Investment in digital channels has increased considerably in recent years but brands are still leaving money on the table. By being more observant and responsive to consumer needs and desires, brands can build far greater engagement that will influence purchasing behavior and return a positive ROI. Today’s digital tools give spirits brands the opportunity to observe and leverage consumer behavior like never before. But to do so effectively requires a radical shift in digital marketing. This paper explains how factors specific to the spirits category have led even the most digitally progressive brands to leave marketing money on the table. It also points to how spirits brands can boost the effectiveness of their initiatives; moving from a primarily executional approach, dictated by brand priorities, to harnessing a strategic digital approach responsive to consumer behavior.

1. SPIRITof
DIGITAL
DRIVING CONSUMERS TO DRINK
Investment in digital channels has
increased considerably in recent
years but brands are still leaving
money on the table.
By being more observant and responsive to consumer needs
and desires, brands can build far greater engagement that
will influence purchasing behavior and return a positive ROI.
Today’s digital tools give spirits It also points to how
brands the opportunity to observe spirits brands can
and leverage consumer behavior like boost the effectiveness
never before. But to do so effectively of their initiatives; moving
requires a radical shift in digital from a primarily executional
marketing. This paper explains how approach, dictated by brand
factors specific to the spirits category priorities, to harnessing a strategic
have led even the most digitally digital approach responsive to
progressive brands to leave marketing consumer behavior.
money on the table.
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2. SPIRITof DIGITAL
© LAST EXIT STUDY 2013
AN INDUSTRY
READY FOR TAKE-OFF
Spirits are inherently social.
Digital’s potential to rapidly build
consumer engagement and dialog
should be an (obviously) inviting
prospect to spirits brands.
Digital, and certainly social media, is like the Wild West to many marketers. Legal teams have
responded with extremely restrictive review and approval procedures, going against the
grain of the nature of the platform and the behaviors of the users. Tentative steps to deal with
these restrictive factors have meant that brands have been slow to take off with much of
their tactics being focused on acquisition. Even the most progressive spirits brands lag behind
brands in other categories.
With technology protocols, such as native age-gates, guidelines in place, and established methods
for engagement taking root, brands are now poised to take-off and take full advantage of a
medium where their target audience (21-35 year-old Millennial demographic) plays throughout
the day, every day.
The opportunity is, therefore, for spirits brands to become true innovators, leaders –
if not heroes – in the digital space.
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3. SPIRITof DIGITAL
© LAST EXIT STUDY 2013
The category may not yet
be a hotbed of digital innovation,
but online development at
spirits brands has been increasing
over the past few years.
EMBRACING FACEBOOK
Facebook has been embraced as the default destination and communication hub for many spirits’
campaigns. The world’s biggest social network site has been the main focus for amassing digital
content through original creations, partnerships and user-generated content. But the efforts may
seem to be sporadic and highly tactical.
There is a high degree of variation as to how well brands are faring online today, but a handful are
clearly pushing the envelope and defining digital excellence within the category.
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4. SPIRITof DIGITAL 3 SPIRIT BRANDS IN THE LEAD…
© LAST EXIT STUDY 2013
ABSOLUT VODKA CIROC VODKA CAPTAIN MORGAN
Online, content is king. A significant component Key to compelling social media presence is the Mobile holds much promise for spirits brands,
of any digital engagement program will always creation of a differentiating voice. Cîroc Vodka but many struggle to capitalize in a meaningful
be compelling on-brand content. Absolut has chose musician and media mogul, Diddy, giving way. Captain Morgan leads the pack with an
made content creation the central pillar of its him creative control, and a substantial financial app combining social gaming, location
digital strategy, producing a continuous stream stake in the brand. Diageo has successfully check-ins, and brand persona , the Captain
of beautifully executed initiatives that leverage harnessed tremendous cultural and media himself. The ‘Captain’s Conquest’, a multi-
relevant cultural icons. From an original short firepower. A core strength of the campaign has player, location-based mobile game, is the
film by Spike Jonze to a Swedish House Mafia been Diddy’s social media engagement , and most ambitious app of any spirits brand. Players
remix tool on Facebook, Absolut is far and away his ability to leverage the influential voices of check in to bars via Foursquare, allowing them
the leader in creating high quality, engaging artists represented by his label –“the Cîroc Boyz”. to “conquer” territory and form fleets with
online content. This approach has generated earned media friends. By testing their skills in battle, exploring
value far in excess of the brand’s paid media their city and engaging in other features,
These executions are a logical extension of the budget. An added benefit is that much of the players build social engagement while
brand’s longstanding connection to the arts engagement occurs through personal accounts increasing their game standing. This seamless
and artists, framed in a modern, social media of Diddy and “the Boyz”,– unfettered by age combination of brand persona and consumer
context. Absolut provides consumers with verification or corporate messaging. As a result, engagement is a potent example of how digital
plenty of engaging material to share while Cîroc’s postings are fluid, responsive, timely and tools can follow the consumer journey to the
maintaining relevance around the brand. therefore, highly effective. point of purchase and increase brand impact.
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5. SPIRITof DIGITAL
© LAST EXIT STUDY 2013
STRATEGIC
A SHIFT IN APPROACH:
MOVING TO THE DRIVEN BY
NEXT LEVEL BRAND PRIORITIES
& INITIATIVES
TACTICAL
Digital is squarely in the sights as
the most critical territory to claim in DRIVEN BY
the spirits category, so what is next BRAND PRIORITIES
& INITIATIVES
for spirits brands competing for
consumers’ mind space?
Much of the movement in the category has tended toward elaborate, branded digital
extensions of pre-existing lifestyle campaigns. While this approach communicates a position
and maintains brand awareness, such initiatives are driven primarily by brand priorities,
rather than by consumer preferences and behavior.
The biggest challenge in moving spirits brands to the next level in digital communications is to
evolve from a predominantly tactical approach driven by the brand, to a strategic process driven
by the consumer.
In the spirits category, purchase and consumption decisions are particularly context driven –
season, occasion, venue, company, etc. These can temper, or even supersede, a consumer’s stated
brand preference. In other words, “I’ll have what she’s having”.
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6. SPIRITof DIGITAL
© LAST EXIT STUDY 2013
DRINK TYPES
PEAK RELEVANCE:
UNDERSTANDING THE 100
ECOSYSTEM 75
50
25
Acting upon the moments of 0
JAN
2011 2012 ‘13
peak relevance takes an
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
understanding of the consumer
ecosystem, which can provide a
= SHOTS = COCKTAILS = MIXED DRINKS
comprehensive roadmap all the way
to the critical moment of purchase.
Beyond simply understanding how consumers behave online, data from digital interactions
can provide a window into offline behavior. For example, using search volume as a proxy for
fluctuations in general interest, consistent spikes of interest can be observed across the category.*
Search data shows peak distinct seasonality, which efficiency in their marketing
interest points around crucial suggests increased consumer budget by planning their
holiday occasions – Memorial responsiveness to targeted calendar accordingly, rather
Day, July 4th, Labor Day, engagement at those times. than scheduling major
Thanksgiving, Halloween, Therefore, a spirits brand initiatives in periods that do
and the Christmas/New Years seeking a competitive edge not show a strong connection
season. Purchase interest has could potentially enhance to interest and purchase.
*Source - Google search volume
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7. SPIRITof DIGITAL
© LAST EXIT STUDY 2013
CONSUMPTION OCCASIONS
100
OCCASION AFFECTS 75
OFF-PREMISE 50
25
0
It is also possible to see that some occasions correlate more 2011 2012 ‘13
with off-premise purchase occasions than others.
JAN
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
Certain times of the year provide more effective
opportunities to push initiatives based around off-premise = BAR = LIQUOR STORE
purchase and home-bar restocking.*
TYPES OF DRINKS BY DAY OF WEEK
WEEK-TO-WEEK
100 Distinct patterns of relevance can also be observed on a micro
75 week-to-week level, with general interest rising steadily toward
50 the end of the week and peaking on Saturday.*
25
JAN
0
This information can be leveraged to schedule more direct
2013 call-to-action (CTA) messaging around peak times and utilize other
times for broader brand positioning or fan acquisition.
FRI JAN 11
SAT, JAN 5
MON, JAN 7
WED, JAN 9
SUN, JAN 13
TUE , JAN 15
THU, JAN 17
SAT, JAN 19
MON, JAN 21
WED, JAN 23
FRI, JAN 25
SUN, JAN 27
TUE, JAN 29
THU, JAN 31
SAT, FEB 2
Though these insights may appear common-sensical, the
implications for structuring communication marketing plans are
significant and wide-ranging. However, there is little evidence
= SHOTS = COCKTAILS = MIXED DRINKS that such findings have been factored into the digital engagement
plans of spirits brands to date.
*Source - Google search volume
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8. SPIRITof DIGITAL
© LAST EXIT STUDY 2013
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This is just a starting point and only scratches the surface of the great possibilities that can
result from targeting peak relevance situations.
Actual data and an understanding of device and platform usage patterns, along with specific
consumer information, can be enhanced through creative and strategic digital engagements.
This information then shapes a consumer ecosystem that will inform content development and
the deployment of communications initiatives.
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9. SPIRITof DIGITAL
© LAST EXIT STUDY 2013
COMSUMPTION OCCASIONS
CHANGING THE GAME
By taking advantage of the spirits
consumers’ digital ecosystem,
brands can create effective
engagement and reap
the rewards of a winning strategy.
Taking this strategic, highly responsive and consumer-driven approach to engagement is
becoming a best practice in digitally advanced categories, and represents a critical change from
the traditional brand-centric approach the spirits brand category has employed.
Digital media is an arena understanding and exploiting investment from traditional
where spirits brands should these moments of relevance lifestyle content will inevitably
excel. However, there has been provides a solid structure for diminish. Fortunately, returns
much trepidation regarding communications. It establishes will increase for those who
how to take advantage of a baseline for further focus on how consumers
new media channels in this refinement, and opens the connect with their product. By
highly regulated category with possibility for more rigorous taking advantage of the spirits
deeply ingrained marketing attribution within a category consumers’ digital ecosystem,
norms. Digital offers a window that has lacked clearly defined brands can create effective
into consumer behavior and metrics for digital success. As engagement and reap the
opens new paths to purchase. spirits brands come into their rewards of a winning strategy.
Establishing a basis for own online, the return on
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10. SPIRITof DIGITAL
© LAST EXIT STUDY 2013
WHAT’S NEXT
To gain sustainable market
advantage, spirits brands must
understand consumers’ media
ecosystems and how to engage at
points of peak relevance to their The pivotal question for marketing / communications departments is
category, brand, and products. always, “What is the most effective way to spend our marketing dollars?”
In spirits, the marketing culture is constrained by regulation and circuitous
paths to purchase, a situation which has created a fundamental rift between
communications and purchase behavior.
Meanwhile, other categories are gaining valuable efficiencies with digital
to gain actionable consumer insights into intent to purchase, and are
establishing attribution modeling frameworks that give performance metrics
context and meaning.
In summation, brands must upgrade their digital marketing and develop native strategies that aren’t
simply extensions of their traditional brand campaigns. To gain sustainable market advantage,
spirits brands must understand consumers’ media ecosystems and how to engage at points of peak
relevance to their category, brand, and products. Current initiatives of spirits brands demonstrate an
enthusiasm for digital and a willingness to invest in the space, but to take the next step, they must
move beyond novelty to embrace truly responsive digital strategies.
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11. QUESTIONS? COMMENTS?
HOW TO REACH US:
Last Exit is a digital agency with offices in New York and London. We exist to provide
unparalleled value to our clients through a rigorous, client-tailored planning process
and world class creative.
To discuss your digital challenges and initiatives, give us a call or email us using the
contact details below.
New York Office London Office
200 Varick St. #802 1st Floor, Building 1/2
New York, NY 10014 The Leathermarket
Weston Street
t +1 646 307 4340
London SE1 3ER
f +1 425 952 9597
newyork@lastexit.tv t +44 (0)20 7407 7666
f +44 (0)20 7378 6431
london@lastexit.tv
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