Ben McFarland meets Steven Fuller of The House, a creative marketing agency busy bridging the gap between operators and drinks companies
The relationship between drinks companies and the pub trade has not always been a particularly harmonious one.
Communication often breaks down when enthusiastic marketers, equipped with fresh "ideas" conceived in office-based brainstorming sessions, fail to convince publicans and retailers that their promotion has more worth than a few fiddly scratch-cards and unwanted t-shirts and that, more importantly, there's benefit for them.
Five years ago, Steven Fuller, Peter Ord and Graham Massey identified this disparity and set up Leisure House, a creative marketing agency aimed at oiling the wheels of communication and improving sales for brands in a way that benefits those at the sharp end of the business.
As they say in marketing jargon, each of the trio "brought something to the party". Steven Fuller came from a strong leisure marketing background, Peter Ord provided the procurement expertise, while Graham Massey had extensive experience in management.
"When we started, it was like World War One with the two sides in a trench-like stand-off," said Steven. "They only met every so often to have a game of football and the situation was not doing anything for anyone. Our key objective when we set out was to get retailers and brands to have a common view of what they're trying to achieve."
Five years on, The House, (they changed the name to something a little snappier) is one of only a handful of agencies to appear in the latest Sunday Times Virgin Atlantic Fast Track 100, a list of the 100 fastest growing British unquoted companies.
The company has grown by 80 per cent per annum, generated sales of £6m last year and, having started with four, now employs a total of 36 employees working in Macclesfield in the north and Bath in the south. They even have overseas offices in Chicago and Ireland.
With a client list that boasts the likes of GuinnessUDV's Jack Daniel's and Malibu brands, National Union of Students Services - "the biggest free-trade account in the country" - and SFI Group, owner of the Bar Med, Litten Tree and Slug and Lettuce retail brands, it's little wonder that the business has expanded at such a rapid rate.
The growth of The House is testimony to the change in the approach to drinks marketing. The days when merchandising kits, two-for-one promotions and drinks discounting ruled the roost are long gone. "We don't believe in price promotions," declared Steven. "The brand needs to have value added to it and if you discount it, you devalue the brand and then when you restore the proper price people simply won't go for it."
The biggest obstacle facing brand owners is ensuring that, as well as exposure in the pub, the drink is in the hands of the consumer. To do this, brands are employing increasingly sophisticated marketing techniques.
"The brands want people to buy their product in a way that is true to their brand and their advertising, using the right language and done in the right style," said Steven.
"The pubs need to understand what the brand is trying to achieve and establish whether their pub has the natural association.
"There's far more consumer awareness in terms of brands than ever before but consumers are tired of being sold to. However, if you do something different that adds to their night out and they like what you're doing, then they'll come with you."
Last year, when Guinness-UDV approached The House to come up with ideas to complement a TV advert for its Malibu brand, The House employed a team of professional comedians as "Laughter Guards", armed with placards and megaphones, to tour pubs and encourage people to "take life less seriously".
"You want to help people have a good night and rather than making all the activity revolve around the bar, why not take the product to the people and do something at the table," explained Steven.
As part of another initiative, this time with clubbing drink Red and the National Union of Students (NUS), a temporary ancillary bar was set-up in NUS bars to cope with busy periods and to double-up as a DJ booth once the evening got going.
"Both schemes increased footfall and brand awareness and encouraged loyalty to the outlet," said Steven. In short, people enjoyed themselves, associated it with the brand and will want to return - which brings a smile to the face of the operator!
While these promotions are designed to work across hundreds of predominantly high-volume young person's venues, Steven argues there's no reason why individual publicans or small operators can't apply the same principles in order to improve business.
"The solution may not always be a promotion thought up by the brand owners," said Steven. "There are other ways of getting better sales and having brand investment. Brands are always looking for innovation so if you have an idea for your pub that you think a brand could get involved then get in touch with the sales rep."
Before embarking on an ambitious marketing drive, it is essential for publicans to familiarise themselves with their customers.
Steven said: "Take the opportunity to understand the customer and talk to them to find out what brands they like and when they drink them. Look at your year's business, plot your sales day by day and find out who's drinking what and when."
Another key factor to consider when arranging a marketing promotion is realising what your staff will realistically be prepared to do.
"You have to get them on board as they're the ones who are face to face with the customer - without them it simply won't work," added Steven.
Cynicism among publicans when it comes to on-trade promotional activity has been understandable in the past. After all, if they did everything that each slick talking pony-tailed salesman that swaggered into their pub asked them to do, it would be disastrous.
However, by improving communication with brand owners, relaying feedback to their sales people and working with them to ensure the promotion is right for your particular pub, licensees can significantly increase the probability of a successful night and, more importantly, encourage their customers to come back.
Do:
- understand your customer and what they want on a night out and at what time you can
- influence the buying decision
- watch trends and keep abreast of latest films, music releases and gadgets. Use the
- information as a basis for "must have" prizes/consumer rewards
- look at opportunities to tailor generic, national activity to your outlet/consumer
- ensure the activity is simple to execute and understand for both customers and staff
- communicate the activity to your target customers well before the actual event via radio, newspapers, posters and/or flyers
- ensure your staff are thoroughly trained for the evening and, even more importantly, motivated
- build a staff incentive programme based on delivering a successful promotion
- obtain and read your briefing packs and ensure you are aware of what is happening in your outlet
- know your brands and how they differ so you know which brand promotions will be most suitable for your outlet
- take time to talk to brand representatives and obtain useful information
- find out what your competitors are doing. What brands are selling well? Use them as a sounding board for new ideas
- create a "consumer circuit". The 18 to 30-year-old market is a transient community so work with neighbours to create bigger and more exciting activities.
Don't:
- dismiss promotional activity as a time waster
- think one night and that's it. Think long-term. One night's activity is easily forgotten, see it as a long-term promoti