Logan Paul Prime Drink Launches in South Africa Marketing 101
Popularity of Prime was rooted in how scarce it was to find. [tricked]
YouTubers Logan Paul and KSI released their drinks brand, Prime Hydration, in January 2022.
The drink has generated $250 million (R4.5 billion) in retail sales worldwide, with $45 million (R818.3 million) of that in January 2023 alone.
The drink’s popularity is due to the pair’s audience engagement, which involves interaction and self-disclosure to create powerful parasocial feelings.
Research has found that famous YouTubers dominate the platform’s recommendation algorithm network.
The famous Radio Host, Anele Mdoda talked about how she was out shopping and she stumbled upon this energy drink, in one of the aisles. And she found it to be about 500 Rands, which amounts to 27 dollars and 39 cents. Now this is quite a high price according to her, and that too for an energy drink. After this, she also said, “And it tastes like rubbish.” She even started a chant in the studio by saying, “No to Prime!”
The initial higher price point created an illusion of scarcity, making the drink seem exclusive and valuable. This perception of value drove demand and increased the drink’s popularity, leading to long queues and buying restrictions in some supermarkets.
Apart from their own massive followings, the YouTubers’ collaborations with other famous content creators and their use of YouTube’s algorithmic networks further amplified the visibility of the drink, making it even more popular among a broader audience. However, the product’s success did not come without its challenges. Some consumers were concerned about its high caffeine content, especially in the Prime Energy version. Despite these concerns, fans remained undeterred and loyal, overlooking any health concerns for the perceived benefits and exclusivity the drink offers.
Checkers, a leading South African retail chain, partnered with PRIME for distribution in its stores. The launch was highly anticipated, with customers able to place advanced orders on the Checkers Sixty60 app from 10 pm the night before the launch. However, the online stock sold out in just an hour and a half, indicating the high demand for the product.
On launch day, Checkers limited in-store purchases to eight bottles per customer, with a maximum of two bottles per flavor. Initially priced at less than R40, the drink is now being sold for between R98 to R119, but despite the increase in price, Clicks has sold out the product repeatedly in a matter of minutes.
In conclusion, the success of PRIME Hydration in South Africa can be attributed to a combination of effective influencer marketing, audience engagement, price anchoring, and algorithmic networks. Logan Paul and KSI’s popular tactics could be emulated by other content creators looking to harness the power of social media and e-commerce. According to Digital Glue, influencer marketing remains a highly influential strategy because of its perceived authenticity and genuine nature. Viewers trust influencers, and their recommendations often lead to purchases and even sharing of the product with friends.
