"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. 

The "Brown" Age

By: Michael Steele, President and CEO 
Advantage Communications, Inc.

It’s no secret that the U.S. minority population has steadily increased over the last several years. Nor is it a surprise that minorities are projected to become the majority by 2042, with the nation projected to be 53 percent minority in 2050, according to a 2008 U.S. Census Bureau press release. The real surprise, however, is that the innovative marketing and communications industry has not quite grasped the implications of this forecast. According to an Advertising Age 2009 White Paper entitled, “New U.S. Census to Reveal Major Shift: No More Joe Consumer”, “the message to marketers is clear: No single demographic, or even handful of demographics, neatly defines the nation. There is no such thing as “the American consumer”. 

It is even more important - now than ever - to understand that a new paradigm is upon us and its name is “market segmentation”. As one of the fastest-growing, multi-cultural, advertising, marketing and public relations agencies located in the mid-south, Advantage Communications, Inc. has not only accepted but whole-heartedly embraced this paradigm. Our expertise has been built on our efficiencies to generate buzz, alter attitudes and perceptions and drive consumers to action specifically in diverse markets. This is the environment in which we live and to effectively communicate, we must first understand this new America. 

To this end, here are just a few things we KNOW:

• The idea that “one message for all” will suffice is no longer the case. Consumers want to feel as though messages are targeted directly to them to satisfy their needs, address their concerns, fill a personal void, or the like. 
• Minority populations (especially African American, Asian and Hispanic) have a higher propensity to consume messages that are disseminated through targeted outlets or those designed to address the nuances of these cultures. 
• The use of culturally-relevant images, language and other concepts is well-received among minorities as they are perceived as being “personable”, realistic or easily relatable. 
• Appealing to cultural nuances, social norms and lifestyle situations is essential in penetrating the inner thoughts and emotions of minority consumers. 
• Advertising recall is often higher among minorities than their non-minority counterparts when skewed to their cultural nuances. 
• As it pertains to African Americans, they are more responsive to messages delivered by models and spokesperson that look like them. 

So what exactly is the term “market segmentation”? Although it may not be defined in commonly-utilized reference tools, the concept is simple. Market segmentation is first recognizing the multiple segments within the marketplace and then tailoring messages to fit identified needs.

Make no mistake about it… There are several companies and businesses that do understand the need for targeted marketing and many of their efforts have proven successful. Such large restaurant chains as McDonald’s and Burger King have demonstrated their capabilities to tailor messages to target audiences while also appealing to the general market. According to a November 2009 article in Advertising Age entitled, “Ethnic Insights Form Foundations of McDonald’s Marketing,” McDonald’s marketing strategy is framed by its knowledge of ethnic markets. Neil Golden, CMO of McDonald’s USA, states, “Ethnic segments are leading lifestyle trends.” The article goes on to explain that not only is the ethnic segment a trendsetter, but also largely comprises of McDonald’s total customer base. Approximately 40% of McDonald’s customers are of Hispanic, Asian and African American descent.

Other large corporations, such as The Coca-Cola Company, the company wherein I worked more than 15 years as a marketing executive, has also embraced the idea of market segmentation. With its commitment to providing quality beverage services to all consumers, The Coca-Cola Company understands that in order to encourage consumption of its products, it must spark interest within the consumer. This interest is sparked through the message delivery – hence the need to tailor the message specifically to the audience in which it will be received.

I believe the key to market segmentation is understanding your target audience. We live in a world where trends are here today and gone tomorrow. It is essential to understand the demographics and psychographics of those whom we seek to target. It’s almost impossible to address a need if we do not first know what it is. To this end, I continually encourage my associates of Advantage Communications, Inc. to conduct extensive research on industry trends, competitive advantages, population data, etc. Additionally, we are no strangers to referring to targeted publications such as Diversity, Inc., Target Market News, Multicultural Marketing News and Black Enterprise Magazine for the latest news and trends within our multi-faced marketplace.

In pressing forward to the new era of marketing i.e., “The Brown Age”, I encourage my fellow communications professionals to adapt to their environments. Although efficiently and effectively tapping into diverse markets may seem tedious at surface view, it is a step in the direction toward innovation. And as smart marketers, isn’t this a step we’re ready to take?