Wanna grow your drinks brand sustainably?
There are 2 ways to manage your P&L:
- make it bleed
- feed it
Too often I see P&L being overlooked in building brands.
With no money coming in, brands close shop.
There’s no silver bullet here but the closest thing to it is getting the pricing right and let lower tier outlets (that can afford your recommended selling price) get your brand while you build distribution in the top accounts.
The gold ones will build your brand and the silver and bronze ones will pay the bills, generating income to reinvest in gold ones.
Yes, you got it right.
If the RRP is right, bronze outlet will not do any harm to any premium positioning.
- If the brand doesn’t rotate, they will stop listing it.
- If the brand rotates it means that their consumers were not as bad as you had thought.
Brands are built with the market in mind.