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Why Liquid Death's Business Model is so successful?

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Liquid Death’s Company Overview


Liquid Death is a distinctive beverage company that has brought a unique twist to the bottled water industry. The company was established in 2017 by Mike Cessario, a former Netflix creative director. The brand takes an unconventional approach to marketing its product, with a punk-rock aesthetic that stands out in the traditionally health-focused bottled water market. Liquid Death sells its products in tallboy cans, further distinguishing itself from competitors. The company's mission is to bring excitement and fun to the act of hydration, while also prioritizing sustainability by using recyclable aluminum cans instead of plastic bottles.

Liquid Death operates a direct-to-consumer business model, selling its products through its online store as well as partnering with select physical retailers. The company also offers a subscription service, where customers can have cases of water delivered to their door on a regular basis. This approach allows Liquid Death to maintain a close relationship with its customers and gather valuable data on purchasing habits and preferences.

The primary source of revenue for Liquid Death is the sale of its canned water products. The company offers two types of water: Mountain Water and Sparkling Water. Both are sourced and canned in the Austrian Alps. In addition to individual sales, the subscription service provides a steady stream of recurring revenue. The company also generates income from selling merchandise, such as clothing and accessories, featuring its unique branding. This multi-faceted approach to revenue ensures the company's financial stability and paves the way for future growth.

https://liquiddeath.com/

Headquater: Los Angeles, California, US

Foundations date: 2019

Company Type: Private

Sector: Consumer Goods

Category: Food & Beverages

Digital Maturity: Digirati


Liquid Death’s Related Competitors



Liquid Death’s Business Model Canvas


Liquid Death’s Key Partners
  • Steeze Brothers of America holding company
  • YouTubers
  • Instagramers
Liquid Death’s Key Activities
  • Brand
  • Product Design
  • Manufacturing
  • Operations
  • Logistics
  • Social media management
  • Traffic acquisition
  • Growth
  • Community Management
  • Community building
  • Content
  • Influencers
  • Viral videos
Liquid Death’s Key Resources
  • Natural resources (water that comes from the Austrian Alps)
  • Product development and marketing team
  • Engineering team
  • Platform
  • Several premium events that marketers may leverage to increase customer engagement and brand awareness
  • A “retail partnership” program allowing third partied to resell the merch
  • Packaging that looks like a can of beer
  • No single use plastic
  • Own online store
  • Liquid Death and Queer Skate LA will donate 100% of the profits to organizations that fight for racial justice
  • Empowerment of the punk and metal music scene
Liquid Death’s Value Propositions
  • Killer taste and sustainable packaging
  • Forgotten demographic
  • 10% of the company’s revenue will go towards fighting plastic pollution from the oceans
  • 100% mountain water without plastic
  • Free shipping
Liquid Death’s Customer Relationships
  • Parody on marketing (the millennial marketing angel); Shockvertising
  • Comedy
  • Customers with tattoos get a free case of water for life
  • R/explainlikeimfive
  • R/OutOfTheLoop
  • Case of 24 cans for $1.99
  • Impact awareness
  • Death to plastic bottles
  • Extreme sports
  • Insurance
  • Recycling
  • Mockery
  • Rebellious
  • Irreverent
  • PR
  • Sales
Liquid Death’s Customer Segments
  • Users who consume beverages
  • Consumers who are tired of traditional advertising
Liquid Death’s Channels
  • Website
  • Social media
  • Instagram
  • Facebook
  • Donation
Liquid Death’s Cost Structure
  • Operations
  • Facilities
  • Logistics
  • Water sourcing
  • Water purification
  • Capsule manufacturing
  • Marketing and advertising activities
Liquid Death’s Revenue Streams
  • Sales of its products
  • Liquid death will donate 5 cents for every can sold to help kill plastic pollution

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Liquid Death’s Revenue Model


Liquid Death makes money by combining different business models. Below, you will find the list of the different monetization strategies identified for this company:

  • eCommerce
  • Niche retail
  • Subscription
  • Culture is brand
  • Dynamic branding
  • Ingredient branding
  • Selling of branded merchandise
  • Sustainability-focused
  • Experience selling
  • Experience
  • One-off experience
  • Product innovation
  • Sponsorship
  • Take the wheel
  • Technology trends
  • Aikido
  • Licensing
Analytics


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Liquid Death’s Case Study


Liquid Death's CASE STUDY Over the years, we've scrutinized countless businesses, but few have captured our imagination as profoundly as Liquid Death. Here, we dive into how Liquid Death revolutionized the bottled water industry, transforming a seemingly commoditized product into a thriving, edgy brand. A Refreshing Rebellion: The Genesis of Liquid Death When Mike Cessario, a former Netflix creative director, decided to launch Liquid Death in 2017, he wasn't just starting another bottled water company. He was embarking on a mission to disrupt an industry and create a brand that speaks volumes in both substance and style. Liquid Death operates on the ethos of bringing excitement to hydration while addressing a serious environmental concern: plastic pollution. “Murder Your Thirst”: The Business Model Liquid Death's unique selling proposition is evident the moment one lays eyes on their product: tallboy cans emblazoned with punk-rock aesthetics. The company's slogan, "Murder Your Thirst," sets the tone for a brand steeped in irreverence and rebellious spirit. But beneath the layers of edgy marketing lies a robust business model designed for sustainability and growth. Direct-to-Consumer and Subscription Services Liquid Death has ingeniously exploited the direct-to-consumer (D2C) model, offering their products via an online store and a subscription service. The D2C approach has facilitated the company in maintaining close customer relationships, allowing for the collection of invaluable data on purchasing habits and preferences. This is not just about hydration; it's about consumer experience. Revenue and Products The company's primary revenue stream is the sale of its canned waters: Mountain Water and Sparkling Water, sourced from the pristine Austrian Alps. The subscription service provides a steady stream of recurring revenue, while the sale of branded merchandise adds a layer of diversified income. Furthermore, through partnerships with select physical retailers, Liquid Death ensures its products are accessible while maintaining exclusivity. According to Nielsen Data (2022), Liquid Death saw an 87% increase in sales year-over-year, underscoring the effectiveness of their multi-faceted revenue approach. A Marketing Marvel: Unorthodox and Powerful In an industry dominated by serene, health-centric advertisements, Liquid Death stands out with its decidedly punk-rock marketing strategy. Leveraging "shockvertising" and humor, the brand has cultivated a loyal following that includes extreme sports enthusiasts, tattoo aficionados, and the millennial crowd weary of traditional advertising. Viral Growth and Social Media Mastery Much of Liquid Death's meteoric rise can be attributed to its mastery of social media and viral content. The company maintains a lively online presence, collaborating with influencers and YouTubers to generate buzz. In an interview with Harvard Business Review, marketing expert David Aaker described Liquid Death's approach as "brand-building through cultural resonance and community engagement." The company’s viral videos, like the "Heavy Metal Santa Claus" campaign, amassed millions of views within days. According to Social Blade, their Instagram following skyrocketed by 150% in 2022 alone. Customer Engagement and Community Beyond clever marketing, Liquid Death has fostered meaningful customer relationships. Parodying conventional marketing and offering engaging content, the brand has made hydration cool again. Their promise? Customers who get a Liquid Death tattoo receive a free case of water for life. It’s these audacious moves that have turned customers into brand ambassadors. Environmental Activism: A Core Value Proposition What truly distinguishes Liquid Death is its staunch commitment to sustainability. The company has positioned itself as an environmental activist, donating 10% of their revenue to fight ocean plastic pollution. They use recyclable aluminum cans instead of plastic bottles, making every purchase an eco-friendly choice. According to a report by the Environmental Protection Agency (EPA) in 2020, aluminum cans are recycled at twice the rate of plastic bottles, bolstering Liquid Death's environmental credentials. Partnerships and Product Innovation Innovation is the keystone upon which Liquid Death builds its success. The brand constantly seeks out and leverages strategic partnerships. Their collaborations with Queer Skate LA and various extreme sports events highlight their commitment to supporting diverse communities and promoting an active lifestyle. Culture Beyond Water Liquid Death extends beyond water; it’s a lifestyle brand. The music scene, particularly punk and metal, has found a corporate ally in Liquid Death. Sponsorships and partnerships with artists and bands have solidified their presence in these niches. This alignment with music culture not only enhances brand value but serves as a potent tool for market penetration. Conclusion: Liquid Death—a Paradigm Shift Liquid Death embodies what it means to challenge the status quo. By injecting excitement into an ordinary product and backing it with solid environmental credentials, they have successfully carved a niche in a crowded market. Their edgy, irreverent marketing and steadfast sustainability efforts offer a compelling case study in contemporary business strategy. In conclusion, Liquid Death's journey is a testament to how innovation, bold branding, and a commitment to social responsibility can upend even the most traditional industries. As we look to the future, we can't help but anticipate what more Liquid Death has in store for the ever-evolving consumer landscape.


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