In an independent consumer survey commissioned by Amstel Lager this week, 90% of surveyed South African beer drinkers say that they support the Ask Why! initiative, which brandhouse were forced to communicate in response to attempts by its competitor to persuade tavern owners around the country to price Amstel at prices well above-the-recommended selling price of R10.
The results are a true testament to the fact that beer consumers will trade up from mainstream beer to Amstel if it is priced at or around its recommended price of R10 as opposed to prices between R12 and R14 as advocated by brandhouse’s competitor. The survey results indicate that Amstel’s 660ml returnable bottle, priced at a recommended price of R10, will win the hearts and minds of beer drinkers throughout South Africa.
The survey, conducted with over 1100 respondents from around the country, also asked consumers if they would travel to find another tavern if their local sold Amstel 660ml above the recommended price. 74% said that they would, because price is extremely important to them while only 26% said that they would stay and pay the higher price.
Tavern owners around the country are free to sell Amstel at any price. Amstel has worked hard to ensure that everyone, no matter what their income group, is able to access this great premium beer at a lower price, which is why Amstel recommends that it is sold at R10.
“Choosing to sell Amstel at its recommended price of R10 works for consumers as well as tavern owners, because at R10, they will find it easier to trade up from mainstream beers to Amstel. This will help them to sell more and make more margin over mainstream,” says Gerald Mahinda, MD of brandhouse, the company that brews and distributes Amstel Lager.
When asked if consumers were pleased with the recent reduction to Amstel’s size from 750ml to 660ml, and the resultant drop in price and introduction of a returnable bottle, 94% said that they were happy with the changes because it means that they can now afford this great premium beer at a great price. Only 6% said that they preferred the 750ml bottle.*
94% said that they would trade up to Amstel premium beer if they were able to buy it for R10 and 6% said they prefer mainstream beer.
“We are extremely pleased with the results of this survey, because it indicates that surveyed South African beer drinkers prefer to drink Amstel over mainstream if it is priced within their budget. I believe Amstel at a lower price is a big win for all South Africans, and a true testament to the fact that if you keep the consumer at the centre of your pricing strategy, you will win!,” concludes Mahinda.
Survey demographic profile:
Monthly income:
Between R0 and R1499 45%
Between R1500 and R2499 18%
Between R2500 and R4999 21%
Over R5000 16%
Male / female split:
Male 63%
Female 37%
Age:
Between 18 and 24 27%
Between 25 and 32 60%
Between 33 and 40 11%
Older than 40 2%
Survey results:
Amstel Lager has made it possible for your tavern owner to charge you R10 for Amstel’s 660ml returnable bottle, if you are charged more, will you Ask Why?
Yes, I want to buy a great premium beer at R10 90%
No, I am happy to pay more. 4%
I don’t know. 6%
Does price matter to you so much that if you can’t get your Amstel Lager 660ml returnable at your local tavern for R10, you would travel to find a tavern that sells it at R10?
Yes, price is very important to me, I will travel to find Amstel at R10. 74%
No, I would stay and pay the higher price. 26%
If you can buy Amstel Lager, a premium beer, at R10, would you buy premium over mainstream beer?
Absolutely yes, I would far prefer to enjoy a premium beer over a mainstream beer. 94%
No, I prefer mainstream beer. 6%
Amstel worked hard to reduce the cost of 660ml Amstel Lager to R10 by reducing bottle size and by introducing a returnable bottle – are you happy with these changes?
Yes, I now get a great premium beer at a great price. 94%
No, I liked the 750ml bottle that I paid more for. 6%
Ask Why initiative rakes in massive consumer support for Amstel at R10! (via Miplanet) « Miplanet Said:
on June 9, 2010 at 2:56 pm
[...] In an independent consumer survey commissioned by Amstel Lager this week, 90% of surveyed South African beer drinkers say that they support the Ask Why! initiative, which brandhouse were forced to communicate in response to attempts by its competitor to persuade tavern owners around the country to price Amstel at prices well above-the-recommended selling price of R10. The results are a true testament to the fact that beer consumers will trade up … Read More [...]