This is a hurdle most wouldn’t want to think about until the time comes. Unfortunately when it’s time to begin branding, business owners may feel the need to start right away to help cover any start-up costs they incurred. Oftentimes, these owners have sticker-shock when they realize how much more they have to invest in their own marketing efforts.
Most new distilleries focus on experiential marketing firms to get their products in front of consumers. However, there are 3 key challenges you should be aware of before starting your branding campaigns:
- Cash Flow - Product demonstrations are not cheap
- Feasible ROI - What do the profit margins look like in the short and long run?
- Distribution - Not every experiential marketing firm’s specialty aligns with your company goals
Firstly, a new distillery business owner needs to understand the hard costs of running product demonstrations. An experiential marketing firm needs to cover overhead that includes, but is not limited to, brand ambassador pay, admin fees and operations fees.
Secondly, you need to recognize how much ROI you would be comfortable with from running liquor promotions. Will you be content with the profit margins as determined by the cost of experiential marketing agencies both short-term and long-term?
Lastly, not only do you need to make sure the agency you’re in talks with understands your industry and has the expertise to prove its value, you have to ensure the branding strategy aligns with your company goals.
These 3 steps provide the foundation of your new marketing plan:
- Setting expectations for yourself and how quickly your business will progress is essential to planning your marketing strategy. Without a thoughtful guideline, your business will flop faster than it was created.
- Ensure your business has enough capital to continue forward and take the time to truly calculate your expected ROI.
- Carefully vet each experiential marketing agency to determine their value. If they present to you a fancy presentation that doesn’t align with your marketing goals, run!
Thoroughly think about your new steps to determine your next course of action. And if you need help, Dragon Spirits Marketing is here to answer any of your questions. Not only do we offer brand brokering and consulting, but we also work with you to create a tailored marketing and sales strategy.
We are the best in the industry at educating consumers and delivering more sales per activation than any other marketing company! So if you desire more brand awareness and higher sales contact us today!