The Efficacy Of Alcohol Promotions In The Digital Age

Even in the era of successful, attention-seizing digital marketing and social media campaigns, consumer packaged goods (CPG) marketers remain fervent proponents of expensive product sampling programs — by mail, in store, and at special events — because it puts offerings directly in the hands of consumers, increases trial, and creates short-term spikes in sell-through.

Now, we can debate the advantages and disadvantages of product sampling all day long, as I did in my recent blog post concerning WHEATIES® Fuel. However, traditional brand management theory holds that consumers are likely (but not guaranteed) to try a product if given to them at no cost, and almost equally as likely to buy it, particularly if its regular size is offered at a substantial discount (via a coupon). In the end, marketing experts agree, this process usually leads to increased sales of the product, although the size of the increase varies widely. It all makes sense, and it's a tried-and-true technique that's been employed by CPG manufacturers for over 50 years. In fact, sampling programs are practically must-haves for all new consumer product introductions... from peanut butter, to disposable cleaning wipes, to men's deodorant.

But here are two interesting questions: 1.) What if the consumer product is a beer, wine, or spirit, instead of a breakfast cereal or laundry detergent? 2.) Do the same rules, dynamics, and end results apply? Perhaps...but let's explore this further.

I got to thinking about this last night as I attended a monthly mixer, held at a popular local high-end steakhouse, for the Camarillo Chamber of Commerce's Young Professionals Group. Upon entering, I was bombarded by in-restaurant signage, lighted premium items, large table tents, and an attractive bevy of girls wearing solid black, super tight-fitting attire, sporting trays of free shots, and swarming the restaurant's patrons, most of who were over the age of 55 (this restaurant is located adjacent to a retirement community). No, this promotion wasn't for Miller Lite, Jägermeister, Jose Cuervo, Johnnie Walker, or some new trendy, super-premium vodka; it was for Hpnotiq (pronounced "hip-not-ic"), the distinctive blue liqueur which blends vodka, cognac, and fruit juices, and is bottled in the Cognac region of France. It was a successful promotion, at least for me: before I knew it, I had two nice pens that light up (blue, of course), two lighted lapel buttons (also blue), four free shots (valued at $7 each), and two T-shirts. Not a bad haul.

I knew Hpnotiq had been around for some time, but I decided to investigate further. Hpnotiq was the brainchild of Raphael Yakoby, a 26-year-old college dropout from Long Island, New York, who created the spirit in 2001 after seeing a blue perfume bottle at Bloomingdale's. Within one year of its introduction, it became popular in New York's trendsetting nightclub scene. Originally distributed by Great Neck, New York-based Wingard, Inc., Yakoby sold the Hpnotiq trademark and the distribution rights to Heaven Hill Distilleries, Inc. in January of 2003 for a reported $50 million. Heaven Hill also distributes dozens of other alcohol brands, most notably the Christian Brothers line of brandy, cognac, and related products. For the record, Yakoby is still in the liquor business. In 2007, he created NUVO, a pink vodka and sparkling wine liqueur packaged in an elegant, tapered square bottle that looks more appropriate for a high-end perfume than booze.

Obviously, alcohol distributors spend millions of dollars annually on guerrilla marketing and sales promotion programs just like Hpnotiq's to drive sales and brand awareness of specific products. But do they actually generate the desired results? In some cases, absolutely, but much of it has to do with consumer behavior, alcohol consumption patterns, and venue and audience dynamics. Consider the following:

• Cordials and liqueurs do not typically exhibit the same consumption characteristics as beer, wine, and select staple spirits, such as vodka, gin, and rum. Cordials and liqueurs are viewed as more appropriate for special occasions, or for sipping a single glass after dinner -- not consumed in multiple servings or mass quantities. In addition, these spirits are just not as popular as they once were years ago, although one can argue that Hpnotiq's initial success defied this convention.
• Not all bars are created equally, and as with any marketing activity, venues must be carefully selected to match the audience of the alcohol brand. In the case of last night's promotion, the venue and audience were all wrong for Hpnotiq, which claims to "make every girls' night out a little more fabulous," and is obviously targeted at women 21-35. Need evidence? Take a look at the brand's official Website and Facebook page, as well as the image above. Outside of my gathering, the steakhouse patrons skew toward senior citizen age (55+) because of its proximity to the retirement community, and therefore, lie well outside of Hpnotiq's core demographic. Definitely not a good fit.
• There must be an incentive to purchase the product in the future, such as a coupon, or a call to action to register consumers online so they may be targeted in the future. Hpnotiq had none of this.
• Most bar promotions for alcohol brands are all about fun, free/cheap booze, free branded stuff, and interacting with hot babes -- not really about "selling" the product. They're great for sampling and trial. Product information is limited. Most of the women I've talked to who've been hired for these gigs know very little about the products themselves; they simply regurgitate whatever they've been told by the promotions company retained by the distributor, and that's very little. Next time you see a Jägerette, ask her about the product; I bet good money she doesn't know much about it other than what it tastes like.
• Historically, alcohol promotions in bars and nightclubs have proven to be EXCELLENT tactics for increasing brand awareness, but additional marketing is required to convert that awareness into sales. Just the way it is.

When it comes to alcohol sales promotions, it's apparent that the same rules and dynamics that apply to CPG product sampling are not in play here, and as a result, they require additional strategies and tactics to generate sales increases. There's no question that Hpnotiq is a unique, highly-differentiated offering with excellent branding and strong marketing assets. But last night's program was at the wrong venue and with the wrong audience: a recipe for disaster.

And when that occurs, no amount of branding or money can save you. As Hpnotiq says in its tagline, it must "Live Louder," and engage in more appropriate target marketing, if it wants to succeed in the long term.