Thursday, July 22, 2010

How honest is Chicago? Honest Tea uses marketing campaign to find out

By Susan Monahan

More than a decade ago, Honest Tea was a pioneer for organic bottled teas with no artificial sweeteners. It was a small player in a new category. Back then, it was easy to stay true to its self-proclaimed “quirky independent streak.”

Today, Honest Tea has plenty of competition. Its differentiators, organic ingredients, aren't so different anymore. And, it’s under pressure to appeal to a larger consumer base, as Coca-Cola recently acquired a stake in Honest Tea.

Last week, at locations like the Chicago Board of Trade, Honest Tea left unmanned carts of its drinks with signs requesting that people drop $1 into a jar in exchange for a bottle -- “on the honor code.” Chicago-area news media are buzzing about the results. Only 78% of the takers paid up.

NBC Chicago.com

This twist on sampling began in New York City last April, at the height of the political crackdown on financial corporations. Ad agency SS+K led the Honesty Store street campaign with signs reading, “Yes Mr. President, let’s bring Honest Tea to Wall Street.” In that city, 89% of passers-by paid for their bottles. Bloggers and the social media landscape generated countless more impressions from the debates it sparked. An integrated campaign was born from the ground up.

But, how are these one-off tests working as a customer acquisition strategy?

Where many sampling campaigns rely on sponsorship of sporting events or concerts that draw the product’s target consumers, Honest Tea worked alone to capitalize on a mass-culture opportunity. This allowed potential customers to first taste the tea while connecting with its unique brand DNA.

It’s more than word play. Moving beyond the common pure ingredients, Honest Tea’s message seems to be about trust. Drinkers may carry the bottle with a sense of integrity. (Especially if they actually paid for it!) This creates an experience more powerful than a TV ad or a testimonial.

The street effort may be sublime, but have Honest Tea in-store sales gone up?

“We’re still waiting on results,” said Alex Mailman at SS+K. “But safe to say that the Honest Store has stirred a real conversation around the country, about honest behavior and about each city's self image. And despite some disappointment in a couple of cities about not being first, customers appreciate the trust that Honest Tea has shown in them.”

What do you think about the impact of sampling events and the possibility of mass appeal?

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Susan Monahan is a blogger at Vitamin IMC and a student in the Masters in Integrated Marketing Communications at Northwestern University's Medill School. She regrets that the Honesty Store never made it up to Northwestern. Susan can be reached at SusanMonahan2010@u.northwestern.edu

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