One Blog |May 7, 2012 | Point-of-Sale Marketing

Marketing New 'Hot Category' Beverages - At the Point-of-Sale

Mark Fullerton

Industry Research - More Relaxation Beverages and More American Wines

A recent IBISWorld* research study reviewed the best industries in which to start up a new business. IBIS based their findings on the following criteria:

  • Projected revenue growth
  • Forecasted growth over five years
  • 2011 profit margins
  • Low barrier to starting such a business
  • Amount of capital required

Two of the hottest ventures area for 2012 hit very close to home for us.

Relaxation Beverages:

Everyone’s heard of energy drinks, but IBISWorld’s research indicates that relaxation beverages are going to be big in 2012. Marketed for their relaxation or sleep promoting capabilities, the industry of relaxation beverages had a profit margin of 6.8 percent in 2011, as well as a low barrier to entry and minor capital requirements. Add this to the fact that the business grew 68.7 percent over the last five years (totaling $73.7 million) and suddenly, relaxation drinks are something to perk up about.

American Wines:

Buried among Internet and wireless technology startups are wineries, which have a five-year annual revenue growth to be projected at 4.9 percent. Particularly hot are the American wines, which are expected to increase at an annual rate of 2.3 percent. What helps make this such a promising business to start is the rising per-capita consumption of wine, and the increasing acceptance of American wines by those in overseas markets. The profit margin for wineries in 2011 was 7.6 percent, which goes to show that there is a high demand for this market.

 

The revelation that these two beverage types are again considered “hot categories” for startup activities is hardly earth shattering news.

However, I suggest that you take a moment to consider how these new Relaxation Beverages and all the new American Wines will be marketed once they hit the numerous, available, retail outlets.

I’ll give you a hint; these new beverages are not going to receive much, if any, TV exposure.  Nor are they likely to be plastered across the pages of any mainstream national publications.

Why? Such marketing outlets will be far too expensive for most – virtually all, in fact – new relaxation beverage manufacturers, and certainly unaffordable by startup wineries.

Point-of Sale Marketing Works

The truth is you already know how these beverage types are going to be marketed especially if you follow this blog.

The answer is: These new drinks will be marketed primarily at the point-of-sale, by all manner of signage and sampling activities.

While some may try to leverage social media such as Facebook or Twitter, the most effective social media for startup efforts will be both the literal and virtual word-of-mouth. But even with lots of Twitter and Facebook buzz, customers will still have to be reminded by POS materials and all sorts of shopper marketing persuaders when they are in the relaxation beverage or wine aisles. 

Learn More

I invite you to learn more about how OnTrak Software can help you get the most effective bang for your shopper marketing efforts, especially if your business will be relying more upon Point-of-Sale Marketing to market and sell your new, “hot category” beverages.

    

* IBISWorld is the world’s largest independent publisher of U.S. industry research, IBISWorld’s team of analysts covers 700 different market segments: www.ibisworld.com

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