Why Data and Insight are Crucial for Independent Drinks Brands
Without data and insight, you’re only ever just guessing, with the likely result you’ll get it wrong.
Every business should avoid making uninformed decisions. Independent drinks brands are no different. Yet, without data and insight, there’s a risk of doing just that. Without data and insight, you’re only ever just guessing, with the likely result you’ll get it wrong.
Enthusiasm and passion only go so far
We’ve all watched Dragon’s Den and seen someone fall flat on their face when questioned. For drinks brands, particularly, it’s about being able to stand up to this type of scrutiny by convincing yourself, as much as anyone else, that what you’re doing is 100 percent right.
No business decision should be uninformed
You may know how to make gin, and love gin, but where and what size is your market? What’s your price architecture? What’s your point of difference and the values in your product chain?
Without this knowledge, you’re just your own sounding board and I would advise anyone who is going on personal enthusiasm alone, to stick to the day job.
Avoid making uninformed decisions – it’s that simple.
Understand your market
Even before creating a liquid, you should understand where your gap in the market is, and the size of your sector. Perhaps one percent of the biggest sector could be worth more than 50 percent of the smallest. Without knowing, how do you know where to place yourself? It’s just a guess.
Many experienced players
The market is full of seasoned players who know what they’re doing. They know the data so they know the opportunities.
Get yourself into the same position. Do the reading and the research well before you think about production or the look of the label or bottle. Otherwise, you will quickly become unstuck, left with stock no one wants to buy.
Avail yourself of the free data
Read all the published material – mainstream articles, trade and industry publications, reports, national statistics, Google searches and any specific to your sector. Subscribe to relevant newsletters, like just-drinks.com.
There’s so much free information available to you. Use those free resources. Go to the library once a week and read the Grocer, or look at the IWSC reports. You will need to read beyond mainstream to get into the detailed insight and keep in mind that some information will be retrospective – but it will help to round your understanding.
This work is essential, and isn’t about being academic, it’s about practical application of data to your scenario.
Cross-check and question
Question opinions and articles, don’t take a paid ad article at face value. Often articles will reference other material or research – follow this trail of knowledge to build your layers of information. The more layers, the better equipped you are to make your decisions.
Do your field research
There’s nothing more concrete than the information given by the supermarket shelf. Go and have a good look – take photos. What has space and prominence? Look at the brands and frequency of promotion. How will you create standout?
In an on-trade setting, get yourself in a busy, fast-paced environment and look at what’s pouring, what customers are drinking. Talk to the bar staff and be interested in their opinions on the trends. This is all free information that you shouldn’t be too shy to ask for.
Exploit your own circle
Blind tastings, Facebook polls and canvassing your friends are all great. But try to grow this circle too, to include others you don’t know. Avoid group-think that will only corroborate the output.
Make a fetish of the micro
Micro trends change rapidly within the sphere of their related macro trends. The micro defines the macro, so become obsessive about it. What’s emerging? What’s coming through? How does your brand fit?
Data-driven decision-making
Getting all the data into your business thinking isn’t easy, but it’s worth it. It’s the only way you’ll know you’re not just on your own flight of fancy. And the likelihood of rewards is so much higher.
We are completely data-driven at Tortuga. Clients can see, crucially, where they’re not selling, so they can identify gaps, and therefore the opportunities. Volume, value, frequency of purchase and the shape of the year. Where the spikes are and how to address the troughs. It’s about making advance plans to capitalise on the market, in the way that’s right for their brand.
Client data portal
Rate of sale, seasonality patterns, geographic hotspots, customer names, cashflow issues, who’s buying and who’s paying. Our clients have this data at their fingertips, enabling them to plan logistics, storage, distribution and production timescales, and queue up their actions accordingly.
Everything is data-led. But this isn’t a new data-centred world – it’s always been important.
Data enables creativity
Of course, creativity is crucial too, but it’s the data that provides the foundation for creative thinking and together we share the ideas. Again, it’s about expanding the circle, the knowledge and insight, so if we can share what we know about the market, we will.
None of us want to be in this business just guessing.