Case Studies

It pays to display!

Article taken from The Publican Newspaper, 21 July 2003

Product visibility and display play a major part in your customers' buying decisions. S&N Retail, in association with Coca-Cola Enterprises Ltd (CCE), are running some trials. Though still early days, results so far are very interesting!

Smart use of fridge and back-bar display can broaden your appeal and make soft drinks even more profitable for your business CCE recommend that if possible you have a dedicated soft drinks fridge.

Research shows that soft drinks contribute over 11 per cent to profitability behind the bar (Retail Pub Estate Confidential). Effective displays and informed fridge management could increase their value to your business still further. Here's a few pointers to help you make the most of the growing soft drinks opportunity...

Chill out...

80% of consumers prefer their soft drinks pre-chilled over ice... (The Publican Newspaper, Feb 2002)

- so it makes good business sense to devote fridge space to your soft drinks offer. Understandably, brands and suppliers want you to devote your fridge to their products because they know how important visibility is to sales. But it is your patterns of trade and your customers that should decide how you stock. On a Friday night for example, premium packaged spirits may be your fastest selling line - but what about other times? At lunchtimes in particular, soft drinks may well be your best sellers.

For best results, CCE recommends that if possible, you have a dedicated soft drinks fridge. If not, then decide your display on a space to sales basis.

Clear up the clutter...

Why dedicate display space to glasses when you don't sell them? Try to make more space available for displays by removing clutter and slow selling lines that tend to gather behind a bar. A cluttered bar makes it harder for customers to choose - and harder for you to direct their choices towards profitable lines.

Customers act on impulse...

Because many customers don't make their buying decision until they are at the bar, display is a great way to influence their choice...

A profitable mix...

Trials of a joint Gordon's gin and Schweppes tonic display increased sales by 25 per cent (CCE Research 2002).

Back-bar display tips ...

Back-bar display tips:

• Back-bar display units create impact without taking up much space
• Displays should feature 330ml straight drinking packs as well spirit and mixer offers
• Change attracts attention - change your displays regularly
• Promote profitable lines
• Link in with national promotions and local events

Putting display to the test

In close co-operation with CCE, S&N Retail is in the process of undertaking trials to find out whether merchandising its coolers would increase sales of soft drinks. The final results are not yet in but already it is clear that all soft drink brand sales are growing.

Mark Hopper, commercial marketing manager for S&N Retail, explains the significance of the trial. “Soft drinks is the third largest product category for us. With food, soft drinks present a huge opportunity - the lunchtime trade being particularly important. 65 per cent of all our soft drink sales are made at lunchtime.”

As a result, S&N is working on a flexible display approach based around the time of day and the day of the week. “The trial still has time to run but giving more space to soft drinks by reducing overspacing of premium packaged lagers and spirits appears to be driving soft drink sales without any fall in PPL and PPS sales,” Mark concludes.

Trial results so far clearly indicate the additional profit opportunities that effective display can offer.