Beverage marketing evolves

From Innocent's new dairy-free beverages to Pepsi J-Cola for Japanese taste preferences, marketers are expanding their product mixes to expand their customer base and appeal to variety-seeking loyal brand fans.

Another reason for the proliferation of product extensions and brand extensions is consumers' desire for healthy, nutritious beverages. At the same time, beverage marketers are responding to governmental efforts to encourage healthier lifestyles.

In the UK, there is now a levy on high-added-sugar drinks. Beverages that are made of 100% fruit or vegetables will not be subject to this levy. Ireland and South Africa are also taxing high-sugar beverage products. Individual US cities are similarly taxing high-sugar soft drinks, all part of the effort to encourage healthy eating.

In this UK marketing environment, Britvic has experienced strong demand for its no- and low-sugar soft drinks. Barr is also experiencing strong demand for its low-sugar and no-sugar soft drinks. Watch for more product introductions as beverage marketers compete for the attention of consumers during the high-demand summer months.

Barbie and Ken show market segmentation in action

The original Barbie doll, made by Mattel, had blonde hair, blue eyes and long legs. Today, Barbie dolls (and Ken dolls) come in so many sizes, shapes and colours that there is a Barbie or Ken for everybody--market segmentation in action!

Royal dreams? Mattel markets the Dreamtopia Barbie and Prince Ken. A fan of Jurassic World movies? Buy a Claire Barbie or an Owen Barbie. Got a pocket? Barbie on the Go is sized to go with you to school or play or anywhere (see photo above). Want to try on different hair colours? Try the Barbie Colour Surprise Doll, with hair that changes colour when sprayed with water. 

As these products demonstrate, segmentation is not just a matter of age and gender. Mattel segments the market for dolls according to factors such as lifestyle ("on the go" for instance), desire for variety or novelty (Barbie Colour Surprise), interest in a blockbuster movie (like Jurassic World) and royalty fantasy (both prince and princess).

Not that Barbie is alone in the doll world. Bratz, for instance, is a direct competitor. And Barbie also competes with other types of playthings, not just dolls--including videogames and other digital play possibilities. Barbie and Ken have had mixed sales results in recent years. Will further market segmentation have a positive effect on consumer behaviour?

Marketing a mood, not just a raincoat

https://stutterheim.com/uk

Stutterheim is a raincoat brand that has grown quickly by marketing a mood--melancholy, to be exact. The strapline: 'Swedish melancholy at its driest'.

To quote the company's website:

 Feeling blue inspires creativity.

Today, Stutterheim is known for handsewn, upmarket raincoats that are functional as well as fashionable in a 'timeless' way. Emphasising fashion as well as function, Stutterheim also markets limited-edition coats.

Specialty stores such as Harvey Nichols and Le Bon Marche stock Stutterheim in major global cities. The company operates its own store in Stockholm and in New York City.

If Stutterheim had no story line, it might be just another quality fashion raincoat manufacturer. But marketing the creativity of the mood, alongside the quality coats and other products, enhances the brand's appeal and differentiates it from competitors. Two key points of difference are in the mix: mood (or lifestyle) and quality.

The mood is captivating a growing number of brand fans: Stutterheim's Instagram account has 55k followers; its Facebook page has 31k likes; and its Twitter feed has nearly 1k followers.

Marketing cereal in China: Think green or black

Yes, Weetabix is marketing in China. The UK cereal company is now majority-owned by China's Bright Food business, and thanks to local knowledge, Weetabix's marketing plan calls for adding flavours and ingredients favoured by Chinese consumers.

Last year, the Weetabix chief executive said its Chinese breakfast foods are likely to be hot and savoury, in keeping with local tastes. Even though Weetabix made its name in cereal, the new products in China may not necessarily be cereals. Currently, its cereal bars are gaining popularity, thanks to their on-the-go convenience, which fits the busy lifestyle of many consumers.

Looking ahead, Weetabix is investigating new products such as green tea cereal, and less-sweet varieties that appeal to Chinese tastes. For now, the company will put a lot of marketing emphasis on its made-in-UK heritage and nutritional value because Chinese consumers are concerned about food purity and often perceive non-Chinese brands as safer.

Weetabix faces local competition from companies that are already marketing breakfast foods linked to the latest trends. One Chinese company makes cereal from black grains--tapping into the health associations with this colour. Another emerging food fad involves adding protein by adding peas to breakfast products. What's next for cereal marketing?

Retailers Go for Lifestyle Magazines in Print

Ocado is about to launch its new consumer magazine, Ocado Life, to be included with all of its grocery deliveries from this week. In contrast to the online grocery retailer's virtual magazine, which features recipes and seasonal entertaining ideas, the printed version is a life-style mag for inspiration and information.

Ocado is the latest retailer to work with August Media, a publishing firm that has also worked on magazines for IKEA, Whole Foods Market and others.

More on retailer-sponsored mags:

• Harrod's has its own printed mag, and in fact has established its own media arm. 
• ASDA and Tesco, among other retailers, also publish widely circulated printed mags.
•  John Lewis has its own mag, working with John Brown Media, a firm that has worked with Waitrose and other brands.

This is all part of a broader trend toward brand-sponsored content in magazine format. Beyond retailers, brands in many categories, from clothing to cars, are seeking to connect directly with customers by providing content tailored to the interests and needs of each brand's audience. How many brand-sponsored mags will customers actually read and reread?