We Are What We Drink

Just as beer cases have become filled with colorful labels and wine cellars have started to fill with more regional variety than we could ever have imagined, craft spirits are becoming alternatives to the traditional big liquor names. The number of craft distilleries jumped 16% in 2018 and 26% in 2017. In terms of what that represents to the workforce, 19,529 people now work full-time at craft spirits companies.

By far, the greatest number of craft distillers, 32.7 %, are in western states, with the South coming in second at 29.3. Third is the Midwest with 19.1% and the Northeast right behind at 18.9%. Among individual states, the leader by far is California, which has 148 craft distilleries, or nearly 10% of the total. New York State is next, with 123 craft distilleries. Washington State has 106, Texas has 86, and Colorado has 80.

Craft distilleries still represent a fraction of the overall booze market, but they’re steadily picking up sales and volume. In 2016, craft distilleries held 3% of sales. By 2017, that rose to 3.8%. On the surface that seems small, but gaining nearly a percentage point in such a massive industry point to a broader shift, just as it did with beer. Looking at the volume, that becomes abundantly clear. In actual cases, the craft industry has risen from 2.5 million cases sold in 2012, to 5.8 million cases in 2017. Interestingly, more than half of the sales for craft distillers come from customers in their home state. So craft distilling is on the rise, but why? And what does it say about marketing?

Food and drink can have something that the distilling world has long dismissed: a sense of place, drawn from the soil and climate where the grains grow – drawn from the history and cultural patterns that create a sense of meaning. This is tied to a growing international movement by distillers, plant breeders and academic researchers to return distilling to what they see as its locally grounded. Spirits with a sense of place can be made by cultivating regionally specific varieties, along with farming and distilling techniques that emphasize a spirit’s local flavor. But this idea goes well beyond flavor.

Something craft distilleries have done, whether intentional or not, is to tap into or create a sense of history and, in some cases, a sense of mystery. Lifestyle and connectedness have a great impact on consumer behavior and brand preferences. Very often, we choose brands that are considered “appropriate” for our self-image, that fit within a specific context/mood, or are representational of an idea. As a result, we use brands as a relevant means of self-expression and drama. They are “beacons”. Identifying the contexts in which a brand finds life and meaning establishes a sense of connectedness. Tying it to a sense of place and time creates a story that we can immerse ourselves in. For any brand, that crafting of the story can have a huge impact on its longevity and relevance.

We identify and find purpose through the symbols we adorn ourselves with. Those symbols take on the shape of brands, which is probably why a wider variety of cultural expressions among brands can close the gap between the individual self and the commercial self.

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In the Age of Emotion

When historians look back on the early years of the 21stcentury they will note a paradigm shift from the closing years of the Information Age to the dawning of a new age, The Age of Emotion.  Now, there are those that would argue that in a period defined by prolonged economic ennui ROI is the only thing that really matters and pricing is the only real consideration consumers think about – the rest is fluff.  But I disagree. Why? Because we’re not talking about trends here, which are ultimately short lived, but cultural patterns which are sustained and signal a shift in worldview.levis-store-lighting-design-4.jpg

On a fundamental level, we are more in tune with our emotional needs than at any time in recent history, or at the very least we have more time to reflect on them.  We focus increasingly on satisfying our emotional needs and pop culture both reflects and creates this. It is a cycle. One needs look no further than the multi-billion dollar self-help industry as an example. Talk shows abound focusing on the emotional displays of the masses and the advice given out in front of an audience of millions.

And this growing focus on the emotional has extended into the shopping and retail experience.  Increasingly we will see a subtle, yet profound difference in the way people relate to products, services and the world around them. Retailers increasingly focus on the nature of the in-store experience, converting the space from a place to showcase goods, to a location, a destination, a stage on which we perform.  And indeed, shopping is as much about performance as it is about consumption.  Just as fulfilling emotional needs has become the domain of brand development, it is increasingly becoming a centerpiece of the retail experience, at least for retailers focused on margins rather than volume. Rationality will take a back-seat to passion as we move from the sensible to the sensory.  While ROI is the obsession today, Return on Insights and Return on Emotional Satisfaction will be the leading factors in the years to come.

For the developed world and the world’s emerging economies, time and money equate to an increased use of brands and shopping as emotional extensions of ourselves.  Status, power, love, etc. are wrapped into the subconscious motivations for choosing one location over another.  And while we are still bargain hunters, the hunt is less about price than it is about the experience of the hunt.  Again, emotion drives the process, even when we say it doesn’t. “Experience” is emotional shorthand.

Successful companies will learn to pay more attention to how their customers react emotionally and how their brands can fulfill emotional needs.  In the Emotion Age, brands will either lead the way to customer satisfaction or be left in the dust.

 

Love, Passion, and Attachment

Brand love is a rich concept in the field of consumer behavior. If the consumers love a brand, then sales volume of the brand will increase, as brand love gets transformed into brand loyalty. So, marketers should formulate appropriate strategy so that the brand has a strong emotional appeal and target customers fall in love with the brand. This matters because post-consumption satisfaction is likely to lead to emotional attachment with a brand over time with multiple interactions with love.jpgthe brand. It implies that cumulative satisfaction over a period tends to lead to an emotional bonding between consumer and brand. Satisfaction with the brand positively influences the feeling of love towards the brand. Individual romanticism and brand love, the romantic individual is highly emotional and seeks pleasure. So, brand love is also an attitude towards the brand, creating that sense of brand love we so desire. Brand love is highly affective in nature. As such, favorable brand experiences lead to love towards a brand over time. Favorable brand experience positively influences brand love. Individual romanticism and brand experience, romanticism enriches the experience-seeking process surrounding any act of consumption through subjective personal introspection. But is love enough?

Increasingly, you hear people talking about brand attachment, which has three central elements:

  1. Affection: (connection to the external face of the brand)
  2. Connection: (the brand’s alignment with my values)
  3. Passion: (desire for something specific within the brand)

When these three emotions are in play, it is highly likely that there is attachment. It may be an indirect influence on the brand, but it is a strong influence. More than brand loyalty, brand attachment almost becomes a part of you.

Whatever it is that attracts you to a brand to begin with most likely has to do with the way marketing and advertising have served up the content about that brand. It’s the first date, so to speak, when the brand catches your eye and makes you take notice.  This is the point in which you are then brought into what “virtuous circle of brand attachment.” There are three specific phases for the brand, which follow along this path. From each of these, it leads to the other:

Advertising & Marketing to –> Brand Attachment to –> Financial Performance

So, if I am so attached to a brand, let’s say Basil Hayden bourbon, then it follows that by my buying it repeatedly, their financial performance improves. Multiply that by millions of customers, and your bottom line is happily shored up by engaged, repeat customers.

The good thing for brands and companies is that people with strong brand attachments influence other people around them. So, in this sense, there are advocates that develop from their strong brand attachments. These fans or followers of the brand are not only becoming fans or followers to stay, they are also bringing their friends along, increasing the brand’s customer base. They are true brand evangelists, meaning their connection goes beyond brand loyalty. It builds a sense of devotion. It builds passion. The benefit to the brand is that these loyalists are more motivated to devote their time to trying to bring others into the fold. They defend the brand, degrade alternative brands, and devote more time to the brand through brand through engagement is social media.
The message is simple. Find out what your customers’ passions, connections and affections are. Target your marketing efforts with that in mind, and see how they follow by becoming attached to your brand – not just showing loyalty, but true attachment.