The Little Luxuries Project

Little Luxuries Roundtable Series:

All About Beverages

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What is a Little Luxury?

Little Luxuries, as defined by Luminosity Marketing, are products and services that consumers

WANT, but don't necessarily NEED. Different consumers categorize Little Luxuries differently,

based on their personalities and disposable income levels, but the overall definition remains

the same: these are relatively small-ticket items that satisfy consumers' emotional, rather than

rational needs.

What is the Little Luxuries Project?

The Luminosity Little Luxuries project is a series of marketing research studies that focuses on

products and services that fall into that category. Given the current economy and the evolving

relationship consumers have with Little Luxuries, we started this project in order to help

marketers better position and communicate their product benefits. The ultimate goal is to

determine how to position brands as necessities in the minds of consumers, rather than as

Little Luxuries.

What Is The Little Luxuries Project?

Methodology

For this Roundtable Series, our focus was to learn more about

consumer’s beverage choices

Methodology:

• We recruited 10 adults ages 22-35 years old to participate in the focus group

• The discussion was based off of a moderator’s questions about participants’ drink

choices

• Participants were asked to bring 3 beverages that they had purchased during the past

week in order to learn more about their drinking habits

• The Series also featured individual interviews with each participant to learn additional

information about their behavioral choices

• A White Elephant game was played with unique drink options to learn more about

participants’ decision process

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Methodology

The results of this study revealed several insights into the role of

beverages and Little Luxuries in general on consumer’s everyday lives

Three Key Findings:

1. Influence is a key driver of beverage trial

2. Many consumers cling to beverage choices because of heritage

3. Generating loyalty should be a key motivation for marketers

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“Snapple Troparocka. It comes

from Bret Michaels from the

Celebrity Apprentice last year. I like

Bret Michaels, I like the show, so I

decided to try the drink.”

Finding #1: Influence Matters

Consumers’ inner circles are important for encouraging drink trial

• Friends

• Celebrities

• Family

• General acquaintances

• It is not really important who recommends the beverage, just that someone

does. In a category with so many options, many just need some form of

encouragement to try something new. Watch the video!

Finding #2: Heritage Leads to Loyalty

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“I always drank milk growing up.

That’s how my parents influenced

me. So I drink milk almost every

night with my meal. I have to.”

Consumer heritage is surprisingly critical in making beverage choices

• Family and inter-generation influences are important in creating habits

in drinking behavior

• Many consumers still continue habits in adulthood that were started

during their youth

Watch the video!

Finding #3: Loyalty Is The Key Goal

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“Dog Fish Head Festina Peche

it’s a seasonal beer, it’s so

hard to find. I wait for this

every year.”

Once consumers become loyal to a beverage, they will treat it like a

necessity rather than a luxury

• They will go to great lengths to seek out and find their beverage

• They also will know everything about it:

– How long they have been drinking it

– When and where they can find it

– Which stores have the best deals / most consistent supply

Watch the video!

Additional Information

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Watch all the videos at: Little Luxuries Roundtable Series

For more information contact:

Kimberly S. Conon

Sr. Manager, Strategy & Analysis

Kconon@luminositymarketing.com

Phone: 646-213-4860

About Luminosity MarketingLuminosity is an analytical marketing communications firm specializing in target

audience definition, message framing and connection strategy. We use our combined

expertise in research an media to generate powerful connections between brands and

target consumers. Learn more at www.LuminosityMarketing.com.