Restricted Consumer Products | Alcohol
Distributor and Consumer Rebates Simplified.
Businesses that operate in the alcohol industry face stringent regulations regarding marketing and advertising campaigns. These regulations vary depending on whether the state is an open or controlled state.
So it’s essential to be aware of what states are controlled and the differences between them and the open states regarding consumer rebates.
And before considering setting up a customer rebate or sales incentive program, solutions must be implemented to ensure full legal compliance with the set regulations.
Here at Incentive Insights, we have successfully helped companies in the alcohol industry with their rebate programs, and this has given us a great understanding of what must be accomplished.
Alcohol As A Restricted Consumer Product
Here are the main differences relating to the distribution and selling of alcohol in open and control states.
List Of Alcohol Control States
Here are the main differences relating to the distribution and selling of alcohol in open and control states.
In contrast, to open states where the federal government controls the distribution and sale of alcohol, there are 17 US states where this is controlled solely by the state government.
*This list of states may change. Please contact your local government to confirm your state is a control state.
- Alabama
- Idaho
- Iowa
- Maine
- Michigan
- Mississippi
- Montana
- New Hampshire
- North Carolina
- Ohio
- Oregon
- Pennsylvania
- Utah
- Vermont
- Virginia
- West Virginia
- Wyoming
How Are Open States Different?
The main difference between a control state and an open state is that the distribution and sale of alcoholic beverages in an open state are not owned and controlled by the state. This means that companies are allowed to buy and sell alcohol freely provided they conform with the state regulations.
Private companies have to apply for a license from the state, which permits them to purchase from diverse retailers or liquor stores at the state’s discretion. And state legislators monitor these companies to ensure they comply with the rules.
The benefit to the consumer is that the companies can offer a more extensive selection of beverages than companies in a controlled state. And this, in turn, can stimulate demand for a brand that has a wider product range to satisfy customers.
Impact On Rebate Marketing Efforts
The following strategies need to be considered as they impact rebate marketing efforts.
Misleading and unfair advertising aimed at children is illegal, so all messages provided when marketing a product must be age-appropriate.
For example, minors should not be targeted in alcohol marketing strategies, as children are not able to distinguish advertising from reality. And this could result in negative social consequences later in life.
When considering what is age-appropriate, you must be aware that different states have different age restrictions. In many states, the legal drinking age is 21, so you have to be careful in how you target people around this age group.
Alcohol can be considered part of a balanced lifestyle when it is enjoyed in moderation. But when it’s not consumed responsibly, it causes behavioral, societal, and health risks.
So it’s irresponsible for companies to utilize marketing strategies that encourage excessive consumption of alcohol.
Instead, they must inform consumers how to enjoy consumption responsibly and provide such information on the packaging. This can be done by also offering non-alcoholic drinks, giving consumers a choice when purchasing your products.
Creating A Compliant Rebate Program
To be successful with your marketing approach in an alcohol-controlled state, you first need to gain listing status to even consider alcohol rebate management.
Gain Listing Status In An Alcohol Control State
Product registration for selling alcohol in a controlled state is compulsory.
And to gain listing status, first, there has to be evidence of market demand. To produce this evidence, you must establish a marketing campaign to help you reach your target audience.
Reaching the target audience will then assist you in becoming aware of what competition can be found in the area and why the most successful competitor is so successful.
It will also make you aware of the local dynamics, enabling you to increase product appeal to customers.
By offering incentives, you can work with a go-to-market strategy that will show you whether or not there is a demand for your product on the market.
But be aware that different states have different demands.
Some states expect brand managers to obtain a Control State Code before being allowed to sell their product, while other states are willing for the product to be marketed before providing a code.
From a legal perspective, this process can be very complex. And companies in this industry must get legal help to ensure they remain compliant with all laws and regulations.
Plan Your Rebate Program
The type of rebate program you utilize will have a significant influence on the success of your marketing approach.
Here are some programs that Incentive Insights offer that can be tailored to a company’s needs.
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Distributor Rebates
Distributor Rebates
This can be a highly successful approach to achieving a wider impact for your target market sector. By setting up incentives tied to rebates depending on the volume of products promoted by large distributors, it’s possible to get more products in prominent store locations than by individually targeting retailers.
These types of distributors are incentivized to promote a certain product range, and when they hit specific targets, you can validate those sales and issue a rebate. It’s like the distributor becomes your partner in the marketing efforts.
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Consumer Rebates
Consumer Rebates
Products offering mail-in rebates must include a rebate form in the product packaging. The form must be filled in and returned to the company, together with proof of purchase, before a shopper is eligible for a refund.
This is an effective way of promoting products while also giving consumers an incentive to purchase the product.
This type of rebate program (what is a consumer rebate program) also allows companies to collect information that can be stored in their database about the customer, and this helps when marketing a new product.
Incentive Insights can help run the rebate process by gathering valuable data directly from your customers.
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Retail Sales Rebates
Retail Sales Rebates
The most successful way manufacturers can convince retailers to stock their product is by offering retail sales rebates.
By offering a retailer discount of 1% on a purchase of 1,000 items or 2% when they purchase 2,000 items, store owners are encouraged to spend more than they originally planned. What’s more, you’ll be encouraging brand loyalty.
Such rebates will also help increase sales, as the retailer can promote the product at a reduced price.
Let Us Help You With A More Efficient Rebate Process
Your company will benefit from our customized rebate processing service, which includes consumer data collection, handling rebate data, and finding innovative rebate solutions that will help increase your sales and encourage and increase brand loyalty.
Contact us to find out how our state-of-the-art techniques can be of service to your rebate marketing initiative by helping your company to become more competitive and customer friendly.
A member of our team will be happy to assist you.
