman recommends that retailers maintain a more critical eye on the effectiveness of their promotions.

 “Retailers currently spend too much time simply replicating promotions they ran a year ago without fully understanding whether each element of those promotions was successful,” he says. “Retailers have a great opportunity to more regularly and thoroughly evaluate the impact of their promotions. Then, they can replicate those events that generated a high level of incremental sales and avoid events — and promotional time periods — that did not have such a positive impact.” BI 

KEYWORDS: merchandising Promotions shopping behavior

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Jennifer Zegler is a contributor for Beverage Industry magazine.

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • top 100 beverage companies

    Top 100 Beverage Companies of 2024

    For the global beverage market, mergers and acquisitions...
    Sports Drinks
  • Chocolate, Strawberry, Vanilla shakes

    Classic flavors provide reliable, consistent results for beverage-makers

    Classic flavors of chocolate, vanilla and strawberry...
    Ingredient Spotlight
    By: Chloe Alverson
  • Free Spirits Instant Bar Bundle

    Lifestyle trends drive growth for non-alcohol category

    As lifestyle trends continue to drive growth for the...
    Alternative Drinks
    By: Lauren Sabetta
Manage My Account
  • eNewsletters
  • Online Registration
  • Subscription Customer Service
  • eMagazine Subscription
  • Manage My Preferences

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Beverage Industry audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Beverage Industry or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Fourpeople toasting with cocktails made with low-sugar ingredients, celebrating healthier drink options.
    Sponsored byCargill

    What’s Hot in Sugar Reduction: Beverages

  • chocolate milk
    Sponsored byCargill

    Sweetening the Future for Dairy and Dairy-Alternative Beverages

  • woman pouring a drink
    Sponsored byFFP

    Building a Beverage System: Meeting Consumer Demand for Precision Wellness

Popular Stories

Celsius Fizz Free

CELSIUS launches new Fizz-Free flavors

PepsiCo.jpg

PepsiCo advances AI agenda

Narragansett Beer 1975 cans

Narragansett Beer celebrates 50 years of ‘Jaws’

Top 100 Beverage Companies of 2024

Events

April 16, 2025

2025 State of the Industry Series: Alcoholic Beverages

On Demand In Beverage Industry’s annual State of the Industry: The Alcohol Beverage Market, analysts at S&D Insights LLC delve into these trends and how they’re shaping the industry.

View All Submit An Event

Poll

Retail Coffee Segment

What retail coffee segments will fare well into the next year?
View Results Poll Archive

Products

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

See More Products

Related Articles

  • Friends Fun Wine Bottles - Beverage Industry

    Connecting wine with art and fashion

    See More
  • Kin Euphorics Dream Light

    Consumers motivated to mitigate stress levels through foods, beverages

    See More
  • Beverage News graphic

    Socially conscious consumers support causes through purchases, study finds

    See More

Related Products

See More Products
  • GlobalData_Consumer.jpg

    Top Trends in Alcoholic Drinks

See More Products
×

Elevate your expertise in the beverage marketplace with unparalleled insights and connections.

Join thousands of beverage professionals today. Shouldn’t you know what they know?

JOIN NOW!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing