Reference no: EM133339204

Case Study: Hundreds of visiting revelers hit the House of Blues blowout that kicked off the cocktail industry's biggest annual conference, bobbing to '90s hip-hop and throwing back tallboy cans of Liquid Death.

Makers of the scary-sounding beverage sponsored the opening night gala, hoping to persuade more bartenders and restaurant owners to serve Liquid Death back home. Whatever their pitch, the truth is there's nothing better in nature to quench a thirst.

The cans, covered with a skull-and-crossbones logo, are filled with water from the Austrian Alps. At a glance, few would guess they carry no alcohol. That is the point, said Liquid Death founder Mike Cessario, 40 years old, of Los Angeles. "We're using packaging and brand psychology to make something healthier, not feel like it's healthy," he said.

The beverages cater to partygoers who seek the conviviality of social events without drinking alcohol, either for health reasons or to avoid risking hangovers, regretful behavior or flashing red lights on the drive home. Many prefer to disguise their teetotal beverages and avoid the nosy why-aren't-you-drinking? interrogators.

Bob Lugowe, 37, bought a Liquid Death tallboy at a recent Megadeth concert and said toting around the can, adorned with gothic heavy-metal style lettering, made him feel as much a part of the crowd as carrying a beer.

"I didn't want to get made fun of for drinking Poland Spring at a punk show," said Mr. Lugowe, who runs an indie record label out of Philadelphia.

One welcome feature, he said, was being able to crush the big can on his skull alongside all the other happy hell-raisers.

The drink's disguise is so convincing it sometimes looks taboo in other settings. While giving a music lesson to an 11-year-old, in Beaverton, Ore., Niah Klotz noticed the student's Mom eyeing his can of Liquid Death suspiciously.

"I had to explain it and show her the label," said Mr. Klotz, 26. "She was like, 'Oh, OK, that explains it. It just really looks like a beer.' And I was like, 'Yeah, they do that on purpose.' "

Liquid Death earned $45 million in 2021, and is on track for 300% growth this year, Mr. Cessario said. A 16.9-ounce can of the original flat or recently released carbonated water costs about $2.

Questions:

A. As the last paragraph of the except states, Liquid Death is on track for 300% growth this year. Briefly (in a sentence or two), explain the success of the product from a marketing perspective.

B. At a number of points in the article (including in the title), it is clear that Liquid Death is put in the same product category as beer even though it is water and has no alcohol in it at all (and customers know this). Explain why, from a marketing strategy perspective, it makes sense to view beers as the main competitors to Liquid Death instead of water.

C. Provide an example of how viewing beers (vs water) as competitors has shaped the marketing mix of Liquid Death.