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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Advertising Creating Positive Social Change

Advertising often gets a bad rap. It promotes over consumption, It promotes negative stereotypes. It makes us dumber. And while there’s some truth in all of this, there’s an argument to be made that advertising, in all its many forms, has also worked for the betterment of humanity. Advertising over the last two decades has created an environment where inclusive portrayals of society have actually benefited our culture, not only a company’s bottom line. 

Early in the history of advertising, the message was almost exclusively on the product. Features, benefits, and promises defined the messaging – get whiter teeth, have a greener lawn in half the time, etc. Those messages are still there, but there’s been a shift. As the battle for consumer dollars and attention have intensified, advertising has become more focused on brand. Michael Phelps pushes us to be not just a better athlete but a better human being.  Google shows us how inspirational we are through our communal search. Features and benefits don’t even factor in, as the message hones in on what it means to be caught up in this mortal coil.

Companies have shifted from delivering monologues to engaging in conversations and this dynamic has made brands more human in the process. Take Always’ #LikeAGirl campaign. Never referencing feminine hygiene, Always focuses purely on the issue of female empowerment, using the ad to begin “an epic battle” for young girls everywhere by “showing them that doing it #LikeAGirl is an awesome thing.” But Always goes beyond what a brand says about you; it’s about identifying shared goals and contributing to a higher purpose – for everyone. You care about empowering girls? Great! You can tweet the “amazing things you do” with #LikeAGirl, and “stand up for girls” confidence at Always.com. Now it’s a conversation, and that’s exactly what Always, and the other companies joining in this form of values-based advertising, are looking for. Very few people care about tampons, but equality and female empowerment? Now that’s topic people get excited about. And this isn’t just about the target audience. It’s about grandmothers, dads, everyone. It help drive a conversation that has resulted in helping break down gender-biases and shifting cultural perceptions.

Cheerios is another great example. The brand didn’t realize what it was getting itself into when it  first featured an interracial family to promote the heart-healthy cereal during the summer of 2013. A topic we take largely for granted now sparked a great deal of discussion then. The racist backlash to the ad was so intense that Cheerios disabled the comments section on their YouTube channel. And this offered the public a glimpse into the prejudice mixed race families have to contend with, sparking a national conversation. Cheerios also saw an outpouring of support from consumers applauding the commercial, and a passionate defense against the backlash with people standing up for interracial families everywhere. What began as a simple cereal commercial ended up leading to a national discussion on race relations.

When advertising focuses on empowering people and accepting groups that are less accepted, it doesn’t just reflect culture, it shapes it. When brands paint a different picture of society, they play a role in redefining what is considered mainstream. They play a role is redefining our collective worldview and thus reshape culture. This isn’t to over-inflate the role of advertising in cultural evolution. Advertising will never act as the central agent of change. But that doesn’t mean it isn’t an important part of the process. We consume massive amounts of advertising every day. When this content promotes an inclusive picture of society and positive cultural change, it can work as an accelerator for social progress. It’s value is not in starting the fire, but in fanning the flames.

ROI and the Intersection of Exploration

When chemists at Oregon State University discovered a brilliant new blue pigment serendipitously, they were not thinking about creating art. But in a true art meets science moment, an applied visual arts major began using the blue pigments in her artwork as part of an internship in Subramanian’s laboratory. This was also her first foray into the world of chemistry. Human history is filled with examples of innovation that occurred at the juncture of art and science, whether it’s as profound as Leonardo da Vinci’s explorations of anatomy or as mundane as liquid nitrogen ice cream. The point is simple – creative inspiration, whether in product development, advertising, or any other activity, is a matter of rethinking how we look at a problem.

Driven by CEOs that want to see ROI and engagement for every cent spent versus the equally valuable but often nebulous idea of “brand impact,” campaign and branding initiatives can be particularly challenging for CMOs today. Seemingly competing world views clash in large part because we take a binary position – it’s an either/or mentality where art and science are somehow in conflict. But is that fair or is it a modern construct? Are art and science so divergent or have we slipped into a lazy pattern of thinking.

Brands that want to take advantage of the intersection of art and science can start by simply acknowledging the fact that creative and metrics are not mutually exclusive concepts. By blending these two components of the creative process (and yes, science is a creative enterprise) and giving them a common goal to work towards, we see focused innovation. We see new expressions of a common undercurrent.

Blending art and science is about collaborating in ideas generation: the inter-relationship is critical, you can’t have one thing without the other. A bunch of code or data is just a bunch of numbers without the art. A visual masterpiece that produces no action is inspired but not inspiring. Science enables us to be more creative, and creativity allows us to get the most out of our data. But consider “the multiplier effect”. If either the data or creative are bad, the idea will fail. Or worse yet, if they work alone, without the cross-pollination that happens when different ways of experiencing the world come together, then the result can be flat out detrimental. It’s not one or the other that we need, it’s both. It’s not science plus art equals results, it’s more science times art, so a zero for either means failure.

That is where the interesting ideas are – at the intersection of exploration. The future is all about ideas connecting. Those who can bridge art and science will be in demand, will be powerful. If our ideas are going to change hearts and minds, then we need to find expression that can move freely between the boundaries of art and science.

Just Give Them the Facts and You Won’t Sell a Thing

Marketers and product developers spend a great deal of time talking about why the thing they’re selling matters, why it’s better than the next guy’s thing.  They quote facts and features and minutia to make their point because, as all good business people know, people respond to fact.  Here’s how things would work in a perfect world: You and your competitors are pushing soap, or tires, or TVs, or, well you get the idea.  To prove your superiority, you pull out a piece of information so precise, so compelling, so perfect, that the consumer is swayed and decides to buy your goods.  They become life-long devotees and advocates for you. You and your team make millions for your company and become the saviors of the day.

And this probably has happened in some cases, as long as it was a product  that neither consumer nor the person buying it cared that much about.  Think toilet bowl cleaners.  But if it is a product or service that has deeper, emotionally charged components, then it probably hasn’t.  We like to think that our facts are enough to sway people because if they’re shopping for, say, a television they are shopping for technology.  But the TV is much more complex than that – it is status symbol, it is entertainer, it is baby sitter, it is the digital hearth around which the family gathers much as it did around the campfire in the not so distant past.  Facts are a necessity, but they are not the most compelling element when trying to persuade someone to buy your things.  Regardless of our belief that we’re all wonderfully rational, the truth is we are not.

Why is this the case?  Well, according to one theory (and they are indeed competing theories about this), we didn’t evolve communication skills just to improve our skills at the hunt.  We evolved to build arguments as a form of verbal bullying rather than a method of spreading correct information.  And competing marketing messages are just that, a form of argumentation.  They are a means of bending others to your way of thinking.  In other words, there are two reasons for a company trying to persuade a consumer to pay attention to them, 1) because they actually want to get you to buy the right thing and 2) because they’re trying to establish dominance over you. Not surprisingly, we understand this at a gut level and interpret leading with a series of facts as a way of establishing control.  We don’t react negatively to it, but we tune it out.

Think about the way people treat the two sides of a political debate like teams.  People are aware that much of what they have to say and what they support is simply absurd dogma.  But they embrace otherwise extremist ideas with remarkable vigor.  Now, note how may of the positions debated involve people jumping into an issue in which they have nothing at stake.  They are tribalizing, joining a team. That is know as confirmation bias. We read a news article that supports what we believe, and we add it to the “I’m right about this” column. Frequently this same model applies to the products we buy and the brands we love.  For example, I once had a friend swear that he could hear tones with his Bose speakers he couldn’t hear with other brands.  The problem was that the tones to which he was referring were literally impossible for the human ear to detect.  It was no more possible than it would be for me to say I can details of the Crab Nebula through my binoculars.  But, rather than recognize this fact, he created ways for dismissing the science – the brand had a different appeal than just functions and features.

What this means for anyone tasked with developing a marketing campaign, it doesn’t matter how much you talk about the thing your selling in terms of facts and figures.  We are hard-wired to remain entrenched in the brands and products that speak to deeper emotion bonds, cultural norms and psychological triggers.  If you don’t understand the more visceral side of your consumer, then all the facts in the world won’t do a thing. In fact, they may come to resent you.