spirit of digital by brick+bond

DRIVING CONSUMERS TO DRINK

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.

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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.


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 and leaders –

if not heroes – in the digital space.

Spirits are inherently social. Digital’s potential to rapidly build

consumer engagement and dialogue should be an (obviously) inviting

prospect to spirits brands.

SPIRITof DIGITAL© BRICK+BOND 2013

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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.

EMBRACING FACEBOOK

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3 SPIRIT BRANDS IN THE LEAD…

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



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?

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 CONSUMER PREFERENCES

& BEHAVIOR



PEAK RELEVANCE:UNDERSTANDING THE

ECOSYSTEM

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.

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= SHOTS = COCKTAILS = MIXED DRINKS

DRINK TYPES

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= SHOTS = COCKTAILS = MIXED DRINKS

TYPES OF DRINKS BY DAY OF WEEK

OCCASION AFFECTS OFF-PREMISE

WEEK-TO-WEEK

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

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*Source - Google search volume



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

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 Brick and Bond’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



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.



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



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.

BRICK+BOND 200 Varick Street Suite 802 New York, NY 10014

t +1 646 307 4340 [email protected]

Whether you’re confused, enlightened, or just want to meet up for a drink – feel free to reach us any time.

QUESTIONS? COMMENTS? COCKTAILS?


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