Pennsylvania vs. Perrier: Your beloved mineral water is actually a soda, court rules
Because the choice between a healthy water and a not-so-healthy soda can influence consumer decisions, this ruling has the power to “hurt the brand badly” if the company doesn’t reframe its product correctly, brand strategist Reilly Newman tells Fortune.
If the customer is “feeling healthy and aspirational, they may opt for mineral water,” he says. “However, now the brand is out in the same category as the sugary sodas. This eliminates a lot of the benefits that Perrier had as a brand as well as their uniqueness in the market.”
“Luckily for [Perrier], we have had a massive rise of healthy sodas in the last three years, so that should help ease the blow,” Newman says. However, “this will definitely impact the purchase decisions because when it comes to beverages it’s not a matter of Coke versus Pepsi, but a battle for thirst. This means a consumer is much more willing to hop categories to satisfy their need.”
Fortune
Marketers unpack why 99 Cents Only Stores shuttered its 371 locations
“Reilly Newman, founder and brand strategist of branding studio Motif Brands, reflected on the emerging digital challengers shaping the industry.
He remarked: “The announcement surprised me, but it also makes sense. These dollar stores blew up in 2020; their stock prices were going nuts at the time, and rightfully so, because people were trying to make every dollar count due to the uncertainty in the market. But these competing digital forces have driven out these low-cost providers.”
While quoting Jeff Bezos’ famous line, “Your margin is my opportunity,” Newman explained how digital brands have undercut brick-and-mortar businesses by operating with lower overhead costs and offering identical products at competitive prices.”
The Drum
The Rise Of Stanley - How a humble tumbler became a status symbol
“However, human behavior is not rational in any market because the perceived value can quickly enhance the functional value of a basic item like a simple water bottle. This creates a flywheel effect that increases the desirability of the retail Stanleys since the perceived value is being ratcheted up by peers”
-Reilly Newman
ALHI - Beyond the Meeting Room
The Cost of Loyalty – How Trader Joe’s & Costco Do It
“Reilly Newman, founder and brand strategist at Motif Brands, recently put it this way: [“Not raising prices] has worked for Costco and helped them become a beloved brand. Costco’s perception of great, quality deals has been strategically constructed throughout the years from $1.50 hotdogs to “treasure hunts” within the store,” and also noted that Galanti once said, “By the way, if you raised (the price) to $1.75, it would not be that big of a deal. People would still buy (it). But it’s the mindset that when you think of Costco, you think of the $1.50 hot dog (and soda).”
The Food Institute
Limited-Time Offers Providing Major Appeal
“Living in a world where we can have anything delivered to us, access to supply is no longer an issue. Brands would be wise to include LTOs into their menu to add diversity and create scarcity for items.”
“Rooted in desire and anticipation, these buying experiences become more special and allow for higher prices. LTOs create better consumer experiences as well as more profitable items for brands.”
-Reilly Newman
The Food Institute
Why Legacy Beverage Brands are Revamping Their Image
“When this happens, the brand loses its voice and starts to sound like all the others, with safe, lukewarm marketing,”
“As the uniqueness factor dissipates from a brand, it loses relevancy and it leads to a slow decay of perception and market share.”
-Reilly Newman
The Food Institute
Milk Wars: Labeling Battles Escalate
“A brand is a concept, which is typically boiled down to a very, very small nugget, just like how we can text with emojis,” he says. “The concept of a brand changes per context, per contextual environment, depending on the season, the platform, the medium, how it’s being delivered, who it’s talking to at that time, and that’s where a brand is able to expand those experiences and connect emotionally by showing different sides of the brand.”
“‘Drink’ is far more general and loses the powerful frame of reference that ‘milk’ granted these beverages,” said Newman. “The brain doesn’t have a proper footing to create the meaning it needs to attach to the plant-based alternative.”
The Food Institute
Growing Consumer Anxiety Dictating Americans’ Spending
“According to Reilly Newman, founder of Motif Brands, consumers are diving into comfort foods and things that are familiar to them. “Since the world has entered a state of uncertainty, there’s a natural desire for the known and familiar. This relates to comfort foods or even perhaps those foods that are nostalgic.”
“Through messaging and visual design cues, the brands can help calm the consumer and make them feel more confident in their decision-making,” Newman said. “This anxiety may also encourage the consumer to look for mental shortcuts in their decision-making to avoid being overwhelmed. They may look to peers, reviews, trends, signals, etc. to help them make their decision and even affirm the decision they’ve made.”
Brands can take these psychological aspects into account when strategizing on how to communicate to their audience. Brands that can be empathetic to the feelings of their audience will always win at the end of the day, Newman said.”
-Reilly Newman