Beer, Wine & Spirits: Engaging Millennials (and Drinkers of All Ages) via Social Channels
Article Review:
Synopsis
Social networking sites have become increasingly popular resulting in people turning to online sites to socialize and stay informed on topics of interest. The consumption of alcohol has been a lasting part of human socialization and societal cultures, making social networking sites seemingly a natural fit for marketers of beer, wine and spirits that seek to build a relationship with their customers or to promote their brands to potential customers. However, the experience of these marketers show that not all users of social networking sites engage with brands uniformly.
I will be reviewing an emarketer.com article that compiles numerous surveys and reports to examine the demographic makeup of alcohol consumers and their usage patterns on social media. It explores how beer, wine and spirits marketers are using social platforms to engage consumers and drive sales and evaluates which strategies have had the most success. The article places an emphasis on millennials, as they tend to be both the most enthusiastic users of social media, and those who tend to drink more alcohol than other age groups.
The research and key takeaways of the article have significant implications on the social media strategies of beer, wine, and spirits marketers. In particular, marketers will have a better understand of why consumers “Like” alcohol brands on social media, relative to other consumer products; what kinds of Facebook posts have driven the greatest response from consumers; and explore the varying level of trust different demographic segments hold in social recommendations.
Primary Findings
The article is rich with quantitative research, case studies, and expert opinions. Based on this information, the authors conclude that the research points marketers towards the following insights:
- Millennials are drink more in both quantity and frequency than other generations, and are more enthusiastic about social media
- Millennials’ brand selection is much more likely to be influenced by information found on blogs and social sites – indicating a higher level of trust and comfort
- People aged between 18-34 were much more likely to cite user-generated content as a purchase influence
- People aged • Alcohol brands experienced the highest levels of engagement consisted primarily of photos with simple captions – while youtube links and plain text posts garnered little engagement
- Compared with many other consumer product categories, alcohol brand customers “like” brands less frequently for the sole purpose of getting discounts and do so often because they identify with the brand
- Research identified that 15% of social network users purchased alcohol brands as a result of content encountered on a social site
Review
This article takes many assumptions in the industry that were previously very speculative and attempts to answer them with qualitative research and several case studies from industry. In my opinion, it has done a great job of tying together several areas of research to garner insights that marketers can implement in their own strategies. The industry has had a lot of mixed success in the social media space and the authors provide tangible evidence of common fail points that brands have experienced. The article provides several case studies from brands such as Bacardi and Jack Daniels’s marketing campaigns, and reports on the quantitative results of such campaigns.
The evidence the authors compile is very compelling and difficult to rebut; However, such is the case with many online endeavors is merely a picture in time. It is also important to recognize the uniqueness in the relationship that many brands hold with their customers. The article has taken an industry perspective, but the industry is mature and comprises of many segments and niches. For instance, it may be common to pose for pictures drinking high-end alcohol brands but producers of cheap products may find this strategy much less successful.
Key Takeaways
The most compelling insights from the article include the following implications for marketers:
- Alcohol brands that appeal to millennials should embrace social media marketing, but should play a role in a larger 360 degree approach
- The social avenues brands pursue should reflect the usage behaviours of its target audience
- Prior brand successes suggest that simplicity, directness, honesty and humor are important virtues for beer, wine, and spirits marketers when communicating on social media
- Social media discounts and couponing may provide much less of a return on investment, compared with other consumer goods
In Conclusion
The article is direct and very effective in supporting its viewpoints. It is worth a read by any individuals involved in social media marketing, and could provide alcohol brand marketers with opportunities to improve upon their current practices or avoid common industry pitfalls.
However, marketers should be cognizant of several unanswered questions when designing their marketing campaigns, such as how much improvement is there in the return on investment from integrative social marketing campaigns? What is the impact of social media presence on the perception of brand values? Or whether there are distinct trends for the varying industry segments or product categories, relative to one another.
In such an exciting and ever evolving field of marketing, this article provides a few new pieces to the greater understanding of emarketing.
FollowWriting Sample: VanCity Case Letter
The Situation
In follow-up to prior group presentations required in the Consulting and Strategic Management mini module, we were tasked with individually preparing a letter to provide our unique perspective on one of the cases. The only stipulation was that the letter must contain new ideas and information rather than restating earlier analysis done by the group. I chose to do it on an earlier analysis of VanCity Credit Union.
Sample Deliverable: Time Constrained Team Collaboration
The Situation
Nearing the end of the MBA program’s Period 2, and core courses, many of our projects are coming to completion. During this time, our team collaboration skills have been put to the test under competing priorities and time constraints. For those of us taking the Principles of Finance course, teams were challenged to complete a sell-side analyst report for a publically traded corporation. We were responsible for designing our own teams of people, of whom we hadn’t already partnered with, and were limited to four pages for our report length – when most sell-side reports are typically 30-50 pages.
“Coming together is a beginning. Keeping together is progress. Working together is success.” – Henry Ford
Complications
- Team members would have varying priorities and time commitments
- We would not have much of the required knowledge or tools required, until late in the course material
- Unfamiliarity with group members
- Understanding and playing to individual strengths
- Short turnaround time
- Coordinating workload and discussions
- Selecting a single company among us
- Building consensus in our stock rating, data analysis, and interpretation
- Compiling individual deliverables and building consistency
“I didn’t have time to write a short letter, so I wrote a long one instead.” – Mark Twain
The Result
Through effective communication early on, my team was able to form with complimentary skillsets, quickly build awareness of individual strengths, and develop an effective plan for completing deliverables and meeting milestones. With prior experience mitigating organizational risks, and developing reporting and providing advice to senior government officials – I focused my efforts on our deliverables’ risk analysis, and reporting structure and design. Completed ahead of schedule, our final deliverable can be viewed below.
Diplomacy in Business
Recently, I had an interesting conversation about diplomacy and its value in business. Ever since, I have been contemplating the concept of diplomacy and how it is often relegated to the shadows of the business world.
Where is the war?
I believe there are several factors that contribute to the confusion surrounding exactly what diplomacy skills contribute to business. Most notably, diplomacy is often disregarded through its association with government politics, or diluted and re-framed within many other business concepts including, power and influence, office politics, negotiation, relationship management, and human resources. It’s my belief that diplomacy is not a standalone skill but rather an attuned awareness, combined with related skills, necessary to tactfully approach highly sensitive and challenging situations while fostering good relations.
“A diplomat is a man who always remembers a woman’s birthday but never remembers her age.” – Robert Frost
One misstep is enough
Robert Frost applied diplomacy at home to foresee risks had he failed to recognize his relationship’s sensitivities and misspoken. In business, rather than leading to the wrath of a scorned wife, deteriorated relations can lead to other equally terrifying and costly outcomes. Many industries operate in a heavily regulated environment, or with constant public scrutiny, where changes to current regulations could have dramatic effects on profitability. For example, the oil & gas industry is typically subject to provincial royalty programs that direct a portion of corporate earnings into government coffers. A diplomatic mindset can assist in navigating sensitive relationships, especially during times of heightened scrutiny.
“Wise men speak because they have something to say; Fools because they have to say something.” Plato
Do you see what I see?
Another high value application of one’s business diplomacy skills is in proactively identifying and pursuing opportunities for mutual benefit. There is a great example of this within Canada’s telecommunication industry that is far from mainstream knowledge – as most high profile diplomacy usually is. In the early 1990’s, TELUS Communications and Bell Canada required hefty infrastructure investments to expand their wireless networks nationwide and remain competitive. Where most would take this competition at face value, someone involved recognized the opportunity for diplomacy rather than to willingly participate in a technological arms race. The two companies entered into a Tower Sharing Agreement that had TELUS construct a wireless network in western Canada, while Bell did the same in eastern Canada. Does this sound familiar; “I changed my cell carrier from Bell to TELUS (or vice-versa) because the network is terrible”? Unknowingly they are actually using the same network, while TELUS and Bell reap the benefits of shared infrastructure expenses.
“Diplomacy, n. is the art of letting somebody else have your way” – David Frost
Icebergs and Diamond Mines
There are many applications of diplomacy in business, and those with an attuned sense of awareness bring valuable skills and insights that can make the difference in recognizing risks and opportunities in today’s complex business environment.
Manufacture and Distribution of Natural Gas
I have always been drawn to roles and organizations that have an impact on the people around me. For example, I paved my way through university on a municipal road crew (more pun = more fun), made funding recommendations on multimillion dollar infrastructure projects, and managed relationships and due diligence for collaborative investments in research and technology-commercialization to diversify Alberta’s economy. I am interested in the manufacture and distribution of natural gas industry for the same underlying reasons – not only availability of the end product, but the integrity, responsibility, and safety of the industry has a dramatic impact on customers and communities.
The industry operates within a complex environment and must adhere to government acts and regulations, within their respective jurisdictions. As a result, companies maintain collaborative relationships with governing bodies to optimize their operations within these constraints and to promote the continuous improvement of the regulatory and business environment. My prior experience, with the Alberta Government, managing relationships with corporations, among other internal and external stakeholders, has provided me with perspective and understanding in how governments operate within collaborative business-relationships. I have always been intrigued by the overlap and relationships that exist when operations of government intercept those of private industry.
In British Columbia, there is an increased focus on accelerating development of the emerging Liquefied Natural Gas (LNG) industry. The proposed scale, intent on increasing natural gas exports to the Asian market at premium prices, will inevitably impact domestic supply and potentially domestic prices over the longer-term. However, this also presents opportunities in servicing the proposed LNG facilities with gas transportation and storage that necessitates expansion of existing facilities and infrastructure. In order to proceed with construction of this infrastructure, and realize new sources of revenue, companies must seek regulatory approval by governing bodies including the British Columbia Utilities Commission and the Environmental Assessment Office.
Another compelling trend is the integration of bio-methane manufacturing and upgrading into natural gas distribution systems. Societal concerns with increasing energy consumption and greenhouse gas emissions are driving the development of this renewable source of energy, which is interchangeable with natural gas. Integration of these new sources of supply will require the development of new infrastructure (ex. Upgrading facilities) and in this heavily regulated industry, significant government involvement and approvals.
With five years of directly-related experience in the interpretation and application of legislation, I would be a valuable asset to regulatory-affairs/government-relations within this industry. As a certified Project Management Professional I have the skills to excel within fast-paced environments with competing priorities and tight deadlines. Moreover, my experience managing the evaluation of project proposals, consultation with internal and external experts, and development and negotiation of contracts between government and industry has equipped me with directly-transferrable skills to capably apply both independently and as part of a team.
Euromonitor International. Manufacture and Distribution of Gas in Canada: ISIC 402. April 2013
IBISWorld Inc. IBISWorld Industry Report 22121: Natural Gas Distribution in the US. August 2013.
My Story
Before first being encouraged to write the GMAT by a friend, I had never contemplated pursuing an MBA or any graduate level education for that matter. After all, I grew up in an isolated town where my elementary cohort wasn’t taught the alphabet until late in the first grade and no one realized I needed glasses until the third. Luckily, for my sake, life resembles a rolling snowball rather than a series of cannon balls.
Despite having a vested pension, a promotion on the horizon, financial support had I opted for a local part-time MBA, and several admissions offers on the table, I decided to move on to Vancouver to complete a full-time MBA at the Sauder School of Business. Some people don’t understand my decision but regardless of its future outcome, this is already one of my proudest accomplishments – to have had the courage to make this big life decision in pursuit of my own ambitions.
“To be yourself in a world that is constantly trying to make you something else is the greatest accomplishment.”
– Ralph Waldo Emerson
I chose an MBA because I knew it would open up a great number of opportunities to me – Opportunities that would take much longer to attain with only an Honours Bachelor of Commerce. My decision is re-enforced by my experiences working within the Government of Alberta. I had the opportunity to be exposed to a broad range of careers and industries. In particular, working alongside consultants and managing relationships with industry provided clarity that this was the direction I wanted to pursue in my own professional career.
In comparison, choosing Sauder was a much easier decision. Given that I already have a B.Com (hons.), I didn’t want to sell myself short on the quality of my MBA. Sauder provides a very exciting combination of international experience, real world application, opportunity to broaden my network in Vancouver, and the confidence that I will be challenged by some of the best MBA candidates and faculty in the world.
I look forward to experiencing all the program has to offer! – Adam