Why Research? 

Competitive market research is an effective technique for placing your brand and offerings in their relevant industry. After all, if you don't know where you are today, it isn't easy to go where you want to be. Understanding how many SKUs are in a similar position is crucial if you look for distribution for the first time. When well-informed, you can confidently discuss with possible distribution partners where your product belongs in a portfolio rather than being told how "packed" a particular market is. All businesses across all industries are welcomed and encouraged to participate in market research.

The market for alcoholic beverages is not just fiercely competitive; it is also a highly regulated sector with important societal ramifications. Therefore, knowing the market is maybe even more crucial here than anywhere.

Research isn't only for new brands; even established brands can conduct competitive market research. Knowing whether or not your product will have price parity across the country is crucial if you want to expand your distribution into new locations. Additionally, expanding into new areas exposes your business to competitors who may not have been present in your current market in the past.

Understanding the local offerings of a place enables you to address problems regarding positioning your products before you arrive. Since no two markets are the same, your brand may be entering a region with more competitive pricing, fewer consumers care about it being a "hometown hero," or there are different business procedures. The greatest way to prepare for frequent objections that result from being unfamiliar with a new market is through research.

Consumer behaviour and economic trends are combined in market research to support and enhance your business concept. Understanding your customer base from the start is essential. Market research allows you to lower risks even when your company is still only a vision in your mind.

Gather demographic information to understand better the opportunities and restrictions for attracting clients. This could include population statistics on wealth, family, interests, and any other information pertinent to your business.

To understand your market well, you should be able to answer the following questions:

- Does there exist a demand for your good or service?

- How many individuals are likely to be interested in your offering?

- What are the income range and employment rate according to economic indicators?

- What areas can your company access, and where do your consumers reside?

- How many solutions that are comparable to each other are already available to consumers?

- What do prospective buyers pay for these alternatives in terms of price?

Identify your competition.

There are a few strategies to pinpoint the brands that compete with your spirits when it's not immediately obvious which ones they are.

- Keywords or search terms that describe the products of your brand. Your distillery should appear in the results, along with others geared toward related searches.

- Invest in a platform that gives brands access to tools to enhance search results. It also examines competing brands that are already showing up in those queries.

- Whether or not your bottles are displayed on retailer shelves, liquor store managers are aware of the market's hot commodities. Ask both major and small merchants a few straightforward questions about the brands offering goods similar to yours.

- Asking visitors to your website or those who make an online purchase to complete a brief survey could identify a few brands that compete with yours.

- Attend the portfolio tasting of the distributor you wish to collaborate with if you want to comprehend the comparisons to your product. By doing this, you'll be able to picture how your products would look in their catalog. Your products will initially have to contend with competition from inside the portfolio, not from outside of it. If you currently work with a distributor, make sure someone from your organization attends their tasting as a guest with a front-row seat rather than merely as a pourer at a table.

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It's recommended to select three to five competitors to track after having a thorough understanding of the competitive landscape. Concentrate on those comparable to your distillery's size and scope, but you can also include a bigger brand for some aspirational comparison.

It gets simpler to pinpoint what a competitor does effectively and where they fall short after a few months of data and intelligence gathering. A distillery has an advantage when it is aware of its competition's shortcomings.

Start by reading customer reviews. A detailed look at user evaluations on websites that provide information about potential weaknesses of direct competitors. Look for terms your spirits offer that your competitors don't, such as flavour descriptors or packaging sizes. Include such wording in all written content, including blog posts, advertising, and other items. Customers looking for something your competition can't provide might be attracted by this.

Speak to a retailer, call them, or send them an email. Too many vendors believe they must snoop and lurk when asking would be much more helpful. Give them a chance to contribute. You'll get to know the market better while also getting in touch with a possible client.

Markets reward brands with the capacity to recognize pricing sensitivity, the popularity of particular categories, and competitive sets.

Although the B2-B alcohol market is more open than ever, the internet is only starting to democratize how the trade buyers find and buy their beer, wine, spirits, and other products. Research can help show the unique value of your items to a market so you can sell more effectively as the previous informational walls that constrained customers are falling. Their freedom to explore a larger array of products is expanding. A product may work in one market but not necessarily in another.

A number of industries may serve the market you're aiming for. Numerous trustworthy sources offer market and client information without charging anything. Free statistics are available to help prospective small business operators.

Article by Aakriti Rawat, Beverage Trade Network