Spirits Discovery Journey Pamela Lawson April 2017 Background and - PowerPoint PPT Presentation

Spirits Discovery Journey Pamela Lawson April 2017

Background and Objectives IN SHORT: • Thorough understanding of Spirits shoppers throughout their shopping journey. • LCBO is eager to discover opportunities in influencing the shoppers’ decisions. HYPOTHESIS • Spirits shoppers are habitual shoppers and low tendency in exploring different brands and/or other Spirits categories. 2

Background and Objectives WHY: • Determine the pre-shop purchase triggers and factors that influence spirits decision making; • Explore how consumers shop the LCBO spirits section and determine opportunities for improvement; • Assess spirits consumption behavior and the impact of different situations and social settings; • Provide foundational insights related to category behaviour. 3

Research Methodology Survey Flow Screener • 1225 online surveys representative sample of Ontario residents. Consumption Habits • Past-6-month (P6M) spirits consumers; • Purchased a bottle of spirits past-12-month (P12M); Purchase Influencers • Of the 1225 respondents, 132 followed Purchase Behaviour through to complete a mobile in store shopping experience (Mobile survey) Demographics/ Classification 4

When asked what they would call this category of beverages, there was some degree of consensus… Base: Total Sample (n = 1211) Q7. Throughout this survey, we are going to be focusing on products such as rum, vodka, whisky/rye, gin, cognac, tequila and liqueurs, but not beer or wine. We are interested in learning 5 how you refer to these types of products. What do you call them?

When am I a “mixed drink” and when am I a “cocktail”? Terminology for Mixed Drinks & Cocktails (% Selected) Mixed Drinks Cocktails Other Rye & Ginger Ale 91 6 3 Rum & Coke 89 7 4 Vodka & Orange Juice 66 23 11 Caesar 33 59 7 Manhattan 30 69 1 Margarita 28 69 3 Base: Total Sample – Each respondent randomly shown one drink (n = 202 to 206) Q9. We’d like to better understand the terminology you use for different beverages containing spirits. Consider a “[insert drink]“ for a moment. How would you most commonly refer to 6 this beverage?

Thinking about their last trip to the LCBO, shoppers came from a variety of starting points – mainly home, work, or a grocery store. Where Spirits Shoppers Come From (% Selected) From home 34 From work 27 From the grocery store 20 From another shopping 12 centre or store From somewhere else 7 Base: Total Sample (n = 1225) 7 Q32. The last time you purchased a bottle of spirits from the LCBO, did you visit the store on your way….?

Purchase Journey Before The Store Visit

PRIOR TO SHOPPING: The type of spirits they intend on buying (and flavour/style , if applicable) are commonly decided before getting to the LCBO - decisions on brand, bottle size, price range not always pre-determined. Factors Decided Before or During Shopping Trip (% Selected) Decided before shopping Decided during shopping trip Not relevant The type of spirit 77 23 (e.g. whether to buy vodka or rum) The specific brand 51 49 The size of bottle 46 54 (e.g. whether to buy 750mL or 1.14L) The price range 46 54 (e.g. whether to spend less or more than $30) The flavour profile or style 33 22 (e.g. sweet versus spicy) Base: Total sample (n=1213) Q37. Think about the [assignment] you most recently purchased from the LCBO. Which of the following had you decided upon before entering the store and what was decided during 9 your shopping trip?

The type of spirits they intend on buying (and flavour/style , if applicable) are commonly decided before getting to the LCBO, whereas decisions on brand, bottle size, and price range are not always pre-determined. Factors Decided Before Shopping Trip (% Selected) Rum Vodka Canadian Whiskey 79 79 77 60 53 50 48 46 46 45 44 41 38 33 30 Type of Spirit Specific Brand Size of Bottle Price Range Flavour Profile (e.g. whether to spend (e.g. whether to buy (e.g. whether to buy (e.g. sweet versus spicy) less or more than $30) vodka or rum) 750mL or 1.14L) Base: Those who were assigned: Rum (n=251), Vodka (n=306), Canadian Whiskey (n=249) 10 Q37. Think about the [assignment] you most recently purchased from the LCBO. Which of the following had you decided upon before entering the store and what was decided during your shopping trip?

Purchase Journey During The Store Visit

I just shopped at the LCBO on Josephine Street in Wingham and it is just a great store, everything is displayed well, the staff is so friendly, I’ve known them for years and years. They always have new displays and my wife always likes it when I bring one of your free books home with all of the recipes. Male, 65+ years old, Western Ontario 12

DURING THE SHOP At their planned shelf, shoppers consider brand first when making a purchase decision, followed closely by flavour/variety and price. Most Important Criteria Top 3 Most Important Criteria Considered When Purchasing Spirits Considered When Purchasing Spirits (% Who Considered First from a Prompted List) (% Who Considered in Top 3 from a Prompted List) Brand 56 49 Flavour/Variety 42 22 Price 49 19 Bottle Size 39 7 Bottle/Pack Design 14 3 Base: Those who considered at least one of these attributes n=96 Q33: Here is a list of things you may have considered when deciding which [assigned category] to purchase. We’d like to understand the order in which you considered each factor. Please 13 click on each item in the order you considered/shopped the shelf. If an item was not important to you, or was not considered, simply do not click on that item.

While in store, spirits shoppers are focused. Few tend to browse beyond where planned. # of Additional Sections Explored but # of Spirits Sections # of Spirits Sections Not Bought From Planned to Shop Actually Shopped (% Selected) (% Selected) (% Selected) [CATEGORY [CATEGORY Three Sections Four+ Sections NAME][[VALUE NAME][[VALUE 1 2 Two Sections ] ] 6 Two Sections 12 1 Section 16 One Section None 86 74 1.6 1.1 0.5 Mean # of Spirits Sections Base: Total mobile sample n=132 Q9. Which of the following products are you planning to shop for at this location, if any? 14 Q17. What items are you purchasing, specifically? Q23: While shopping for your purchases, did you happen to explore any of the following sections of the store at all?

Vodka, Liqueurs/Cocktail Mixers, and Canadian Whisky/Rye were most likely to be purchased by shoppers. Multiple-bottle purchases were more likely to occur when shopping for Liqueurs and Cocktail Mixers. Items Purchased and Quantity SUM: 23 (% Selected) 4 SUM: 4 Bottles 18 1 3 Bottles 2 3 2 Bottles 20 19 1 Bottle 12 12 10 7 6 6 4 3 Vodka Liqueurs & Canadian Gin Single Malt Rum Brandy / Irish American Tequila Cocktail Whisky / or Blended Cognac Whiskey Whiskey / Mixers Rye Scotch Bourbon In Order of Intended Purchase (by Category) Base: Those who made a spirits purchase n=97 15 Q17: What items are you purchasing, specifically?

Among those who do buy unplanned spirit items, these purchases skewed more towards Single Malt/Blended Scotch, Brandy/Cognac, and Tequila on their last trip. Planned vs. Unplanned Purchases (% of the Bottles Purchased) 14 21 25 25 29 30 33 Unplanned 50 50 Purchase 67 86 Planned 79 75 75 71 70 67 Purchase 50 50 33 Vodka Liqueurs & Canadian Gin Single Malt Rum Brandy / Irish American Tequila Cocktail Whisky / or Blended Cognac Whiskey Whiskey / Mixers Rye Scotch Bourbon In Order of Intended Purchase (by Category) Base: Those who made a spirits purchase n=97 16 Q18: At the risk of repeating yourself, are these products planned or unplanned purchases?

Common stated triggers for unplanned purchases were new and interesting flavours, packaging, and brands. I saw a flavour or variety The packaging I saw a brand that I that I wanted to try caught my eye wanted to try Base: Those who made an unplanned spirits purchase n=25* (*CAUTION – low base size) 17 Q19: What led you to make an unplanned purchase for each product? Select all that apply.

These unplanned purchases may also be influenced by the fact that end-of-aisle displays and centre of store displays receive a fair amount of attention by one- third of shoppers. End Aisles Centre of Store Base: Total mobile sample n=132 Q27: Do you see any special displays of [insert assigned category] in the store? This could include a display at the end of an aisle or special signage, for example. If so, please capture a 18 photo.