How Liquid Death Can 10x Sales [6/6] – Marketing Teardown

Travis Page Season 2

Want the full deck?

 

 Today we’re gonna give the final verdict on a company called Liquid Death. They are water designed to “murder your thirst”. And we’ve been tearing them down for several episodes now. 

And this is the final take, a final score, the final verdict on where their marketing is at.

So let’s get into it.

Overall, you can see our score matrix right here. We’ve got them at an eight point five.

Not bad. Not bad. I would say. 

Yeah, they’re run by marketers. They know what they’re doing. And usually when you see somebody lean into brand this hard, you’re gonna worry about their other marketing technology strategy. They get it. Because they’re focused literally on brand as hard as they can. They’re going deep into an individual niche that’s really, really smart. And so we give them a seven for strategy. The Web site. It’s fairly good for a D2C, but they’re purchasing flow. Really, really sucks. 

Yeah. And honestly, I mean, you see where this is weighted, right? 10 on brand. 10 on lateral marketing. Nine on positioning. I mean, this is where they’re winning right now. And the other stuff, the overall strategy, web and channel strategy. I mean, these are the more of the I would say on the on the tactical side. More so than kind of the big picture of what they’re building as brand. They’re clearly winning as a brand. They’re clearly positioned themselves in a solid place in the market. And they’re super fucking creative. They’ve got amazing ideas. They execute their campaigns brilliantly. But when it comes to the actual tactics, especially on an e-commerce, especially on a retail kind of side of things, you know, we talked about this before. But it’s that line between entertainment and retail and commerce and where they put themselves on that. And that comes out to the Web site where they have a, in our opinion, the purchasing flow that could be improved. Way more than where it is that right now. Because it is trying to be entertaining. It’s trying to be fun. I think in the process, it loses a lot of those commerce elements of “we want people to buy the products” but then you also don’t get the full entertainment experience. So it’s a it’s a tough line to walk for sure, but that’s where I think they could potentially improve the most. 

Yeah, and then they in their positioning, too, they’re they’re nailing it. 

We think they would be severely benefited by repeat purchases. That’s kind of tough, as we said. Brand is nailing it. I don’t think there’s anything they could do to improve the brand for what they’re doing right now as far as who they’re targeting and going really deep and being authentic. You had a couple of things to say about their channel strategy. I totally agree with we wanted to say that you should push video a little bit harder, maybe go into streaming a little bit since cost is very low. You reach massive audience, everybody’s at home. Hulu, TV, programmatic. All that our gas station idea where we thought it’d be hilarious if they took some awesome creative and put it in front of people at those gas station TV’s. The barrier to entry creatively is so low, they’re so bad the hurdle there is getting the executives to approve it because they’re going to be afraid of it, its going to be a little weird for them. 

Oh, yeah. Oh, yeah. People don’t do this. That’s the thing.

You don’t see a lot of brands like this because especially at bigger companies and, you know, people that put their reputations on the corporate line like this dont understand this. It doesn’t click with the culture. It doesn’t click with the vibe. So it could be tough to fit into that world. But, you know, if anyone can do it, it’s them. I think that’s really what it comes down to, something I do want to mention, by the way, as far as strategy goes. One of the big problems that we had with this company is, you know, does the business model work? And obviously, without the internal numbers, we can’t fully know, you know, based on cost after shipping, refunds, and all of that, you know, are they making profit on the D2C side of things? Pretty sure they’re making a profit on the retail side of things. But as we know, you give up a lot of margin when you’re selling physically in the store. So when you sell through distributors and, you know, physical offline retailers, they take a lot of margin to get big orders, but you also lose the margin. So, you know, as far as a business, that’s great. But unless they do huge volume, you know, they’re not going to make as much money as it couldn’t. So I think one of the ways they might be able to bring this score on strategy up is with other products expanding what they’re doing with merch. You know, we were saying earlier, we’re a big fan of what we’re doing with merch, like other ways to monetize the brand. And and that, I think, really calls out where this company is going, because right now they’re a water company. A lot of people seem to think that it’s like: It’s cute, it’s fun, its kind of a novelty, which is, you know, the danger that we talked about as far as their positioning is breaking free from that. But the same time, that’s underestimating what they’re doing as a brand because they’re not just a water company. They are an entertainment company that happens to be selling water. And they’ve done a great job selling water through that company. So where they take that other products with merch, with other entertainment deals with other ways to sort of monetize their audience, if you will. That’s huge. And I think that’s really the future of where this companies going: fully understanding all those pieces. 

Yeah, I mean, they’re nailing it. Good job, good job. Liquid Death. Keep it up.  

Get some repeat purchasers. Keep doing crazy ideas as far as like your marketing campaigns that nobody would think of besides you. 

Lots of experiential stuff. Exactly.

Yeah. Really. We’ll leave it at this. Keep doing fun shit. We want to see it. It’s fun for all of us. It’s fun for customers. It’s probably a little terrifying for investors, but we’ll keep it rolling.