During its infancy, Prime relied heavily upon KSI and Logan Paul’s 47 million+ subscribers to expand its reach. However, the sports and energy drink company has recently taken a different approach to celebrate reaching one billion bottle sales. The brand is hosting a 48-hour $100,000 challenge involving two gold bottles with secret 6-digit codes. This innovative marketing strategy diverges from their usual industry marketing practices, which have included sponsorships, influencers, and athlete marketing. Prime needs to continue its industry standard marketing practices in an attempt to maintain momentum and cement its position in the sports drink market, says GlobalData, a leading data and analytics company.
George Shaw, Consumer Analyst at GlobalData, comments: “During the launch period, the sports drink gained immense popularity, causing a supply shortage that created an heir of exclusivity for the brand and its products. This scarcity effect shows a similar strategy used by American fashion brand, Supreme. The streetwear brand sustained high demand by limiting supply, in what their consumers called ‘drops’. This created sky-high hype and exclusivity, which saw pieces of clothing resell for up to six times their value. * Similarly, resellers on eBay were selling Prime £14.95 per bottle in late 2022, more than seven times its RRP of £2.”
Despite low supply, Prime had grown to reach the $250 million revenue mark in 2022 alone. In early 2023, Prime energy drinks were released in the US, and these reached the UK market in April 2023. As 2023 has progressed, an increased number of supermarkets now stock prime. Prime is now readily available in UK supermarkets and is even included in some lunch promotions. This indicates the next stage in the Prime business, as its products are readily available.
Shaw continues: “Prime uses a multitude of flavors to incite interest. Currently offering 10 flavors including standard flavors such as lemon-lime and orange, and more recent out-there releases such as ‘Meta Moon’ and ‘Glowberry.’ These recent names illicit mystery and create curiosity in consumers about the flavor profiles. According to Globaldata Flavors and Fragrances survey Q2 2022 , 69% of consumers would try a new flavor due to curiosity*.”
However, this leaves some challenges; how does Prime stand out in two global multi-billion dollar industries, namely the energy drink industry and sports drink industry? Both Industries are expected to see a combined growth of 8.3% in 2023, according to recently published data from GlobalData. 2024 will be a crucial time for Prime as it will start a pursuit of market leaders, Gatorade and Powerade. Prime must adopt effective marketing strategies to increase its small market share in these big markets.
George adds: “In 2023, Prime has homed in on industry standard practices to widen its reach. The brand has heavily invested in the UFC, various sports clubs and sports people – most notable being top soccer player Erling Haaland and Timmy Hill Nascar driver. These relevant marketing strategies provide a sharpening point for Prime and put the brand in the eyeshot of tens of millions of potential consumers.”
In 2019, Lucozade in the UK commenced its sponsorship of Anthony Joshua, the British former heavyweight champion. He is a very much-admired athlete and a big public figure. Through sponsorships like these, bridges are built between companies and consumers, as consumers are somewhat emotionally attached from the years of watching them.
Shaw concludes: “Prime has come a long way, from making $250 million in 2022 through shortage issues to becoming readily available. Deals with sports teams and famous athletes, it is working hard to compete with big brands like Gatorade. However, Prime is in the next stage of a transition, increasing supply needs to be met with mass demand. This means it needs new effective ways to promote and keep the hype going.”
* GlobalData’s survey published in July 2022 was conducted with 21,000 respondents globally
