Earlier this month, SodaStream launched a three-city “Be a Sparkling Water Maker” campaign to encourage people to make their own customized beverages at home with the brand's natural flavors.
Now, SodaStream has selected Dallas-based agency Commerce House for a TV campaign to continue to reposition the in-home beverage machine away from soda to sparkling water. "There's a lot of opportunity out there, but there's also a lot of competition," says Mark Denesuk, founder of Commerce House. "Craft soda is emerging as a trend, there are additional at-home machines and there are rumors that Coca-Cola and Keurig are planning to introduce their own machine."
The campaign's concept contrasts mass produced beverages with the alternative of hand-made sparkling water beverages. "We’re focusing on empowerment – made by you, not for you,” said Daniel Birnbaum, Chief Executive Officer of SodaStream. “Our mission is to revolutionize the beverage industry by giving consumers healthier, more fun, sparkling water options. By bringing the emotion of our brand to life in video, Commerce House will help us define and own the most important territory in the beverage category.”
TV spots are rolling out in select U.S. markets as executives see what messaging gains traction, says Denesuk. The effort will be supported with out-of-home and digital media.
It isn't easy to reposition a brand which is why SodaStream was attracted to Commerce House, which specializes in building brands in emerging categories and industries.
SodaStream hopes Commerce House can achieve results similar to its earlier client Zico coconut water, now owned by Coca-Cola, that helped to redefine the sports drink category. "We have a great track record at being at the forefront to unchartered [terrain]. That is our sweet spot," says Denesuk. "When we were researching the beverage category, it really is a zero-sum game. If you drink one thing, then you are drinking less of something else."
SodaStream spent $12.47 million on advertising and promotions in the first quarter of 2015, or about 14% of revenue for the period. In the short to medium term, executives expect advertising to be at around 15% of total revenue.