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microshiner posted a topic in Sales & MarketingThe alcohol beverage market is a closed system. In the US what this means is that that ~136.8 million people account for the ~211.6 billion dollars in alcoholic beverage sales each year. It is important to note that this number of drinkers has remained essentially unchanged for over 40 years, despite an onslaught of alcohol advertising. What that means if you are an alcohol beverage producer is this - you are stealing your customers from somewhere. The question is where. Now here, there are a number of options. If you are producer in a certain category, perhaps you are winning over some drinkers from another category - say beer to wine, or vodka to gin. But the switch we are most interested in is this one - commodity to craft. Surprising as this may seem to some, the person who determines what somebody is going to buy isn’t the guy who made it, or some marketing exec, or social media influencer, brand ambassador, bartender or distributor. The person who determines what alcoholic beverage they are going to ask for is, guess what, the consumer. So, in a closed system where success is measured by winning a consumer from someone else’s product over to your own, it comes down to one thing. The value proposition. One such value proposition is simple and straightforward - price. The top 10% of drinkers, or 14 million people, account for almost 75% of all alcohol consumption. They only care about one thing, and that is cost. If you are a craft producer, forget these people. They are not your customers. That leaves you 25% of the drinkers to fight over. Right now, craft spirits account for 3.8% of market. That means there are 21.2% more commodity drinkers available for you to win over to craft. In that conversation, what is your value proposition? If it’s that you make great spirits, then you are missing the point. All your competitors make great spirits, even the commodity ones. Especially the commodity ones. They make better spirits and a larger variety of expressions too. You can’t win anyone over with that value proposition, because they can make them cheaper too. Your value proposition is that you are craft. And micro. And local. These are all qualifiers that set you apart. They are conditional terms a consumer can use when asking for a product, and they simply cannot be met by a commodity brand. If we can get 1% more people asking for craft at the bar, restaurant, and liquor store, that is 1% more sales for every craft producer in the market. How do we do that? Through content marketing that communicates the value proposition of craft.
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