Drink Talk: Dan Slark
"There are many examples of pubs which thrive because they get their consumer propositions right" says Dan Slark, director of specialist marketing company Box Marketing.
When making any comment on an industry it is inevitable that you make generalisations, no matter how informed. But few would dispute the fact that pubs have been facing real problems for several years now as they are forced to battle it out in an ever more competitive leisure market.
The major problem pubs face hinges on the fact that consumers have never been more aware of their spending options at a time when new leisure opportunities are constantly evolving. Pubs have not competed with the alternative options.
The situation is similar to that which confronted railway companies in the US in the 1950s. They did not consider themselves transport organisations that had to develop to meet customer needs. Consequently they were put out of business by the new airline companies.
Currently, many pubs have a male, lager drinking proposition, which marginalises the majority of consumers who now spend selectively and promiscuously. What is more, the on-trade options are likely to grow considerably. If the government has its way the nation's 50,000 quick food outlets, which include sandwich bars and American-style coffee chains, will soon be selling alcohol as part of the drive towards a café culture. The likes of Starbucks and Pret a Manger may soon be selling wine and upmarket bottled beers. There is a perfect brand fit for these types of outlet.
However, pubs can respond. What they have to do is create customer experiences that appeal to broader ranges of buyer. Landlords and managers need to stock a wider range of drinks that consumers want. Too often the brands demanded by consumers are not available.
By stocking a broader range of drinks and presenting them correctly, pubs can achieve significant sales growth. If women are provided with a better consumer experience and frequent pubs more then increased male patronage quickly follows.
In addition, higher service values attract older people. There are now more than 20 million consumers aged 50 years of age or more and they hold the vast majority of the nation's disposable income. They are quick to open their wallets and purses if their buying triggers of value and benefit are met, but if they are not they do not hesitate to spend money elsewhere.
The key is to make pubs economically, socially and demographically inclusive. Selling good selections of wine, choice of single malts or a well-made mixer drink draws in customers.
There are many examples of pubs which thrive because they get their consumer propositions right. We all know one or two that we find a real pleasure to patronise because of the service and range of drinks and food options. It shows that the problems faced by the trade are far from insurmountable.
Dan Slark is director of specialist marketing company Box Marketing.
