How Liquid Death Turned Advertising Around | Quantum Marketing

How Liquid Death Turned Advertising Around | Quantum Marketing

Liquid Death: The Art and Science of Marketing

Introduction to Liquid Death's Unique Approach

  • All marketing blends art and science; however, Liquid Death emphasizes entertainment over traditional marketing methods. Their focus is on creating content that resonates emotionally, such as humor.
  • Despite being in a saturated market dominated by established brands, Liquid Death has carved out a niche by selling water with a unique branding strategy.

Rapid Growth and Innovative Marketing Strategies

  • In just three years, Liquid Death achieved a valuation of $700 million, which doubled to $1.4 billion within two years due to unconventional marketing tactics that prioritize entertainment over traditional advertising.
  • Raja Rajamannar from Mastercard highlights the need for marketing to evolve beyond outdated principles established over sixty years ago, especially in light of new technologies and cultural shifts.

The Concept of Quantum Marketing

  • "Quantum Marketing" is introduced as an essential evolution needed to connect with modern consumers who are increasingly savvy and digitally engaged.
  • Liquid Death’s headquarters reflects its quirky brand identity, featuring elements like a giant skeleton and themed conference rooms that embody their playful approach.

Dan Murphy's Insights on Brand Identity

  • Dan Murphy shares his personal journey with skateboarding and how it connects to his role at Liquid Death. He emphasizes the uniqueness of the brand compared to conventional water products.
  • The company operates in three categories: premium mountain water, sparkling flavored water (a healthy soda alternative), and iced tea while promoting sustainability through initiatives like "death to plastic."

Bold Marketing Decisions

  • Murphy notes that many water brands look similar; thus, he was drawn to Liquid Death's distinct aesthetic aimed at breaking away from traditional purity-focused branding.
  • The company engages in bold stunts—like hiring a witch for publicity—that challenge conventional marketing norms but effectively capture attention.

Embracing Creativity Over Traditional Metrics

  • Traditional marketers may find Liquid Death's strategies radical; however, the startup views boldness as necessary for survival against being ignored or wasting resources without impact.
  • Comedy serves as their guiding principle; they aim to create shareable content that generates organic media coverage rather than relying solely on paid advertisements.

Digital First Strategy

  • Before launching their product, Liquid Death utilized viral ads featuring mockups on digital platforms like TikTok to build anticipation among potential customers.
  • Their unconventional promotional tactics include humorous content that contrasts sharply with typical brand-safe advertising approaches seen elsewhere.

Balancing Creativity with Analytics

  • While many marketers focus heavily on data analysis for effectiveness measurement, Liquid Death balances creativity with analytics by understanding where their audience consumes media most effectively.
  • A significant shift occurred around 2017 when daily consumption of digital media surpassed traditional media—a pivotal moment influencing modern marketing strategies.

Understanding Modern Marketing Strategies

The Shift in Audience Engagement

  • The growth of digital engagement has surpassed expectations, particularly among Gen Z, who predominantly use their phones while consuming media.
  • Traditional advertising methods are less effective; audiences can easily skip content, making it crucial to identify and compete with diverse online distractions.

Focus on Comedy and Creativity

  • The company specializes in comedy, employing professional writers from notable backgrounds (e.g., Adult Swim, The Onion) to enhance content quality.
  • Marketing is treated as a product itself; the team utilizes social media feedback as a focus group to refine concepts based on audience reactions.

In-House Production Efficiency

  • All content creation occurs in-house without external agencies, allowing for rapid production and a high volume of output.
  • A small core creative team operates like a writer's room, fostering intimate brand understanding and collaboration.

Innovative Content Creation

  • The entertainment-first model draws inspiration from brands like Red Bull but focuses on free comedic content that engages audiences effectively.
  • Budget constraints encourage creativity; successful campaigns have been produced at low costs while achieving millions of views organically.

Strategic Partnerships and Audience Targeting

  • Collaborations with celebrities and unexpected brand pairings create unique marketing opportunities that resonate with diverse audiences.
  • The target audience includes anyone thirsty with a sense of humor; the brand aims to disrupt traditional beverage marketing by appealing to nightlife culture.

Liquid Death's Unique Marketing Strategy

Creating a Cultural Ecosystem

  • Liquid Death has successfully marketed itself in a way that resonates with various demographics, including environmentally conscious consumers and those who abstain from alcohol.
  • The brand has not only introduced a product but has also fostered an entire multicultural ecosystem around its identity and values.

Brand Loyalty and Fan Engagement

  • The founder compares Liquid Death to Harley Davidson, noting the strong emotional connection fans have, even going as far as tattooing the brand on their bodies.
  • Over 300 fans have reportedly tattooed Liquid Death logos on themselves, surpassing Harley Davidson in face tattoos, showcasing intense brand loyalty.

Innovative Promotions

  • Liquid Death's marketing strategy includes bold promotions like giving away a fighter jet, which generates significant media attention and engagement.
  • This promotion is inspired by the infamous "Pepsi Where's My Jet?" documentary, aiming to execute what was once deemed impossible.

Execution Challenges

  • The process of sourcing a Harrier jet involved navigating complex regulations and logistics due to its military status, requiring Department of Defense clearance for importation.
  • The timeline for acquiring the jet was tight; initial plans were delayed due to red tape, prompting the team to act quickly when revisiting the idea.

Rapid Development Cycle

  • From concept initiation in February to market launch by May 20th took just under 90 days—a testament to the team's commitment and efficiency.
  • Legal considerations were paramount; they had to ensure compliance across all states while preparing promotional materials for over 125,000 retail locations.

Team Dynamics and Motivation

  • The success of this ambitious project relied heavily on teamwork and shared belief in overcoming challenges together within Liquid Death.
  • The urgency of executing such unique ideas serves as motivation for the team, emphasizing creativity and innovation in their approach.

Liquid Death's Unique Approach to Branding and Talent Management

The Challenge of Brand Identity

  • Liquid Death faces unique challenges in branding that not all companies encounter, particularly in the context of hiring and retaining top-tier talent amidst a complex world driven by technological innovations like AI.

Importance of Talent in Marketing

  • The effectiveness of leveraging changes in technology and culture ultimately hinges on having fantastic talent within the organization, especially for smaller teams that operate with limited resources.

Team Dynamics and Creativity

  • Liquid Death operates with a small, distributed team where each member's contribution is crucial. This structure necessitates high-quality output from every individual due to their significant impact on overall performance.

Fostering Creativity Over Conventional Structures

  • Unlike many organizations that become bogged down by administrative tasks, Liquid Death prioritizes creativity as a core product. They aim to create an environment conducive to artistic minds rather than one dominated by spreadsheets and bureaucracy.

Employee Ownership and Engagement

  • Every employee at Liquid Death holds equity in the company, fostering a sense of ownership that enhances engagement and commitment compared to traditional employment models.

Future Directions for Liquid Death

Product Expansion Considerations

  • While exploring new product lines such as iced tea or drink mixes, there are clear boundaries regarding unhealthy options like energy drinks or alcohol due to brand identity concerns.

Health Consciousness Trends

  • There is a growing global trend towards health consciousness and sustainability. Gen Z views alcohol consumption similarly to how previous generations viewed smoking—less appealing—and this influences future brand strategies.
Video description

Liquid Death was founded on the idea of breaking the norms of traditional marketing. We speak to Senior Vice President Dan Murphy, one of the architects of the beverage company’s irreverent and outrageous approach, about its origin as a “sheep in wolf’s clothing.” From social media to AI, advertising has changed dramatically in a short time. Host Raja Rajamannar sits down with marketing leaders to learn how they cut through the noise to reach consumers. Watch the series: https://www.youtube.com/playlist?list=PLqq4LnWs3olVlOLBAqBdKRqosczeLw5EQ (Corrects Dan Murphy's title.) -------- Like this video? Subscribe: http://www.youtube.com/Bloomberg?sub_confirmation=1 Get unlimited access to Bloomberg.com for $1.99/month for the first 3 months: https://www.bloomberg.com/subscriptions?in_source=YoutubeOriginals Bloomberg Originals offers bold takes for curious minds on today’s biggest topics. Hosted by experts covering stories you haven’t seen and viewpoints you haven’t heard, you’ll discover cinematic, data-led shows that investigate the intersection of business and culture. Exploring every angle of climate change, technology, finance, sports and beyond, Bloomberg Originals is business as you’ve never seen it. Subscribe for business news, but not as you've known it: exclusive interviews, fascinating profiles, data-driven analysis, and the latest in tech innovation from around the world. Visit our partner channel Bloomberg Quicktake for global news and insight in an instant.