The third installment from our June 2011 Little Luxuries Roundtable discussion on beverages reveals the definite loyalty consumers exhibit toward their favorite beverage brands. We noted several expressions of loyalty espoused by participants (adults 22-35), such as long histories of drinking a particular brand and knowing precisely where (and where not to) find favorite beverages.
For example, Stacy, a 33-year-old teacher, is a huge fan of DogFish Head Festina Peche beer, a specialty craft brewed ale. Since this is a seasonal beer, Stacy discussed how she waits for it every year and knows exactly which stores carry it–even naming specific store locations. Stacy told us, “It’s so hard to find…I can only find it at Wegmans and Mrs. D’s in Scranton…I wait for this every year.”
This finding of quasi-inelastic demand for particular beverages suggests a limited distribution strategy can work for brands with cult followings. However, it would be important to size and segment the market to understand the impact of catering to staunch brand advocates versus opening up distribution to target a wider audience.
Watch the clip below for a peek into our beverage loyalty findings:
The Luminosity Little Luxuries Project is a series of marketing research studies that focuses on products and services that consumers WANT but don’t necessarily NEED. To learn more about the Little Luxuries Project, please visit Luminosity’s Little Luxuries Project page.
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