What if I told you that you had access to hundreds of thousands of dollars worth of consulting and marketing initiatives that could drive your business initiatives forward?
What if I told you that the vast majority of businesses do, in fact, have access to these resources – but choose to do nothing with them?
That’s exactly what happens for most entities partnering with Coca-Cola and PepsiCo via pouring rights. In our experience negotiating and managing these agreements, marketing activations are the most under-utilized — and yet most impactful — element of beverage deals.
The Forgotten Term: Marketing Activations
When it comes to negotiating your pouring rights agreement, getting the financials and the terms right is vitally important. Much energy is spent – rightfully so – on getting these elements where they should be in order to justify your long-term relationship. Once the ink has dried, however, it’s tempting to move onto the next priority, forgetting that you just entered a strategic partnership with one of the world’s most successful, iconic marketing companies — companies which now have a vested interest in driving traffic and engagement in your business.
The truth is that the primary beverage companies (Coke, Pepsi & Dr Pepper) are marketing and branding companies as much as they are producers and distributors of beverage product. Those that understand this dynamic can create an environment which fosters engagement from their soft drink suppliers to help them accomplish their own initiatives – beyond simply selling beverages.
With some intentionality, companies can partner with their soft drink supplier to delight their customers, generate excitement about their brand, earn PR and media impressions, and attract more guests to their business. In this article, we will explore the power of marketing activations in pouring rights agreements with beverage companies like Coca-Cola and PepsiCo.
The Power of Marketing Activations in Pouring Rights Agreements
If used correctly, marketing initiatives can be a secret weapon within your soft drink agreement. Often, these initiatives are already paid for as a part of your negotiated contract, or under the right conditions, can be added without any charge. Since these can be structured as mutually beneficial to all parties, beverage companies are motivated to make them work.
As a side benefit, we find that the partners who work well together on marketing efforts also are able to generate goodwill from the beverage company to help solve other operational problems, such as service issues, product shortages, and one-off special requests. The marketing momentum pays dividends in multiple ways.
Here’s a few examples of what you can look to achieve – beyond beverages – through a pouring rights partnership:
Delighting Customers and Enhancing Brand Experience:
Pouring rights agreements offer opportunities to enhance the customer experience and leave a lasting impression. Customized branded products and packaging, interactive promotions at the point of sale, collaborative co-branded campaigns, and targeted loyalty programs and rewards are effective ways to engage and delight customers.
Generating Excitement and Buzz:
To generate excitement and create a buzz around their brand, organizations can leverage pouring rights agreements through exclusive product launches, limited-edition offerings, engaging social media campaigns, partnerships with influencers and celebrities, and captivating event sponsorships and activations. Organizations can also explore partnerships that their beverage company has with other entities (local sports teams, theme parks, colleges) that can be tied into their own brand.
Earning PR and Media Impressions:
Strategic pouring rights activations can earn valuable PR and media impressions. By sponsoring major sporting events and music festivals, getting involved in community initiatives, strategically placing products in movies and TV shows, and implementing engaging public relations campaigns, businesses can create positive brand associations and increase their media presence.
Attracting More Guests and Driving Sales:
Pouring rights agreements can also drive foot traffic and boost sales. Promotional pricing and bundle deals, cross-promotions with other businesses or local attractions, in-store activations and displays, and co-branded advertising materials can attract more guests and create a sense of exclusivity.
You might be surprised to learn these types of initiatives can happen as a result of a pouring rights relationship — or you might be doubtful that these marketing activations can happen at your brand. Yet, these are the exact type of partnerships that the beverage companies want. Engage with your rep and you may be delighted to see where the conversation goes.
Key Considerations for Organizations:
When evaluating marketing activations, organizations should consider the following:
Understanding the Target Audience and Aligning Marketing Activations:
To maximize the impact of marketing activations, businesses must have an understanding of their target audience and align their strategies accordingly. Tailoring activations to the preferences and interests of the target market ensures better engagement and customer satisfaction.
Practical Tip: Share your demographic data and ask your beverage rep which brands most align to your consumers. Ask for a presentation from those brand teams about how they think about their target demographic. You’ll learn more about your own customer and potentially find ways to partner with these brand teams in a way that is additive to your agreement.
Exploring Innovative and Unique Ideas:
Innovation is key to standing out in a competitive market. Of course, everyone should be executing on the basics, such as product samplings, limited time offers, point-of-sale signage, planograms, etc. Beyond these, organizations should brainstorm and explore unique ideas that go beyond traditional activations. Thinking outside the box can create memorable experiences and generate greater excitement around the brand.
Practical Tip: 60-90 days prior to your annual business review, give your beverage company a brief about one business initiative you hope to accomplish over the next year. Ask your rep to come to the business review prepared with 3 ideas of how to your partnership to accomplish these goals, complete with accountabilities, timelines, and KPI’s.
Leveraging Digital Platforms and Social Media:
Digital platforms and social media offer a vast landscape for marketing activations. Companies should leverage these channels to amplify their activations, engage with customers, and create a wider reach. Sharing captivating content, running interactive campaigns, and encouraging user-generated content can enhance the impact of marketing activations.
Practical Tip: Beverage companies have their own social media experts in-house and teams in place to help optimize your mobile and off-premise ordering platforms to drive more beverage attachment. Ask your beverage rep to line up these resources to meet with your team.
Measuring and Analyzing Effectiveness:
To ensure continuous improvement, organizations should measure and analyze the effectiveness of their marketing activations. Utilizing data analytics and customer feedback allows businesses to refine their strategies and make informed decisions for future activations.
Practical Tip: Incorporate benchmarks and KPI’s into your business reviews. Inquire with your beverage company if there are resources available to poll current and potential target customers and work to improve specific key metrics over your contract term.
Putting it All Together
Pouring rights agreements present a valuable opportunity for organizations to go beyond negotiating costs and rebates. By leveraging marketing activations, businesses can delight customers, generate excitement, earn PR and media impressions, and attract more guests. Through customized branding, interactive promotions, strategic partnerships, and targeted campaigns, organizations can create a positive brand experience and leave a lasting impact. Thinking beyond cost in pouring rights agreements can lead to exceptional outcomes and unlock the full potential of these partnerships.
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