Home' National Liquor News : NLN FEB 2016 Contents NATIONAL LIQUOR NEWS FEBRUARY 2016 | 43
RESEARCH & INSIGHTS
KINETIC MARKETING WILL FOCUS
ON PUSHING INTO THE B2C
E-COMMERCE CHANNEL IN 2016.
WHAT WERE SOME OF THE
HIGHLIGHTS FOR KINETIC
Last year was a huge year for us with some
major changes here at Kinetic.
Most importantly, we’ve had a major change
in our business ownership. Mick Hall and I
bought out the other founding partner Matt
Courts (formerly of Pernod Ricard). Some of
our key staff members have come on board as
shareholders in the business also.
We’re incredibly pleased to have appointed
Tamara Kahn as our creative director.
This gives Kinetic global-standard creative
leadership in-house, something we’re
particularly excited to be offering to our clients.
We’ve also moved locations from Balmain
to Leichhardt. I think the team appreciates not
sitting on top of each other now. Office moves
are unbelievably disruptive, I don’t recommend
them if business continuity is a priority.
The work did continue however. Some of
the key projects in the liquor space included
assisting Australian Beer Co deliver the Yenda
range of craft beers to market, working with
Molson Coors International on Blue Moon for
new global markets (this year we assisted on
projects in Spain, Chile, Japan and Italy) and
delivering a user customised-label program
with Chivas Regal for Pernod Ricard.
WHAT IS THE IMMEDIATE
FOCUS FOR KINETIC IN 2016?
We have lots of new projects in the pipeline, the
NPD demand on our business has grown and
the industry is really coming to life again after
a few years of relatively sluggish new product
release calendars. So, lots of business as usual.
What we’ll also be working on as a priority
(and something I’m personally passionate about)
is looking at the emerging B2C e-commerce
channel that our core FMCG client base has
been reluctant to push into. Recently Mondeléz
(Cadbury\Kraft) announced to shareholders in
the US that they expected $1 billion in revenue
to come from B2C e-commerce sales by 2020.
Interestingly also, both Coca-Cola and
Pepsi have launched and trialled products in
the US market exclusively through Amazon,
rather than relying on retailers to bring them
It’s indicative of a market shift and a sign
perhaps that the FMCG industry is no longer
so enthralled by the volume and safety that
bricks and mortar retailers can deliver them.
WHAT ARE SOME OF THE
CHALLENGES FACING YOUR
The ongoing challenge faced by most marketing
businesses is dealing with change. Consumer
behaviour and preferences are relatively easy
to anticipate and understand – we as human
beings have emotional needs; brands are
designed to connect with those needs and create
a bond. Where the real challenge lies for our
business, and the industry more broadly, is in
achieving that connection.
Our challenge is we now need to invest
more time than ever to ensure we don’t
miss rapidly deploying digital channels to
HOW DO YOU VIEW YOUR
ROLE IN THE INDUSTRY?
Ours is an interesting one as we don’t actually
make, sell or distribute product like the vast
majority of the industry. The sole purpose of a
marketing agency is to help our client’s brands
communicate with their consumers. There’s
a lot of window-dressing around this, but it’s
really no more complicated than that.
As a company that provides marketing
services to the liquor industry, we have
a responsibility to the community to
communicate responsibly. Part of our role is
to ensure that any advice we give is within the
agreed guidelines, is effective for our clients,
and executed responsibly.
It’s also our responsibility to lobby
for our industry partners – our clients. I
personally feel this has been lacking from
the marketing industry bodies that have
remained almost silent on the matter. The
Australian Promotional Marketing Association
(APMA) has been silent on the concerns raised
regarding liquor promotions within licensed
venues by lobby groups this year. The broader
communications council has also been mostly
silent on the concerns raised regarding liquor
advertising. There’s no one at the table from
the marketing industry and participating in
the dialogue. This needs to be addressed and I
feel it’s our role, along with similar businesses
in the industry to ensure that there’s a voice
advocating for the maintenance of responsible
advertising to adults of liquor products.
WHAT DO YOU ANTICIPATE
YOUR MAIN CHALLENGES
AND OPPORTUNITIES WILL
BE IN THE YEAR AHEAD?
We’ve already seen some councils and
governments this year start to override the
self-regulation of the alcohol industry by
ABAC. This is disappointing, as I believe the
ABAC scheme services the community well and
the self-regulation by the ASB is in line with
So, in terms of challenges I believe this one to
be the major challenge for the industry broadly.
Self-regulation is well and truly under threat. If
we as an industry are faced with a fundamental
legislative change to how alcohol advertising
happens, the entire industry will need to
rethink how it brings products to market and
communicates to consumers and customers.
In terms of opportunities, as I’ve outlined
above the export opportunity for Australian
liquor companies is fantastic, and the growth
means there will be room for all players of
Additionally, there’s continued fragmentation
of the media landscape and the digital channel
is ever increasing in effectiveness for small
challenger brands, venues and the like. This
means lower barriers to entry for small players
and they can bring the product or venue to
market to compete with established players
much more easily.
Conversely, for established players, this
means they can trial products in small test
markets or precincts, and assess and decide if
a large-scale launch is warranted, which takes
some of the risk out of bringing new products
into the market.
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