Remember when energy drinks were just something you grabbed at the gas station to power through an all-nighter? Well, those days are long gone.
In early 2022, two YouTube stars who had previously been bitter rivals did something unprecedented: they joined forces to launch PRIME, a hydration drink that would go on to become one of the most fascinating business success stories of our time.
The PRIME marketing strategy played a crucial role in transforming the brand from a viral sensation into a billion-dollar industry disruptor.
The Perfect Storm: When Influence Meets Business Acumen
What makes the PRIME story so captivating isn’t just its meteoric rise to a billion-dollar valuation in under two years – it’s how it rewrote the rules of brand building in the digital age. Logan Paul and KSI didn’t just slap their names on a beverage; they created a masterclass in modern marketing that business schools will be studying for years to come.
Think about it: in a world where established beverage giants spend decades and billions building market share, how did two YouTubers manage to create a brand that would rival Gatorade and Powerade in less than 24 months?
The answer lies in their perfect understanding of three critical elements: influence, scarcity, and cultural zeitgeist.
Leveraging Personal Brands & Rivalry
MBA Insight: Influence-Driven Business Models
PRIME wasn’t just a celebrity endorsement – it was ownership. Logan Paul and KSI built their brands on YouTube, accumulating millions of followers through viral content, boxing matches, and business ventures. Their past rivalry, which played out in two high-profile boxing matches, helped drive initial hype when they announced their unexpected partnership to launch PRIME.
Why This Worked:
- They had a built-in audience of over 100 million followers.
- Their boxing rivalry turned into a business partnership, creating a natural, viral narrative.
- Their combined influence gave PRIME free exposure that traditional brands could only dream of.
Other Business Examples:
- Kylie Cosmetics – Kylie Jenner owned and promoted the brand, leveraging her audience to build a $1.2 billion empire before selling a majority stake to Coty.
- MrBeast’s Feastables – YouTuber MrBeast launched his own chocolate brand, using his massive fan base to drive record-breaking sales at Walmart.
- Fenty Beauty – Rihanna co-founded Fenty Beauty, which generated $600M in revenue in its first year by catering to underserved consumers in the makeup industry.
The Art of Manufacturing Demand
MBA Insight: Scarcity & Social Proof (Behavioral Economics)
PRIME didn’t follow the traditional playbook of mass production and widespread availability. Instead, they implemented a PRIME marketing strategy by creating a sense of exclusivity through limited releases, exclusive drops, and controlled distribution.
Key Marketing Tactics:
- Scarcity Strategy: PRIME was deliberately made hard to get, increasing its perceived value.
- Herd Mentality: People seeing others scramble for PRIME made them want it even more.
- Social Proof: High resale prices on eBay (10x retail value) created an illusion of must-have status.
Other Business Examples:
- Nike’s SNKRS App – Nike creates limited-edition sneaker drops, fueling demand through scarcity and resale culture.
- Tesla’s Pre-Orders – Tesla creates waitlists for new models, making customers feel like they’re part of an exclusive club.
- Birkin Bags (Hermès) – Limited production keeps demand permanently higher than supply, making the bags more desirable.
From Social Media to Sports: The Legitimacy Play
MBA Insight: Credibility Through Association
PRIME started as a social media sensation, but to transition into a serious competitor, they leveraged their PRIME marketing strategy by securing major sports sponsorships.
Strategic Partnerships:
- Official Hydration Partner of UFC
- Sponsorship Deals with Arsenal FC & FC Barcelona
- Endorsements from NFL & Premier League Athletes
This shift from viral hype to professional sports legitimacy was a masterstroke in branding. PRIME wasn’t just a drink; it became a cultural and athletic status symbol.
Other Business Examples:
- Red Bull (Extreme Sports Partnerships) – Red Bull aligned itself with action sports (F1, BMX, skydiving) to cement its brand credibility.
- Lululemon (Yoga Community) – Instead of relying on ads, Lululemon built a fitness community that made its brand aspirational.
- Peloton (Celebrity Instructors) – Instead of marketing traditional workouts, Peloton used engaging fitness personalities to build loyalty.
Market Disruption: Creating a New Category
MBA Insight: Blue Ocean Strategy
PRIME didn’t just compete with Gatorade; it created a new space in the hydration market by blending influencer culture with sports nutrition.
Key Differentiators:
- Positioned as a lifestyle product, not just a functional drink.
- Vibrant branding appealed to Gen Z rather than traditional athletes.
- Health-conscious (zero sugar) formula aligned with modern dietary trends.
Other Business Examples:
- Oatly vs. Dairy Milk – Oatly positioned itself as a cooler, more sustainable alternative to regular milk.
- Liquid Death vs. Bottled Water – Marketed canned water as an edgy, punk-rock product, creating a new category.
- Warby Parker vs. Traditional Eyewear – Disrupted the optical industry with a DTC model & stylish branding.
The Future of Brand Building
As we look to the future, the PRIME story suggests that traditional brand-building timelines might be a thing of the past. In a digital-first world, the right combination of influence, strategy, and execution can compress decades of brand building into months.
However, the real test for PRIME lies ahead. Can they maintain their momentum now that the initial hype has settled? Will they successfully transition from a phenomenon to a stable, long-term brand? These questions will determine whether PRIME becomes a case study in sustainable success or a cautionary tale about the fleeting nature of influencer-driven brands.
What’s undeniable is that PRIME has already changed the game. Through their PRIME marketing strategy, they’ve shown that with the right approach, digital influence can be converted into real-world market share at unprecedented speed. For the next generation of entrepreneurs and brand builders, that’s a lesson worth its weight in hydration drinks.
Remember: in today’s market, it’s not just about what you’re selling – it’s about the story you’re telling and the community you’re building. PRIME didn’t just sell drinks; they sold belonging, status, and cultural currency. And that, perhaps, is the most valuable lesson of all.
Final Takeaways: MBA Lessons from PRIME
What You Can Learn:
- Leverage Personal Brands: Don’t just endorse; own the brand for long-term equity.
- Scarcity Drives Value: Control supply to increase demand and perceived exclusivity.
- Strategic Partnerships Matter: Align with established industries to gain credibility.
- Disrupt the Market: Don’t just compete; create a new category.
- Build a Community, Not Just a Customer Base: Let users be part of the brand experience.
The Future of PRIME: Can It Last?
While PRIME has skyrocketed to billion-dollar status, the question remains: Can it sustain its momentum? Many influencer-led brands burn out when the hype fades.
However, if PRIME continues to:
- Expand globally
- Innovate with new product lines
- Strengthen partnerships beyond influencer marketing
- Evolve beyond Logan Paul & KSI’s direct influence
Then it could remain a long-term competitor to Gatorade and Red Bull, rather than a passing trend.
One thing’s for sure: The PRIME marketing strategy is now being studied in MBA programs and marketing teams worldwide as a gold standard for modern brand building.
