In this presentation, we dive into the success story of Drinkworks, a home cocktail-making machine company that partnered with Tinuiti, a digital marketing agency, to launch a multi-channel marketing campaign. We'll explore the various tactics used in the campaign, including paid social media ads, influencer marketing, email marketing, and content marketing, and examine the impressive results they achieved.
Through this case study, you'll learn about the power of multi-channel marketing, how to leverage different tactics to increase brand awareness and drive sales, and how to measure and analyze the effectiveness of your campaigns. Whether you're a marketer, business owner, or simply interested in the world of digital marketing, this presentation offers valuable insights and takeaways.
2. Is Drinkworks a good product, problem it is trying to solve.
Product
The Drinkworks Home Bar was a countertop appliance that worked
very similarly to, Keurig coffee-makers.
The device included: -
A removable water tank, a water filter, a cooling tank to chill
water, and a carbon dioxide (CO2) canister to add carbonation.
To make a drink, the user would insert a pod, into the pod
holder, and simply press a button to make a drink.
Devices would connect to users’ Wi-Fi and allow the device to
easily download software updates.
Problem
Drinkworks was solving a key pain point for consumers i.e.
At-home cocktail consumption was limited because most
consumers were either unsure how to make a cocktail or
intimidated by the idea of making it themselves.
Initial research seemed to suggest that the idea of a cocktail-
making device had a significant appeal among consumers.
Drinkworks is attempting to address the issue of labour involved
in the production cocktails, also elimination ingredient acquisition
required for cocktail production.
Good or Bad?
Drinkworks was a novel idea and is a fantastic product because of its ease of use and accessibility. Surveys showed users perceived the
Drinkworks device as being innovative, convenient, and upscale.
Also, Over the course of the survey, Drinkworks’s NPS ranged from -20 after the first week to +8 after the fourth.
~”People like the experiential elements of pressing a button, dispensing, and serving, articularly when it comes to hosting and relaxing.”
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3. Right target market for it and its potential market size.
27% 43% 29%
Not-Target Target Non-Target
Segment Target Not-Target
Weekly Drinker + Hosts
(Younger Demo)
Weekly Drinker + Hosts
(Older Demo)
Monthly Drinks + Hosts
Weekly Drinkers who
Rarely Host
Social Infrequent Spirit
Drinks
Non-Social Infrequent
Drinks
The general potential market size for Drinkworks is
18million households which accounts to - $429 million.
No. of House holds
Weekly drinker + hosts (younger demo) 9.86895
Weekly drinker + hosts (older demo) 4.54285
Monthly drinker + hosts 2.7715
Total
Households (Million, Out of 120.5-million) 17.1833
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4. What is its value proposition and how should it be positioned
Value Proposition
Their main value proposition – convenience
Each Pod contains premium spirits and precisely
proportioned beverages infused with the highest
quality ingredients, putting the best of the bar at your
fingertips.
Davis and the company's primary goal is to create value
for their consumers by solving the problems of long
preparation times, lack of necessary skills, and the high
cost of drinking out.
This, in turn, is Drinkworks way of improving the at-
home drinking experience.
Market Position
The most threatening competitor to Drinkworks is Bartesian
which sells a similar product for $299 that uses non-
alcoholic mixer pods.
Drinkworks can differentiate itself from competitor’s through the
utilization of the alcoholic pods and the convenience of making
a drink when you want, with all the ingredients already
included.
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5. Cocktail pods with alcohol, mixer pods without alcohol, or beer/cider pods?
Pods could fall into three categories - cocktail pods with alcohol, mixer pods without alcohol, and beer/cider pods
Non-Alcoholic Cocktail pods is the best option for DrinkWorks.
Mixer pods without alcohol would contain all the ingredients necessary for a particular cocktail and users would simply add
their own alcohol to it—an approach used by Bartesian.
Mixer pods could be cheaper and might avoid regulatory problems for distribution.
They were also easier for consumers to comprehend.
The non-alcoholic pod is more readily conceivable. People understand:
‘I put in a pod, then I pour in the spirit.’ With the alcoholic pod using concentrate technology, there’s an aspect where people don’t
understand how we could possibly fit a whole drink in the pod.”
Mixer pods also gave consumers the option to add their own preferred brand and amount of alcohol.
If you ask people if they care about what brand of alcohol they drink, the answer is a very clear ‘yes.’
They will pay more for premium vodka because they perceive it to be better.”
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6. How should the device and pods be priced?
In a survey, 90% believed the Home Bar appliance to be a
premium product with 58% responding interest in purchasing
the device. 6.9% would pay at least $199, 3.8% would pay at
least $299, and 2.1% would have paid at least $399 (Gupta et
al., 2020).
When surveying responding to people who were already
interested in the concept, half were willing to pay $4 at
minimum per cocktail pod, 7% would pay for a mixer
pod, and 35% would pay for a beer/cider pod (Gupta et al.,
2020). Since each Home Bar would cost approximately $250
to manufacture and distribute, including everything that goes
with it such as returns and freight
Appliance should be sold between : $499 to $399 whereas
pods should be sold between : $3 - $4
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7. What distribution channels should be selected to launch Drinkworks?
Drinkworks have identified three distribution channels: liquor stores, traditional retail stores, and e-
commerce.
Liquor stores have great potential as they are partnered with Anheuser- Busch, making creating a
distribution channel much less tedious due to their already established network. Additionally, since the
pods contain alcohol, selling directly to liquor or licensed grocery stores would save the hassle of moving
around the barrier of entry due to different state guidelines and regulations. Although this seems like a
good idea, it may not be the most profitable for the company. This is due to many liquor stores not
wanting appliances on their shelves.
The main distribution channel I believe Drinkworks should attack is E-commerce. The recent popularity of
e-commerce sites such as Amazon and Shopify has made shopping easier. With proper advertising and
partnerships with these sites, Drinkworks has the potential to make a heavy majority of its sales online.
For example, in the last ten years, ecommerce sales of electronics and other kitchen appliances have
grown from $17.862 billion to $51.482 billion in 2019, accounting for nearly 91% of total electronics and
appliance sales.
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8. Can Drinkworks be the next billion-dollar opportunity for AB InBev and Keurig?
All in all, I ultimately believe that Davis and his team should let the product idea go.
There is not a big enough reachable market for it to be successful. This is due to the complicated
Restrictions regarding alcohol distribution and the close competition that already exists.
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