Summary:
Flavored seltzer water is a fast-growing category. Market leader, La Croix, from National Beverage Corporation, has seen fast growth and swift decline as of late. This is an example to marketers of competing in a category in its growth stage. Brand success attracts competitors. Growth category brands must develop strategies appropriate to growth-stage marketing in order to build share that is sustainable over time, especially when competing against larger competitors. Included are ideas on how such brands can find unique positions to build differentiation.
Category Life Cycle is the framework in which a category’s growth is defined.
When a brand competes in a category in its growth stage, true differentiation is imperative. Maintaining differentiation forces price discounts and product range expansion – tough turf for any brand!
What does the category stand for?
The flavored seltzer water category stands for low-guilt refreshment and a meaningful alternative to soda, as well as other beverages. Witness even the continued decline in soda and sharp decline in beer sales, attributable to a desire for more refreshing, a low-calorie alternatives. Flavored sparkling water became that alternative, tremendous growth ensued.
What is the La Croix brand?
National Beverage Company created La Croix, an alternative brand, touting the attributes and driving the ‘Flavored Sparkling Water’ category. As a pioneer of the segment and a market leader, this was a sufficiently strong brand positioning in its early years (category introduction stage). The downside of this brand positioning strategy is that it isn’t unique or ownable as stronger players come into the category. They all offer zero calories, lots of flavor, etc. – attributes, not aspirational brand messages. www.lacroixwater.com – a nice website that promotes flavors and recipes, but may be weak at stating a strong brand positioning.
What could a differentiated La Croix brand positioning be?
As an avid La Croix consumer (not brand loyal, I must admit) I think there are area of consumer insights that represent strong opportunities to start this positioning exercise beyond simply extending flavors.
- Lifestyle – what type of user experience is the essence of La Croix, the brand.
- Heritage – a place that is aspirational, and I want to go there (if only in my mind)?
- Occasion – what does a La Croix moment look like? Who is there, what is everyone doing, and is that an ‘brand name’ experience, not shared by others?
- Origin – what does the La Croix name stand for, and where did it come from? Is it from France or someplace special; can the brand claim specialties that other flavored waters cannot?
- Association – often beverages are defined by songs, celebrities, or important events that matter to the life of the user.
What’s the story?
When you drink a La Croix beverage, are you experiencing something that cannot be defined or replicated by other flavored sparkling waters or even other beverages? Does the La Croix brand establish a story that is uniquely theirs? Just like Coke and Pepsi (basically flavored soda that established themselves over time to define a generation of users and experiences), unlocking the core insight into the benefit of the La Croix experience would define a sustainable market position. Others will have better distribution, lower prices and different flavors, and the promiscuous consumer needs an anchor to stay loyal to a beverage which has already captured something special in consumers’ minds, but hasn’t yet captured something special in their heart.
