Podcast Summary
Product positioning: Identifying a gap in the market for a higher quality, fashionable water bottle that kept things hot and cold, and focusing on elegant positioning helped Sarah Kaus's Swell stand out in a crowded market and make $100 million in revenue.
Positioning was key to Sarah Kaus's success in building Swell, a company that made $100 million in revenue. Despite a crowded marketplace, Sarah identified a gap for a higher quality, fashionable water bottle that kept things hot and cold. She didn't want a product that looked like a camping canteen, but rather something elegant enough to be sold in stores like MoMA or Bloomingdale's. In the beginning, Sarah approached stores with her backpack, sometimes even on consignment, just to test the waters. Sarah's focus on positioning helped Swell stand out in a crowded market and eventually led to its success. For founders looking to position their unique products in larger markets, Sarah's story serves as a reminder that careful consideration of target audience and market positioning can make all the difference.
New product innovation: Despite challenges in production and placement, perseverance, adaptability, and effective communication were key to bringing a new grain-free hot cereal to market.
Creating a successful new product, especially in an established category, requires innovation, determination, and effective communication. Kiara, the founder of a grain-free hot cereal made from dehydrated chickpeas, shared her personal experience of seeking a healthier alternative to traditional oatmeal and the challenges she faced in bringing her product to market. Starting from her dorm room, Kiara and her team experimented with rolling and dehydrating chickpeas to create a texture similar to oatmeal. However, scaling up production was a significant hurdle, as Kiara had to convince chickpea farmers, processors, and co-manufacturers to produce the product at scale. To finance the first run, they entered pitch competitions and raised over $100,000. Currently, they sell 95% of their products online and 5% in Los Angeles grocery stores. However, they face a challenge with placement, as their product is currently located in the hot cereal category with traditional oats, which may deter customers who avoid oats due to dietary restrictions. To address this, they are updating their packaging to more prominently display that their product is gluten-free. The story of Kiara's product demonstrates the importance of perseverance, adaptability, and effective communication in bringing a new product to market, especially when creating an entirely new category.
Grocery sales strategies for new products: Sampling and strategic shelf placement are crucial for increasing sales of new grocery products. Engaging with local influencers and building a community around the brand can help extend reach. Considering investment opportunities can accelerate growth.
For a new and unique product like Chi Chi's chickpea hot cereal, increasing sales in grocery stores relies heavily on sampling and being strategically placed on the shelf. The product's differentiation as the first chickpea hot cereal in the market creates an opportunity to stand out, but competition is inevitable. To maximize reach and extend the product's presence, it's crucial to engage with local influencers and build a community around the brand. Additionally, considering investment opportunities can help accelerate growth and bring in valuable resources beyond just capital. Overall, focusing on sampling, strategic placement, and community building can significantly boost sales for a new and differentiated product in the grocery market.
Black History, Family Structures, Representation: Explore untold stories of underrepresented figures in history through podcasts like 'Black History for Real' and 'this is actually happening'. Embrace diverse family structures and definitions, and support businesses that promote representation and celebrate unique cultures.
There are countless untold stories and underrepresented figures in history, particularly within the Black community, and it's essential to learn about them. Podcasts like "Black History for Real" on Wondery bring these stories to light, highlighting figures like the women of the Black Panther Party and overlooked historical events. Additionally, family structures and definitions have evolved significantly over the years, with only 18% of American households fitting the traditional "nuclear family" description. Podcasts like "this is actually happening" explore modern stories of love and family, showcasing unique perspectives from individuals whose family lives have taken different shapes. Lastly, the importance of representation extends beyond language, and businesses like Paper Tacos Greeting Cards are filling the gap by offering cards that resonate with the Latino community and celebrate their culture and traditions.
Latin American Market: The Latin American market, making up 20% of the US population and predominantly under 35, has a strong connection to their roots and a desire for culturally-relevant products. Retailers can tap into this market by offering products that resonate and consider regional markets where Spanish is widely spoken and English-speaking individuals have cultural ties.
There is a significant market for culturally-relevant products that cater to the experiences of individuals with dual heritage or strong cultural ties to Latin America. This market, which makes up approximately 20% of the US population and is predominantly under the age of 35, is characterized by a strong connection to their roots and a desire for products that evoke nostalgia and cultural references. The success of Sarah's business, which offers colorful and illustrative cards that appeal to both Spanish and English speakers, demonstrates the potential for retailers to tap into this market by offering products that resonate with this demographic. Sarah's approach to retailers involved sharing her personal story and the unique value proposition of her product, as well as considering regional markets where Spanish is widely spoken and English-speaking individuals have cultural connections to Latin America.
Retailer needs and product benefits: When pitching to retailers, focus on showcasing product's unique selling points and addressing their needs and gaps in their assortment. Discuss price point, margin, and growth strategy. Provide visuals and clear understanding of assortment and point-of-sale materials.
When pitching a product to retailers, it's essential to not only showcase the product's unique selling points but also understand and address their needs and gaps in their assortment. This includes discussing the price point, margin, and how the product can contribute to their success. Additionally, providing visuals and a clear understanding of the assortment and point-of-sale materials can make it easier for buyers to say yes. For entrepreneurs focusing on growth, understanding the growth profile and approach is crucial. For instance, Bolt, Skin, and Shave, a new brand producing razors for men who shave their legs, identified a cultural and functional need for their product and pursued a growth strategy. The idea came about due to the perceived power advantage and aesthetics of shaving legs for cyclists, as well as the convenience and ease of cleaning up after crashes. Overall, understanding the market, addressing the retailer's needs, and clearly communicating the product's benefits are key to successful pitches and growth.
Niche problem, successful product: Identifying a unique problem in a niche market and creating a tailored solution can lead to a successful consumer product, even if the market is small. Strategic gifting to athletes and influencers can also help extend reach and gain traction.
Identifying a personal problem and creating a solution can lead to a successful consumer product, even if the market may be considered niche. Adam, a professional photographer and ex-games gold medalist, did just that with his new razor brand, Bolt. He recognized a need for a razor specifically designed for men with coarser leg hair and decided to create it. Though initially self-funded through a friends and family round, Bolt's unique selling point and positive reviews have already gained attention, with some women even stealing the razors from their male counterparts. The importance of strategic giving, such as gifting product to athletes and influencers, was also emphasized as a key tactic for extending reach and gaining traction in the market. For brands starting out, finding athletes or influencers who align with the brand and can authentically promote it, without requiring a large financial investment, is a valuable approach.
Local Influencers and In-person Activations: Utilizing local influencers and in-person activations can lead to authentic endorsements, word-of-mouth marketing, unique content, and memorable experiences for customers, contributing to a brand's growth and profitability.
A combination of local influencers and in-person activations can significantly boost a brand's reach and engagement. Utilizing hyper-local influencers, even those with smaller followings, can lead to authentic endorsements and word-of-mouth marketing. In-person activations, such as shaving legs on site at events, can create unique and shareable content that resonates with audiences. Additionally, it's important to consider both growth and profitability when building a brand. While dreaming big is essential, staying profitable is crucial for long-term success. By focusing on both, brands can effectively build their presence and create memorable experiences for their customers.
Continuous learning and observation: Observing simple things in daily life can lead to valuable insights and continuous learning, as Sarah Kous discovered when she noticed cyclists shaving their legs for aerodynamics.
Learning from this episode of The Advice Line on How I Built This Lab is the importance of continuous learning and observation. Sarah Kous, the founder of Swell, shared an unexpected discovery she made while living in the Bay Area - many cyclists shave their legs for aerodynamics. This simple observation led her to reflect on how there's always something new to learn, no matter where we are or what we think we know. Kous encouraged listeners to check out her episode, which shares the inspiring story of Swell. She also invited business owners to reach out with their stories, challenges, and questions for potential solutions on the show. The podcast team, led by Guy Raz, provided instructions on how to submit voice memos or call in. The episode was produced by a talented team, and listeners can enjoy it early by subscribing to Wondery Plus or accessing it ad-free on Amazon Music. Additionally, Prime members can listen ad-free on Amazon Music. To learn more about the podcast and its team, listeners are encouraged to fill out a short survey at Wondery.com/survey.