Drinks are our businessAn introduction to Cardinal2009

© Cardinal Research 20092

Who we are

Cardinal is a research consultancy that specialises solely in the licensed trades On and off trade (mostly On) drinks and retail, wine, beer and spirits, trade and consumers

We’re part of HPI Research, one of the largest independent research companies in the UK HPI are brand communications and advertising research specialists across all sectors with a strong international division

© Cardinal Research 20093

Who we work for

UK Regional Brewers

Pub Groups

Soft drinks

Spirits

International Brewers

Our positioning and philosophy

© Cardinal Research 20095

Positioning: drinks / on trade specialists

We are specialists in the drinks and licensed retail sector

And within that, much of our focus is in the on trade

unrivalled experience in this industry

a reputation for knowing the on trade inside out

at home and abroad

© Cardinal Research 20096

Philosophy 1: a unique environment

“Unique” “Managing pressure”

11 2

The on trade represents a unique environment

where brand choice and consumption happen more or less at the same time

in a conspicuous setting

where purchases are made on behalf of others as well as self

where price is often unknown

and where choice is invariably more limited than in the off trade

This ‘uniqueness’ has a number of implications consumers use outlets to say something about

themselves to other consumers, in the same way they do with their drinks choices

consumers make choices in outlets under a certain degree of ‘pressure’, often social pressure to conform or to show off

alleviating or managing pressure is often the key to influencing consumer choices

because the on trade is different it requires tailored research approaches

we’ve been doing it for 22 years

© Cardinal Research 20097

Philosophy 2: a conspicuous fashion led market leads to a pyramid shaped structure

CONSUMERS

“Innovators”

“Adopters”

“Early Followers/Drivers”

“Late Followers”

“Conservatives"

Innovate• New brands• New rituals• Fundamental

reassessment of existing brands

Develop/Drive• Recruitment• Penetration• Image build• Reconsideration of

existing brands• Accessible new brands

Maintain• Volume• Share• Loyalty• Reinforcement• Brand copies/price

brands

MARKETINGSTRATEGY OUTLETS

“Special” Outlets

Discerning Outlets

Quality Mainstream

“Mainstream”Outlets

Imag

e D

river

s

OutletQuality

Application

© Cardinal Research 20099

All manner of project types connected to the on trade and beyond

1.On trade U&A and brand health tracking across the market

2.Brand experience or promotional pre testing and evaluation

3.Test market set up and monitoring / evaluation

4.Brand presence and visibility auditing

5.Liquid testing and development - often matched with concept

6.Trade opinion surveys and consumer adoption measurement

7.On trade strategy development - initial targeting and management

8.Consultancy workshops including training in outlet identification, on trade observation techniques, promotional development etc

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Applied across continents

We work alongside the right people for the right job…

Our parent agency HPI provides access to an international network of research partners

Otherwise we commonly work alongside popular media journalists (Time Out etc) for in trade studies

good on trade knowledge

flexible

culturally literate

and cheaper

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Established international network

We have a broad base of international clients in conjunction with HPI - obviously Cardinal looks after the drinks brands!

30+ markets every year for the last 15 years…

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Close working partnership with HPI

CARDINALDrinks expertise and market knowledge

at home and abroad

HPIBranding, communications and creative

development studies across markets

We work together on cross market studies that require drinks expertise

© Cardinal Research 200913

Approaches 1: in outlet methods

Much of Cardinal’s work is undertaken in the live environment of the on trade

all types of retail operation

Qualitatively and quantitatively

Utilising well rehearsed in outlet techniques we can provide

video diaries, roving in outlet group discussions, interceptive qualitative interviewing and trade interviewing

interviewer supervised self completion questionnaires

liquid and brand concept testing research

© Cardinal Research 200914

Approaches 2: Bar Flyers

Specialist field teams that reflect the drinkers in the outlet auditors and interviewers quantitative interviewing in keeping with the profile of a

complete range of bar types also capable of qualitative recruitment of specific drinkers for

group discussion especially useful for targeting leading edge minorities in more

discerning bars

Plus specialist qualitative interviewers who have worked in bars in one form or another for many years

© Cardinal Research 200915

Approaches 3: Bar Barometer

Special

Discerning

Quality

Mainstream

Mainstream

Style Bars

High St Bars

Young Venues

Prestige Bars

Standard Pubs

Quality Pubs

Gastro Pubs

PubsLow energy

Bars/venuesHigher energy

Using the on trade structure in sample design allows responses to become more predictive, as influence and adoption flows down through the model.

This applies all over the world

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Approaches 4: qualitative depth

Perhaps most traditionally we do of course conduct a lot of group discussions and live workshops with the trade and consumers, in the UK and abroad

We seek to structure research around four key processes:

And often use methods that allow clients to engage more fully in the live research process - trade workshops with client interaction

“Encounters” Workshops

Or get consumers to visit outlets with us - “on safari”

Immersion Interrogation Incubation Illumination

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Approaches 5: Experiential Marketing measurement of ROI

EM & Promotional evaluation and pre testing

Another important part of Cardinal’s business…

Jack Daniel’s Birthday for the last 5 years, Southern Comfort, Malibu, Bacardi, Jameson’s, Strongbow in the last two years alone - doing this sort of research for 10 years

The Engagement Index is an approach to EM measurement that compares success against industry norms

See March 2008 Admap for details

Utilising ‘classic’ contact and recall methods and, now, WAP mobile phone survey technology…

© Cardinal Research 200918

In summary: the job interview

Strengths

drinks market knowledge and understanding

on trade expertise

we do not apply formulaic research approaches right method for the job get to the crux of what is going on in the on trade itself - hence in

outlet methods very respondent friendly and if it’s tricky, as research in the on trade often is… we will

always find a way

Thank you.Cardinal Research, 2 East Poultry Avenue, London, EC1A 9PT

+44 (0) 207 632 3456