Brigadoon Weekly
November 24, 2019
Curation and commentary from Marc A. Ross
Reporting from Charleston, South Carolina
Red Bull, Cars, Experiences, Bus Tickets, Jake Burton, Tacko Fall
ROSS RANT
Why Red Bull wasn't created by economists
"Marketing is the science of knowing what economists are wrong about." -- Rory Sutherland
As a means to beat Coca-Cola, no economist would approve of an expensive beverage, served in a small can, and tastes awful.
An economist using logic, facts, and numbers would never greenlight Red Bull.
But Red Bull has changed the global beverage market forever and altered the way Coca-Cola operates permanently.
Austria beating Atlanta is the playbook of how products and ideas will win going forward.
Energy drinks have transitioned from being a niche product to one of the fastest-growing segments in the global drinks market. The global energy drinks market now stands at $55 billion and is projected to grow at a compound annual growth rate of 3.7% from 2018 through 2023.
How troubling is this for Coke?
Consider the first energy drink under the Coca-Cola brand will launch in Europe this month.
Coca-Cola Energy, which will debut in Spain and Hungary, features caffeine from naturally-derived sources, guarana extracts, B vitamins, and no taurine – sounds like Red Bull but with a Coca-Cola taste.
And not surprisingly, Coca-Cola Energy will be offered in 250-ml cans, just like Red Bull.
The economists of Atlanta are following the entrepreneurship of Austria.
Economists assume most decision making is driven by logic.
This is flawed.
Using logic to make a decision is called System 2 thinking.
But most decision making is driven by emotion.
This is called System 1 thinking.
Facts and numbers don’t drive our decision making.
Facts take a back seat to emotional responses.
Numbers with no context and color are no match for actual experiences.
Great marketers understand the power of ubiquitous and unconscious System 1 decision making to sell products or shape ideas.
Sutherland believes, "Once you reach a basic level of wealth in society, most problems are actually problems of perception.”
The role of a business is to create value by solving problems for customers.
As I move through life, it is clear you don’t always need to solve difficult technical challenges with massive and costly technical solutions.
You need to communicate with a customer to see things from a different, more indirect point of view.
Acknowledging the importance of perception well better position your brand and improve communications.
When it comes to entrepreneurship and thought leadership, one is bigger than two.
- Marc
FIVE TO READ
How cars conquered the world: Can our love affair with the automobile survive into the driverless, electric era? https://on.ft.com/2KOJLnL
Spending money on experiences makes you a better person: It can make you more grateful—and generous. http://bit.ly/37yCkuE
The bus ticket theory of genius: Everyone knows that to do great work you need both natural ability and determination. But there's a third ingredient that's not as well understood: an obsessive interest in a particular topic. http://bit.ly/2DenwUa
Best books of 2019: Economics: The FT's Martin Wolf selects his must-read titles from the second half of the year. https://on.ft.com/35F7IpJ
America’s extreme obsession with dogs and what it means: How “impoochment” could bring the country together. https://econ.st/2QMOnPa
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SPORT
Burton snowboard founder, Jake Burton, has died: The snowboard pioneer passed away after a battle with cancer. He was 65. http://bit.ly/2KQdfSb
Roger Federer, sneakerhead? The 20-time Grand Slam tennis champion is taking a big step toward life after tennis with On, a small Swiss running shoe brand with a cult following and global ambitions. https://nyti.ms/37AyUHA
Learning to swim with 7-foot-5 Celtic Tacko Fall https://wbur.fm/2qxjGmm
Enjoy the ride + plan accordingly.
-Marc
Red Bull, Cars, Experiences, Bus Tickets, Jake Burton, Tacko Fall
