Food and Beverage

Coca-Cola, or simply Coke, is considered the world’s most popular beverage. Found in over 200 countries, the Coca-Cola logo, like the product itself, is one of the most recognized logos and brands in the world. Needless to say, Coke is a global cultural icon thanks to the marketing efforts that have emotionally engaged people with the brand.

Coke’s success in dominating market share can be attributed to a consistent and strategic branding effort. This effort has given the brand vintage appeal, associated the product with the biggest commercial holidays and global events (Christmas, Olympics, etc), sponsored pop culture sensations like American Idol, and conditioned consumers to crave Coke by pairing it with complementary foods. Much like pairing milk with chocolate chip cookies in the “Got Milk” campaign, American epicurean staples like hamburgers and french fries cannot be consumed without Coke.

And although the Pepsi Challenge blind taste test proved that people generally prefer the sweeter taste of Pepsi over Coke, Malcolm Gladwell – author of the 2005 bestseller “Blink” – contests that the Challenge was a “sip test”. Had subjects actually been given the entire can to consume, they would’ve preferred Coke since people tend to like sweeter things in small doses. This, according to Gladwell, is why Pepsi prevailed in the Challenge, but why Coke ultimately continued to lead the market.

Furthermore, in these blind taste tests, subjects who picked Pepsi over Coke will actually choose Coke in a taste test where the brands are revealed before sampling. Martin Lindstrom, author of “Buy-ology”, argues that all the positive emotional connections the subjects had with Coke – its history, logo, color, design, fragrance, childhood memories of Coke, Coke’s TV and print ads over the years – beat back their rational and natural preference for the taste of Pepsi. Because emotions are the way in which our brains encode things of value, a brand that engages us emotionally will win every single time.

Coke’s presence during life’s most memorable events – or the marketing efforts that strategically placed Coke around life’s most memorable events – is what makes us desire it. Coke thus prevails even despite studies that prove its deteriorative effects on teeth, DNA damage, and hyperactivity in children. And contrary to the relatively recent anti-obesity efforts, people will still opt for a Coke over water, even when water is free. But in some countries, Coke is just available in more abundance than water.

And unlike its competitors, Coke has maintained a consistent and familiar logo design. In attempt to refresh its brand, Pepsi has launched a multi-million dollar re-branding campaign that debuts a revised logo.

The new logo was introduced noticeably by a massive Out-of-Home media investment – billboards, station dominations, etc. Although the change was designed to make the logo more “dynamic and alive”, consumers inherently desire consistency, which offers a sense of stability and control. This is the 11^th time in Pepsi’s 110-year history that the logo was changed. In contrast, the Coca-cola logo has remained consistent throughout its product history, with only minor changes to the bottle itself.

In short, the Coke brand is timeless, whereas Pepsi’s logo revision comes across more as a campaign idea than an enduring brand expression. All of Coke’s marketing dollars have been invested to ensure the brand stays woven into our daily lives and continues to be culturally relevant. So needless to say, strategic and consistent marketing has transformed a simple consumer product like Coke into a global cultural icon.

Sex sells. Here’s why: provocative images designed to elicit sexual responses - whether to shock or appeal to repressed sexual desires - work as long as people desire romance, intimacy, eroticism, attraction, love, and all the feelings they involve. Sex evokes a hardwired emotional response that is linked to species survival. We can’t help that we are instinctively drawn to it because emotional information has a way of piercing our perceptual fields by rising above other environmental information trying to get our attention. So by appealing to our sexual emotions, advertisers attempt to get our attention and show how their products help meet those desires.

Common themes adhere to the “Buy this, get this” formula, and some sexual positioning strategies include: If you buy our product, (1) you’ll be more sexually attractive, (2) have more or better sex, or (3) just feel sexier for your own sake.

For example, the “Axe Effect”:

This commercial’s message to males: Women will temporarily lose their sense of decorum around men who use Axe products because it smells good and makes men sexy.

There’s no substantive evidence that proves whatever chemicals used to make Axe’s scented personal care products actually stimulate sexual responses from women. But, in general, the olfactory is strongest in women than in males and woman are, therefore, more sensitive and reactive to smells. Axe gives deodorant, body spray, and shower gel - what would otherwise be nameless household staples - a whole new significance for men. Both women and men mist themselves with perfume/cologne for sexual and sensual confidence - usually to attract members of the opposite sex - and this campaign exploits that motivation.

And there are sexually provocative ads that don’t even bare skin; just simply having the word “SEX” in the ad is effective enough to grab and hold attention.

The new Sobieski “Truth in Vodka” marketing campaign attempts to dispel the ridiculous marketing claims of competing vodkas i.e. this vodka will make you the life of the party, or that vodka will get you laid. Instead Sobieski aims to market the quality and taste of its vodka without using the gimmicks that generally prevail in alcohol ads. But by using the word “SEX” in its ad, Sobieski is still playing the same dirty game its competitors are playing.

Here’s why: Word activation studies show that there are certain key words that instantaneously trigger a reaction in our brains. “Sex” is one of those words, whose use in an ad makes the tactic a cheap and thoughtless strategy to get and hold attention. The use of the word is an easy way to attract attention, but consumers (generally) are too smart for it. Unless sexuality is relevant to the brand strategy or the product, exploiting the word “SEX” demonstrates a lack of creativity and class.

A brand where sexuality is obviously relevant is Victoria’s Secret. Victoria’s Secret’s has carefully crafted a sexually-sophisticated image. Women who want to be associated with that image, either for their own pleasure or for that of someone else, willingly pay for it.

Here’s an ad infused with sexuality that I DO like, but whose product may not be sexually relevant:

The commercial is illustrative of that vicarious after club/after drinking scene between two strangers who share an immense mutual sexual attraction. If you’ve been there done that, or even if not, this commercial tingles your senses. And does it sell the jeans? If anything, the commercial certainly sells an emotion, which it associates the Levi’s brand with. The message is “Wear these jeans and you’ll feel sexy and adventurous”. Not a bad way to think of your jeans, especially if you’re the type of person who’s confidence is defined by what you wear.

Another example of “sexy jeans” is Calvin Klein. CK affiliates his brand image with sexuality and has always claimed “Jeans are about Sex”. For well over 30 years, sex in one form or another, has been a mainstay in Calvin Klein fragrance, fashion, underwear, and accessory ads. Even though the apparel and style is, in my opinion, nothing worth noting, the sexual image of the brand is what gives it allure.

Similarly, Abercrombie & Fitch publishes controversial catalogs that reveal more nudity than the season’s assortment, illustrating the fact that the retailer sells a brand identity, which then sells its clothes. Closed windows in Abercrombie’s mall storefronts create an intrigue and a sense of exclusivity that draws customers in, even though their assortment is hardly identifiable without the Abercombie label on it.

So I like sexy ads, and if anything there isn’t enough of it in the States (damn our Puritanic roots! - The Levi’s commercial was a product of London). If a brand wants to associate themselves with sexuality and their product is relevant, I’ll like it as long as it’s done with taste. And what I mean by a tasteful sexy ad is one that is more sexually suggestive than sexually explicit. No exposed skin necessary, just a storyline that allows the audience to discern the sexuality themselves and leaves something to the imagination. And because the audience is smart and generally desires a degree of romance, intimacy, and love, they’ll understand the message. But if sex is used merely to draw attention to a product that has no relevance to sex, then long-term success is not likely.

This next one shows a lot more skin and is more than just suggestive; it’s blatantly throwing the message SEX + BEER = GROUP SEX in our faces.

No class but a weak attempt at humor.

Axe Commercials:
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Sobieski Ad: “Truth in Vodka”
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Levi’s Ad: “Secret and Lies”
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Guinness Commercial:
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Wouldn’t it be nice to wake up to a world where riots are conducted in pillow fights instead of blood and guns, where lying politicians are exposed by their Pinocchio noses, and where nice Manhattan apartments cost $300/month? Well when you have an ABSOLUT martini in hand, that world is within your grasp. ABSOLUT Vodka’s new “In an ABSOLUT World” campaign is challenging consumers to re-evaluate the status quo by presenting a very bold and optimistic worldview that embraces humor and social awareness. Why can’t we settle arguments with feather pillows?

Pillow fights…

Components of the Campaign:
1. Print executions
2. Broadcast spots
3. Out-of-Home Public Relations: New York, Los Angeles, San Francisco, Miami, Las Vegas and Chicago
4. On-Premise promotions
5. Viral activity: On May 14, ABSOLUT began a week of guerrilla activities in New York that made the city an “ABSOLUT World” for one week. Consumer activities included rickshaw rides in Soho and the Meatpacking District, music downloads in Union Square, Metro Card giveaways and VIP treatment at select downtown restaurants and clubs, all compliments of ABSOLUT
6. Interactive experience at www.ABSOLUT.com
7. Roll-out strategy: 12 International markets, niche market consumers (minorities and LGBT)
8. $33-$35M budget

Objective: To use all the communication opportunities of the 21st century to bring alive the ideals of the “ABSOLUT World”, and continue to attract consumers to the ABSOLUT brand.
Target audience: Urbanites ages 25-34

Unlike ads that tell consumers what to think through a top-down marketing approach, ABSOLUT’s new campaign simply offers a fresh perspective on the world and engages the audience to interpret its meaning. “The new campaign visually answers the question: what if everything in the world was a little bit more Absolut? It’s not necessarily about perfection, but about making the world better by seeing it with fresh eyes,” said Rob Smiley, Creative Director at TBWA/Chiat/Day/New York. The objective is to encourage a dialogue between customers and the ABSOLUT brand.

The market for premium vodka is competitive. ABSOLUT really took off in 1985 when the brand had few competitors and convinced pop artist Andy Warhol to paint the bottle, launching the brand’s ongoing collaboration with top artists and fashion designers like John Galliano, Gianni Versace, and Tom Ford. But in 1998, the launch of the “Super Premium” French vodka Grey Goose - and the ensuing crop of pricey copycats such as Ketel One and Belvedere - has changed the game and nipped away at ABSOLUT’s market share. Even Donald Trump has his own line of Super Premium vodka! As competitors encroach on its market share, V&S is looking to places like Mexico (as noted by one of the images above), Brazil and China - where a growing middle class is emerging - to fuel growth. ABSOLUT is also marketing to minorities and continuing its support of the LGBT community. So despite the intense competition, ABSOLUT rests as the top-selling imported vodka in the U.S., where 60% of the world’s vodka is consumed, and its success can be accredited in part to advertising. Companies that advertise during and after recessions usually grow at the expense of competitors who have reduced their ad budgets.

The moon as a giant disco ball…

Although vodka has nothing to do with how one views life, the “ABSOLUT World” campaign has a strong message that leaves something to the audience’s imagination. This campaign, therefore, sets ABSOLUT apart from its competitors who market their brands with a top-down approach, where advertising is telling people what to think and do, and not really allowing them to make up their own minds about the ads meanings. This really demonstrates the competitors’ inabilities to shift consumer perceptions and behaviors. See Ketel One’s ad below:

Case in point

Consumers are bombarded by ads all the time, and we have evolved to the point where we can recognize commercials that concern or interest us and grant them at least a few seconds of attention. But even at that point, ads often fail to make the necessary connections to engage with us because the message didn’t align with our motivations and desires as consumers. I noticed ABSOLUT’s print ad as I was reading TIME Magazine because the images really caught my attention, and for a second, I thought it was the preface to an article about the social ideals of some journalist. I realized it was an ad for vodka when I saw the copy and the ABSOLUT bottle to the right of the images. But because I was already intrigued by the alluring images, I continued to engage with the ad by reading the copy - which was almost poetic - that was in black type against a solid white background (below):

In an Absolut World
We question everything.
We challenge assumptions
and defy conventions.
Because that’s the first step in making things better.

In an Absolut World
Reality is only a starting point.
The last stop before imagination takes over
And we create a new world
As ideal and inspired as our vodka.

In an Absolut World
It’s not about right or wrong
Only what if and why not?
We never claim the last word.
We only begin the conversation.

In an Absolut World
Justice is always poetic.
Optimism is our point of view.
Wit and style are the means to an end.
And everything is as carefully crafted
As what we put in our bottles.

In an Absolut World

I didn’t think the copy was necessary, and I would’ve been satisfied with simply just, “In an ABSOLUT World, we ask ‘What if?’ and ‘Why not?’”. I understood the message, but it was as if the Creative Director really wanted to drive it into our minds in case the audience couldn’t interpret the message from the images. And I would’ve preferred the copy to be set in reverse print (black background and white print), and set next to brighter images to create more contrast. Regardless, this ad married a phenomenal creative execution with the ability to engage readers in a dialogue with the brand. Although there really isn’t an identifiable call-to-action with this campaign aside from just reinforcing the ABSOLUT brand, the campaign definitely challenges us to act on our optimism and to express our own visions of the world. And even if your worldview isn’t as optimistic, maybe they will be after a couple rounds of shots.

Swim away your fat…

In an ABSOLUT World, anyone can be Kanye West…

Does this campaign inspire you to choose ABSOLUT over other brands of vodka?

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I’m not a coffee person. I like to think that I’m not reliant on caffeinated supplements for energy. And on those occasional social coffee breaks at work, I usually encourage my colleagues to go anywhere BUT Starbucks. It bothers me to see quaint and charming neighborhood cafés replaced by the green-labeled corporate giant; especially when there was already a Starbucks across the street (Do we really need to have two of them on the same block?). And every time I’m in line at Starbucks, I feel as though I’m at the grocery store check-out counter; Starbucks labeled mints, gum, candy, and cookies line the cashier counter alongside free iTune downloads of emerging Indy music artists. Is Starbucks a coffee business or digital-entertainment business? It’s quite unclear sometimes…

Fortunately, the executives at Starbucks recognize the need for brand revitalization and innovation, and have, therefore, implemented a few initiatives that will revamp their customer experience. But is it going to work? Is that sterile corporate image inescapably ingrained in their brand autonomy? Are coffee aficionados longing for a return to a more nostalgic European coffee house experience that Starbucks fails to give them? The company is negotiating a complicated turnaround following a year in which its stock price fell by half and same-store sales flattened.

Their solution:

- Mass Marketing:

1. Coast-to-Coast product sampling (April 08)

2. Coupons

3. Full page ads in the WSJ

4. Cards entitling customers to a free cup of coffee every Wednesday of May

- Social Networking:

1. www.mystarbucksidea.com An online community dedicated to sharing and discussing ideas and allowing customers to see how Starbucks is putting top ideas into action.

- New Products:

1. Double-shot energy drink

2. Fruit Smoothies

3. New machines that make the barista more visible to the customers

4. New Pike Place Blend (site of the original Starbucks location)

- New Services:

1. Wi-Fi Service for AT&T customers in more than 7000 US Company-operated stores starting May 1 (iTune offers)

- Customer appreciation:

1. Frequency punch cards to earn free beverages

2. Free birthday coffee

3. An extra shot when you buy a Venti

My thoughts:

Product sampling is an effective method to market Starbuck’s new Pike Place blend, because nothing sells better than sampling a product. But discounting with coupons will hurt Starbucks brand equity and pricing power.

The company needs to de-emphasize non-core businesses to bring the focus back to its core product: coffee. The iTune giveaways have got to go! Although I think the strategy to grow sales by diversifying its revenue sources distracts consumers away from Starbucks’ core competency, being innovative does mean having to re-invent yourself. For Starbucks, that means venturing into the smoothie and energy drink businesses (which, at least, is more relevant than the digital music business), which will bring in traffic from non-coffee drinkers like me (although I’d go to Jamba Juice if I really wanted a smoothie). Starbucks has lost its brand buzz through poor innovation, and this is a significant opportunity to engage with an important demographic.

The punch cards and free birthday coffees are a great way to demonstrate customer appreciation. And given the state of the economy, loyal customers who are financially stretched will appreciate the freebies.

My solution:

Our street corners are overpopulated with Starbucks locations; we don’t need anymore! Instead, the company needs to focus on store growth abroad. Furthermore, Starbucks should invest in their larger locations because most often, I find that the only reasons I want to spend time and money in a coffee shop are to study, read or chat with friends. Smaller locations inhibit those kinds of activities, and most of the Starbucks I’ve seen have been quite small, accommodating the on-the-go traffic. If Starbucks wants to revert back to its nostalgic coffee house days, it’s going to have to change its look from that of corporate sterility to one that’s warm and cozy: bigger plush couches, visibly on-hand periodicals, and a variety of individual and communal tables. And the Wi-fi was long overdue.

The Pike Place blend is the company’s effort to return to its heritage and bring back the simple romance and excitement of coffee. A longer term strategy that I propose is to partner with local coffee shops: Starbucks provides the beans and their brand to neighborhood coffee house gems à locals associate the brew with their quaint neighborhood café experience à loyalty to the Starbucks product and brand. Starbucks could partner similarly with local restaurants too, which will give great branding exposure and brand association with more authentic mom-and-pop institutions. Ultimately, the Starbucks brand needs to embody something more than just American Capitalism; it needs authenticity and community endorsement. And contrary to what critics have been saying, I actually like www.mystarbucksidea.com because it creates an online community that allows Starbucks enthusiasts to share their ideas on improving the Starbucks brand.

Where do you get your coffee?

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Product: Sobe Life Water

Target: Health Beverage consumer
Campaign components:

1. SuperBowl Ad featuring Naomi Campbell
2. Fancy, but difficult to navigate, Flash-intensive website: http://www.thrillicious.com
3. Traditional and Non-Traditional Ads
4. Free Samples in High-Volume Metropolitan areas
5. Choreographed dance routines (with a dancing lizard) in Times Square, NYC and Hard Rock Café.

“Thrillicious”, “Thrillicious”, “Thrillicious” is what I heard every morning earlier in March as I turned the radio dial up and grooved my way out of my morning fatigue. Sobe is using this clever fusion of the words “Thrill” and “Delicious” to market “Sobe Life Water”, a vitamin-enhanced water beverage that PepsiCo wants to directly compete in the health water craze. Although the word is catchy, I don’t think much of it. That is, until one morning, I find next to my metro stop a Life Water booth where enthusiastic recruits were vigorously handing out free bottles of the stuff. The word “Thrillicious” sketched in big, black, and bold letters caught my attention, and the allure of curiosity enticed me to grab two, even though I don’t subscribe to the mineral/vitamin water obsession (Doesn’t Snapple have one now too?).

So would I buy Sobe Life Water? Was the marketing campaign successful? And would the campaign convert VitaminWater loyalists? Rather than endorsing the product with a dancing lizard, Sobe’s iconic brand identifier, how about advertising a celebrity athlete who chooses refreshing Life Water (ever hear of Gatorade?) over other beverages? The demonstration of functionality instead of hype resonates more with consumers, who are making smarter health-conscious decisions and aren’t falling for the hype anymore. And besides, does a lizard really invoke thirst?

And if you’re going to resort to hype and fancy dance choreography at Times Square to draw attention, why not actually ENGAGE the consumers in it, instead of having them watch from a distance? Sobe could’ve hosted an urban dance class taught by a celebrity choreography/dancer (accompanied by, of course, Lee the Lizard), during which dancers could quench their thirst from Life Water Fountains that dispense the product in lieu of plain water. The engaged audience, “thrilled” from dancing with Mario Lopez, would’ve developed a positive subconscious association with the “delicious” product. And hopefully, even after the class, they’ll continue to choose Sobe’s vitamin-enriched Life Water over its competitors, and perhaps even over plain water. And, maybe they’ll even tell their friends how great the product is while recounting their experience with Mario.

But then again, this kind of hype marketing to raise appeal is usually indicative of the products inherent poor quality, and the hype is usually short-lived. And are the words “Thrill” and “Delicious” really effective and appropriate descriptions for vitamin water? Since when was watered-down grape juice thrilling? Despite the strategic use of repetition and product sampling, I don’t think the campaign successfully connected the product with the consumer. But then again, it’s difficult to market liquid dietary supplements like Life Water when it’s not performance-oriented like Gatorade is. How was VitaminWater marketed? Regardless, Life Water’s medicinal aftertaste did not enthrall me, so don’t count on me to pick it off the grocery store shelf.

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