Majestic Wine has switched its minimum order policy, and the move — along with its customer service proposition — is likely to bring in new customers.
The news this week that Majestic Wine is to drop its minimum purchase order from 12 to 6 bottles may not sound like a big deal, but it does show that the retailer is carefully thinking about its proposition to ensure it moves with the times.
Majestic’s 12-bottle strategy helped it generate high levels of profit per sale, and also eased planning applications as effectively it meant it was a wholesaler. But in the current climate it makes no sense to stick to this strategy.
For the majority of loyal Majestic customers, the change won’t mean much. They will almost certainly drive to the store and therefore there isn’t much point getting the car out for just 6 bottles, so they are likely to go for 12.
The move will, however, draw in new customers who were previously put off by the 12 bottle rule. I will pull in those customers not wanting to spend as much money, and those that are travelling on foot. These new customers are more likely to live in cities and pass by Majestic on their way home.
Majestic has always offered an expert service to its customers and if the new rule brings in new shoppers, they could well become lifelong fans. Along with the 6-bottle rule change, Majestic has also launched a new in-store initiative called Wine Uncorked – a free introduction to wine – which shoppers can take up. This is the kind of service that the supermarkets could never achieve.
While it’s true that the supermarkets have the majority of the alcohol sector, Majestic has its place and its customers will be attracted by high levels of customer service.
Such customer service can’t be achieved at specialist off-licences such as First Quench and Oddbins either. They both have the power to be convenient shops but they don’t have the breadth of range of specialist advice as Majestic.
The move won’t also dent Majestic’s online sales. It will still continue with its 12-bottle policy online but does however offer free delivery.
The retailer has been careful about changing this strategy, but it should well pay off.