Brand Stages: It's Not What You Think
Oct 26, 2024
The "Brand Life Cycle," a concept many of us learned in Marketing 101, is often more myth than reality. While brands certainly evolve, their progression is rarely a predictable, linear curve. Let's take a look at three major brands—Celsius, Peloton, and Coca-Cola—to see what's really driving their growth and longevity.
Celsius: The Challenge of Getting Noticed
Celsius, the "healthy" energy drink, is in what marketers would call the "development and launch" phase. In reality, this means they are in a fierce battle for attention. How are they doing it?
- Product: They are positioning themselves as a "better-for-you" alternative, using buzzwords like "clinically proven" ingredients and "no sugar." In a crowded market, differentiation (or at least the perception of it) is crucial.
- Price: They are competitively priced, with frequent discounts and promotions to encourage trial.
- Promotion: They are using a mix of social media, online ads, and sponsorships to get their name out there.
- Place: They are focused on expanding their distribution, both online and in physical stores. Availability is key.
Celsius is doing what any new brand must do: making noise to be heard. The primary goal at this stage is to build mental availability. While they may be building some brand equity, their immediate focus is on becoming a known entity.
Peloton: The Myth of the Growth Stage
Peloton is often cited as a textbook example of a brand in the "growth stage," with its explosive expansion and cult-like following. However, this growth is primarily driven by penetration—acquiring more customers.
- Product: They offer high-end equipment coupled with a subscription service, creating a sticky ecosystem with recurring revenue.
- Price: Their premium pricing signals quality and exclusivity.
- Promotion: They use a combination of TV ads, social media buzz, and public relations to build awareness and leverage word-of-mouth.
- Place: They sell online and through showrooms, which allow potential customers to experience the product firsthand.
Peloton's success isn't about being in a "growth stage"; it's about acquiring more customers of all types. One could even argue that their premium positioning might limit their long-term penetration potential.
Coca-Cola: The Mastery of Availability
Coca-Cola is the quintessential "maturity stage" brand. They've been around for over a century, but "maturity" doesn't mean stagnation. It means they have mastered the fundamentals of marketing.
- Product: They have a massive portfolio of brands, including Coke, Sprite, Fanta, and Dasani, giving them dominance in the beverage category.
- Price: They are competitively priced, with frequent promotions to keep sales volume high.
- Promotion: They are everywhere, with massive advertising campaigns on TV, social media, and through sponsorships.
- Place: They are ubiquitous. You can buy a Coke almost anywhere on Earth. This is their superpower.
Coca-Cola isn't resting on its laurels. They are relentlessly focused on being easy to buy. Mental availability (being thought of) and physical availability (being there) are their constant drivers. This is a lesson for any brand, regardless of its supposed stage.
It's About the Fundamentals
The 4 P's of marketing are still relevant, but framing them within a rigid life cycle can be misleading. The real key to brand growth and longevity, as these examples show, is building mental and physical availability. Get noticed. Be easy to buy. That's how brands grow, and how they stay big.