CGA by NielsenIQ reveals enormous opportunity for brand promotion in on-premise

Do you know what you are ordering before arriving at a bar? If you don't, you are not alone because only one in five Australians or 20 % of bar habitués have pre-decided, leaving 80% of the bar-going population ripe for influencing.

CGA by NielsenIQ’s On Premise Consumer Pulse checks in with 750 Australian On Premise visitors every month to understand their behaviour. This month’s research focussed on how consumers make their drink choices in On Premise and the evolving Path to Purchase. The latest results have highlighted a shift.

Just one in five consumers decide what they are having before entering a venue, and it is more likely to be a category decision than a brand one – 73% of these drinkers know the category. In terms of brand, this leaves a huge opportunity to influence brand purchasing decisions at the point of purchase.

Menus and a need-to-know price factor influence the majority of this 80% of consumers, while drinks descriptions ranked second in order of importance, highlighting the significant influence of communicating a drink's taste and flavour profile to the consumer's decision making.

Regarding promotions and drinks deals, Australian consumers aren't looking for the cheapest product. Instead, they want value in regularly changing specials and ensuring they're getting more for their money.

This follows findings in CGA’s global research. It reflects consumers will likely prioritise value and reduce spending as they continue to patronise On Premise.

Regarding in-venue advertising, collateral must be near where the final purchasing decision is made. Flyers on tables ranked most effective (45%), followed by advertisement boards inside the venue (38%). Placement on tables or within sight of the bar is more likely to bring the drinks choices advertised into the consumer's consideration set.

Post-Covid, the excellent news is that visitation is on the rise for food and drink-led occasions, with more visiting On Premise overall. Drink-led occasions were up 5 % to 47% vs last month despite a slight drop over the past month as the days get colder and people decide to hibernate at home.

For the first time this year, concerns over the cost of living are driving less visitation to On Premise; however, the majority of Australians (65%) have maintained their frequency, and 22% have increased it compared to how often they would typically go out at this time of year.

James Phillips, Director of Client Solutions: Asia Pacific, said: “It’s clear that drinks choice is multi-faceted for the Australian consumer. There is no singular route to influence choice, and suppliers and operators need to employ a combination of tactics to allow consumers to make trade-offs before arriving at their final decision. Menu optimisation should be the priority, but it shouldn't come at the expense of other activations. Australian consumers are very keen to continue supporting the On Premise; however, they are becoming savvier with their spending and need to see value when it comes to their drinks choices."

The latest Australia Consumer Pulse Report can be downloaded here. – https://cgastrategy.com/australia-on-premise-impact-report-consumer/