How to Improve Sales in the Alcohol Industry?
The alcohol industry is an integral part of society and culture in the United States. According to the National Survey published by Medscape, 86.4% of people above 18 years of age drink liquor at some point in their lifetime. Research shows that companies in the U.S. produce more than 52 billion gallons of alcohol each year. These include wines, spirits, and beers, accounting for more than 15% of the total beverage volume.
According to Grand View Research, the global alcoholic drink market will reach a whopping $1,546.6 billion by the end of 2022. It was $1,448.18 billion in 2021.
The same study highlights that the alcohol market will reach $2,877.2 billion by 2028, with a growth rate (CAGR) of 10.3% from 2022 to 2028.
However, alcohol brands and suppliers with good relationships with vendors, sophisticated marketing campaigns, and reputational strategies can increase sales and stand out from the crowd.
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On the other hand, suppliers without a proper strategy in place will suffer from lower sales and decreased revenues. The good news is that you can use the following tactics/strategies to improve sales in the alcohol industry. Read on!
To Improve Sales in the Alcohol Industry Follow These Three Tactics
Reach Your Target Audience
Alcohol suppliers in the U.S. primarily rely on distribution companies to promote their products in the market and increase sales. However, if you fail to find, select, and partner with a reputable and reliable distributor, you won’t be able to bring your products to the market.
We recommend performing thorough research and using cutting-edge tools to find the right distribution companies to reach the target market, increase sales, and maintain scalability. Once you have created a list of distribution companies, determine whether they are relevant in the market.
Likewise, go to the desired bars and pubs and ask about their favorite distributors. The purpose is to determine whether the preferred retailers enjoy working with specific distributors. At the same time, you will know the reasons behind choosing those distributors for your products. Ask yourself:
- Do the distributors align with your brand vision?
- Do they use the right strategies to bring your vision to reality?
- What tools do they use to target the retailers, including bars?
- Do they have enough experience to contribute to the sales process?
Answer these questions will help you shortlist specific distributors, analyze information, and select the one that aligns with your goals. Select a distribution company with links to multiple retailers within the same category/niche.
Read Also: Latest Trends Suppliers Need to Know for 2023
You can use cutting-edge platforms like KEXY to make your alcohol products more visible to your target audience and access retail outlets efficiently and quickly. KEXY enables you to create effective marketing campaigns tailored to your needs. So, you can target specific distributors, liquor stores, retailers, and bars.
Strength Relationships with Distributors/Consumers
A good relationship between a liquor supplier and distributor/consumer is essential to increasing sales. It helps you set expectations together and build a successful business relationship. Thus, you can supply the required alcohol products efficiently and quickly and increase sales to improve your company’s bottom line. Strengthening relationships is directly proportional to breaking down barriers to the market.
It involves working with retailers, understanding their demands, and providing good information about your products. So you can bring your products to the market/stores efficiently.
Engage your customers/distributors through business planning, marketing strategies, and resource teams. Follow up with the distributors to evaluate whether the expectations are clear and the plan works.
Engaged distributors are effective stewards of your alcohol products to retailers. However, as a supplier, you must also focus on the consumer side to build your brand and increase your reputation in the consumer market. Ask yourself the following questions to streamline the process.
- How do I plan to market alcohol products?
- What kind of online presence do I need to promote liquor products?
- Do I need to host offline and online events?
- What else can I do to reach the target consumers and promote products?
- How do I manage relationships with stores and encourage consumers to buy my products from those particular retailers?
- What are the best ways I can generate higher profit margins?
- Once I place a product with a retailer, how will I ensure consumers know about it?
So, as a supplier, you must answer these questions to generate valuable insights. These insights will help you make efficient and reliable decisions. Don’t forget to leverage online tools/platforms to share your brand story with distributors, bars, stores, and end-consumers.
Track Sales and Inventory Data
You must understand consumers’ purchasing behaviors and preferences to streamline the supply of wine, spirits, beers, and other products. Analyzing and understanding these metrics enable you to tailor your alcohol products and match consumer demand.
Even if you have a high-quality product that does not match the consumer demand, you won’t be able to make sales. So, track sales and inventory data to understand what’s trending and selling right now.
The purpose is to understand whether your products align with consumers’ preferences and whether they will stay on the shelf. Remember, this also helps you reduce stockouts and manage overstock.
Suppose one of your distributors is about to run out of an alcoholic beverage. You don’t have enough inventory to supply the product. In that case, you can analyze your products and offer a replacement to the distributor.
Thus, you can avoid losing shelf space. However, this process requires viewing your inventory thoroughly and considering the demand/preference of distributors and retailers. So, this information will help you implement a reliable strategy and follow a proactive approach in the future to prevent stock outs.
According to Four Loko, the alcohol industry employs and maintains more than four million jobs. It generates more than $70 billion in revenues every year. However, suppliers that fail to implement a sophisticated strategy lose track of the market and experience fewer sales.
Remember, reaching your target audience, choosing the right distributors/retailers, and understanding consumers’ demand are essential to streamlining your business operations and increasing sales. You can KEXY to achieve your goals, save time and money, and improve your brand reputation in the alcohol industry. KEXY is a cutting-edge platform that offers real-time, data-driven, and analytics-based solutions for alcohol suppliers. Contact us today for more information!