How On and Celsius Used Timing and Psychology to Skyrocket Growth

I. The Winning Formula: How On and Celsius Captured Culture, Timing, and Growth

Timing as a Catalyst for Success

The meteoric rise of On and Celsius wasn’t solely the result of clever marketing and strategic brand positioning; it was deeply influenced by the broader market conditions at the time of their launches. Both brands entered the scene at precisely the right moments, capitalizing on shifting consumer behaviors and discretionary spending patterns, which amplified the impact of their strategies.

On: The Consumer Discretionary Boom

On launched and grew during a period of rising discretionary spending, particularly in the activewear and lifestyle categories. This boom coincided with a societal shift where health and wellness were seen as luxury markers, and fitness and athleisure became integral to consumers’ identities. Disposable income was increasingly channeled into high-quality, high-priced products that promised both functionality and status.

Consumer Behavior Insight: During this period, consumers were willing to invest more in aspirational products, especially those signaling performance and style. On leveraged this mindset by positioning itself as a premium brand, emphasizing innovation (e.g., its cloud-like sole technology) and aspirational branding.
Economic Context: A robust economy and cultural focus on wellness created fertile ground for On’s rapid growth. Consumers sought products that elevated their lifestyles, and On’s blend of performance and design met this demand perfectly.

Celsius: The Health-Conscious Movement

Celsius entered the market during a growing health-conscious movement, with trends like clean eating, fitness tracking, and functional beverages gaining significant momentum. The pandemic further heightened this focus on health, with consumers increasingly searching for products that aligned with their wellness goals.

Consumer Behavior Insight: Health-conscious consumers scrutinized their choices, favoring products with tangible wellness benefits. Celsius positioned itself perfectly with its emphasis on metabolism-boosting, clean ingredients, and energy without the sugar crash—a stark contrast to traditional energy drinks.
Cultural Shift: The rising popularity of fitness and wellness influencers played a pivotal role in Celsius’s growth. These influencers became trusted voices for health-conscious consumers, solidifying Celsius’s presence in the wellness space.
Why It Worked Over Competitors: Unlike Bang Energy, which alienated broader audiences with its excessive caffeine content (300mg) and 16oz-only option, Celsius offered a sleek design, moderate caffeine (equivalent to two cups of coffee), and a more approachable 12oz size, making it versatile and appealing to a wider demographic.

Influencer Marketing: The Engine of Rapid Growth

Both On and Celsius strategically embraced influencer marketing as the cornerstone of their campaigns, achieving unparalleled success by partnering with fitness influencers, athletes, and social media personalities. This approach not only drove massive brand awareness but also delivered exceptional return-on-spend (ROS), making it a cornerstone of their growth.

1. The Power of Influencers

Influencers provided both brands with the social proof needed to break into competitive markets. By aligning with visible individuals who embodied their target demographic’s aspirations, On and Celsius rapidly built trust and credibility.

On: Collaborated with fitness influencers, athletes, and celebrities like Zendaya, blending its performance-driven identity with cultural relevance. Influencers’ storytelling about their experiences with On shoes emphasized both functionality and style, making the brand desirable for performance and lifestyle buyers.
Celsius: Partnered with a diverse range of influencers—from fitness enthusiasts to lifestyle creators—who showcased Celsius as the go-to drink for energy and health-conscious living. Their messaging highlighted real-life benefits, like enhancing gym sessions or powering productive mornings.

2. The Economics of Influencer Marketing

Both brands experienced overwhelming success from influencer marketing by focusing their budgets on collaborations instead of traditional advertising. This approach created authentic connections with consumers, driving visibility, engagement, and conversions.

Cost-Effective Reach: Influencers gave the brands direct access to highly targeted audiences, creating touchpoints that resonated more than generic ads.
Engagement Over Impressions: The interactive nature of influencer content fostered deeper trust and purchase behavior among consumers.
Long-Term Benefits: User-generated content from influencer partnerships created a snowball effect, generating reviews, testimonials, and organic visibility long after campaigns ended.

Lessons for Businesses

Understand the Market Landscape
Timing is critical. Launching products that align with current consumer trends and broader economic conditions significantly enhances the likelihood of success.
Leverage Influencers Effectively
Influencer marketing is a cost-effective way to build authentic, scalable connections with your target audience. Focus on influencers whose values and lifestyle align with your brand to maximize engagement and return-on-spend.
Focus on Cultural Relevance
Stay ahead of the competition by aligning your brand with evolving consumer priorities, such as wellness, sustainability, or technology. Products that resonate with cultural shifts create stronger emotional connections and loyalty.
Differentiate Through Innovation
Offer unique features or designs that distinguish your product in a crowded market. Both On’s cloud-like sole technology and Celsius’s health-focused formulation exemplify how innovation drives desirability.

Lessons for Investors

Look for Brands Tapping Cultural Trends
Companies that align with significant cultural movements—like health consciousness or casual luxury—are more likely to achieve sustained growth. Brands like On and Celsius demonstrate the power of identifying and integrating with these trends early.
Evaluate Influencer Marketing ROI
High-performing consumer brands often leverage influencer partnerships for growth. Assess how effectively a company uses influencer marketing and whether it generates tangible results in terms of engagement, brand awareness, and sales.
Timing Matters
Pay attention to market conditions during a brand’s launch phase. Products introduced during favorable economic climates or cultural shifts often perform better due to amplified consumer demand.
Scalability and Innovation
Invest in brands with scalable products and innovative features. On’s sole technology and Celsius’s clean energy drink formula exemplify how innovation can provide a competitive edge and drive adoption.
Track Early Adoption in Niche Markets
Brands that establish a strong presence in niche communities often expand to broader audiences. On succeeded in fitness and professional markets, while Celsius grew through gym culture and lifestyle influencers.

II. The Rapid Ascent of On and Celsius: Marketing and Psychological Strategies Behind Their Success

In saturated markets like fitness apparel and energy drinks, On and Celsius stand out with meteoric growth. Their rise is no accident; it’s a masterclass in leveraging psychological principles and strategic branding to connect with modern consumers. Here’s how they did it.

On Fitness Clothing: Redefining Aspirational Identity

Emotional Connection Through Storytelling
On transcends traditional sportswear by promoting freedom, adventure, and self-expression. Its focus on movement as a lifestyle resonates with consumers seeking balance and purpose, not just athletic performance.
- Psychological Principle: Identity Signaling
  People buy brands that reflect their ideal selves. On ties its products to values like exploration and individuality, attracting younger, affluent professionals who see On as part of their sophisticated, health-conscious identity.

Community Marketing
Eschewing traditional advertising, On builds grassroots connections through fitness communities, influencer partnerships, and local events. Customers feel part of an elite group that prioritizes quality and style.
- Psychological Principle: Belongingness
  Humans crave community. On leverages this by fostering a sense of exclusivity through creative collaborations and cultural relevance.

Premium Positioning and Exclusivity
On’s pricing, design innovations (e.g., the "cloud" sole), and celebrity partnerships, like with Zendaya, cement its status as a luxury performance brand.
- Psychological Principle: Scarcity and Status
  Limited-edition releases and high-profile collaborations amplify On's desirability. Owning On products signals elevated taste and exclusivity.

Social Currency in Professional Settings
The shift toward more casual dress codes allowed On to redefine professional footwear. Unlike Nike, which leans heavily on casual, sporty associations, On positioned itself as a brand signaling professionalism and elegance with a modern logo and financial backing to penetrate markets like Wall Street. On sneakers became acceptable in professional spaces where Nike would have felt out of place.
- Key Insight: On’s sleek design and innovative tech signaled a new era of professional casualwear, aligning with a status-conscious demographic.

Celsius Energy Drinks: Owning the Wellness Trend

Health-Conscious Branding
Celsius markets itself as a "healthy energy" alternative, packed with vitamins and ingredients that support fitness goals, rather than relying solely on caffeine or sugar.
- Psychological Principle: Perceived Health Benefits
  The focus on functionality and clean energy appeals to wellness-driven consumers who seek products that align with their active lifestyles.

Fitness Integration and Influencer Marketing
Celsius aligns itself with gym culture and influencers, creating brand loyalty among fitness enthusiasts. From fitness expos to TikTok influencers, it thrives on being the drink associated with performance and results.
- Psychological Principle: Social Proof
  Seeing influencers and fitness leaders endorse Celsius reinforces its credibility and aspirational appeal.

Appealing to Millennials and Gen Z
With bold packaging and a digital-first strategy, Celsius captures the attention of younger consumers. Its flavors, fitness-focused claims, and edgy branding fit seamlessly into the social media-driven world.
- Psychological Principle: Novelty and Trend Alignment
  Younger consumers are drawn to innovative products that align with their fast-paced, wellness-oriented lifestyles.

Why Bang Energy Missed the Mark
While Bang Energy made waves with its aggressive branding and high caffeine content (300mg), it alienated a broader demographic. The 16oz size and extreme caffeine levels made it feel excessive and intimidating for everyday users. Celsius capitalized on this gap with its sleek design and reasonable caffeine content—the equivalent of two cups of coffee (200mg)—making it more approachable and versatile.
- Key Insight: Celsius' balance of functionality, sleek design, and manageable caffeine content positioned it as a lifestyle-friendly option for both gym-goers and casual users, giving it a broader appeal than Bang’s niche, high-octane energy drink image.

Key Takeaways for Businesses

Social Currency Drives Status Appeal
On and Celsius use sleek, aspirational branding to align their products with desirable lifestyles. On sneakers became a status symbol in professional settings, while Celsius’ clean design and moderate caffeine content appealed to a health-conscious, everyday audience.
Strategic Positioning in Evolving Markets
On capitalized on the shift to casual professional attire, presenting itself as a premium yet acceptable brand for elite workplaces like Wall Street. Celsius filled a gap left by competitors like Bang Energy by offering a versatile, approachable product that appeals to both fitness enthusiasts and casual users.
Psychological Principles in Branding
- Identity Signaling: On ties its products to values like individuality and adventure, while Celsius appeals to health-conscious individuals seeking balance and performance.
- Belongingness: Community marketing strategies foster loyalty by making customers feel part of an elite or trendsetting group.
- Scarcity and Status: Premium pricing, limited-edition releases, and exclusive partnerships amplify desirability.
Innovation in Product Design and Marketing
On’s unique cloud sole technology and partnerships with influencers like Zendaya differentiate it in a crowded market. Similarly, Celsius’ focus on health benefits, digital marketing, and influencer endorsements strengthens its position as the energy drink of choice for a modern, wellness-focused audience.
Filling Gaps Competitors Missed
By avoiding Bang Energy's overly aggressive formula and branding, Celsius delivered a product that balances energy and wellness in a way that resonates with a wider consumer base. On redefined casual athletic wear, stepping into spaces where competitors like Nike’s casual associations could not.

Key Lessons for Investors

Assess Product Versatility and Market Fit
Successful brands often create products that meet the needs of both niche and mainstream audiences. On bridged the gap between professional and casual footwear, while Celsius appealed to both fitness enthusiasts and everyday consumers. Look for companies creating versatile products that address multiple demographics.
Analyze Differentiation Through Design and Features
Unique design elements and product features often provide a competitive edge. On’s cloud-like sole and Celsius’s health-conscious formula with moderate caffeine set them apart. Evaluate how a brand’s offerings stand out in crowded markets and whether these innovations address consumer pain points.
Monitor Brand Adaptability
Companies that quickly adapt to changing consumer preferences are more likely to sustain growth. On capitalized on the shift toward casual professional attire, while Celsius thrived as health-conscious trends grew. Look for signs that a brand can pivot effectively in response to market trends or economic shifts.
Evaluate Community-Building Strategies
Brands with strong community engagement tend to foster loyalty and long-term growth. On’s grassroots campaigns and Celsius’s integration into gym culture created tight-knit communities that amplified their reach. Assess how companies build and maintain their consumer base through community marketing and partnerships.
Examine Distribution and Scaling Potential
Scaling efficiently while maintaining brand integrity is crucial for sustained success. Both On and Celsius have expanded into global markets while preserving their premium positioning. Investigate a company’s distribution model and its ability to scale without diluting its brand value.
Understand Pricing Strategies
Premium pricing can be a sign of strong brand positioning. On and Celsius used high-quality branding and innovative features to justify their pricing. Look for brands that effectively use pricing as a signal of exclusivity and quality without alienating potential customers.
Look for Brands Filling Gaps Left by Competitors
Both On and Celsius capitalized on competitors’ blind spots—On by entering professional spaces where Nike wasn’t accepted and Celsius by offering a moderate alternative to Bang Energy’s excessive caffeine. Identify brands that solve overlooked problems or create new market categories.

By focusing on brands that combine innovation, scalability, and adaptability while addressing gaps in the market, investors can uncover opportunities with significant growth potential.

Conclusion

The success of On and Celsius demonstrates how brands that leverage psychological principles, strategic positioning, and innovation can achieve rapid growth, even in saturated markets. By understanding consumer desires for identity, belonging, and functionality, these companies positioned themselves as both aspirational and practical.

To spot rising companies with similar potential, look for brands that address unmet consumer needs, create emotional connections through storytelling, and adapt to cultural shifts with innovative products and marketing strategies. Conversely, companies that limit themselves by failing to evolve or relying on overly niche appeal—like Bang Energy’s high-caffeine exclusivity—risk stagnation or alienating broader audiences. The best brands balance exclusivity with accessibility, ensuring they remain relevant to both niche markets and everyday consumers.

If this resonated with you, feel free to share or comment—I’d love to hear your thoughts and start a conversation.

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