After 50 Years, Welch’s Shifts Target Market
Originally sent to ABSA Marketing Team on October 26, 2018.
Hello M-Team! It’s finally Friday! Hope everyone survived another week of college (and boiled their water)! If you ran out of water, no worries you can always buy some Welch’s grape juice…!
Well, what do I mean by that? Let’s dive into a conveniently themed market update! :)
A brief overview
Last week, Welch’s launched a campaign called “Tough as Grapes”. It centers around the machines that process grapes, pulverizing them and which in turn splatters grape juice on to men. Contrary to past advertisements that focus on sunshine and smiling healthy kids (see image above), this set of commercials are all about the grit and hulk of the metal machines and the men who work in the factories that produce the juice (image below).
Why change your target market?
According to Wells Fargo, which tracks the brand’s sales by its parent company, the National Grape Cooperative Association (the farmers’ organization that harvests the brand’s grapes), Welch’s shelves’ stable juice sales fell 5.6 percent on a dollar basis for 52 weeks.
Welch’s new advertising agency decided to change directions and go after the Gen X men market instead because of several reasons:
- They are more proven to be loyal to juice
- 73% of Gen X men still drink juice with breakfast
- They buy 17 bottles of juice a year, compared with 10 bottle average
Health benefits too?!
Even though Welch’s juice has a higher sugar level that most moms are very conscientious about, the machines that pulverize the grapes actually ensures the juice contains more antioxidants, which help fight diseases. This advertisement brings some light to the health perspective that usually goes unnoticed with the brand.
Additional changes that come with a new market
Doing a full 180° shift on the market means changing other aspects of their existing marketing strategy. This includes buying media time during the National Football League (NFL) coverage and in Howard Stern’s satellite radio show.
For more than 50 years, Welch’s (and other players in the juice industry) bought ads in family/parenting and women’s lifestyle programing.
To conclude
Welch’s is the first mover in their industry to target a new market, meaning if their campaign goes successfully others might follow. Welch’s is making a big change that almost goes completely against their old marketing strategies. Maybe in the next 50 years we won’t even think about Welch’s as a brand of sunshine and health, but possibly of grit and men.
Some things to talk about
- What do you think the results of this new campaign will be? Will it generate the buzz from men Welch’s is looking for?
- Do you think the rebranding will work for Welch’s to be labeled as juice for men down the road in 1, 5, or even 50 years?
- What are some risks that Welch’s faces with rebranding?
