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American multinational alcoholic beverage company
Discover how Vypr helped American multinational alcoholic beverage company identify and better understand the habits and behaviours of Spanish consumers when it came to purchasing tequila.
“The turnaround time was excellent, with results available very quickly. It was great to work with the Vypr team. I found it particularly useful to talk through what we were trying to achieve, as well as discussing] information that been shared by colleagues.”
Scenario
Our customer is an American multinational alcoholic beverage company headquartered in New Jersey. The business is a globally renowned leader in the spirits industry and the world’s largest tequila producer, owning the world’s best-selling tequila brand. Outside of tequila, the business has 30+ established brands in 85+ countries, across the vodka, rum, whiskey and gin categories.
The business’s success is underpinned by an optimum balance of loyalty, heritage and a passion for craftsmanship, combined with a rapid reaction to emerging industry trends that power their consumer-led innovation to success.
Problem
Our customer had identified a gap in their insight for Spanish consumers. A huge, 8.3m litres of tequila arrive in Spain each year, making Spain the 2nd largest market globally for arriving tequila exports. Understandably, our customer was concerned about the gap in their consumer knowledge in such a key market, which if left unresolved, could have led to a decrease in sales, reputational damage, and missed or unfulfilled opportunities.
Our customer needed to identify and better understand the habits and behaviours of Spanish consumers when it came to purchasing tequila. This included understanding the key drivers of tequila purchase amongst Spanish consumers, and how they might change across a range of different demographic cohorts. Additionally, our customer needed to understand which promotional mechanics were most popular and therefore, were most likely to increase purchase frequency.
Finding a way to connect instantly with Spanish consumers to validate hypothesis thinking and fill known insight gaps was hugely important for our customer.
Solution
We leveraged our proprietary community of Spanish consumers and research expertise to create a blended methodology of qualitative and quantitative questioning. Our platform supports the creation of specific and bespoke profiling demographics, which we used to segment the market by age, gender, region, and tequila category buyers.
Beyond targeting discrete consumer typologies, we also used these demographics to filter results retrospectively, identifying nuances and building, then testing hypotheses. Testing price sensitivities, as well as a range of different promotional mechanics, were easily catered for and revealed a clear preference.
Open qualitative research was used to identify key themes, which were then used to inform and direct the quantitative validation. Comparative testing was deployed to evaluate the propensity to switch and preferential promotional mechanics, with a monadic approach preferred to test decision criteria.
This process ensured that results were entirely consumer-generated and therefore, were insulated from any risk of internal biases.
Results
The study was completed efficiently, with our customer gaining access to a clear set of reporting data, key takeaways, and recommendations within days of the initial briefing.
The results identified that brand loyalty was an important consideration for Spanish consumers, with 50% of category buyers citing they’d be unlikely to switch brands, even for those with a lower price point. Our customer was delighted to understand that quality, more than price, was the leading factor in determining brand choice. Only 22% of Spanish consumers said price was very important to them, with 75% of consumers willing to pay up to 20 Euros for a bottle of tequila.
Testing the efficacy of promotional mechanics revealed that straight-line discounting, more than multi-buy or volume offers were most appealing. The research also revealed the extent to which a price increase would impact the propensity to switch, which made it possible for our customer to model several potential category scenarios.
Our approach provided valuable insights into Spanish consumer preferences, enabling our customer to make data-driven decisions tailored to the nuances of the Spanish market. The swift turnaround, commensurate with their own brand DNA, allowed knowledge gaps to be filled quickly and efficiently.
Moving forward, our customer has already engaged with Vypr to repeat the process in another European market.
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