Advertising

by David Klemt David Klemt No Comments

Branding Chaos vs. Chaos Branding

Branding Chaos vs. Chaos Branding

by David Klemt

A scene of absolute chaos and impossible physics inside a maximalist design bar

As realistic as this image appears, this was, indeed, generated by artificial intelligence.

It’s important to understand the marketing terms “chaos branding” and “branding chaos,” and what they mean for your business.

The first thing to realize is that the two terms aren’t interchangeable. One, when a brand executes it successfully, is a positive. The other goes in the opposite direction, and hints at a strategic problem.

In fact, it points to a lack of strategic clarity. And if you’ve been following KRG Hospitality president Doug Radkey’s articles, social media posts, or Hospitality Reinvented podcast episodes, or have attended one of his speaker sessions or webinars, you know strategic clarity is a KRG pillar.

So, what do the two terms mean, and why are they important?

Branding Chaos

Simply put, this isn’t good.

Branding chaos is a lack of clarity (there’s they keyword again) and consistency in branding. Generally speaking, when a brand lacks a clear and considered branding strategy, the result is branding chaos.

This can manifest in many ways, from the overt to the subtle. You’ll find some examples below.

Colors

A brand’s color palette is crucial to its branding strategy. This branding element is so important, in fact, that one of the eight KRG Hospitality playbooks is our branding strategy playbook.

Failing to establish a brand color palette and adhere to it strictly can create branding chaos.

Logo

Have you ever visited a company’s website, social channels, or brick-and-mortar location and seen more than one company logo? Or been handed a business card that had a different logo than the company’s current design?

That’s an egregious branding issue.

Slogans & Taglines

These are just as important to a brand’s identity as the logo. To provide clarity, the slogan speaks to a brand’s mission and is used in advertising; a tagline tends to be punchy and is used to promote brand awareness.

It’s one thing to have a slogan that’s a bit different from the tagline. It’s quite another thing when a brand generates multiple slogans and taglines, and it’s a problem.

Confusion

A great branding exercise is to ask your team members to describe your brand. If you’re not receiving consistent descriptions, your own team is confused about the brand, which is a red flag.

Voice

It’s important for a brand to establish its “voice.” To put this in simple terms, a key element of branding is attaching a personality to a brand. Is the brand silly? Snarky? Moody? Serious?

The brand’s messaging, from traditional advertising campaigns to social media posts, must embody that personality, or voice. Think about how jarring it can be for a brand that has established itself as serious or moody to take on a silly voice suddenly.

Consistency

Something as simple as seemingly small inconsistencies on a brand’s website, for example, can be a branding chaos warning sign.

At KRG, we’ve worked with clients who used “night club,” “nightclub,” “gastro pub,” “gastropub,” and even different versions of their brand name. That may seem like a simple error but, if not addressed, it’s a “small” mistake that harms the brand’s identity.

There’s also font mixing, or the use of several fonts on the same website or webpage. And that’s just on a website. Think about how a mix of inconsistent uniforms can affect guest perception.

Successful branding promotes engagement and loyalty, and requires a clear strategy. Or, strategic clarity.

Chaos Branding

Unsurprisingly, traditional branding methods don’t resonate with everyone. Speaking generally, many members of younger, tech-savvy, chronically connected generations find “old” marketing methods unappealing.

Again, I’m speaking in generalities; no demographic is a monolith. It’s crucial to develop a deep understanding of your target audience to communicate with them effectively.

That said, a common belief concerning Millennials and Gen Z is that they don’t trust polished content. Really, I’d say that applies to a significant number of people of all ages.

This is because social media posts and advertisements that are just too polished and slick put some people on the defensive. They immediately become suspicious that you’re only motive is to sell them something, and that your brand perhaps doesn’t share their values.

It’s not a leap to say this is the natural consequence of social media’s ubiquity. If nothing is real life on social media, everything is a trick or hustle.

Enter: Chaos branding.

Authenticity

Chaos branding seems far and away more honest and authentic because it eschews careful curation.

It seems off the cuff, in the moment, and honest. Chaos’ counterpart is curation. When we look at carefully crafted and curated posts, they seem to share the same aesthetic.

Whereas curated posts get lost in a sea of reels, stories, slideshows, and static images, posts that leverage chaos branding can cut through the white noise.

Be the Chaos

Get messy. Go maximalist. Be spontaneous. This is hospitality—every shift is punctuated with spontaneity and chaos. Embrace that, and share the reality of your brand’s day-to-day vibe to show people what they can expect when they visit.

To provide a solid example, Wendy’s snarky social media presence, complete with the audacity to roast rivals and even its own fans, has mastered chaos branding.

And if you really want to go hard, there’s unhinged branding. The image at the top of this article? It’s unhinged.

One way to leverage unhinged branding, if it matches your brand authentically, is to ask AI to make a video for your brand. If it’s just…unstable, you’re on the right track. But…it must be cool.

Takeaway

Branding and marketing require strategic clarity. That’s non-negotiable for operators who want to achieve long-term success and craft a legacy.

Our eight playbooks are bespoke documents that provide a roadmap to success built on strategic clarity.

However, chaos has a place in clarity, as at odds as those concepts may appear. Savvy operators can succeed with chaos branding if they make it a part of their well-crafted, carefully considered strategy.

Image: Microsoft Designer

KRG Hospitality Contact 60-Minute Impact Session

Looking to Start, Stabilize, or Scale? Book Below to Setup a 60-Minute Result-Driven Impact Session.


by David Klemt David Klemt No Comments

Did This Beer Win Super Bowl LVIII?

Did This Beer Win Super Bowl LVIII?

by David Klemt

A pint glass overflowing with beer

Now that the Super Bowl is over, behavioral insight platform Veylinx is revealing the impact on brands that advertised during this year’s big game.

If Veylinx sounds familiar to you, you may be a regular KRG Hospitality news reader. Last month we looked at their dive into alcohol-free canned cocktails. Last year, we shared a Veylinx report with a focus on whether Super Bowl ads really work on consumers. And in 2022, Veylinx wondered if the interest in zero-proof drinks was all hype or worth leveraging.

This month, Veylinx is at it again. This time, however, they’re revealing which brands—those that advertised during Super Bowl LVIII—saw the biggest ROI. For context, a 30-second spot during the big game cost approximately $7 million this year.

That’s a ton of cash to shell out in the hopes of seeing a sales increase on- and off-premise.

Speaking of on-premise, Veylinx’s findings should be of interest to operators. The beer that Veylinx says “won” the Super Bowl will likely be top of mind among your guests who watched the game and the accompanying ads.

So, it stands to reason that they’ll either expect to find that beer on a menu. Likewise, they may be swayed to order the beer if they see it when scanning a bar’s taps, menu, or fridges.

With that in mind, operators may want to watch their sales of Michelob Ultra.

Study Methodology

For their latest report, Veylinx used similar methodology to their Elixir non-alcoholic canned cocktail study.

A mix of 50 percent men and fifty percent women participated in the study. All 1,604 participants were US residents aged 21 or older. Looking deeper into the participants, the age breakdown is as follows:

  • 21 to 27: 30 percent
  • 28 to 43: 25 percent
  • 44 to 59: 25 percent
  • 60 and older: 20 percent

Like the Elixir (a fake brand invented by Veylinx) study, participants bid on products with their own money. The auction mix consisted of products that advertised during Super Bowl LVIII and those that did not advertise during the game.

Study Results

Among all viewers of Super Bowl LVIII, brands that advertised during the game saw an average lift of 16 percent.

However, those brands saw the biggest boost in demand—24 percent—among men. Gen Z followed, with demand in advertised brands growing by 11 percent. Among women, brands that advertised saw just a nine-percent boost in demand.

While Doritos Dinamita was the number-one brand among all viewers in general, and men and Gen Z in particular, Michelob Ultra is a close second. Interestingly, the beer brand was the top-performer among women in terms of demand growth.

For those wondering, no alcohol brands were among the top three performers for Gen Z.

So, operators who have noticed in uptick in Michelob Ultra sales may have Super Bowl LVIII to thank. If that’s the case, if sales of Michelob Ultra have increased in bars and restaurants since this year’s big game, it appears that yes, Super Bowl ads still work on consumers.

Image: cottonbro studio on Pexels

Bar Nightclub Pub Brewery Menu Development Drinks Food

by David Klemt David Klemt No Comments

Do Super Bowl Ads Work on Consumers?

Do Super Bowl Ads Work on Consumers?

by David Klemt

Pepsi Zero Sugar bottle

One of the biggest Super Bowl ad winners is Pepsi Zero Sugar.

Brands spent hundreds of millions of dollars to advertise during Super Bowl LVII, but do their ads actually translate to demand for their products?

A week ago we shared our ten favorite beverage-focused Big Game ads. Along with those ads we shared some numbers.

One of those numbers was $7 million, the cost of a 30-second Super Bowl ad on Fox. Other numbers? $500 million and $700 million, the range of revenue it’s estimated that Fox generated this year from Super Bowl ads.

At this point, these ads and the Halftime Show have essentially become their own entities. Some people watch the Big Game for the ads, some for the show halfway through. It stands to reason that brands are well aware of this development. So, they try to create the most impactful ad possible in the hopes of generating consumer demand.

In other words, these brands aren’t spending all this money just so they’re commercial can be deemed cool. Sure, brands want that buzz. But they also want an ROI on the millions they spend.

The big question is, then, are they seeing a return? Well, it just so happens that behavioral insight platform Veylinx has a data-driven answer to that question.

In short, the answer is yes. Of course, it’s a nuanced yes. For example, it appears Gen Z doesn’t care much about Super Bowl ads, as you’ll see below. Also, non-advertisers in the same categories as Super Bowl advertisers appear to see a benefit from the ads.

You’ll learn more from the Veylinx press release below. It’s an interesting read with valuable data for restaurant, bar, and hotel operators.

NEW YORK, Feb. 22, 2023 — A new study from behavioral research company Veylinx determined whether or not Super Bowl commercials boost consumer demand for the products advertised. The results show that 2023 Super Bowl advertising fueled a 6.4% increase in demand among viewers.

The overall increase in consumer demand was driven by women, who accounted for a 21% increase in demand growth. The commercials had minimal impact on men, yielding just 1% demand growth for the brands tested. Gen Z viewers were largely unimpressed by the Super Bowl ads, with demand among 18 to 25 year olds actually shrinking by 1%.

2023 Veylinx impact of Super Bowl ads on consumers chart

“It’s not really a surprise to see that Super Bowl ads improve sales, but the short term bump alone may not be enough to justify the $7 million price tag,” said Veylinx founder and CEO Anouar El Haji. 

Using Veylinx’s proprietary methodology—which measures actual demand rather than intent—the study tested purchase behavior during the week before the Super Bowl and again the week after. The research focused on measuring the change in consumer demand for eight brands with Super Bowl ads: Michelob Ultra, Heineken 0.0%, Hellmann’s Mayo, Downy Unstopables, Crown Royal Whisky, Frito-Lay PopCorners, Pringles and Pepsi Zero Sugar. 

Super Bowl Advertising Winners Overall

Michelob Ultra – 19% increase in demand

Pepsi Zero Sugar – 18% increase in demand

Frito-Lay PopCorners – 12% increase in demand

Heineken 0.0% – 11% increase in demand

Super Bowl Advertising Winners Among Women

Pepsi Zero Sugar – 45% increase in demand

Michelob Ultra – 40% increase in demand

Heineken 0.0% – 40% increase in demand

Crown Royal Whisky – 26% increase in demand

Veylinx, top performing brands during 2023 Super Bowl

Halo Effect for Non-Advertisers

The biggest winners were arguably brands in the same product categories as Super Bowl advertisers. Non-advertisers in those categories appeared to benefit nearly as much as the advertisers: demand grew by 4.2% percent for the study’s control group of non-advertising competitors. Corona Extra, Kraft Mayo and Lay’s STAX were the greatest beneficiaries in a control group that also included Budweiser Zero, Arm & Hammer Clean Scentsations, Canadian Club Whisky, Popchips, and Coke Zero Sugar. Notably, every non-advertiser saw at least a slight increase in post-Super Bowl demand.

“The goal of our study was to look specifically at how consumer demand is affected by running a commercial during the Super Bowl,” El Haji said. “It’s possible that the non-advertisers deployed other marketing efforts to offset or take advantage of the Super Bowl advertising—or they simply benefited from increased exposure for their categories.” 

Additional Findings

Study participants also answered a series of follow-up questions about their preferences, perceptions and how they watched the Super Bowl. More than three-quarters watched at home through various platforms, the most popular being the live cable/satellite broadcast (38%), followed by YouTube TV (15%) and Hulu (10%). When asked why they watched, it’s no surprise that participants were all about the game (64%)—but the commercials were the next most popular reason for watching (39%), followed by halftime (35%), the social aspect (26%) and fear of missing out (13%). 

About the Research

Veylinx studied the behavior of 1,610 U.S. consumers pre- and post- Super Bowl LVII. Unlike typical surveys where consumers are simply asked about their purchase intent, Veylinx measures whether consumers will pay for a product through a real bidding process. Consumers reveal their true willingness to pay by placing sealed bids on products and then answering follow-up questions.

For more information about the study and the Veylinx methodology, visit info.veylinx.com/super-bowl

About Veylinx

Veylinx is the most realistic behavioral insights platform for confidently answering critical business questions during all stages of product innovation. To reliably predict demand, Veylinx captures insights through a Nobel Prize-winning approach in which consumers have real skin in the game. This is a major advance from traditional market research practices that rely on what consumers say they would hypothetically buy. Veylinx’s unique research methodology is trusted by the world’s largest and most innovative consumer goods companies.

Main article image: PepsiCo / Article body images: Veylinx

KRG Hospitality Bars & Lounges, 2023 icon

Top