Marketing communications in conditions of strict regulation of advertising: case of the alcohol market

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Marketing communications in

conditions of strict regulation of

advertising: case of the alcohol market

MASTER

THESIS WITHIN: Business Administration NUMBER OF CREDITS: 30

PROGRAMME OF STUDY: Business Administration AUTHOR: Yulia Lunina

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Master Thesis in Business Administration

Title: Marketing communications in conditions of strict regulation of advertising: case of the alcohol market)

Authors: Yulia Lunina Tutor: Michał Zawadzki Date: 2020-08-07

Key terms: Dark market, alcohol marketing, marketing communication tools, the AIDA model

Abstract

This master's thesis explores the impact of marketing communication tools on consumer behavior in the Russian alcohol market. Russia is a dark market. The dark market is a market where outdoor advertising is prohibited, as well as advertising on TV and radio. As such, communications with consumers in these markets are strongly regulated by the government. The study provides an overview of current trends in the alcohol market in the world and in Russia. The purpose of this study is to analyse Russian consumers' perceptions of marketing tools and the impact of these promotion tools on the purchase of strong alcohol under the AIDA model. For this purpose, the study examines the legislation governing the Russian alcohol market. The paper provides a description and classification of channels and instruments used in communications with consumers in the dark market conditions. Further, the perception of these methods by Russian consumers under the AIDA model is considered. The study identified the most effective channels of communication for marketing companies. Moreover, the ethical aspect of promoting alcohol products was discussed. The survey results showed that Russian consumers are loyal to both alcohol advertising and the market in general, as well as to their own brands. These results can be used by companies to create marketing campaigns and plan their budgets.

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Figures

Figure 1 The AIDA and the 4Ps ... 8 Figure 2 The growth drivers 2018 ... 22 Figure 3 Influence of communication channels on the purchase process ... 40 Figure 4 Influence of communication channels on the purchasing process (with

knowledge of the brand) ... 41 Figure 5 The influence of off-trade instruments on the buying process ... 42 Figure 6 Influence of on-trade instruments on the buying process ... 44 Figure 7 The impact of event and online channel tools on the purchasing process.... 46 Figure 8 Comparison of the attitude of groups of respondents to the current

regulation of alcohol products promotion ... 47 Figure 9 Rating of channels for stricter regulation of alcohol promotion ... 48 Figure 10 Influence of marketing tools on the consumer ... 49 Figure 11 Comparison of consumer groups' attitude towards a brand involved in

ethical conflict ... 50

Tables

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1. Introduction

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The purpose of this chapter is the presentation of the background of this research. Then the research questions and purpose of the study are presented. At the end the structure of the thesis is described.

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1.1 Background

Promotion of a product is a very important part of business. Marketing allows to introduce a brand to customers, build brand image and increase the interest of potential buyers (Keller, 1987). The consumers’ perception of brands strongly influences their purchasing decisions (Neslin & Blattberg, 1990). Many studies try to determine the impact of the promotion on the consumers’ buying process described by the AIDA model (awareness, interest, desire and action) (Stávková et al., 2008; Kucuk, 2017). Some authors claim that promotion plays a big role during the first stages of a consumers’ journey (Kucuk, 2017), however there also exists an opposite opinion. Stávková et al. (2008) state that customers enter the shop with already planned brand list and promotion can influence only the number of products. Therefore, the role of promotion is still significant topic for researches.

Alcohol markets are very diverse and also very fast developing. According to Nielsen report (2020), the consumption of alcohol in the world increased in 2019 and will continue growing. There are new products at markets, that respond to the trends towards healthy lifestyle, sustainability and small volumes of package for personal consumption.

The alcohol industry lives in a long-standing struggle with regulatory authorities. For many years governments of different countries have developed new restrictions and regulations for production and promotion of alcohol beverages. Therefore, companies have to invent new creative and original ways of promotion of alcohol production. The main purpose of alcohol marketing is to differentiate the brand from others, built strong relations with customer and create recognizable brand image (Jones & Morgan, 2015). Marketing campaigns are usually last for a long time and have significant budgets (Sargent, 2014). However, the alcohol is the case of numerous diseases and social problems (Hingson et al., 2005). Therefore, the ethical aspect of alcohol promotion has a big influence on used marketing tools and consumers’ attitude towards the alcohol marketing. The perception of ethics differs from country to

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country. This leads to different regulations of alcohol promotions in different markets. Some governments are more loyal (e.g. Spain, Germany), while others have very strict regulations (e.g. Nordic countries, Russia). The last are called dark markets, since the outdoor, TV and radio promotion are prohibited. Due to strict regulations and its differences from one country to another, international companies have to adapt their campaigns to local markets and transfer their message by different tools.

There are several studies about consumer behavior on alcohol market (Lockshin et al., 1997; Brunner & Siegrist, 2011; Lockshin & Cohen, 2011; Anchor & Lacinova, 2015; Jashim et al., 2017). Consumers are usually divided in different segments and behave in accordance with their preconditions (Lockshin et al., 1997). The segmentation allows to divide consumers in groups according to their age, gender and drinking habits. Lockshin et al. (1997) define segments according to their demographic factors, however this method becomes more and more outdated during the time. Jashim et al. (2017) follow new trends in segmentation in their study. They claim that the patterns of behavior become more widespread among all age and gender groups. However, the individual habits and preferences have bigger influence on buying process. Therefore, they create segmentation according to people’s attitude towards alcohol, consumption behavior and personal interests. It should be also mentioned, that groups which were created through this approach still are skewed to similar age or gender characteristics.

There are also different occasions of consumption which can influence the decision of purchase (Anchor & Lacinova, 2015). The choice of the product depends on the purpose of the purchase. People may look for a gift, personal consumption or a drink for the group of friends. The aim of purchase defines the expectations of price, quality and taste of desired product. However, some basic factors such as price, brand and taste have a significant impact on decisions of every consumer. Though there is a large amount of research on consumer behavior on the alcohol market, little attention has been paid to marketing tools on the highly regulated markets (dark markets) and their impact on the buying process.

1.2 Research problem and question

It is very important for alcohol companies to communicate with consumers to differentiate brands (Jones & Morgan, 2015). Therefore, marketing pays very significant role in alcohol business and demands high costs (Sargent, 2014). However, in many countries the alcohol

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promotion is strictly regulated by government. In some countries the advertisement of alcohol is fully forbidden. Other markets, like Sweden or Russia, are strictly regulated by government. The markets where outdoor advertising is prohibited and promotion is strictly monitored by government are called dark markets among alcohol companies.

In conditions of the dark market companies are allowed to use reduced number of marketing tools to attract people but still make them exciting about brands and transfer the right message. In this study the marketing tools are used in the dark market (Russian example) is discussed.

Thus, the questions of this study are:

• What influence do these tools have on buying process (on the example of Russian consumers)?

• What is ethical perception of alcohol promotion in Russia?

The following hypotheses will be tested in this paper:

1. Marketing price instruments (discounts, promotions) used in off-trade (shops) and on-trade (bars, nightclubs and restaurants) channels have the greatest impact on the buyer at the action (purchase) stage.

2. Online marketing tools (social media, online resources) are the most effective in the 1st stage (attracting attention to the brand).

3. Alcohol consumers in Russia are loyal to the advertising of alcoholic beverages and do not pay much attention to the ethical aspect.

1.3 Purpose

The purpose of this study is to explore the perception of Russian consumers of marketing tools and the influence of promotion on buying process within the AIDA model. The AIDA model is a model of consumer buying behavior. It claims that there are 4 stages of decision process: awareness, interest, desire and action (Kucuk, 2017). As it was discussed before, marketing tools affect different stages of buying process. Therefore, it is interesting to analyze the effectiveness and influence of marketing tools in conditions of the dark market.

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The topic of marketing communications of alcohol is very delicate since the consumption of alcohol can have adverse consequences. Therefore, the ethical aspect of alcohol promotion is the burning issue.

On the other hand, the marketing of alcohol is necessary for producing companies. For example, there is a huge variety of brands, and as a result, competition for consumer attention in the Russian alcohol market. The fact that consumers are uneducated with alcoholic beverages and consume a very large proportion of vodka and homemade moonshine, tinctures, and others homemade beverages also plays big role in consumption of alcohol. Given the severe limitations of communication channels with consumers, marketing at beverage alcohol companies is a very complex and interesting process. It is developing both in marketing and in trade marketing, developing contracts with distributors, on-trade and off-trade points.

1.4 Structure

This work consists of 8 chapters. The purpose and the research queations are discussed in the first chapter. The second chapter is enlightened by consideration of already existing researches in the field of consumer behavior, models of purchase process and marketing tools. Methodology is described in chapter three. Chapter four examines the Russian alcohol market and its regulation. Chapter five describes the marketing tools used in the “dark market”. Chapter six examines the impact of communication marketing tools on consumer purchase and consumers' perceptions of the ethical side of alcohol advertising. The discussion of key findings and limitations of the study is presented in chapter seven. The chapter 8 is conclusion.

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2. Literature Review

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The purpose of this chapter is to provide the theoretical background to the marketing communication and marketing tools. In specific, the AIDA model is presented in this chapter. The specifics of alcohol marketing and its ethical aspects are also discussed.

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2.1 Channels of communication with the consumer

Advertising is an integral part of every person's daily life. Advertising currently has two main goals: to convince a buyer to buy a product, and to build long-term relationships and consumer loyalty (Wijaya, 2012). Moriarty et al. (2009) argue that advertising is a paid form of communication with a consumer that aims to convince them to buy a particular product. One important objective of advertising is to reach the widest possible audience in order to connect a particular seller with the right customers (target audience). Typically, the media and interactive media are used to provide information about a product (goods, services and ideas). Nowadays, advertising is aimed not only at informing consumers about the existence of the product, but also at persuading them to buy the advertised product. It uses entertainment, educational and inspiring tools (Wijaya, 2011). Therefore, advertising can be perceived from two interrelated perspectives: its economic role and its sociocultural role in communicating not only product information but also social values (Lane et al., 2011). From a business perspective, advertising not only affects the quantity of a product or service sold, but also influences the consumer at various stages of the buying process (Seiler & Yao, 2017). The impact of advertising has a long-term effect (Jedidi et al., 1999). Thus, marketing tools not only stimulate the purchase at a given moment, but also allow to build a relationship with the buyer, which will increase the probability of buying a given brand in the future. According to Keller research (1987), as well as Mela et al. (1997), promotion and advertising influence consumers' perception of the brand image. This, in turn, affects the consumer's future choice of brand. It is very important for companies to understand consumer behavior and their motivation to choose and buy a certain brand (Nancy et al., 2009), because this knowledge allows them to stimulate buying processes and interact better with consumers. In this way, a company can create value and experience for customers (Mackey et al., 2014).

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Consequently, marketing can not only increase the amount of product sold, but also convince consumers to interact with the brand and be involved in its activities. This, in turn, strengthens the link between the consumer and the brand.

Companies use many different tools and channels to interact with customers. Marketers create advertising and stimulate sales to attract customers, build relationships between consumers and brands, and influence the process of selecting and buying products (Neslin & Blattberg, 1990).

One of the keys and more popular sales channels in Russia is off-trade - selling goods in shops, grocery stores, kiosks or petrol stations. Goods are not used in the place where they were bought. The shop is a very important part of the consumer experience and can be used as a communication tool. At the beginning, the consumer determines the point of sale at which the purchase will be made (Srinivasan & Bodapati, 2006). The atmosphere of the store plays a significant role in consumer behavior because it is related to the psychology of the buyer (Spence et al., 2015). The more comfortable the customer feels in the store, the more favorable his experience will be, and the more goods will be purchased. The most common way to interact with customers are visual promotions. Beautiful design of stands and shelves, dynamic presentation - all these tools influence the choice of the buyer (Roggeveen et al., 2015). Stores are a convenient place to place visual advertising (e.g.: displays, pallets, branded shelves) (Roggevven & Grewal, 2016). The most common visual marketing tool is pricing (Mithun & Iqbal, 2018). Many consumers may be attracted by special offers, sales or discounted prices. Currently, another popular tool for attracting customers among retailers is the use of loyalty programs. This tool influences consumer satisfaction and attitudes towards stores (Magi, 2003).

A huge impact on the customer's attitude to the product is the acquisition of own experience, which is created by forming their own opinion after trying the product (Tereschenko K., 2018). For this purpose, large companies use tastings. They give the consumer the opportunity to independently verify the quality and taste qualities of the product of promotion. These tastings can include both tasting the goods in retail outlets and special events, which can be accessed only by invitation.

Another channel of interaction with consumers is on-trade channel. On-trade is selling goods in bars, restaurants, nightclubs and cafes. Beverages are consumed in the place where they

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were bought. Clubs, cafes, bars and restaurants are striking examples of on-trade channels. They are effective not only because of direct contact with the target audience and the ability to clearly target sites, but also in terms of the modern lifestyle of adult youth (Plotnitsina T.M., 2017). They are interested in social networks, synchronism and speed of processes, they do not let smartphones out of 10 their hands. This makes it possible to effectively use in communication additional privileges for consumers: for example, access to a branded terrace, the ability to charge a smartphone, etc., or offer access to tickets to interesting events at a special price (Plotnitsina T.M., 2017). It can also be concluded that online channels are increasingly used for marketing purposes. Companies use such tools as CRM databases, social media advertising, integration with bloggers and others (Kucuk, 2017). These tools target a younger audience and are informative and entertaining.

On the other hand, Kotler et al. (2010) argue that there is a tendency in marketing communication strategies to be less product oriented and more consumer oriented. Advertising has a moral and ethical responsibility to provide accurate information about the product and its social acceptability. The use of educational and inspirational tools does indeed reduce the power of the persuasion function, which still ranks first in the promotion of some companies. However, consumers are already saturated with advertising and treat it cynically, almost without perceiving it. The educational function allows companies to attach certain positive things and associations to a brand. The inspirational function plays a more diverse role. Today, many brands try to convey the right values and promote kindness, tolerance and humanity. Some promotions have conflicting content, which makes people discuss pressing issues and raise awareness of the problem. For example, the advertising of a Gucci sweater in 2018 was an occasion to discuss racism; the Reebook ad in 2019 had a great resonance in Russia and made people think about the issue of equality between men and women. Thus, companies must be aware of both the economic and social aspects of promotion and its consequences.

2.2 The AIDA model

The first idea of the AIDA model was introduced by American advertising advocate E. St. Elmo Lewis (Barry, 1987). Lewis (1903) outlined 3 principles of successful advertisement (to attract, to interest and to convince). However, the first published example of a general concept was an article by Frank Hutchinson Dukesmith in 1904. Duxmith's four steps were

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attention, interest, desire and conviction. The acronym didn't appear until 1921. It was suggested by Russell and presented the modern version of the AIDA model.

Nowadays, AIDA is a well-known model of consumer behavior. The AIDA divides consumer decision process in 4 stages: awareness, interest, desire and action (Kucuk, 2017). The essential elements of marketing mix are known as “4Ps”: product, price, place and promotion (Kucuk, 2017). The relations between 4P model and the AIDA model are shown in figure 1.

Figure 1 The AIDA and the 4Ps

Source: Kucuk, 2017

Promotion plays a very important role in the first phase: attracting consumer attention. The product itself is also very important at the beginning of the purchase process. It must have an attractive packaging design and valuable features in order to be interesting to the customer. The price is moderately attractive for general purpose products, but at the first stage it is more important for particularly frequently purchased products. When a consumer is interested in a product, price also plays a very active role in controlling consumer wishes. Once the consumer has decided on a product, the location factor becomes important: that is, the point where the selected product is available for purchase. Therefore, after the consumer has passed the stage of interest and desire, where psychological aspects play a significant role in the decision-making process, distribution and logistics begin to have a great influence on the buying process. At this point, companies may face the problem of not

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having the goods in stock when the goods are not available on the shelves of the retailer. In this case, consumers may postpone the purchase, switch to a competitor's product or try to find a desired product in another store. Consequently, there is a risk that sellers will lose customers and profit (Kucuk, 2017).

On the other hand, Mitsun and Iqbal (2018) found that advertising in stores does not affect the first 3 phases of the AIDA model. According to their findings, advertising in stores affects the volume of goods purchased. A buyer who has already decided to buy a certain brand is likely to buy more of this product. Stavkova et al. (2008) argue that the most important factor influencing the decision to buy on the food market is habits. The price, actions and discounts, quality and attractiveness of a product (its attributes and characteristics) also testify to a high degree of influence on buyer behavior. On the contrary, advertising, packaging and brand showed a low level of influence on consumers' decisions to choose a particular brand.

There are also improved versions of the AIDA model. For example, there is a modified AIDA model that consists of 5 steps: awareness, interest, convention, desire and action; or the AIDAS model (attention, interest, desire, action, satisfaction) (Barry & Howard, 1990). The AIDA model can also be implemented in today's online world. Thus, the AISDALSLove model includes awareness, interest, search, desire, action, likes/dislikes (dislikes), desire to share, love/hate (Wijaya, 2012). New social life has changed people's behavior, search for information, and trust in advertising (Cappo, 2003). For many companies, it is very important not only to attract consumers and convince them to buy a product, but also to build relationships with them and create loyalty.

The AIDA model in its traditional form can also be used for digital marketing analysis. The analysis of digital marketing efficiency is based on various measures and conversion rates (SiteTuners.com, 2019). Thus, the level of awareness can be measured by visiting a web page or browsing a blogger's post on social networks, the number of clicks can reflect interest, while the desire can be presented by returning visitors or the relevant product research. Finally, in this case the actions are downloading, buying or registering for an event. The AIDA approach is more useful in digital marketing, because you can see the path of each consumer. This allows you to analyze the effectiveness and usability of each tool for users by using conversion rates between stages (SiteTuners.com, 2019).

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Despite the fact that the AIDA model is well known and widely used, it has limitations and shortcomings. AIDA is a hierarchical model. The main drawback of these models is the lack of evaluation of post-purchase interactions such as satisfaction, consumption, quality of use and other behavioral intentions such as recommendations (Egan, J., 2015). Moreover, the AIDA model does not take into account the relationship between the stages. Buyer behavior is not always linear. Some purchases are made because of emotional impulse, which cannot be reflected in AIDA model (Egan, J., 2015). When working with the AIDA model, it is important to understand that this phase model cannot reflect all individual aspects of the buying process and the impact of advertising. However, it provides a basic understanding of consumer behavior and how people interact with advertising.

2.3 Marketing tools on the alcohol market

Companies operating on the alcohol market are largely focused on market trends and consumer behavior. They are less dependent on technological advances and production technologies because traditions and consumer loyalty play a more important role in this industry (Jones & Morgan, 2015). Brands, packaging innovations, and product differentiation play an important role in the alcohol business. To be competitive, companies must pay attention to factors such as distribution, brand positioning and image, and brand management (Jones & Morgan, 2015). The alcohol industry is characterized by high advertising costs (Sargent, 2014). The goal of promoting alcohol is not only to increase sales, prevent new players from entering the market, and win price competition. Alcohol companies are also trying to educate consumers by providing information about the history of beverages, how drinks are consumed, and the differences between them (Jones & Morgan, 2015).

As mentioned earlier, alcohol companies are doing everything possible to highlight their brand in the market. Marketing campaigns differ in some aspects of their marketing strategies: topics, key channels of communication, and the amount spent on advertising. Advertising campaigns have a certain general theme, which can be seen in different channels. Moreover, some brands create collaborations with celebrities from sports, music, other celebrities and the media (Primack et al., 2014). Collaborations are also widely used to collaborate with other major fashion brands, such as clothing brands, car brands or soft drinks (McClureet et al., 2009). In some countries, it is possible to conduct mass marketing

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campaigns in traditional media such as television, radio or newspapers (Federal Trade Commission, 2014). Nowadays, however, social media are more actively involved in marketing campaigns and attract more attention from marketers (Sargent, 2014). Online tools and social media are mainly used to interact with a younger target audience (de Bruijn et al., 2012). These channels attract new consumers, educate youth, and build relationships between brands and young consumers from the first steps in alcohol consumption (Atkinson et al., 2017).

It should be noted that each country has its own rules and laws governing the marketing of alcohol products. International alcohol companies are therefore forced to adapt their marketing campaigns to local markets.

The term "Dark Market" will be used in this study. The Dark Market is a market with strong government regulation of advertising. The word "dark" means that product advertising should be unobtrusive, unnoticeable, almost invisible. Therefore, any outdoor advertising, as well as advertising on television and radio, is prohibited. Moreover, all marketing campaigns should target a specific audience that is older than a certain age (e.g. older than 18 years in Russia or older than 25 years in Sweden). Consequently, companies are very limited in their tools for communicating with the consumer. The term "Dark Market" is widely used between alcohol and tobacco companies.

2.4 Consumer behaviour at alcohol market

The alcohol market is very diverse. The alcohol market has several key segments: low-alcoholic beverages (beer, beer drinks, cocktails), wines, and champagne and spirits (Nielsen, 2019). Thus, consumer behavior varies both between these segments and within each segment. The behavior of consumers who buy beer is very different from that of consumers who buy wine or vodka. Nevertheless, there are a number of studies on consumer behavior in wine and beer markets (Brunner & Siegrist, 2011; Anchor & Lacinova, 2015; Jashim et al., 2017). Consumers are usually divided into several segments by selected criteria. Most often these are demographic indicators: sex, age. However, segments can also be distinguished according to frequency of consumption, habits and hobbies, attitudes towards life and beverages and others. Each segment then has its own marketing tools and strategies, depending on consumer preferences and the characteristics of the segment itself (Lockshin et al., 1997). In addition to the consumer segments, there are also different cases of alcohol

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consumption (Anchor & Lacinova, 2015). These include individual consumption, consumption with friends, romance atmosphere, holidays, and so on.

There are many factors that can influence a consumer's decision to buy a certain brand: taste, price, loyalty to the brand, special offer, etc. (Anchor & Lacinova, 2015; Lockshin & Cohen, 2011). The order and importance of these factors depend on the consumer segment, the market, and the country in question. According to a study conducted by company A (Whiskey Shopper, 2018), the main factor influencing the purchase of spirits in Russia is price. We consider the price-quality or price-volume ratio. Consumers are also unlikely to move from one category to another. Usually, when they enter a store, they are referring to the planned brand. However, if there is no planned brand, they switch to another volume first and then to another brand. Therefore, we can say that in the market for spirits, brand loyalty is very strong.

The alcohol market is heavily influenced by seasonal demand. Thus, in summer there is a high demand for drinks and cocktails with low alcohol content, and in cold seasons the number of purchases of spirits is increasing. In Sweden, for example, demand for locally produced glögg (or mulled wine) drinks increases during the Christmas holidays. In Russia, the New Year is a very important holiday. That's why many stores and distributors face the problem of product shortages in December in Russia. This leads to great losses for companies and disappointments for consumers.

2.5 Ethical aspects of alcohol marketing

The issue of ethics is very relevant when considering the marketing of alcohol. Thousands of people die each year from health problems caused by alcohol or from accidents caused by alcohol intoxication (Murray & Lopez, 2013). Therefore, companies producing and marketing alcohol must understand their social responsibility. Marketing and alcohol production can cause a lot of discussion and disagreement, and it is important to understand how players on the alcohol market position their vision of the problem.

The first problem caused by alcohol consumption is the consumption of alcohol among adolescents (minors). According to the American study "Mothers Against Drunk Driving" (MADD, 2016), children who start drinking at an early age are 7 times more likely to become alcoholics. Alcohol consumption by adolescents causes approximately 6,000 deaths per year. Although official marketing campaigns target people over a certain age (25+ in Sweden, 18+

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in Russia), effective advertising campaigns for young people affect not only the target audience but also minors (Sargent, 2014). Many studies have suggested that alcohol promotion is likely to contribute to exacerbating alcohol consumption among adolescents (Hastings et al., 2005; Anderson et al., 2009; Smith and Foxcroft, 2009). Adolescents are also more receptive to advertising, what is making alcohol advertising even more dangerous for this group of people (Hastings et al., 2005).

Another important problem related to alcohol consumption is alcoholism. Alcoholism leads to health problems and even death. Moreover, this disease also has a negative impact on other people's well-being. Thus, family members and friends of a person, both financially and morally, can suffer from alcoholism of a loved one (Hingson et al., 2005).

Given the above, the promotion of alcoholic beverages has an adverse effect on consumers' lives. On the other hand, pricing is the only element of the marketing mix that makes a profit to companies. To ensure fair distribution in the market, the company must oppose unethical pricing, thereby ensuring that everyone is treated equally and equally. From an ethical point of view, the price should be equivalent to or in line with the interests of the buyers (Atkeson & Kehoe, 2004).

On the other hand, alcohol consumption is everyone's personal choice. Nevertheless, companies have a corporate and social responsibility to all stakeholders. Therefore, companies need to take action to reduce harm to consumers' health and well-being.

Many companies create their own codes of ethics for alcohol advertising. Examples of such codes are the codes of Pernod Ricard, Efes or Carlsberg. These documents focus on social responsibility and moderate alcohol consumption. In general, these documents describe the marketing communications policy that a company can use in the marketplace. Under these codes, commercial communications should not encourage or condone excessive or irresponsible drinking. Companies do not advertise alcohol consumption among children, nor do they inform people about the consequences and risks of alcohol consumption. They are responsible for providing correct and relevant information about alcoholic beverages. In addition, the Advertising Act prohibits the use of links between alcohol consumption and success, sexual attraction, disability, pregnancy and other aspects of life in marketing messages. In addition, many alcohol companies participate in seminars and presentations about the dangers of drinking. They support this movement and try to raise awareness of the

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possible consequences of alcohol consumption while driving. Also, commercial communications should not be associated with gross, aggressive, illegal, dangerous or antisocial behavior. Thus, it can be said that alcohol companies are aware of their responsibility and try to promote alcohol in the most ethical way.

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3. Methodology

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The purpose of this chapter is to describe the methodology of a research. There will be provided arguments in favor of the chosen methodology, the method of data collection and data analysis is described.

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3.1 Research Philosophy

When defining the research method, it is important to understand the philosophy of research. The understanding of research philosophy allows to recognize which design of research will work and be more effective in current study. From the ontology perspective, there are four different approaches: realism, internal realism, relativism and nominalism (Easterby-Smith et al., 2015). Considering that this study is about people's perception of advertising, internal realism or relativism are the approaches that should be chosen for research design creation. Internal realism stands for the independence of reality; however, the observer can only gather indirect evidence of phenomena (Easterby-Smith et al., 2015). In terms of relativism, there is no single reality and its understanding depends on the perception of the individual. Consequently, the observations will be more credible if made from different perspectives (Easterby-Smith et al., 2015). Therefore, while exploring the consumers’ perception of marketing tools of alcohol, different points of view should be regarded. This allows to look at the problem from the different angels and reveal the general trend.

Epistemology has many different vies and paradigms. Some of them has contrasting view, for example positivism and social constructionism. Positivism claims that the social world exists externally, hence it can be measured through the objective methods (Easterby-Smith et al., 2015). On contrary, the key idea of social constructivism that “the reality” is only defined by people’s perception, influenced by their experience (Easterby-Smith et al., 2015). The advertising perception is different for every person. People like different things and pay attention to different factors. However, there exists the common patterns of consumer behavior. Since the purpose of this study is to analyze the perception of Russian consumers of marketing tools and analyze their influence on buying process, the positivism approach

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has been chosen. This approach allows to identify the casual consumers’ attitude towards promotion tools and their response to them. Therefore, the common trends in consumer behavior were investigated.

Considering that the reality cannot be accessed directly, the quantitative survey of big sample was conducted. In general, the aim of quantitative research is to test a theory or collect a representative data about phenomenon or population. Therefore, according to the purpose of this study, the quantitative approach is used to compile data about advertising perception and response in Russia. Russian consumers were asked about their perception of promotion and their reaction to this. This allows to analyze big number of responders in a short time and measure the links between tools and purchasing stages. The disadvantage of this method is its inflexibility, since it is not possible to ask additional questions after conducting a survey.

3.2 Method

The first part of this research focuses on the definition and classification of marketing instruments that are used in the Russian alcohol market. For this purpose, a preliminary qualitative study was conducted. An individual interview approach has been chosen for this part of this paper. Individual interviews are an effective method of studying a person's thought processes, his or her reaction to various stimuli and motivation to act. The interviews can be either structured, semi-structured or non-structured (Unger & Chandler, 2012). The type of an interview depends on openness of questions. – depending on the chosen openness of questions (Armbruster & Knutson, 2013). A semi-structured interview is an interview approach that combines predetermined questions with more open-ended questions and is based on the choice of any of these qualitative or quantitative data (Unger & Chandler, 2012). A hypothetical interview scenario is prepared for the interview, but this may vary depending on the course of the conversation. This approach allows for better disclosure of the interviewee, adapting the topic of the interview to the goal, and obtaining the necessary insight (Toye et al., 2016). Individual interviews also have their disadvantages. In this way, the interviewer can unconsciously influence the respondent's answers by asking specific questions. The interviewer can force the respondent's desired answer. Another disadvantage is uncertainty about the integrity of the interviewee. A person may be shy about telling the truth or giving the answer they think is expected (Unger & Chandler, 2012).

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The first part of this study is dedicated to discussion of marketing tools used in the dark market. For this purpose, the alcohol market in Russia was analyzed. The following chapters contains information about the structure of consumption and analysis of regulation of Russian market.

Russia is a vivid example of the "dark market". In this market, any outdoor advertising, advertising on television and radio is prohibited. Other means of communication with the consumer are also regulated by Roskomnadzor, FAS and other government services. At first, the trends and regulations of dark market were analyzed. Secondly, to correctly identify the marketing communication tools used in the alcohol market, an individual interview was conducted with a representative of Company A, a major player in the Russian and international alcohol market. The interviewee is a brand manager of a well-known brand of whiskey. During the interview, marketing tools used for marketing campaigns were identified and discussed. The guide for this interview is presented in Appendix 2.

The second part of the study is devoted to the impact of marketing tools on consumer behavior. Since this is a very wide topic, it has been decided to narrow it down to Russian consumers. Moreover, as it has already been said, the alcohol market is very diverse. Promotion and consumer behavior are very different in these 3 segments (beer, wine and strong liquor). Considering these reasons, the strong liquor market was analyzed. This market is not very big in volumes what makes the sample more representative. For this part the qualitative and quantitative approaches were used. The consumers have filled a survey about their purchase behavior (Appendix 1).

Quantitative research allows to collect and process a lot of information about different population groups, analyze them from different angles, and identify patterns and trends. Considering that the purpose of the study is to understand the perception of Russian of alcohol promotion, the analysis of a big amount of data is necessary. This makes the study trustful and representative. A questionnaire has been developed to correlate advertising methods with the stages of the AIDA model. It consists of 5 parts:

• Demography screening • Off-trade marketing • On-trade marketing

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18 • Event and Online Marketing

• Ethical perception

The full questionnaire for quantitative survey is presented in Appendix 1.

3.3 Data collection

It is very important for the research to choose a sample correctly. If a sample is not representative, the results may be skewed, biased or inconsistent. These characteristics may be caused by too similar study participants. To avoid this, quotas should be set for different demographic groups depending on the purpose of the study (Toye et al., 2016). For a wide audience, defining group characteristics is an important factor. This can be demographics as well as consumer behavior and needs (Easterby-Smith et al., 2015). Since this study examines consumer behavior on the alcohol market, groups may be divided in terms of demographic factors as well as frequency of alcohol consumption.

To analyze the interaction and reaction of consumers to marketing tools in the dark market, a survey was conducted among consumers of spirits. The sample comprised 210 people: 143 women and 67 men aged 18 years and over. The questionnaire has been made in Google Forms and spread through the social media. Therefore, all answers have been collected in one system and protected by Google privacy policies.

3.4 Data analysis

The responses from Google questionnaire were downloaded as an exel file. After it was uploaded to SPSS program. Using this software, the significant differences between groups were analyzed.

For the analysis, the respondents were divided into 2 groups. The first group: people who drink spirits once a month and more often; the second group: people who drink alcohol rarely (once in 3 months or less). The first group comprises 62% of the sample (130 people) and the second 38% (80 people). Based on the respondents' answers, a comparison was made of the reaction of alcohol consumers and seldom drinkers to alcohol advertising. The survey was divided into four parts (excluding demographic screening) : off-trade, on-trade, events and online, and ethical aspects. The structure and questions of the survey are presented in Appendix 1. The survey asked respondents to choose how certain tools influence their

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buying process: attract attention, arouse interest, arouse desire to buy a product, or provide an incentive to buy. Also, some questions included the answer choice: "I only study the offer if I already know the brand". This answer was counted as additional interest.

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4. Description of the research field

______________________________________________________________________

The purpose of this chapter is to analyze the alcohol market in Russia. The world trends and local trends of alcohol consumption is discussed and overview of market is presented. The history of alcohol promotion regulations in Russia is discussed in this chapter.

______________________________________________________________________

4.1 Global trends in alcohol consumption

According to the Nielsen study (2020), global alcohol consumption is at a growth stage. Despite the current popular trend towards a healthy lifestyle, people still consume alcoholic beverages. However, changes in consumption of categories and growth drivers are inevitable. Because of the trend towards a healthier lifestyle, consumers prefer alcohol with lower alcohol content (alcohol by volume - ABV), alternative drinks with low sugar and carbohydrate content, as well as low-calorie beverages and non-alcoholic Kraft beer (Nielsen, 2020). Whisky, tequila and cognac categories will show the greatest growth in the alcoholic beverage segment. According to Nielsen (2020), the beer segment will see growth in flavored beverages, while the higher alcoholic beverages segment will see growth in drinks with healthier ingredients and innovations in production processes. Wine consumption will also increase due to new packaging formats, wine-based cocktails and wine biodynamics (Nielsen, 2020). In conclusion, the alcohol industry has a rapid growth and complex structure. Companies are creating new products in line with consumer trends and desires. In addition, they are developing and inventing new ways of communicating that meet the restrictions on advertising.

In Russia, alcoholic products are food products produced using ethyl alcohol derived from food raw materials with an ethyl alcohol content of more than 1.5 vol. % of the finished product. Alcoholic products include drinking ethyl alcohol, vodka, liqueur, cognac, brandy, Calvados, whisky, wine drinks, low-alcohol products, grape and fruit wines and other food products with ethyl alcohol content of more than 1.5 vol. % of alcohol production (Eriviashvili et al., 2007). The alcohol market can be divided into 3 main parts: beer and drinks with a low alcohol content, champagne and wines, and spirits (Nielsen, 2020).

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Different segments of the market are regulated by different regulations. The most regulated segment is the strong alcoholic beverage market.

4.2 Trends in alcohol consumption in Russia

The alcohol industry, according to Nielsen (2020), accounts for one-fifth of the FMCG market in Russia, which represents a significant share of household consumption. This segment is very conservative in many ways, but currently it is subject to significant changes. The Russian alcohol market has undergone tremendous changes in recent years, and most of these changes are related to the weakening of the country's policy towards alcohol market participants. The reasons for the tight control over the alcohol sector are the huge share of illegal products and the fight against excessive alcohol consumption. Today, the government's policy is to reduce the amount of alcohol consumed. Moreover, the behavior of Russian consumers has also changed. They are more open to exploring new beverages and alcoholic beverages and are trying new formats, categories, and tastes (Nielsen, 2020). The average price per liter of alcohol rose slightly in 2019, but this is largely due to changes in consumption patterns. Buyers are increasingly trying new beverage categories, which tend to be more expensive. And this trend does not bypass even the largest segment of the alcohol market, beer, where price increases are mainly due to increased demand for imported beer that is unfiltered and produced by small players.

The Russian alcohol market is usually divided into 4 segments: strong alcoholic products except for vodka, vodka, wine and champagne, beer and drinks with low ABV content. The largest segment is beer and drinks with low ABV content. In 2018 its market share was 82.5% by volume (Nielsen, 2019). Second place went to vodka: 11% of volumes. Wine and spirits occupied only 6.5% of the market by volume. Alcohol consumption in Russia is on the rise. In 2018, total growth was 5.5%. The main drivers were champagne, alcoholic beverages and gin. More detailed statistics is shown in Fig. 2.

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22 Figure 2 The growth drivers 2018

In Russia, alcoholic beverages can be sold at any point of sale that has a license for sale. The legal age for buying alcohol is 18 years both in off-trade and on-trade establishments. There are several different types of outlets where you can buy alcoholic beverages: wholesale stores (METRO), hypermarkets, supermarkets, superettes.

Wholesale retailers are represented by the METRO network in Russia. It is a shop for small wholesale trade (Metro-cc.ru). This retailer offers some of the lowest prices in the Russian market. In addition, in 2019 METRO launched a personal program for individuals: anyone can get a METRO card and become a member of the METRO network. Thus, METRO network is one of the most important off-trade channels for alcohol sales.

Hypermarkets, supermarkets and superettes are regular retail stores. They differ in size of shops and wide choice of goods.

Hypermarkets are the biggest stores. They have a sales area of more than 4000 sq.m., wide and diverse assortment. Such shops are usually located in a place with busy traffic, with a large car park, with a relatively small area of utility rooms (GOST R 51773-2009). Hypermarkets are also characterized by a low level of service, as a large area has a small

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number of sales assistants. Thus, buyers independently search for goods, and also experience difficulties if they need to ask for help.

Supermarkets are shops with retail area from 600 sq.m. to 5000 sq.m. The shop has quite a wide range of goods, located in a place with a busy pedestrian and vehicular traffic (GOST R 51773-2009). The main differences from the hypermarket are: a smaller share of non-food products than in the hypermarket, a higher markup, a higher level of service, a smaller amount of the average check.

Superettes are small shops. This group is also divided into several parts. The first group: mini-markets and convenience stores. These shops have a small commercial area (40-80 sq.m.) and a narrow assortment (GOST R 51773-2009). The second group: specialized shops and boutiques are shops with the trading area from 18 sq.m. to 200 sq.m. which have wide assortment of one category (GOST R 51773- 2009). In boutiques there are more luxury goods and a high range of rare goods.

Nowadays, the popularity of hypermarkets in Russia has greatly decreased (Nielsen, 2019). Previously people preferred to go to hypermarkets every weekend and buy food until the end of the week. However, consumer behavior has changed. There is a growing trend in Russia to go to supermarkets or superstores every 2-3 days instead of spending hours in hypermarkets on weekends. As a consequence, supermarkets and superettes are the main drivers of alcohol sales growth in 2018 (Nielsen, 2019).

4.3 Legal regulation of alcohol advertising in Russia

For the first time in Russia, television advertising of alcohol products was legally restricted on July 18, 1995, when the first version of the federal law "On Advertising" came into force. It was prohibited to advertise alcoholic beverages on television and radio from 7 a.m. to 10 p.m. local time, and to show these commercials in programs for minors. Restrictions were also imposed on the content of the commercials: in particular, they could not criticize a sober lifestyle and create an image of alcohol contributing to personal or sports success. On 1 January 1996, article 33 of the Act came into force, completely prohibiting television advertising of strong alcohol, but many alcohol producers continued to advertise brands rather than their products on television until 1997-1998. This practice was discontinued after numerous legal proceedings (TASS.ru, 2014).

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On September 5, 2004, amendments to the Law "On Advertising" limited advertising of beer and drinks based on it: their advertising on TV was allowed only from 10 p.m. to 7 a.m., it was prohibited to use images of people and animals in advertising spots. Subsequently, additional restrictions were imposed on the content of television commercials for beer products (TASS.ru, 2014).

The new law "On Advertising" of March 13, 2006 banned the advertising of alcoholic products on the radio. On July 14, 2011 Russian President Dmitry Medvedev signed a law equating beer with other alcoholic beverages. On July 23, 2012 a ban on beer advertising on television and radio was introduced.

On 21 July 2014, amendments to the Law on Advertising temporarily, until 31 December 2018, made it possible to advertise beer during TV broadcasts of sports competitions. This was done at the request of the International Football Federation in connection with the 2018 World Cup in Russia (TASS.ru, 2014).

On December 31, 2014, Russian President Vladimir Putin signed a law authorizing television and radio advertisements of wines (including champagne) produced in Russia from grapes grown on its territory. This is reported on the official website of the Kremlin. Such advertising is allowed from 23 to 7 local time on TV and radio programs, except live or on recordings of children's and youth sports competitions (TASS.ru, 2014).

The Russian government is actively fighting against alcohol consumption in Russia. In this regard, the State Duma often considers new restrictions in alcohol advertising. In particular, the following restrictions have recently been proposed.

In 2017, a restriction on the production and sale of beer in plastic containers exceeding 1.5 liters came into effect (dp.ru, 2017). An explanatory note to the bill notes that the cheapness of such packaging contributes to the availability of alcohol to the population, and its volume leads to increased alcohol consumption. In July 2017, the Ministry of Health suggested limiting hidden advertising of alcohol in movies, TV programs, and printed materials. In particular, it is proposed to abandon imitation products where the products displayed are not alcoholic but are associated with it, and to ban the placement of products (dp.ru, 2017). References to the quality of beverages are also subject to restrictions. However, this law has not been passed.

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Legislative restrictions apply to two areas: "implementation" and "promotion". The Federal Service for Regulation of the Alcohol Market (Rosalkogolregulirovanie) is a federal body of executive power, which carries out functions on development and implementation of state policy and normative-legal regulation in the sphere of production and turnover of ethyl alcohol, alcoholic and alcohol-containing products, as well as functions on control over production and turnover of ethyl alcohol, alcoholic and alcohol-containing products, supervision and rendering services in this sphere (Snegireva, 2017).

In addition, legislative aspects and rules have been developed, which set out the basic requirements for the production process that ensures the quality and safety of products. At the same time, modern Russian rules of alcohol production are becoming increasingly close to the requirements of the international legal framework (Rumyantseva, 2017).

Legislative restrictions have been introduced by the Federal Law "On State Regulation of Production and Turnover", which prohibits retail outlets from selling alcoholic beverages between 23 and 8 o'clock. In addition, a ban has been introduced on the sale of beer products in kiosks and markets. Alcohol sales of up to 16.5% may be made only in the restaurant business, as well as in shops. Drinking alcohol in public places may by law be subject to fines by the offender.

Legislative restrictions on the promotion of alcoholic beverages are reflected in the federal law "On Advertising". The Federal Advertising Act states that alcohol advertising shall not contain statements that the consumption of alcoholic beverages is essential to public recognition, professional, sporting or personal success, or that it promotes physical or emotional well-being. All alcoholic beverage advertising should contain a warning text.

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5. Marketing communication in dark markets

______________________________________________________________________

The purpose of this chapter is to introduce the marketing tool which are allowed to use in the conditions of dark markets. The tools are divided in 3 main groups: off-trade, on-trade and marketing.

______________________________________________________________________

5.1 Marketing instruments for promoting alcoholic beverages

The first part of this research focuses on the definition and classification of marketing instruments that are used in the Russian alcohol market. Russian market is a vivid example of a dark market. The outdoor, TV and radio promotion of strong liquor is prohibited. The following marketing tools were presented and discussed during the interview with a representative of alcohol company A in Russia. After discussion the classification of tools where made.

Table 1 Classification of tools for communication with consumers on the alcohol market

Trade Marketing

Event and Online Marketing

Off-trade On-trade

Merchandising Shelf-stoppers or other shelf decorations Customized pallets Packaging Collaboration with nonalcoholic brands Neck-hangers Multifacing Sales Consultants Venue branding Multifacing Menu Promo staff Exclusive contracts with venues

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27 Online Retail Sales Incentives Pricing instruments Tastings Chat-bot Pricing instruments Tastings Promo staff PR, image creation Collaboration with nonalcoholic brands

Influencers and social media Own events

Events Sponsorship Collaborations with

celebrities and other brands

Advertising CRM

Influencers and social media

Special events

Bartenders and brand ambassadors

Meetings with bloggers

5.2 Off-trade

The off-trade channel occupies a significant share in the trade marketing budget. Since 70 percent of Russian alcohol consumption is off-trade (according to Company A research), this channel requires a lot of attention and investment. It should also be noted that in Russia, alcohol can be sold anywhere with a license to sell. Therefore, off-trade establishments have a great influence on consumer behavior and are an important point of contact. This channel mainly uses tools that influence the interest of the buyer and his desire to buy the goods, and

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can also motivate action. Due to the seasonality of alcohol demand, different brands are activated at different times of the year, depending on the frequency of consumption. There are several tools that can be used in off-trade establishments.

5.2.1 Pricing instruments

This is one of the most widely used tools in the off-trade channel. Usually, this instrument is represented by a price reduction, 1+1 shares or a limited product offer. According to Company A research, Russian consumers are very sensitive to the price of the product. Therefore, this instrument is perceived as one of the most effective. However, according to a study by Nielsen (2019), the alcohol market in Russia is highly prone to discounts. Buyers are so accustomed to looking for favorable price offers that producers are forced to reduce the price or increase the depth of the discount. This has a negative impact on profitability of sales.

Superettes and the METRO network are known for their low prices. Therefore, they become the main stores using this tool, which leads to high sales volumes.

5.2.2 Shelf-stoppers and other shelf decorations

Shelf-stoppers are distinguished objects attached to or on a shelf, which separates the brand from the rest of the category. Shelf-stoppers and other shelf decorations are traditional visual marketing tools.

The main purpose of this tool is to draw consumers' attention to the brand. These objects, in addition to the image of the brand or other relevant images, may also contain information about a special offer, limited offer or information about the action (gift giving, party announcement, etc.). Shelf decoration is usually used in large stores to make the brand more visible.

5.2.3 Customized pallets

Pallet is a construction intended for a lining of the goods. This tool is used to attract the attention of customers, because it is concentrated on a separate brand. This tool is used more often in discounter stores (METRO, hypermarkets), as it saves space in the sales area and

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distinguishes the brand among a wide range of other products. Separate pallets are also used during promotions and increase the share of impulse purchases.

Companies also use this tool to convey the main message of the marketing campaign, as pallets can be made in any form and contain any decorations that conform to the current advertising regulations. However, it is quite expensive to create separate pallets for each campaign because pallets are an expensive tool that can be used for a long period of time. 5.2.4 Packaging (gift wrapping, special editions, new products, small size bottles)

Packaging is an important part of the product and plays a big role in marketing. It not only contains important information for the customer, but also determines the attractiveness of the product (Kucuk, 2017). A company can change the brand packaging to refresh the look of a product, attract a new audience or as part of a campaign.

Gift wrapping - packages containing the product itself and a gift. As a rule, in the alcohol industry such gifts are glasses, flasks and the like. Such gift wrapping stimulates the buyer to buy goods for a gift, but also stimulates his desire to pamper himself.

Special editions - packages or products created in collaboration with an artist, artist or event. For example, the Spanish-Argentinean street artist Philippe Panton created exclusive packages for Ballantine's Finest and Hennessy brands. Armenian cognac Ararat has released a product created jointly with Charles Aznavour - French chansonnier, actor, poet, writer and composer of Armenian origin. Aznavour personally selected the alcohols for the future cognac and participated in the creation of the packaging for the limited-edition line. Limited product offer and beautiful unusual packages are also aimed at increasing consumer interest, his desire to buy this product as a gift or to add to the collection of exclusive bottles (if available).

New products are a tool aimed at attracting a new audience and expanding the brand line. As there is now a trend among consumers to discover new products and experiment with taste, alcohol companies are beginning to expand their product lines to maintain interest in their brands. On the other hand, there is competition for consumers on the market. Therefore, if the lineup is expanded by one brand, its competitor is also likely to take measures to expand its audience. For example, in 2018, Gordon's Premium Pink berry gin appeared on the Russian market. Next year, the strawberry gin Beefeater Pink will be

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released. Low (for this gin) alcohol content, strawberry taste and pink color were supposed to make it attractive for girls. The additional flavors of spirits also stimulate the creation of new cocktails for bartenders and on-trade establishments.

According to a study by Nielsen (2019), the format of small volume bottles is gaining popularity on the Russian market. This format is suitable for people who want to buy goods for personal consumption, but do not want to spend money on large bottles, which cannot be consumed at once. This format first appeared among brandies, but soon spread to other categories such as vodka, whiskey, wine and others. Such bottles are most commonly found in supersets (convenience stores and mini-markets), as these stores are the place to buy goods every day.

5.2.5 Collaboration with non-alcoholic brands

Collaboration with non-alcoholic brands such as beverages or food products is a tool for promoting not only alcoholic but also non-alcoholic brands. Such packages are already a ready-made solution for creating a home mix/shake drink or can be used as a gift. This tool is also used to present a new product to consumers. For example, in 2019 the Bacardi Martini company introduced a new product: Martini Fiero. Among other promotional tools, there was launched a collaboration with the brand Schweppes. These products were sold in joint packaging at a special price. This stimulated the buyer not only to buy both products at a good price, but also to try a new mix and get acquainted with a new brand or type of brand. 5.2.6 Neck-hangers

Neck-hangers are additional objects which are put on the "neck" of the bottle. These objects may be a label with additional information (e.g. cocktail recipes, prize draw information or an upcoming party). They may also be a decorative part that simply serves as an ornament to the bottle. This tool aims not only to draw attention to the brand, but also to communicate with the consumer. This communication can have educational or entertainment purposes. In this way the neck-hanger can contain information about the history and use of the product. Moreover, this information cannot be applied to the packaging.

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31 5.2.7 Multifacing

Multifacing is a tool for laying out goods on the shelves in stores, a traditional tool of merchandising. It is assumed that the higher the percentage of the shelf is occupied by the brand, the more likely it is to buy this product (Kucuk, 2017). This tool is especially often used in Metro or hypermarkets, as there is a large selection of goods, but also a lot of space on the shelves. Thus, the task of each sales representative is to increase the number of bottles presented on the shelf.

5.2.8 Sales Consultants

Sales consultants are people who help you decide on the choice of goods. Some alcoholic companies invest in the staff of the store. This makes consultants to recommend brands of this particular company. Consultants in the METRO network are especially effective, as this network is characterized by high sales volume and low prices. Taking into account the seasonality of demand for alcohol, the peak of sales and efficiency of sales consultants is on New Year holidays. At this time, it is especially important to have a representative at the point of sale, as there is an increase in demand for alcohol products for personal consumption or buying as a gift

5.2.9 Tastings

Tastings are a way of presenting the product to consumers. However, this tool has some limitations as consumers must be over 18 y.o. and the venue must have a license for alcohol sale. On the other hand, tasting the product creates experience for the consumer. If the person was not familiar with the brand, after consumption he or she will start to pay attention to the presented brand or, on the contrary, in case of unsuccessful experience, will be sure that it is the product they will not buy.

5.2.10 Online Retail

Despite the fact that online sale of alcohol products is officially prohibited, this channel is also actively developing. Many alcohol shops have websites that contain information about alcoholic beverages (Yandex.Market, Winestyle, Red and White), it is possible to compare prices and quality of goods, as well as make a preorder. In the latter case, the buyer reserves a bottle in a certain store, which can then be picked up personally. In this case, payment is