---
title: "Merchandising: The Catalyst for Beer Sales Growth at On-Premise Outlets"
description: "Merchandising, especially in restaurants, has become a top priority for beer companies in recent years. Market research shows that markets with active on-premise outlets and strong sales performance often have excellent merchandising, such as Jinxing in Zhengzhou and Kunming, Kingway in Shenzhen, Snow in Hefei, and Liquan in Guilin. This article explores how to implement effective merchandising in restaurants."
author: "马奔"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2015-03-07"
language: "en"
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original_source: "https://mp.weixin.qq.com/s/5KGSI5F2sWhfIfXc-UqwAQ"
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---

# Merchandising: The Catalyst for Beer Sales Growth at On-Premise Outlets

> Merchandising, especially in restaurants, has become a top priority for beer companies in recent years. Market research shows that markets with active on-premise outlets and strong sales performance often have excellent merchandising, such as Jinxing in Zhengzhou and Kunming, Kingway in Shenzhen, Snow in Hefei, and Liquan in Guilin. This article explores how to implement effective merchandising in restaurants.

Merchandising, especially in restaurants, has become a top priority for beer companies in recent years. Based on years of market research, wherever on-premise outlets are active and sales are strong, the manufacturer's merchandising in that market is first-rate. Examples include Jinxing in Zhengzhou and Kunming, Kingway in Shenzhen, Snow in Hefei, and Liquan in Guilin. Through persistent and repeated merchandising efforts, they have revitalized the market and established their strongholds. It can be said that "on-premise merchandising is the catalyst for sales" and a guarantee of sales volume. Let's discuss how to do merchandising in restaurants.

What is on-premise merchandising?
There are many definitions of merchandising. Personally, I believe that regardless of the form, as long as the product is presented to consumers in an appealing way, making it visible and purchasable, and achieving our sales goals, it can be called merchandising. There is no mystery or high-tech involved.

For example, in C and D class restaurants, the owner or his wife, who are both boss and waiter, can "casually" bring the beer to the table when serving food, and the beer usually sells. In smaller C and D outlets, the placement of beer is crucial. It needs to be within easy reach, such as at the kitchen pass-through or in the hallway. If we place the product there so they can grab it while carrying dishes with a slight bend or bow, that's effective merchandising. The purpose of merchandising in C and D outlets is mainly to facilitate the owner's selling efforts. These owners are the biggest consumers; whatever they say tastes good, consumers rarely refuse. Here's a case study for reference.

In Xinyang, the stronghold of Weixue Beer, young people in their twenties grew up with Weixue and are extremely loyal to it. They only drink Weixue. Jinxing Beer faced unprecedented difficulties when developing this market.

Xinyang is a beautiful tourist city. Visitors will notice that "stewed dishes" are a local specialty. Since stewing takes time, hotel owners place playing cards in private rooms to keep guests entertained. Jinxing Beer noticed this and selected 50 cooperative hotels, such as My Vegetable Garden, Gaoshi Stewed Dishes, and Sunshine Hotel, and placed beer directly in the private rooms—five cases per room. The cases were stacked neatly, and the top case was cut open halfway with a utility knife to display the beer inside.

To guide consumption, Jinxing placed table cards in these rooms with a prominent note: "Free tasting for those playing games." During this period, continuous promotion gradually gave consumers a deep understanding of Jinxing Beer. Below is an analysis of this case.

(1) Placing the product directly in the private room and cutting it open allows consumers to see and touch the product up close, achieving a true "face-to-face" interaction. The beer should be placed in two specific locations:
1. Under the window: Good lighting makes it easy for consumers to see. Stacking 10 cases here creates a large display.
2. Beside the door: Easy for waitstaff to access. Five cases are best here, as the area is small and high-traffic, reducing the risk of knocking over and injuring someone.

(2) Cutting with a utility knife keeps the box neat and attractive. Improper stacking or cutting can annoy the owner, leading to non-cooperation. Here's how to cut:
1. On the front, cut from top to bottom at 1/3 to reveal the beer's shoulder label.
2. Cut the top completely open for easy access.
3. Cut the sides diagonally from the top corner to the front 1/3 point, ensuring stability and preventing tipping.

(3) Leveraging consumer entertainment with free tasting encourages consumption, achieving true "bottle-opening sales." This method has three benefits:
1. Free tasting integrates into their entertainment.
2. Free tasting acts as a "trigger" for consumption.
3. Free tasting satisfies the psychological need for "getting a bargain."

(4) The table card states "Free tasting of one bottle." The table card maintains consistency with the hotel's decor and reminds consumers that "only one bottle is free; more requires payment," avoiding misunderstandings at checkout. Two details for table cards:
1. Text should be computer-printed, not handwritten, for neatness.
2. Place the card in the center of the table so all can see, maximizing its promotional effect.

From this case, it's clear that placing the product in the room, cutting the box, and using table cards are all specific merchandising actions. If any detail is done poorly, the owner may not cooperate. For example, if the box is cut messily, it affects the hotel's image, and the owner may not only refuse to sell your product but also develop a negative impression of the brand. Thus, merchandising is meticulous work; done well, it yields twice the results with half the effort.

What does on-premise merchandising include?
Let's take a Jinxing Beer outlet in Zhengzhou as an example.
1. From a distance, you see a striking green storefront with the hotel's name in the middle and "Jinxing New Generation" bottles and "China Famous Trademark" on either side.
2. At the entrance, between the door and the storefront, green Jinxing hanging flags flutter in the breeze. "Push" and "Pull" signs are affixed to the door handle.
3. Inside, the bar counter and pillars are neatly covered with Jinxing posters. Walls have various notices like "Please keep your belongings safe" and "Today's recommended dishes." Tables have ashtrays and table cards. In front of the bar, there are over 100 cases of Jinxing's five beer varieties. The display cabinet shows products priced from 12 yuan to 4 yuan per bottle, all with Jinxing logos.

In summary, everything that can be displayed is displayed. Here's a summary:
1. All merchandising elements, from storefront to posters, should have a unified color scheme. For example, Snow uses dark green, while Jinxing uses bright green.
2. All forms should feature the company's prominent logo, such as Jinxing's "Kingstar" or Snow's "Snow."
3. All displays should be standardized: each shelf in the display cabinet holds one product with the front label facing consumers; posters should be straight and flat without curled edges.
4. "Stack goods like a mountain; beer must be fresh." Large displays create impact, and fast turnover ensures freshness.

From this example, merchandising is about creating "momentum." As the saying goes, "momentum is unstoppable." When you enter the store, you're surrounded by Jinxing's atmosphere, which influences you to try the beer. When everyone tries it, sales naturally follow. Here's another case.

Recently in Hefei, I visited a night market. A food stall sold Snow Beer exceptionally well. The stall had eight tables, each with a Snow plastic tablecloth, two open cases of beer beside each table, and a bottle opener tied to each table with string.

On hot nights, customers would open a bottle immediately, and within minutes, several bottles were gone before the food arrived. Waitstaff also grabbed beers as they served dishes, popping them open and placing them before customers. The stall's success was due to two well-crafted "atmospheres." Let's analyze:

1. Environmental atmosphere: Five of the eight tables had four-corner umbrellas with Snow logos visible from afar. Customers felt protected from wind and dust, ensuring cleanliness. Key points:
- Overall image: umbrellas, tablecloths, beer cases, and openers.
- Details: Each table had two cases stacked neatly.

2. Product atmosphere: Two cases per table meant 16 cases total, surrounding customers with beer and conveying "drink Snow." Product is the best merchandising. Key points:
- Keep products clean, especially plastic-crate beer, which gathers dust; wipe before displaying.
- Display as much as possible to create a visual impact. Inconsistent displays look messy.
- Face the front of the cases toward customers.

These cases show that merchandising comes from the front line; there's no fixed model. Methods vary by environment and location.

How to implement on-premise merchandising?
On-premise merchandising is a project that's easier said than done. Traditional merchandising had two models: product display (stacking at the hall or bar, using display cabinets) and consumption guidance (integrating the brand into store signs, light boxes). With changing times, these models alone are insufficient. Each company has its own approach. For example, Tsingtao Beer started in 2004, hiring a planning company to tailor their program, and saw results by 2005. To do merchandising well, focus on the following:

1. Create a standardization manual
A manual ensures unified brand image and facilitates budgeting. It should include:
(1) Purpose and importance: Merchandising is a team effort. It:
- Brings the brand to life up close, intercepting consumers and countering competitors.
- Creates a positive sales atmosphere, increasing bottle-opening rates and motivating owners.
- Attracts consumer attention, enhances market communication, and boosts brand awareness and reputation.

(2) Standards for merchandising:
- Product display: On shelves behind the bar, e.g., Jinxing: at least 4 bottles per SKU, larger display than competitors, at eye level, labels facing consumers, key products prominent, clean and undamaged, timely restocking.
- Case stacking: To create atmosphere, e.g., Snow's premium or Jinxing's New Generation/Pure Draft; at least 10 cases, no more than 5 layers high, front facing consumers, same brand stacked vertically without mixing, in a prime location, unobstructed and clean.
- Display cabinet placement: Essential for cold beer in summer. First, utilize existing coolers; if not, invest in cabinets placed in "golden spots" with unobstructed visibility. Sign agreements requiring: 100% display of our products, horizontal or vertical arrangement, FIFO, sufficient stock, labels out, upright storage.

(3) Atmosphere creation: Beyond product display, create an overall brand atmosphere. Use unified storefronts, window stickers, posters, bar stickers, hanging flags, stair rail stickers, air conditioner stickers, blank posters, pillar stickers, notice boards, banners, table cards, ashtrays, etc. Ensure consistency, e.g., flags should be connected, evenly spaced, and not sagging.

The manual should be simple, understandable, and practical, simplifying complex tasks.

2. Budget effectively
Merchandising is a long-term investment requiring dedicated teams and significant funds. Budget considerations:
- Allocate a separate budget line for merchandising, not just POP printing.
- Plan over three years: Year 1 build foundation with 90% coverage; Year 2 refine and improve; Year 3 dominate the market.
- Team costs: Balance team size to avoid excess costs or slow progress. Include base salary and performance-based pay to motivate.
- Material costs: Control and evaluate, ensure no shortages for key markets, and prioritize spending.

3. Train personnel
A skilled, articulate team is essential. Training includes:
(1) Specialized training: Separate from sales training, with system explanations, slide presentations using real cases, and group drills/competitions.
(2) On-site training: Managers lead by example, correct errors, and build coordination (e.g., one talks to the owner, another stacks, another pastes).
(3) Regular training: Small team sessions every 7 days, full team every 15 days, praising good work and correcting poor performance.

In conclusion, market competition is terminal competition. Whoever controls the terminal controls the market. The better your merchandising, the more consumers favor you, and the faster sales grow.

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