"Healthier" Marketing | How Social Trends Changed the Beverage Industry

Locally sourced. Paleo-friendly. Clean eating. Marketers know how to make a niche health trend go viral. Branding your product as “delicious”, “tasty”, and “fast” is no longer enough for many consumers. Marketers are moving towards “healthier” options that fit into your current detox/all-natural/pesticide-free/low-carb lifestyle. This change in consumer preferences has lead to a fight for better nutrition labels, but what does that mean for cult favorites? Consumers not only want convenient products, they also want them to be nutritional, energy-boosting, and as natural as possible. This has caused the beverage industry to go through a culture shock.

According to BevIndustry.com, 79% of their readers see the usage rates of Stevia increasing in 2014 versus 2013, and 60% say the consumer interest in healthy ingredients drives growth more than price-point, GMO-free labeling, and expanded distribution. Companies are having to explain how their products are made and why, which has led to a multitude of new product developments. An increase in bottled water brands is a prime example. Dasani is attempting to make drinking water fun with Dasani Drops, and is using some old-fashioned freebie marketing, while its sister brand, Glacéau, is giving the UK something to sip on with Smartwater. The Coca- Cola Company is expanding in the direction of the consumer market’s preference changes. They have recently released plans to launch Coca-Cola Life, a naturally sweetened version of Coca-Cola Classic.

An intense focus on product benefits in marketing is needed to speak to these customers’ needs. This aligns with the health overhaul that has been swaying the nation. More consumers can quote the calorie-count of an apple, a large fry from McDonalds, and the sodium count on a Lean Cuisine before they can tell you the 18^th president of the United States. Consumers are obsessed with what they’re putting in their body, and that includes what they’re drinking.

Our President and CEO, Michael Steele, noticed these changes in consumer behavior years ago, and chose to make health his cornerstone when he opened his own agency, Advantage Communications, Inc.  Michael chose to sell a healthier lifestyle by partnering with companies and agencies whose goals align with his own. With campaigns like “Know Now” (a campaign encouraging the public to know their HIV status), and “Stamp Out Smoking”, Advantage Communications, Inc. has honed their skills on communicating the benefits of a healthier lifestyle. 

From the world of mega advertising to the perspective of a small business owner – some principles just stay the same.

by: Michael Steele

My career has privileged me to work on major brands domestically and internationally in high level executive marketing positions. From the banking to beverage industries, I’ve developed or help develop major marketing communications campaigns that have stood the test of time – both good and bad.

Interestingly, my experiences have taught me that there are core principles in business that stay the same no matter the industry or size of the business. I now own an advertising agency, Advantage Communications, that specializes in consumer marketing. I find the core principles of my corporate career have become the foundation of my career as an agency principal.

Lesson 1: Fact-based Decision Making.

As part of the mission of Advantage Communications, we are fact-based decision makers and we market the fact that we do not guess with our client resources..simply get the facts and allow the data and good judgment to pave the way. We believe that every campaign we develop must be founded in sound, proven research – not just passionate ideas of what would “look good”. Fact-based decision making is a principle I learned early in my career. I remember being in a meeting at The Coca-Cola Company and watching a hot-headed whippersnapper have his ego handed back to him after making a passionate presentation based on his thoughts and ideas and very little factual information.

Lesson 2: Shareholder Value.
Every day at Advantage Communications, I teach our team that the most important service we can provide is to make our clients goals and objectives – our goals and objectives. This may sound cliché, but the most successful campaigns can die if they deliver the WRONG results. Imagine if your client had a goal to support a new product launch and you delivered added value against one of their already established brands. Successful yes- but not the right kind of success and you are equally fired. To this experience, Advantage Communications has built a history of successful client engagements by helping our clients meet THEIR goals and objectives. While we believe in innovation, the key is focus! Everything we do is about creating value for our clients. At Advantage Communications, we have developed a culture of value-driven marketing leaders. Focusing on our clients’ business objectives allows us to grow with our clients. We seek out small brand, long-term relationships, and below-the-line opportunities with major corporations.

Lesson 3: First thing about creative – it better work!
Creative boils down to 20% of what agencies do and 80% of our reputation in an industry that is under fire. Advertising is critical to the success of most consumer brands… but marketers must understand the purpose. Most of my clients today are building brand awareness and preference.

Not all brands need to advertise for awareness. At the Coca-Cola Company we didn’t advertise for awareness, but rather our goal was simply convert and retain users faster than the guys in blue. In most marketing organizations only one metric stands above all – intent to purchase.

Lesson 4: Track and measure results.
If you are in the ad agency business, you understand the key to retaining clients is effective tracking of results of your campaign. At Advantage Communications, we have one simple rule – If you can’t measure it, don’t do it.

Everything I did as a CMO was focused on ROI. Which marketing and public relations campaigns I launched were all dependent on one key pillar – what is the ROI and how do I prove it? This has become a necessary discipline – one that has allowed me to steer clear of the urge to approve creative because it is impressive or launch a campaign because it is innovative. My comrades learned early on – it better have a trackable, measurable, significant ROI. After all, as CMO it was my accountability to increase sales for the company.

Lesson 5: Planning, planning, and planning.
There is an art to planning and a discipline to follow the plan. Many people can plan, and very well, I might add. But the discipline comes in revisiting the plan, following up on deliverables, tracking results – all details that let you know if your plan is delivering the ROI it promised. Learning to become an effective planner has given me a competitive advantage.

I am amazed at the number of young smart talents that do not understand the importance of planning. Many will successfully get through business school, yet and fail to understand the key to any business is planning and execution. If you are not part of your clients planning process, you are under-funded and likely to fail. Planning is essential to being a partner with your client. No plan, no partnership.

This disciplined approach to planning is also evident at Advantage Communications. My team understands all to well that they should know their clients’ marketing plans inside and out. They also know that planning is continuous.

What key lessons have you learned in your experience?