Category: Marketing

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Philly’s Soda Tax Falls Flat

Philly's soda tax post by William Sipper

Other cities are watching as Philly’s soda tax falls flat

All eyes are on Philadelphia as the results of 1.5 cents per ounce excise tax being imposed on beverages sweetened with sugar start becoming apparent. Philly’s soda tax was the first tax of this nature to be introduced in a major city.

The idea was to use the revenue to fund prekindergarten programs, libraries, parks, recreation centers and community schools. This seemed like a very good reason for imposing such a tax to some Philadelphians. However, it appears that the fears of many of those in the beverage industry are coming to pass.

Driving Far For Soda

Firstly, the revenues collected since the tax was introduced in January 2017 have fallen short of what was expected. City officials are quick to point out that there may be many reasons for this such as retailers stocking up on products before it came into existence and the fact that figures relate only to the first half of the year when soda sales are seasonal.

A study by market research firm, Catalina, who analyzed millions of transactions at grocery and drug stores, showed that customers were driving outside of the city to buy their sugary drinks. The study showed that sales of fizzy soft drinks fell inside the city limits and increased outside of it. A city spokesman reacted to this by saying that it was expected that this would happen initially.

Employee Lay Offs

Stories have also been coming out about the harm being caused by the tax to those in the beverage industry. Manufacturers like PepsiCo and Canada Dry are blaming the tax for big falls in sales and they have had to lay off employees. Retailers have also felt the pinch, and have had to lay off staff.

Cook County followed Philadelphia’s example and introduced an excise tax on sugary beverages in August. In turn, barely two months after it came into effect, public outcry has caused commissioners to revise their views. There are enough commissioners that are now are backing its repeal and it is likely to fall away in December.

Philly’s Soda Tax Remains Firm

However, city officials of Philly remain firm in support of the tax, despite the shortfall in revenue collection and apparent harm to manufacturers and retailers. Opponents of the tax will be keeping a close watch over the next while to see how it the battle plays out. If many other cities levy such a tax, it could have serious economic consequences.

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Generation Z Most Connected Generation Ever

Generation Z Connected post by William Sipper

Generation Z – Marketing to The Most Connected Generation Ever

Generation Z, or Gen Zers, are born after 1995, and they grew up with internet access and mobile technology. This makes them harder to market to than other generations in that they have developed very selective filters. They have a very short attention span! But it also offers marketers plenty of new and interesting opportunities.

Gen Zers are called digital natives – they are used to using five different digital devices. In turn, if you want to market to them, you need to have a strategy.  This strategy should utilize these devices and unified across all platforms.

Entrepreneurs From The Start

They are often entrepreneurial because they start building up their online presence from a young age. If they find they have attracted an audience, they are likely to want to leverage it to create their own income.

As such they are not just consumers and they cannot be treated as such. Companies need to think about ways to collaborate with them rather than simply marketing to them.

An example of this is the collaboration of Wat-Ahh! With Ariana Grande. She is a Gen Zer who is living out her dreams and wants to have an influence on other young people.

Ariana Becomes A Face to a Product

Ariana was signed up as a spokesperson but also as an equity partner. She was happy to do so because she could put her heart behind the product.  She loves drinking water, enjoys a healthy lifestyle and would like to get other young people to do so too. Humanizing your brand by giving it a face is important to Gen Zers.

Thoughtful Marketing Pays

Gen Zers want to make a difference in the world and are prepared to work with brands in order to facilitate such change. They are also more open-minded and inclusive than previous generations.  This being a point that marketers need to remember as they are likely to respond to inclusive, thoughtful marketing.

Engaging with Gen Zers on social platforms is very important. If you can establish a conversation with them that’s beneficial to you and them, they will listen. If you can initiate a two-way conversation online, and address trends and issues that interest them, you will be more successful than if you continue to use more traditional marketing methods.