Drinks brand loyalty strong for Kiwi consumers
New research shows that well over half of Kiwi consumers stick with the same drink and brand in On Premise, and typically enjoy three drinks during their visit.
However, the research from CGA by NielsenIQ also finds that of those two in five consumers who are less brand-loyal, value-for-money is the driving factor in influencing repeat purchases.
The findings are from the latest New Zealand On Premise Consumer Pulse, which surveys 500 consumers every month to understand their recent behaviours, how they feel about the channel (including any COVID-19 restrictions) and their intentions for visits in the month ahead.
July’s research reveals visitation to the NZ On Premise has remained steady, with the already dominant food-led occasion gaining even more. In June, cost-of-living concerns out-paced COVID-19 related concerns for those visiting the channel less, but the pandemic has come to the fore again in July.
Likely influenced by Dry July, no and low alcohol options saw an increase versus the previous month, with beer drinkers making the switch for lighter formats. Full-strength beer (4.5%+ ABV) dropped 3 percentage points versus June, while mid-strength (3.5% - 4.5%) and non-alcoholic beer (under 3% ABV) gained 2 and 4 percentage points respectively.
July’s research also highlights that 56% of New Zealand consumers remain loyal to the exact same drink for the entirety of their visit. These consumers on the whole do so because it’s their preferred brand (43%), out of habit (42%) or to ensure they’re enjoying consistent quality (25%).
Those consumers who tend to switch drink categories are looking to experiment and trial new categories (43%), get bored of drinking the same category (31%) or like to try out menu recommendations (25%). Whereas if a consumer is switching brands within their drink choice, rather than an overall category, they are often enticed by promotional deals on certain brands at specific times of the day (27%).
Not only does value-for-money encourage consumers to re-purchase the same drink, it also has a direct impact on word-of-mouth – encouraging consumers to share the experience with their close network such as friends and family (60%) and social media (15%).
James Phillips, Director of Client Solutions: Asia Pacific, said: “With over half of New Zealand consumers staying loyal to the same drink and brand when in the On Premise, winning the first drink in venue is key to promoting brand loyalty across their visits.
The cost of living crisis is also likely to continue shaping consumer behaviours in the coming months, with value for money currently ranking as the most significant factor in maintaining consumer loyalty to brand and/or category in the On Premise.
This need for value-for-money is important across all categories for two-thirds of consumers so pricing strategies and promotional budgets should be carefully considered by both suppliers and operators.”
