Brand awareness is key to influencing consumer choices and building trust. This post explores successful strategies from Stur Drinks, Magic Spoon, and Liquid Death, highlighting the power of an omnichannel approach using social media and Amazon. Discover how new food brands can thrive in the competitive US market.
Imagine someone standing in a grocery store overflowing with products. What makes them grab that one specific item and leave the rest? The answer is brand awareness. Consumers always choose a brand they are familiar with rather than the rest of them. Building brand awareness takes time; however, with dedication and a well-defined strategy, a brand can distinguish itself from its competitors.
Think about fizzy drinks, and Coca-Cola comes to mind. Even when going to a store, a consumer will prefer Coke over other unfamiliar soda drinks. Why is that? That is the power of brand awareness. Brand awareness is crucial in marketing, encompassing consumer recognition and recall of a brand's attributes, thus forming the basis for brand loyalty and associations. By creating a mental connection between the brand and the customer, brand awareness makes decision-making simpler and fosters a sense of familiarity and trust.
Brand awareness includes the identification of a brand among consumers and affects their perspective and buying decisions.[1] Studies showed that customers are 2.5 times more likely to select a well-known brand over others, and 64% of buyers take brand awareness and reputation into account when choosing which products to buy.[2] Another study by Edelman revealed that 81% of consumers buy products from brands they trust, thus indicating the importance of building brand awareness. In another survey done by Shopify, 82% of consumers base their purchase decisions on brand trust in the e-commerce industry.[3]
To succeed in any market, it is crucial to understand its unique characteristics, and the same goes for the USA. It's a land of diverse tastes, with regional variations in consumer preferences. Understanding consumer behavior, demographics, and market trends helps in crafting marketing messages that appeal to the appropriate audience at the appropriate time. However, local customs and cultural variations are important considerations that need to be considered while developing the plan.
Standing out in the US market requires strong brand awareness. It begins with identifying the unique selling points of the brand and effectively communicating them to the target audience. Consistency is key; maintaining uniformity in branding elements such as logos, colors, and communication style facilitates easy recognition. Furthermore, leveraging various marketing channels, including social media and influencer partnerships, amplifies brand visibility and engagement.[4]
Just like any other brand, building awareness for food and wellness brands is crucial in order to survive in the market. When it comes to food brands, consumers will always prefer the well-known ones to avoid any chance of having contaminated food.
The US market can be considered a land of opportunity for food brands. The United States, with its US$25.5 trillion GDP in 2022, is the largest economy in the world, thus presenting enormous opportunities for food brands. With 333.3 million people, its high per capita GDP of US$76,399 indicates that its citizens have significant purchasing power.
USDA statistics indicate that the food business is a major contributor, accounting for about 5% of the country's GDP. According to a Research and Markets analysis, the packaged food market alone is expected to grow from its estimated US$1 trillion in 2022 to US$1.6 trillion by 2030, making it a formidable force. This doesn’t even include the potential of the larger food service and related businesses.
The market accommodates a broad range of consumer preferences and purchasing behaviors, from conventional brick-and-mortar businesses to thriving online options and hybrid models. This diversity provides the food industry with a number of platforms to connect with their target audience.[5]
Online grocery shopping is becoming more popular as a way for customers to meet their lifestyle demands. Brands will need to come up with innovative ways to connect with consumers and maintain their items at the top of their minds as the market changes. According to some statistics given by Amazon, 33% of US consumers purchase their groceries in stores, while 48% of them use multiple channels to make their purchases, both online and in physical locations.[6]
For new food brands, brand awareness is even more important because of the dominance of major chains. Securing shelf space among these industry giants becomes much more difficult in the absence of significant brand recognition and consumer trust. That’s why having a detailed and organized strategy for building brand awareness is crucial.
The dominance of major grocery chains in the US and the importance of brand awareness can’t be ignored. However, getting into the mainstream market is very challenging in the USA. Common barriers include regulatory compliance, high competition, effective distribution and supply chain management, and building awareness for the brand in the mainstream market.[7]
According to a survey, most shoppers choose mainstream grocery stores due to variety and affordability. 61% of American consumers prefer mainstream grocery chains, while 56% of them shop at supercenters.[8] However, the surge of e-commerce cannot be denied, as around 61% of consumers start their product searches on Amazon.
The figure above signifies the market share of leading e-commerce companies in the United States as of 2023. Amazon has secured the top spot among online retailers, highlighting the dominance of e-commerce in the US market.[9] It's important to note, however, that unlike Amazon, some competitors like Walmart have a well-established network of physical stores. This highlights the importance for new food brands to find ways to make their products discoverable and accessible to customers on platforms like Amazon.
Consumers also use social media platforms to search for brands. These platforms are very powerful at convincing users to try out a new brand or a new product. According to a study, 82% of Gen Z like to watch food content on social media, while 70% of them have claimed that social media inspired them to try out a new snack.[10] These statistics alone justify the importance of using these platforms to build strong brand awareness in order to reach a larger audience.
Moreover, according to a recent report by EU publications, American people tend to purchase products manufactured within the United States, and they take pride in it. The study has described various consumer types; one of them is “cautious planners." Such consumers are described as brand loyal; however, they may try new brands, but only after they have done a considerable amount of research.[11]
Such facts and consumer behavior signify the importance of building brand awareness within the mainstream. Strong brand awareness helps new brands stand out in the highly competitive US mainstream market, allowing them to differentiate themselves from their competitors. Once the brand has achieved mainstream awareness, it becomes a familiar face to potential customers. The following are the benefits of achieving brand awareness:
Because a small group of companies own a sizable portion of the market, it is challenging for new products to find a place on the shelf and attract interest from customers. Even though there may seem to be an abundance of options on grocery shelves, many well-known brands are really controlled by the same groups. According to a survey done back in 2021, around 40% of the market share is controlled by these dominant groups, accounting for 85% of the groceries analyzed.
Developing high brand recognition is essential in such an environment. Customers are more inclined to take a brand into consideration when they are familiar with and confident in it, even among well-known competitors. The dominance of private labels (supermarkets’ own brands) further emphasizes the challenge for new entrants. These private labels often benefit from prominent placement and competitive pricing, making it even harder for new brands to compete.[13]
To enter any market, it is imperative to first understand the needs and demands of consumers. These days, consumers prefer brands that align more with their personal values or support a social cause. People are also more concerned about their emotional and mental well-being and prefer healthy food products over others. According to a survey done by the International Food Information Council (IFIC) in 2023, three out of four Americans (around 74%) are of the view that the food they consume has a considerable or moderate impact on their emotional and mental health.[14]
After being aware of the demands of the market, it’s time to reach the target audience. Brands need to utilize the right digital platform to reach their target audience. One cannot deny that it’s the age of digital platforms and social media, and these are surely the perfect tools for brands to strengthen their brand awareness. Moreover, purchasing groceries or food items online is on the rise. According to a report by eMarketer, digital grocery sales will account for 19.06% of U.S. e-commerce sales by 2026.[15] Another survey revealed that around 22% of consumers shopped for groceries online as of April 2024.[16]
Now let’s dive into some success stories of different food brands and see how they utilized these digital platforms to make their businesses successful.
Stur Drinks is a leading water enhancer brand and is sold in grocery stores and online around the United States. It started as a tiny, family-owned firm and achieved success by using Amazon to contact customers. Neel Premkumar founded the company to help his wife drink more water while pregnant. Stur Drinks began selling on Amazon and saw good early sales.
The small crew was managing the campaign itself. They put in a lot of effort on Amazon ads but were not getting the required results. The reason behind these unsatisfactory results was an ineffective Amazon strategy and bad search term management. Recognizing the need for experience, they collaborated with an advertising firm called “Search Scientists” to improve their strategy.
The advertising agency recognized fundamental difficulties in their marketing campaigns and devised a more effective strategy. This entailed automating some activities and manually tweaking high-converting keywords. Key strategies included increasing campaigns on Seller Central, improving bids, and employing Amazon Marketing Services.
The results were astounding just after 8 months with Search Scientists. Stur Drinks witnessed a 50% boost in income and brand visibility, reduced their advertising costs, and a 9% increase in five-star ratings. This achievement highlights the value of Amazon for small businesses and how clever ad campaigns can create big growth.[17] After 4 years of launch, Stur Drinks became the #1 selling drink mix on Amazon.[18]
Magic Spoon is a New York-based cereal brand launched in 2019. It isn’t just an average cereal brand; it has taken the breakfast world by storm. It positions itself as a healthy, high-protein, and low-carb cereal option. Within just 2 years, the company reported a huge revenue of $50 million due to their genius marketing strategy.
The company’s brand-building strategy relies on a combination of social media campaigns, influencer partnerships, and podcast advertising. The company builds its millennial and Gen-Z following through the use of short social media videos. However, Magic Spoon approaches social media advertising in a new way, portraying ads as amusing or instructional material rather than standard sales pitches. They work collaboratively with content creators and influencers to create interesting and relevant advertisements.
Throughout all influencer posts, the cereal's high protein content and excellent taste are repeatedly emphasized as crucial selling elements. What's noteworthy is that Magic Spoon gives influencers the opportunity to make videos in their own unique manner, which promotes authenticity.
This strategy contributes to the development of a cohesive story around the product while also encouraging individual innovation and expression. This adaptability is critical for a new business like Magic Spoon that wants to stand out in a competitive market. Apart from social media, the company also focuses on podcast advertising.[19]
For influencer marketing, they utilized TikTok. At first, they weren’t sure how to target Gen Z and millennials through this platform, so they took the help of an influencer marketing platform called Ubiquitous. How did they go about the campaign?
Ubiquitous started filtering their database of more than 2,500 TikTok creators in order to identify candidates for Magic Spoon. They specifically sought out creators who had at least 40% female followers because Magic Spoon's analytics showed that most of their domestic product purchases were made by women. Magic Spoon launched an integrated marketing strategy that involves the casual display of the product in the videos. One example of such videos is “What I Eat in a Day?".[20]
In addition to their multi-channel marketing approach, Magic Spoon decided to launch on Amazon after noticing a significant search volume for their brand and products on the site. They observed that competitors were benefiting from their brand name searches due to their absence. To avoid this and capitalize on possible sales generated by their own promotional efforts, they began selling on Amazon. Magic Spoon also utilizes sponsored ads on Amazon to promote their products in shopping results and on pages with similar items.[21]
The company is growing and has been able to observe an upward trajectory in terms of sales. Ever since its initial launch in 2019, the company has achieved a customer base of 1 million in just two years[22] and has expanded its business to 16,000 national retailers.[23] The TikTok campaign launched by them ran for 30 days. The results exceeded their expectations and achieved a $2.30 CPM and over 10.8 million impressions. This case study shows that following a multi-channel marketing approach and then taking your products up on Amazon is surely the best way to lead your brand to success in the mainstream market.
Liquid Death was founded by former Netflix creative Mike Cessario in 2017. It is a company that sells canned water, and its motto is "murder your thirst." Its cans are canned by Wilderness Asset Holdings LLC in Virginia, US. In January 2019, the brand began selling to consumers via its website. By October 2022, the company had a $700 million valuation, and as of 2024, Liquid Death's flavor lineup had grown to 14.[24]
Cessario had a difficult time introducing Liquid Death, mostly because the water market has high entry costs. He didn't have the $200,000 needed to make the bare minimum of 250,000 cans.
In an advertisement titled "The Deadliest Stuff on Earth," Cessario portrayed water as a hazardous material that other businesses had been misrepresenting in order to highlight the possibilities of their product. In just four months, the $1,500 advertisement—which cost an additional $3,500 for bought media—attracted 80,000 Facebook followers and 3 million views.
Due to the success of this viral campaign, Liquid Death received a lot of requests from smaller retailers, which helped them raise funding for a production of 250,000 cans. Online sales for the first can began in January 2019.[25]
Liquid Death follows a digital-first approach. Liquid Death relies significantly on e-commerce and direct-to-consumer (DTC) sales, which allows them to maintain brand image and interact directly with customers. Despite its humorous and unusual brand theme, Liquid Death's marketing technique is extremely effective. They follow a multi-channel integrated approach, producing content and establishing a presence on a variety of channels, including social media, paid digital advertising, influencer marketing, and experiential events.
Their social media presence is particularly noteworthy, with hilarious and viral material. Moreover, their strategic collaboration with influencers has allowed them to foster a devoted fan base.[26]
According to Mike Cessario, Liquid Death is now Amazon's best-selling iced tea and the second-best-selling overall water category (still, carbonated, flavored, functional, etc.). To provide context, Amazon combines all Liquid Death SKUs from their water category product page with all SKUs from their iced tea product page.
Mike further states that Amazon is an excellent indicator of genuine customer demand for beverage items because it doesn't have the problems of limited shelf space or running out of stock that stores do. Consider some of the top-ranked best sellers in beverages on Amazon (Celsius, Poppi, Sparkling Ice, and so on), which are also among the fastest growing in physical retail.[27]
Liquid Death's success on Amazon demonstrates the value of incorporating online markets into a multi-channel marketing strategy. This method not only improves online visibility but also leads to success in the mainstream market.
The company has been growing ever since its launch. Their approach is unique, and their target audience is young kids and Gen Z. In March 2024, the company raised $67 million in funding and received a $1.4 billion valuation. Liquid Death also reported $263 million in retail sales for 2023. The table below represents their sales per year from 2019 to 2022.[28]
These case studies highlight the critical role that social media and digital platforms like Amazon play in helping new food brands expand and drive growth.
For any new and small food brand, success on Amazon is imperative, and this can be achieved by adopting an omnichannel marketing approach, which ultimately leads to success in the mainstream market.
The Mezete brand was launched by Kashi Food Production Company, straight from the heart of the Middle East, Jordan. The Kashi company has over 100 years of industry experience.[29]
Mezete is a ready-to-eat food brand targeting busy people who desire great flavor and also don’t want to compromise on their health. Mezete products are made from natural ingredients with no preservatives, thus delivering an authentic taste experience.[30]
To ensure the success of the Mezete brand, Lumen Brands leveraged Amazon's powerful e-commerce platform. They collaborated with multiple Amazon departments, including the Amazon Ads team, to optimize the brand’s listings. Advertising campaigns began in November 2022, and a total of 1,892 campaigns have been launched to date. Additionally, Lumen Brands used their AI tool, Prism, to implement keyword changes and the addition of new relevant keywords on Amazon. This strategy increases the chances of the brand reaching the target audience.
The campaigns for Mezete were a huge success. Within a period of 6 months, Mezete rose to become a top-ten hummus brand on Amazon US with great metrics and having won multiple Amazon’s Choice designations. Mezete is currently the best-selling hummus on Amazon. The campaigns generated a total of 3,780,177 impressions, indicating the number of times ads were displayed to users. The ‘Figure-6’ represents the number of impressions of the Mezete campaign on Amazon from November 2022 to May 2024.
The Mezete case study demonstrates the power of platforms like Amazon. It emphasizes that with the right partner and an effective strategy, any new food brand can succeed, even in a competitive market like the U.S., and reach new heights of success.
Together, the cases and market insights prove how strategically utilizing targeted digital platforms like social media marketing, influencer marketing, and Amazon advertising can enable emerging food brands to engage with customers directly, increase revenue, and carve out a distinct identity in today’s ever-growing market. One thing new food brands need to remember is that mainstream brand awareness translates to trust and recognition among a broader audience. This wider recognition can potentially lead to increased sales in traditional grocery stores, brand partnerships, and a stronger overall market presence.
Moreover, making Amazon a part of the brand awareness strategy is crucial for new food brands, as even though Amazon captures 3% of the U.S. mainstream grocery market, it gets over 2.2 billion visits per day. Consequently, the best way for non-US food brands to navigate the highly competitive US market is through a multi-channel strategy that includes Amazon in addition to conventional grocery shops and other relevant platforms. Success on Amazon is essential, and adopting an omnichannel marketing approach ultimately leads to success in the mainstream market.