June 2008
Extra
Big Brands Look to Loyalty Programs
Loyalty programs are hot for cold beverages. Brands such as Miller, Coca-Cola and Pepsi are all now looking to branded merchandise and other prizes as a way to boost sales. While continuity programs are certainly not a new phenomenon, they've gained increasing traction recently among large marketers. The formula for loyalty programs is simple: Buy the beverage and then enter a code from a cap or box into a Web site. Codes are translated into points redeemable for prizes.
Miller High Life Extras debuted March 3. It rewards loyal consumers with limited-edition merchandise running the gamut from an official delivery shirt to branded fire pit (31,000 points). Each bottle or can is worth 10 points.
“Whether they save up points to earn a Miller High Life baseball hat or an authentic delivery shirt, consumers can proudly display the timeless High Life logo, knowing they've chosen the best beer value in America,” Kevin Oglesby, senior brand manager for the brand, said in a statement. The program is slated to run through Feb. 29, 2009.
Pepsi unleashed its Pepsi Stuff program this year with the help of a 60-foot Inflatable Gift Monster that made appearances in Times Square and the Super Bowl. The monster's henchmen handed out codes for Pepsi Stuff points to thousands. The loyalty program, which dangles logoed merchandise, trips and Amazon MP3 downloads, will be the focus of Pepsi's advertising this year. The first ad, which broke in February during the Super Bowl, featured Justin Timberlake. A subsequent spot starred the Gift Monster, who surprised one lucky consumer with a logoed trucker hat.
Coca-Cola, meanwhile, will continue its MyCokeRewards program, which launched in 2006. Minor prizes include branded keychain bottle openers (84 points) as well as carabiners (60 points). Through February, the program had 9.1 million registered users, who had redeemed points for 5.2 million prizes.
“MyCokeRewards is a way of connecting consumers with our brands,” says Coke spokesperson Susan Stribling. “Whether it's offering lug nuts from cars from NASCAR or experiential trips, there are so many ways for us to engage people and keep it continuous.”
The cola giants could use a lift. The carbonated soft drink category saw its steepest decline in sales ever last year as sales shrank 2.3%, according to Beverage Digest. Sales of Miller High Life, meanwhile, grew minimally, by 2.6%, according to Beer Marketer's Insights.
“Getting the logo in front of people isn't the problem, the problem is the changing consumer tastes,” says Bill Sipper, president of Cascadia Consultancy, based in Ramsey, NJ. “If these guys stopped promotions and advertising altogether, it probably wouldn't make a difference.”
Rick Ferguson, editorial director of Colloquy, a provider of loyalty publishing, research and consulting, sees other motivation for beverage companies beyond branding. “Beverage brands have realized that building consumer databases and leveraging them to build relationships through individualized consumer touches is critical to organic, sustainable growth,” he says. “Loyalty programs are a proven way to engage consumers [so as] to collect and leverage consumer data.”
KEN HEIN is a contributing writer based in Basking Ridge, NJ.
