Thursday, February 20, 2014

Would paid advertising and social media go against Sriracha's brand image?

It was named best-tasting hot sauce by Cook’s Illustrated, and is frequently featured on the Food Network and popular TV shows such as The Simpsons. Twenty million bottles were sold in 2013, and it was the subject of a highly praised documentary which was released the same year. It probably comes as no surprise that Sriracha (also known as “rooster sauce”) is one of the fastest growing food companies in the United States. What may surprise you is that it has reached its iconic status without a single paid advertisement.



You’d probably be hard-pressed to find an iconic product that got to where it is today without any paid advertising. Sriracha doesn’t even have a Facebook or Twitter account, and they haven’t updated the website since 2004. The reason behind the company’s decision? One of them involves production limitations. David Tran, owner and creator of Sriracha, only uses chili peppers obtained from Underwood Family Farms, about an hour north of L.A. This is done in order to avoid fluctuating prices with larger suppliers, and also to ensure a fresher product. Smaller farms, however, mean less product, and the company already has a hard time keeping up with consumer demands. Tran chooses not to advertise because “we can’t promise something that we don’t have.” He’s also known for his extreme modesty, which probably has something to do with the company’s lack of online presence. 



Taking all of this into consideration, I can’t help but wonder where Sriracha would be if the company chose to work with larger suppliers, invest in paid advertisements, and utilize social media. Would advertising efforts go against their brand image? Would it damage their reputation? I think that one of the best parts of the product is the fact that it maintains the humble image it’s had since Tran first created it. It’s also one of the things that, I believe, contributes to the company’s increasing sales. The lack of advertising generates a certain degree of curiosity amongst people who may not have tried it. It creates a greater sense of community amongst those who use it. Lots of people have even described it as being a cult following. 




What do you think of Sriracha’s decision to not advertise? Would advertising and utilizing social media be beneficial or harmful to the brand?

1 comment:

  1. " Considering that "personal care, toiletries, and cosmetic products" are in the mix, I estimate Rx ad spend was just 50% of $3 billion, or $1.5 billion.
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