Peeling back Liquid Death's killer branding secrets, from sneaky energy drink marketing origins to strategic branding in a commoditized water industry. Discussing the rebellious 'Murder Your Thirst' tagline, unconventional marketing tactics, and growth potential. Stay tuned for a refreshing take on innovative branding and design.
Liquid Death's branding is bold and unconventional, challenging norms in the beverage industry.
Creative differentiation and trusting intuition are key aspects of Liquid Death's success story.
Overcoming challenges through creative solutions and a strong brand vision is crucial for growth.
Liquid Death's marketing strategy emphasizes entertainment, humor, and shock value to engage its audience effectively.
Deep dives
Liquid Death: A Unique and Edgy Beverage Brand
Liquid Death is a beverage brand that has gained significant growth and attention through its unique and edgy approach to branding. The company's flagship product is water, but they have differentiated themselves through their unconventional marketing strategies. With a name like Liquid Death and packaging that resembles beer cans, they disrupt the traditional perception of water. The brand's goal is to be different and memorable, appealing to a market that values authenticity and boldness. Despite the initial challenges in finding a suitable supplier and securing investment, Liquid Death has gained significant traction, securing listings in major supermarkets and generating a high level of engagement through their content and branding approach.
Creative Differentiation and Trusting Intuition
Liquid Death embodies the power of creative differentiation in building a successful brand. By daring to be bold and unconventional, they have set themselves apart in a highly commoditized industry. The company's founder, Mike, emphasizes the importance of trusting one's intuition and being willing to challenge established norms. While many brands rely on brand books and strict guidelines, liquid death embraces freedom and a taste-driven approach. This approach has allowed them to create a brand that resonates with their target audience and stands out in a crowded market. The success of liquid death also showcases the potential for designers to make a significant impact as creative founders in the business world.
Overcoming Challenges and Creating Desirable Products
Liquid Death faced several challenges in its journey, including finding a suitable supplier and securing investment. However, they managed to overcome these obstacles through creative solutions and a strong brand vision. By 3D rendering a can and creating a viral commercial, they generated interest and showed clear intent. This led to their first investment and enabled them to produce their initial batch of products. With a focus on premium packaging and quality spring water, they were able to justify their premium price point and secured listings in major supermarkets. Beyond water, liquid death has also expanded into other offerings like flavored sparkling water and iced teas, further solidifying their position as a unique and desirable brand.
Entertainment as Marketing: Unconventional and Memorable
Liquid Death's marketing strategy goes beyond traditional marketing and aims to entertain and engage their target audience. Their campaigns and messaging are built around humor, controversy, and an element of shock value. By elevating water to a rebellious and edgy status, they have created a memorable brand experience. Their content, such as the 'Sell Your Soul' email list and the Country Club loyalty program, encourages audience engagement and sets them apart from their competitors. Liquid Death exemplifies the power of using entertainment as a marketing tool and demonstrates that being different and daring can lead to significant brand success.
Liquid Death's Growth Trajectory
Liquid Death has experienced rapid growth, more than tripling its revenue in the first two years and then more than doubling it in the following years. Its revenue trajectory is in line with the triple-triple-double-double-double benchmark commonly used for high-growth companies. Despite being a relatively young company, Liquid Death has become a major player in the industry, outpacing other well-known bottled water brands in terms of revenue growth.
Challenges in Profitability
Currently, Liquid Death faces challenges in profitability, with high shipping costs accounting for 47% of its expenses. However, the company has plans to reduce this cost by sourcing water locally and working with local bottling companies. It aims to bring down shipping costs to 20% in 2023 and further decrease it to 11% in 2024. The company's gross margin is currently 12%, while the industry average is around 50%. By addressing these cost challenges, Liquid Death aims to improve its profitability and increase its gross margin.
Future Potential and Evaluation
Liquid Death has shown significant growth and potential, making it an attractive investment. While it faces challenges in profitability, its unique branding, effective marketing strategies, and growth trajectory position it for future success. The company's valuation has been steadily increasing, with a recent investment round valuing it at $700 million. As it expands into new markets and continues to refine its operations, Liquid Death has the potential to become a billion-dollar company. However, investors should carefully consider the risks and industry dynamics before making any investment decisions.
Get ready to crack open a can of intrigue with our latest Business Design Teardown, where we're diving headfirst into the chilling waters of Liquid Death's business and creativity genius.
We're peeling back the heavy-metal label to reveal the secrets behind their killer branding that's taken the beverage industry by storm. From the mountainous origins of their water to the razor-sharp humor of their marketing campaigns, we'll explore how Liquid Death has managed to make hydration feel like an act of defiance.
Join Alen, Franz, and Tom as they explore how this brand turned the simple act of drinking water into a rebellious statement as we explore...
How sneaky energy drink marketing at festivals first planted the seed of an idea for Liquid Death's founder
Why using a fake advert to measure demand was a breakthrough move designers can learn from
The playbook that Liquid Death used to shake up a stale product category with edgy branding and marketing
Why Liquid Death's 'Murder Your Thirst' tagline means more than hydration; it's an environmental call to action
So, if you're thirsting for a business story that's as refreshing as a cold drink on a hot day, tune in. This episode promises to murder your boredom and resurrect your love for innovative branding and design.
Stay hydrated. It's going to be a killer episode.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
