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Home Communications Opinion

When your 30 seconds is up

Four key things we can learn from the Prime collapse.

by Mathabo Sekhonyana
February 27, 2024
in Opinion
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When your 30 seconds is up

Image: Logan Paul/X

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Energy drink, Prime, has officially lost its sizzle. Launched in early 2022 by YouTube personalities Logan Paul and KSI, the hydration drink was an instant hit. But given the news of its sudden collapse, social media is having a field day.

The brand had two marketing problems right from the get-go: positioning and hype, neither of which it could live up to. It sold itself at a ridiculous cost to create buzz and status, only to cheapen its image not long after.

Locally, when Checkers reduced the price of the drink (more than once), it completely devalued the brand in the eyes of the consumer. The ‘hype’ around the drink just wasn’t sustainable. It had no legs to begin with because the marketing team lacked any real strategy.

From a local and cultural perspective, it appears that the promotional roll-out of the drink here in SA was done half-heartedly. For any brand launching in a foreign country, there is a lot to contend with.

In South Africa specifically where pricing plays a key role, hype and ‘status’ orientated marketing only works if you’ve tapped into the local culture’s core values. This is where Prime missed the boat, dismally.

Here are four key learnings from the Prime collapse

  • A story that resonates – marketing 101 is to find the story. While the entrepreneurial journey and enthusiasm of the two YouTubers are admirable, they didn’t quite land with our local audience.
  • Plan beyond the hype – creating that initial social media hype and PR around the launch of a new product is a sure way to create interest in a brand. But what’s the strategy after the hype dies down? In Prime’s case, it didn’t have one, so it lowered its asking price. As we know, this didn’t turn out so well.
  • Understand your audience and know your competition – the drinks space is extremely competitive. This where is where consumer insights are valuable. Did Prime have a solid grip on what SA consumers want, need and value? Did they have enough market research to know that they could confidently stand up against already established local energy drinks like Powerade® and Energade® ?
  • Authenticity – the cornerstone of good marketing is creating a brand with integrity. If you can do this, authenticity naturally follows. This is where Prime really let us down. They came in with a bang, told us one thing, and then changed their positioning.

Mathabo Sekhonyana is a seasoned creative, digital specialist, public speaker, and storyteller. She is member of the Professional Associate of The Institute of Marketing Management South Africa (IMM), and has worked across some of SA’s major brands to include Unilever, Liberty, King Price, Institute SA, and Development Bank of Southern Africa. Mathabo is currently the Head of Marketing & Communications for Adoozy Power, and a Board member of the female empowerment organisation, the B.E.A.R Foundation.

Tags: brandbrand devaluationdevaluedenergy drinkLogal Paulmarketermarketingmarketing strategyMathabo SekhonyanaPrime

Mathabo Sekhonyana

Mathabo Sekhonyana is a seasoned creative, digital specialist, public speaker, and storyteller. She is member of the Professional Associate of The Institute of Marketing Management South Africa (IMM), and has worked across some of SA’s major brands to include Unilever, Liberty, King Price, Institute SA, and Development Bank of Southern Africa. Mathabo is currently the Head of Marketing & Communications for Adoozy Power, and a Board member of the female empowerment organisation, the B.E.A.R Foundation.

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