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Title: WITH MICRO-MARKETING COMES NARROWCASTING , By: Bellas, Michael C., Beverage World, 00982318, 6/15/2005, Vol. 124, Issue 6 Database: Business Source Premier Section: WORLDVIEW


Micro-marketing, as we discussed in this space last month, is surely the wave of the present, let alone the future. Beverages, as exemplified by the steady introduction of line extensions, increasingly are tailored to the personalized and individualized tastes found in smaller and smaller affinity groups. The challenge that follows that mission is finding a way to best communicate the appeal of those beverages to the right people. ONE AND ALL It's not so much about breaking through the clutter as it is searching for and finding the appropriate conduit. The proliferation of television channels has diluted the number of people any commercial can reach and consumers are as likely to record shows and zap past ads as to view them. This is an old story, but what is new is the proliferation of digital and wireless communication channels spreading the mass market even more across hundreds of narrowcast satellite and cable TV and radio channels, thousands of specialized magazines, and millions of computer terminals, video game consoles, personal digital assistants and cell phone screens. Additionally, there has been a significant increase in spending on other platforms, such as product placements on shows, sponsorships, on-site brand activation programs, viral marketing and word-of-mouth influentials. As the mass media's share of advertising is declining, we are seeing more and more beverage marketers boost spending on more tangible "narrowcast" media. Marketers need to be where the target consumers are and involved in things they value. The big beverage mass marketers increasingly will look to find their target consumers, focus on them and become relevant to them. They will still be big marketers, but no longer mass marketers. Further, with the growing importance of the new brand experiential model, marketers need to focus on the way a brand must be brought to life tangibly, where it really lives. The advertising message must be distinctive enough to hold its energy in a vast array of places: in the digital world, of course, but also in a magazine, on a T-shirt, on a beer mug, at a skate park, on a subway or blown up 10 stories high on a billboard in Times Square. You will need to be able to follow your consumer from his PDA screen to the rest of his life for those moments when he does take his eyes off it and looks around. Just as brands are becoming more pinpoint targeted, sending the marketing message to the consumer increasingly will utilize more and more newer platforms. Figuring out how to send the right message at the right time and with the right medium will be a huge challenge going forward.


Beverage marketers of all shapes and sizes are taking the challenge to heart. Pepsi, for example, has reintroduced Pepsi One not with traditional television, but an array of previously off-beat platforms, including on-line films, posters put up on construction sites, oversized billboards and trading cards. And Red Bull, whose success never overshadows its guerrilla roots, continues to lean to sponsorships of extreme skiing, skateboarding and motocross; and Flutog, an event in which consumers create their own flying machines and crash them into

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Lake Michigan. By pursuing what we used to think of as nontraditional avenues, Red Bull has done anything but crash. These brands and others are doing what they're doing, narrowing and pinpointing rather than expanding their marketing focus, because it's become clear that you can't go after everybody all at once. As companies start to utilize more and more narrowcasting platforms, we soon will be reaching a tipping point. A recent Wall Street Journal study predicts that the ad revenues of narrowcasting media will grow at a 13.5-percent rate annually through 2010, while the mass-media putter along at a much lower 3.5 percent. By 2010, marketers will spend more on advertising on cable ($27.5 billion) and the internet ($22.5 billion) than on network TV ($19.1 billion) or in magazines ($17.4 billion). Just as beverages figure to be tailored to the individual in the coming years, maybe even manufactured to the specifications of an individual consumer's genetic code, the ultimate goal of the micro-marketing revolution would be to have a meaningful one-to-one dialogue with each and every target consumer. The logical end point of micro-marketing is a personalized message--and product--for each consumer.

By Michael C. Bellas Michael C. Bellas is chairman and CEO of Beverage Marketing Corporation (New York, NY, USA) Tel: +1 212/688-7640. Fax +1 212/826-1255. E-mail: bevninfo@bmcny.com. www.beveragemarketing.com

Copyright of Beverage World is the property of Ideal Media, LLC. The copyright in an individual article may be maintained by the author in certain cases. Content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. Source: Beverage World, 6/15/2005, Vol. 124 Issue 6, p22, 1p Item: 17503655

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