SYDNEY: Everyone loves a drink, but does it matter to consumers which liquor store it’s bought from? No, according to Roy Morgan.
The Alcohol Retail Survey, released this week by Roy Morgan, found that brand differentiation in liquor retailing is non-existent. More than half (52%) of liquor buyers believe “all stores are the same” and have no preference for a particular store. Forty per cent of respondents said two or three stores are better than others, while only 7% of buyers have a favourite store.
The survey indicates that a brand overhaul by any of the four major retailers – Liquorland, Dan Murphy’s, Woolworths/Safeway and BWS – could lead to a significant increase in market share.
While it is second to Liquorland in share of liquor sales, Dan Murphy’s comes out trumps in the brand preference stakes, with its customers least likely to shop around. Liquorland and BWS customers, however, like to try other brands.
Stephen Kulmar, CEO of Ideaworks, which handles the media and creative for BWS and the media for Dan Murphy’s, was confident the two clients had a stronghold in the liquor retailing market and said there were no plans to rebrand them.
“I think consumers understand what Dan Murphy’s is all about. Put simply, it’s the Bunnings of booze,” Kulmar said. “It’s a large format store, with sharp prices and an immersing experience.”
Kulmar is similarly comfortable with BWS’s position in the market as a convenience store with 600 outlets nationwide. “It’s a growing business and doing very well. With an edited range of products, it stands for ease and sits neatly in the convenience market.”
Competitor Liquorland, owned by Coles, doesn’t have a clear positioning, Kulmar said. “Liquorland’s strategy is to drive sales promotions on a week-to-week basis to stay on top. But it lacks definition in what sort of store it is,” he said.
The Liquorland brand, however, is currently undergoing a rebrand as Coles Myer itself forms into the Coles Group, and consolidates its brands under the Coles umbrella.
“Soon to be Coles Liquor, this rebranding makes sense to our customers as there is already a strong association between the brands, with most stores co-located next to the supermarket,” Jim Cooper, Coles Myer spokesman, said.
Over in New Zealand, Vaughn Davis, retail creative director of Y&R Auckland, was not surprised by the lack of differentiation in Australian liquor retailing.
Davis said instead of concentrating on being price competitive, liquor retailers should build a differentiated retail brand based on an entire in-store experience. The retailers’ names could also do with some finessing, according to Davis.
“While ‘Beer Wine and Spirits’ does a great job of telling me what they sell, it doesn’t do much to make a connection,” he said.
With client New Zealand Liquorland, Davis and his team created a strategy that positioned the retailer as a “Land”. Staff are “locals”, customers are “tourists”, advertising takes the form of travel shows and news stories and the titles of GM and marketing manager have been replaced by “prime minister” and “minister of propaganda”.
Davis said the campaign has been a success, with differentiation and ad recall higher than ever.
“Price is still an issue, but now that we have an experience-based brand story it’s not the only issue. That’s enough for any retailer to think seriously about what a strong brand campaign can add to their bottom line.”
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