Magic at 6 below
Have you ever seen people touching bottles in a cooler in search of a cold one? Well, I guess you have. I also think you have seen people leave a cooler because it is not cold enough. It is something about "a cold bottle is a sold bottle". Temperature is hence a module for growth.
What happens when a product is kept at negative 6 degrees celcius (aka 6 below)? First of all, the product turns into a sensory experience. As you open a bottle that has been in the cooler long enough, the oxygen magically converts beverage into slush as you take the first zip. About ¾ of the content is transformed. The result is that the beverage is kept colder… much, much, much longer.
We turned the temperature down, and filled the cooler up with beverages. We also put on a STOP-Sign / Lock, telling the shoppers to wait, as the products were not cold enough. We only ‘released the sales’ once a day, as it took 18 hours to cool down enough products (168 bottles).
Before situation:
A: 2 brands
B: Capacity of 168 bottles
C: Temperature at +4 degrees Celcius
D: Always open for sales
After situation (What we did):
A: 2 brands
B: Capacity of 168 bottles
C: Temperature at -6 degrees Celcius
D: Premium Pricing of 8.6%
E: Sold until empty - then refilled and closed
F: Sign on door telling shoppers to return later at a given time, until products had perfect temperature.
Results:
The biggest challenge was the capacity. We were just sold out too fast. Ideally, we should have had two coolers: One in store, and one in the storage room pre-filled with products - ready to be rolled into the store when the cooler at stage was empty.
By the numbers:
Volume: +279%
Value: +298%
Shoppers: 9 out of 10 shoppers wanted to buy it again
End note
Companies can easily be more creative when doing promotions. Shopper like to be surprised, and are willing to pay for that. Turning down temperature in a cooler (with sugary products), is like the simplest thing to do, but the ‘logistics and conceptual selling’ are the challenging parts.
Smart & Affordable promotions!
In case you’ve got a low budget for your promotions, there are almost 60 ‘free of charge’ techniques you can utilize in a smart way. Changing the temperature is a ‘simple initiative’, at almost zero cost.
Seeing the results of such initiatives @ premium pricing, indicates the potential of what suppliers can do, in collaboration with retailers.
Are shoppers rationale?
The decision making tree is a wonderful way of playing smart with your RGM (Revenue Growth Management). In case your products are to be consumed cold, there are only two options: They have to be consumed cold now, or consumed cold later. Some will add a third option, which is ‘imminent consumption’. This is a hybrid, but strictly speaking, it is ‘drinking cold later’ (as it is not consumption there and then). If you also add in the elements of consumption pattern and day parts, there is no wonder why there are more margins on the table for retailers (and suppliers). This role play is in fact one of the core elements of Cat Man; as it is about better selling, and improved margins.
Are the consumers rational at all when they pay 20 times more - per litre - for a beverage at a fine dine restaurant, compared to a bulk pack at the supermarket?
Both yes and no!
No, because it it is a bad deal (on a per litre basis).
Yes, because my need is covered at point of purchase. If I am to drink a cold product now (and not later); it needs to be cold, and the willingness to pay for this sensory experience is there.