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A Marketing Masterclass: Unraveling the Marketing Strategies Used by Prime Hydration

PRIME Hydration was launched in January of 2022 by global superstars KSI and Logan Paul and the drink has been making headlines ever since, as people clamber to get their hands on the beverage. The massive demand for the drink has meant most places have been sold out with UK stores rationing the amount that consumers can purchase. But how did two YouTubers create so much hype around their product that it racked up $250 million dollars in retail sales in the first year alone?

1. Veteran Content Creators

Logan Paul and KSI consistently produced well-crafted YouTube videos, ensuring a regular return of viewers on a weekly or monthly basis, depending on the upload schedule. Traditionally, actors and actresses affiliated with brands rely on studios for publicity, and those involved with consumer packaged goods (CPG) need to maintain a presence in film or television for a recurring audience. However, these avenues typically follow a schedule. What every marketer dreams of is continuous, sustained advertising. In the case of Prime Hydration and its association with Logan Paul and KSI, they possessed their own ideal platform—a personalized TV station via their YouTube Channels. This enabled them to execute marketing initiatives seamlessly without being constrained by the schedules of TV shows or films. They capitalized on this advantage, regularly marketing their product to a combined audience of over 50 million subscribers. Furthermore, every video garnered an impressive scale of 3 million or more views, a remarkable feat.

2. Establishing Strong Partnerships with Renowned Brands and Personalities

The dynamic duo has forged impactful connections with prominent brands and globally recognized individuals, strategically amplifying the hype around their beverage. An illustrative example is their association with the esteemed Premier League team, Arsenal, which not only enhances their credibility within the target demographic but positions their product as a legitimate hydration choice. The strategic placement of their branding in the stadium extends their visibility to millions of Premier League viewers worldwide. Moreover, PRIME Hydration has garnered a dedicated following among Arsenal's loyal supporters by making the drink available on every home match day at the Emirates Stadium.

Expanding their influence beyond football, the PRIME duo recently announced a groundbreaking partnership with the UFC, tapping into a distinct market outside of Generation Z. This collaboration designates PRIME as the official "Global Sports Drink of the UFC," featuring the brand prominently in the octagon and providing access to an extensive audience of over 900 million households across 175 countries. Beyond these globally renowned brands, PRIME has strategically aligned itself with celebrated athletes, including football sensation Erling Haaland and UFC fighters Alexander Volkanovski and Israel Adesanya, establishing influential partnerships across the sporting landscape.

3. Scarcity Marketing Tactics

Undoubtedly, these influencers demonstrate a profound understanding of marketing dynamics, pioneering the way for brands led by influencers. The key to unraveling the mystery behind their extraordinary success lies in a marketing strategy that seasoned MBAs from institutions like Wharton might overlook — Scarcity drives demand. And in the case of PRIME Hydration, scarcity doesn't just fuel demand; it transforms a brand into a household name. By deliberately limiting the supply, the duo engages in what is known as scarcity marketing. This technique strategically prompts customers to make purchases by creating a sense of urgency — a fear of missing out on a product due to its perceived limited availability. When a product listing declares that there are only a few items left, it taps into a psychological phenomenon known as loss aversion. This innate human tendency propels individuals to act swiftly to avoid missing out on what they perceive as a product in limited supply. The influencers astutely exploited this facet of human psychology, enhancing the desirability of their product. 

Let’s Talk Revenue

If any marketer or business remains uncertain about the impact of influencer marketing, Logan Paul and KSI provide a compelling answer in financial terms — $250 million. During the year 2022, their product, Prime Hydration, amassed an estimated $250 million in retail sales, with a gross of $100 million. The company has solidified its presence as a strong contender in the multi-billion dollar market, challenging well-established brands such as Gatorade and Powerade. Prime Hydration not only secured a significant market share but also substantially reduced competition from emerging brands. In November 2023, PRIME celebrated the sale of its billionth bottle and continues to attract more sports teams and internet personalities, further amplifying its widespread appeal.

What’s Next?

What's on the horizon for Logan Paul and KSI? The duo contemplates the future of their brand, which has surpassed their own fame. Seeing a creation outgrow its creators is a dream for any entrepreneur. Prime Hydration, shaped by the influential identities of Paul and KSI, utilized their social engagement skills to reach millions. Yet, shifting from initial hype to sustained success poses a complex challenge, testing the brand's longevity. 

The brand has already encountered legal scrutiny regarding its caffeine content, alleged to equate to five servings of coffee per can, raising concerns about its explicit marketing to children. Such challenges accompany the territory of a hundred-million-dollar triumph. While Paul and KSI have demonstrated their marketing acumen, the years to come pose the task of transforming the product from a trend to a staple. How they navigate this crucial step? Well, that's a topic for a future post.



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