Spirit of Digital
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Transcript of Spirit of Digital
DRIVING CONSUMERS TO DRINK
SPIRITof DIGITAL
Today’s digital tools give spirits brands the opportunity to observe and leverage consumer behavior like never before. But to do so effectively requires a radical shift in digital marketing. This paper explains how factors specific to the spirits category have led even the most digitally progressive brands to leave marketing money on the table.
It also points to how spirits brands can boost the effectiveness of their initiatives; moving from a primarily executional approach, dictated by brand priorities, to harnessing a strategic digital approach responsive to consumer behavior.
FOR MORE INFORMATION, CONTACT US • [email protected] • 1(646) 347 4340 • [email protected] • +44 (0)20 7407 7666 1
By being more observant and responsive to consumer needs
and desires, brands can build far greater engagement that
will influence purchasing behavior and return a positive ROI.
Investment in digital channels has increased considerably in recent years but brands are still leaving money on the table.
FOR MORE INFORMATION, CONTACT US • [email protected] • 1(646) 347 4340 • [email protected] • +44 (0)20 7407 7666 2
AN INDUSTRY READY FOR TAKE-OFF
Digital, and certainly social media, is like the Wild West to many marketers. Legal teams have
responded with extremely restrictive review and approval procedures, going against the
grain of the nature of the platform and the behaviors of the users. Tentative steps to deal with
these restrictive factors have meant that brands have been slow to take off with much of
their tactics being focused on acquisition. Even the most progressive spirits brands lag behind
brands in other categories.
With technology protocols, such as native age-gates, guidelines in place, and established methods
for engagement taking root, brands are now poised to take-off and take full advantage of a
medium where their target audience (21-35 year-old Millennial demographic) plays throughout
the day, every day.
The opportunity is, therefore, for spirits brands to become true innovators, leaders –
if not heroes – in the digital space.
Spirits are inherently social. Digital’s potential to rapidly build consumer engagement and dialog
should be an (obviously) inviting prospect to spirits brands.
SPIRITof DIGITAL© LAST EXIT STUDY 2013
3FOR MORE INFORMATION, CONTACT US • [email protected] • 1(646) 347 4340 • [email protected] • +44 (0)20 7407 7666
Facebook has been embraced as the default destination and communication hub for many spirits’
campaigns. The world’s biggest social network site has been the main focus for amassing digital
content through original creations, partnerships and user-generated content. But the efforts may
seem to be sporadic and highly tactical.
There is a high degree of variation as to how well brands are faring online today, but a handful are
clearly pushing the envelope and defining digital excellence within the category.
The category may not yet be a hotbed of digital innovation,
but online development at spirits brands has been increasing
over the past few years.
SPIRITof DIGITAL© LAST EXIT STUDY 2013
EMBRACING FACEBOOK
4FOR MORE INFORMATION, CONTACT US • [email protected] • 1(646) 347 4340 • [email protected] • +44 (0)20 7407 7666
3 SPIRIT BRANDS IN THE LEAD…SPIRITof DIGITAL© LAST EXIT STUDY 2013
Online, content is king. A significant component of any digital engagement program will always be compelling on-brand content. Absolut has made content creation the central pillar of its digital strategy, producing a continuous stream of beautifully executed initiatives that leverage relevant cultural icons. From an original short film by Spike Jonze to a Swedish House Mafia remix tool on Facebook, Absolut is far and away the leader in creating high quality, engaging online content.
These executions are a logical extension of the brand’s longstanding connection to the arts and artists, framed in a modern, social media context. Absolut provides consumers with plenty of engaging material to share while maintaining relevance around the brand.
Key to compelling social media presence is the creation of a differentiating voice. Cîroc Vodka chose musician and media mogul, Diddy, giving him creative control, and a substantial financial stake in the brand. Diageo has successfully harnessed tremendous cultural and media firepower. A core strength of the campaign has been Diddy’s social media engagement , and his ability to leverage the influential voices of artists represented by his label –“the Cîroc Boyz”. This approach has generated earned media value far in excess of the brand’s paid media budget. An added benefit is that much of the engagement occurs through personal accounts of Diddy and “the Boyz”,– unfettered by age verification or corporate messaging. As a result, Cîroc’s postings are fluid, responsive, timely and therefore, highly effective.
Mobile holds much promise for spirits brands, but many struggle to capitalize in a meaningful way. Captain Morgan leads the pack with an app combining social gaming, location check-ins, and brand persona , the Captain himself. The ‘Captain’s Conquest’, a multi-player, location-based mobile game, is the most ambitious app of any spirits brand. Players check in to bars via Foursquare, allowing them to “conquer” territory and form fleets with friends. By testing their skills in battle, exploring their city and engaging in other features, players build social engagement while increasing their game standing. This seamless combination of brand persona and consumer engagement is a potent example of how digital tools can follow the consumer journey to the point of purchase and increase brand impact.
ABSOLUT VODKA CIROC VODKA CAPTAIN MORGAN
FOR MORE INFORMATION, CONTACT US • [email protected] • 1(646) 347 4340 • [email protected] • +44 (0)20 7407 7666 5
A SHIFT IN APPROACH: MOVING TO THE
NEXT LEVEL
Digital is squarely in the sights as the most critical territory to claim in the spirits category, so what is next
for spirits brands competing for consumers’ mind space?
SPIRITof DIGITAL© LAST EXIT STUDY 2013
Much of the movement in the category has tended toward elaborate, branded digital
extensions of pre-existing lifestyle campaigns. While this approach communicates a position
and maintains brand awareness, such initiatives are driven primarily by brand priorities,
rather than by consumer preferences and behavior.
The biggest challenge in moving spirits brands to the next level in digital communications is to
evolve from a predominantly tactical approach driven by the brand, to a strategic process driven
by the consumer.
In the spirits category, purchase and consumption decisions are particularly context driven –
season, occasion, venue, company, etc. These can temper, or even supersede, a consumer’s stated
brand preference. In other words, “I’ll have what she’s having”.
STRATEGIC
TACTICAL
DRIVEN BY BRAND PRIORITIES
& INITIATIVES
DRIVEN BY BRAND PRIORITIES
& INITIATIVES
FOR MORE INFORMATION, CONTACT US • [email protected] • 1(646) 347 4340 • [email protected] • +44 (0)20 7407 7666 6
PEAK RELEVANCE:UNDERSTANDING THE
ECOSYSTEM
SPIRITof DIGITAL© LAST EXIT STUDY 2013
Search data shows peak
interest points around crucial
holiday occasions – Memorial
Day, July 4th, Labor Day,
Thanksgiving, Halloween,
and the Christmas/New Years
season. Purchase interest has
distinct seasonality, which
suggests increased consumer
responsiveness to targeted
engagement at those times.
Therefore, a spirits brand
seeking a competitive edge
could potentially enhance
efficiency in their marketing
budget by planning their
calendar accordingly, rather
than scheduling major
initiatives in periods that do
not show a strong connection
to interest and purchase.
Beyond simply understanding how consumers behave online, data from digital interactions
can provide a window into offline behavior. For example, using search volume as a proxy for
fluctuations in general interest, consistent spikes of interest can be observed across the category.*
*Source - Google search volume
Acting upon the moments of peak relevance takes an
understanding of the consumer ecosystem, which can provide a
comprehensive roadmap all the way to the critical moment of purchase.
JAN
2011 2012
JAN
FEB
MA
R
AP
R
MA
Y
JUN
JUL
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SE
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NO
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DE
C
JAN
FEB
MA
R
AP
R
MA
Y
JUN
JUL
AU
G
SE
P
OC
T
NO
V
DE
C
100
75
50
25
0
= SHOTS = COCKTAILS = MIXED DRINKS
DRINK TYPES
JAN
‘13
FOR MORE INFORMATION, CONTACT US • [email protected] • 1(646) 347 4340 • [email protected] • +44 (0)20 7407 7666 7
= SHOTS = COCKTAILS = MIXED DRINKS
TYPES OF DRINKS BY DAY OF WEEK
OCCASION AFFECTS OFF-PREMISE
WEEK-TO-WEEK
SPIRITof DIGITAL© LAST EXIT STUDY 2013
It is also possible to see that some occasions correlate more
with off-premise purchase occasions than others.
Certain times of the year provide more effective
opportunities to push initiatives based around off-premise
purchase and home-bar restocking.*
Distinct patterns of relevance can also be observed on a micro
week-to-week level, with general interest rising steadily toward
the end of the week and peaking on Saturday.*
This information can be leveraged to schedule more direct
call-to-action (CTA) messaging around peak times and utilize other
times for broader brand positioning or fan acquisition.
Though these insights may appear common-sensical, the
implications for structuring communication marketing plans are
significant and wide-ranging. However, there is little evidence
that such findings have been factored into the digital engagement
plans of spirits brands to date.
CONSUMPTION OCCASIONS
2011 2012
JAN
FEB
MA
R
AP
R
MA
Y
JUN
JUL
AU
G
SE
P
OC
T
NO
V
DE
C
JAN
FEB
MA
R
AP
R
MA
Y
JUN
JUL
AU
G
SE
P
OC
T
NO
V
DE
C
100
75
50
25
0
JAN
‘13
= BAR = LIQUOR STORE
JAN
2013
SAT,
JA
N 5
MO
N,
JAN
7
WE
D, J
AN
9
FRI J
AN
11
SU
N, J
AN
13
TU
E , J
AN
15
TH
U, J
AN
17
SAT,
JA
N 1
9
MO
N, J
AN
21
WE
D, J
AN
23
FRI,
JA
N 2
5
SU
N, J
AN
27
TU
E, J
AN
29
TH
U, J
AN
31
SAT,
FE
B 2
100
75
50
25
0
*Source - Google search volume
FOR MORE INFORMATION, CONTACT US • [email protected] • 1(646) 347 4340 • [email protected] • +44 (0)20 7407 7666 8
HEA
VY
UP
TARG
ETED CTA ON FRIDAY
LOCALIZED RECOMMENDATION A
LERTS
AT
PEA
K T
IMES
PRO
MPT O
PTED IN USERS TO INVITE FRIENDS FOR DRINKS AT PEAK TIM
ES
SPIRITof DIGITAL© LAST EXIT STUDY 2013
This is just a starting point and only scratches the surface of the great possibilities that can
result from targeting peak relevance situations.
Actual data and an understanding of device and platform usage patterns, along with specific
consumer information, can be enhanced through creative and strategic digital engagements.
This information then shapes a consumer ecosystem that will inform content development and
the deployment of communications initiatives.
Using Last Exit’s construct to model the consumer ecosystem,
we can extrapolate findings that can identify moments of peak
relevance and provide a basis for multivariate testing and
in-market optimization:
THE ECOSYSTEMEMAIL
MO
BILE
DISPLAY
SPIRITSCONSUMER
POST PR
E
DURING
FOR MORE INFORMATION, CONTACT US • [email protected] • 1(646) 347 4340 • [email protected] • +44 (0)20 7407 7666 9
SPIRITof DIGITAL© LAST EXIT STUDY 2013
COMSUMPTION OCCASIONS
Digital media is an arena
where spirits brands should
excel. However, there has been
much trepidation regarding
how to take advantage of
new media channels in this
highly regulated category with
deeply ingrained marketing
norms. Digital offers a window
into consumer behavior and
opens new paths to purchase.
Establishing a basis for
understanding and exploiting
these moments of relevance
provides a solid structure for
communications. It establishes
a baseline for further
refinement, and opens the
possibility for more rigorous
attribution within a category
that has lacked clearly defined
metrics for digital success. As
spirits brands come into their
own online, the return on
investment from traditional
lifestyle content will inevitably
diminish. Fortunately, returns
will increase for those who
focus on how consumers
connect with their product. By
taking advantage of the spirits
consumers’ digital ecosystem,
brands can create effective
engagement and reap the
rewards of a winning strategy.
By taking advantage of the spirits consumers’ digital ecosystem,
brands can create effective engagement and reap
the rewards of a winning strategy.
CHANGING THE GAME
Taking this strategic, highly responsive and consumer-driven approach to engagement is
becoming a best practice in digitally advanced categories, and represents a critical change from
the traditional brand-centric approach the spirits brand category has employed.
FOR MORE INFORMATION, CONTACT US • [email protected] • 1(646) 347 4340 • [email protected] • +44 (0)20 7407 7666 10
SPIRITof DIGITAL© LAST EXIT STUDY 2013
The pivotal question for marketing / communications departments is
always, “What is the most effective way to spend our marketing dollars?”
In spirits, the marketing culture is constrained by regulation and circuitous
paths to purchase, a situation which has created a fundamental rift between
communications and purchase behavior.
Meanwhile, other categories are gaining valuable efficiencies with digital
to gain actionable consumer insights into intent to purchase, and are
establishing attribution modeling frameworks that give performance metrics
context and meaning.
In summation, brands must upgrade their digital marketing and develop native strategies that aren’t
simply extensions of their traditional brand campaigns. To gain sustainable market advantage,
spirits brands must understand consumers’ media ecosystems and how to engage at points of peak
relevance to their category, brand, and products. Current initiatives of spirits brands demonstrate an
enthusiasm for digital and a willingness to invest in the space, but to take the next step, they must
move beyond novelty to embrace truly responsive digital strategies.
To gain sustainable market advantage, spirits brands must understand consumers’ media
ecosystems and how to engage at points of peak relevance to their
category, brand, and products.
WHAT’S NEXT
FOR MORE INFORMATION, CONTACT US • [email protected] • 1(646) 347 4340 • [email protected] • +44 (0)20 7407 7666 11
Last Exit is a digital agency with offices in New York and London. We exist to provide
unparalleled value to our clients through a rigorous, client-tailored planning process
and world class creative.
To discuss your digital challenges and initiatives, give us a call or email us using the
contact details below.
New York Office
200 Varick St. #802
New York, NY 10014
t +1 646 307 4340
f +1 425 952 9597
London Office
1st Floor, Building 1/2
The Leathermarket
Weston Street
London SE1 3ER
t +44 (0)20 7407 7666
f +44 (0)20 7378 6431
HOW TO REACH US:
QUESTIONS? COMMENTS?