Why Tequila Brands Must Innovate to Reach New Markets
Read Time: 4 min.
Today’s most effective marketing strategies rely less on selling and more on appealing to a customer’s lifestyle, desires, and tastes. If you can show your audience where your brand fits into their lives, selling is unnecessary. To the consumer, it’s more of a realization than a decision, so it matters how you differentiate yourself from the competition.
That all said, you need to know your market before you can appeal to their senses. Once you have defined your ideal buyer persona, it’s easier to build a brand that delivers what they are looking for. When your products fit seamlessly into their lifestyle, it elevates the experience and builds loyalty, community, and value.
Luxury Tequila Brands Target Niche Markets
A luxury brand isn’t judged solely based on price. The quality of the product, packaging, marketing message, and the penetrative promise of a better life are all compelling factors. However, this is stuff you can’t make up. You need to first know who your audience is, where they live, where they shop, and what they value to deliver on those assurances.
Tequila, in general, suffers from a poor image perception. Even though the category is doing well worldwide, it’s still seen as a “party drink,” and few innovators are pushing the envelope. Education is critical to changing how people view tequila, but most people don’t want to be preached to. They want to be intrigued, to discover organically, and own their selections, much as they would for designer clothes, vehicles, perfumes, and other luxury goods. It’s up to you to allow them the opportunity to do so.
When we talk about value, price is just one factor. You can’t price yourself above what your market will bear, or you lose perceived value. On the same token, you shouldn’t undervalue the product just to land in a value price point. There needs to be a perceivable balance between quality and price, but image factors, perception of exclusivity, and an intriguing backstory all contribute.
Why Invest In A Tequila Business Right Now?
If you are considering investing in a tequila business in 2021, you could not have chosen a better time. Markets are high, and demand is growing for premium and ultra-premium tequilas, and it’s easier than ever to work with a quality-minded producer who will help you succeed.
How is your product different from the rest? Is it the age of the spirit? The commitment to sustainable practices? The beautiful packaging? Your marketing messages must speak to these aspects as they help to set you apart from the hundreds of other brands you’re competing against.
You need to capture your audience’s imagination and be ready to dive deep into what makes your product so distinctive. From the name to bottle to labels, every detail counts – but what’s inside that bottle is the real star, and there are lots of variables to consider. The color, flavor profile, barrel program, and agave origin all have a part to play.
One of the most vital aspects of marketing your product is how you leverage the service industry to sell it. After all, these are the people on the front lines who will introduce, demonstrate, and promote your product to a broader audience. Providing superior support and customer service to this sector is essential. Buyers prioritize suppliers who make their lives easier. Bartenders love having products they can get behind, and retailers and servers alike place a high value on products they can up-sell. Be prepared to jump in the pit and have some fun with these folks because they will be your brand evangelists.
There is a very strong and active community dedicated to luxury tequila and high-end spirits in general. Once you’ve cracked that clique, news travels fast. You need to be ready with just-in-time messaging that engages and keeps the conversation flowing. Think outside the box when you’re designing your strategy and prioritize community. You might consider influencer marketing or developing campaigns around user-generated content. When potential buyers identify your product with people like them—rather than a sales message—they are far more likely to try it.
Premium Tequila: An Attractive and Profitable Business Model
There is little doubt that ultra-premium tequila is having a moment. With high-profile sales of celebrity brands like Casamigos and Cabo Wabo making the news, it’s easy to see the potential. However, these brands didn’t make it solely based on the star power behind them. The products were high-quality and appealed to a sense of place, time, and the idea that good friends and living well are more important than just about anything else.
Similarly, once you define your purpose, identify your audience, and develop a story to support those ideas, you’ll have a solid basis on which to grow your legacy.
We would love to hear about your ideas! How will you differentiate your brand? Connect with us today, and let’s talk about it.