Consulting

In the market of wines and generous drinks there are several competitors, nationally and internationally, and also numerous brands. The offer is very diverse. The competition is very strong. Demand has been falling. Consumer preferences are first established by the type of drink and then by brand. Some consumers are loyal to a brand, but most, in most types of drinks, don't have an exclusive dedication to a brand, choosing from a set of reference brands, which players tend to put on a parity plan.

How to increase consumer loyalty to a major beverage brand of the company?

To win consumer loyalty is a desideratum of any brand of products or consumer services. Fidelity can not be confused with mere repetition of purchase, because this can happen for multiple factors that have nothing to do with loyalty, such as the unavailability of alternatives or own buying inertia. Similarly, fidelity is more than the rational conclusion that the supply of a given brand is superior to its competitors. In a world of increasingly homogeneous products where cognitive differentiation is increasingly difficult to establish and sustain, loyalty has to do with consumer engagement with the brand and creating emotional bonds. To achieve it it has largely to do with providing the consumer/customer relevant and emotionally rewarding shopping/consumption experiences.

The proposed solution was a experience marketing program, consisting of several initiatives to allow this brand to be more present, more alive near a predominantly young target population. The initiatives took place at the usual points of consumption. It consisted on creating different environments and creative animations.

Special evenings that only a particular brand could provide. The objective was to associate the brand to the enjoyed pleasure, strengthening the emotional bonds of consumers with the brand. The initiatives, which appealed to the participation of the audience, also allowed the company to collect data about consumers.

Problem analysis. Development of the solution. Direct participation on the planning of the initiative and its implementation.

The program translated into a significant increase in spontaneous brand awareness (top of mind) and strengthened its image in the main desired attributes. Emotional bonds of consumers with the brands were reinforced. The consumption of the brand increased in the following months over the sales targets. Market share was reinforced.

If there is any industry where marketing plays a decisive role, it is undoubtedly in the beverage. The differentiation between brands is an important competitive factor, but differentiation can hardly be achieved on the product side, since differences are difficult to understand for most consumers. The choices are so much more dependent on emotional factors than on rational elements, representing very particular challenges to the marketing discipline.

This company had an incipient marketing structure. The role of the function within the organization and their responsibilities were confused. Processes were not properly established. Internal and external interactions were unclear. The team members were juniors with no specialized training. As a result effectiveness was very low and efficiency reduced.

Marketing is a demanding activity. Being apparently easy to do marketing, it is notoriously difficult to do marketing right. And the difference between doing right and not so well it is abysmal. Marketing done right boosts relations of a company and its brands with the market by developing interactions that create value for both customers and the company. Investments have assured return. On the contrary, marketing done not so well means that the resources used, whatever they are many or few, are not only useless regarding the impact, but also wasted, without any evidence of return.

With the help of STEAM consultants it was made a survey of competences needed from a clear definition of the Marketing function, its objectives and responsibilities. It was redesigned the organizational structure to match the stipulated purposes and be able to carry out the activities listed. Existing competences in the company were analyzed and compared to those necessary to fulfill the function. It was identified needs for skills development and it was started a program involving both the recruitment of qualified staff in marketing as well as specialized training for some internal employees who met the appropriate characteristics.

Skills and competences analysis. Benchmarking. Design of organizational structure. Definition of functions. Skills Development Plan.

The company was able to revitalize its business and become more competitive, recovering some positions in the market that was lost in previous years.

Innovation is recognized as one of the main sources of competitive differentiation and sales growth. However, it is a high risk activity as it can be seen by the fact that a high percentage of products launched every year on the market are discontinued for failing to achieve minimum levels of sustainability. In fact, the pressure of events and acceleration of innovation cycles, requires rapid action. The likelihood of errors increases exponentially when you do not take the necessary precautions and do not have adequate role models and consistent practices.

Mistakes are very expensive because investments related to research and development are increasingly high.

Demand registers high levels of saturation. Competitiveness is intense due to the existence of excess capacity in many sectors. Prices and margins are under great pressure.

To stay competitive, this company of the food sector had to maintain a high pace of innovation. The life cycle of products was increasingly short andthe sales of products introduced in recent years had an increasing proportion of total company sales.

The challenge was to be able to develop and successfully launch on the market a new range of value-added products for the consumer and get it in less time than usual in the company's development cycles.

Using specific methodologies guided by STEAM consultants, the operation model and the processes involved were completely changed.

First, the usual sequential method Marketing / R & D / Marketing was replaced by multidisciplinary teams involving, in addition to Marketing and R & D board, qualified employees of Industrial, Purchasing and Sales background. Second, these teams were empowered with financial resources and the required materials and the team elements to have the availability to be able effectively devote to the project.

The new organization by projects enabled in a efficient way not only to improve the level of effectiveness of multidisciplinary teams reducing the development cycles of new products, but also to respond to the needs dictated by market dynamics, increasing customer satisfaction.

In the initial business model, this company was acting through concessionary experts in kitchens, who were responsible for various commercial and technical functions, which lead to techniques being often predominant over commercial expertise, resulting in a distracting and inhibition factor for the relational and commercial components necessary with customers. On the other hand the stores did not establish relations with neighboring communities nor exercised proximity marketing activities in sufficient number and with the appropriate quality of planning, preparation and execution.

At this stage the responsibility of capturing traffic to the stores was given to the central marketing services of the brand, without any active participation of the stores, which originated purely reactive behaviors. The absence of traffic at many stores led to cold and unattractive environments that created discomfort in visitors. The "push" sales model showed up little effective and with very low levels of conversion (estimated at 15% on average), despite efforts in training and brand activation activities.

The challenge was to be able to develop a new concept of dynamic store, with the creation of stimulus mechanisms for the flow of potential buyers and attractiveness of new customers.

The support of STEAM to the project started with the development of the concept of Dynamic Store, part of the marketing plan. The goal to increase sales, improve the effectiveness of marketing with the consequent conversion into sales, presupposed the creation of incentive mechanisms to the flow potential buyers.

In this context, measures were created with the objective of making the different stages of the consumer journey more attractive and simplify the buying process, namely:

1. Make the showroom, a sensory experience (warm atmosphere, light, aromas, sound).
2. Provide more information to the consumer, involving the customer.
3. Simplify the purchase journey:Go from a sales push system to a pull sales system with the support of a Personal Shopper, to help on the set up of the best offer against demand needs.
4. Substantiate the brand's arguments through intrinsic demonstration and comparison with the competition.
5. Consolidate the know-how of the brand through the creation of "Universes of the Kitchen", making its image as a real expert. Initiatives such as the presentation of recipes, Showcookings, Workshops (food, nutrition, etc.), ateliers, wine tastings and the launch of products for aficionados (original Cofees, DOC Olive, Wines of the world, among others).
6. Advertise seasonal deals.
7. Develop the concept of Dynamic Shop.

This new store concept represents a new paradigm. It is a store that is meant to be active and open to the outside. It is recognized that buying a kitchen is a long, complex and stressful process for the consumer. It requires time, energy and a multitude of requirements and decisions. The mission of the new model is to "untangle", making the process simple, close and reliable, "providing all customers the best experience in the process of purchasing a kitchen."

Following the implementation of this work, results of the new model were quickly felt, having been taken the internal decision to increase investment in marketing namely on activation on point of sale and on the increase of Personal Shoppers providing them with necessary training. The company has been consolidating its image as a specialist in kitchens in the broad sense of the experience and personal living associated to the technical component, connecting the general public and the media with experts and those with future buyers and prescribers.