Podcast Summary
Consumer Packaged Goods Industry Evolution: The consumer packaged goods industry is shifting towards authentic, storytelling brands that offer unique experiences and natural products, appealing to younger generations
The consumer packaged goods industry is evolving, with a growing mistrust of legacy brands leading to an openness to new, authentic brands that tell compelling stories online. Final Boss Sour, a company Jason Calicanis is investing in, embodies this trend by offering sour candies that tap into the passion of those who love them, and creating an interactive experience through increasing levels of sourness and unique packaging. The company's success lies in its ability to combine entertainment and enjoyment, while also offering a more natural product with real fruit. This approach is a departure from traditional CPG companies and is resonating with younger generations.
BFY food: BFY food offers a compromise between junk food and clean eating by providing convenient, slightly sweeter, and all-natural alternatives that deliver on taste, convenience, and health benefits.
Innovation in the food industry lies not only in creating new flavors but also in finding a balance between convenience, health, and enjoyment. The concept of "better for you" (BFY) food is emerging as a category that offers consumers a compromise between junk food and clean eating. Companies are experimenting with natural sour flavors and video game-inspired packaging to create engaging and healthier snack options. The BFY category is filling the gap between heavily processed junk food and fresh produce, providing consumers with convenient, slightly sweeter, and all-natural alternatives. The success of these products lies in their ability to deliver on taste, convenience, and health benefits, making them a permissible indulgence for people of all ages.
TikTok Social Shopping: TikTok's social shopping feature and influencer marketing create a seamless and organic shopping experience, leading to effective sales for businesses and influencers
TikTok's social shopping feature, combined with influencer marketing, is revolutionizing the way businesses reach customers and drive sales. Mr. Beast's success with the "One Chip Challenge" is a prime example, as he leverages free distribution through festivals and user-generated content on TikTok, complemented by controlled storytelling on social media. TikTok's algorithm and engaging content create a shopping experience that is seamless and organic, setting it apart from traditional methods like Google and Amazon ads, affiliate marketing, and even home shopping networks. This approach has proven effective for businesses, with some affiliates earning car payments or even salaries from their viral videos. TikTok's social shopping feature is expected to inspire similar functionality on other platforms, marking a significant shift in e-commerce trends.
DTC brands strategy: DTC brands focus on fan base, influencers, and live selling to grow, while retailers seek new products and experiences to attract customers. DTC brands need to build awareness and demand before entering retail, and some explore media to engage audience and build IP.
Direct-to-consumer (DTC) brands are focusing on building a loyal fan base and leveraging influencers and live selling to grow their business, rather than relying on traditional retailers like Walmart or Target. This strategy allows DTC brands to maintain control over their storytelling and customer relationships, while also generating awareness and bringing shoppers to retail locations when they're ready to expand. Retailers are looking for exciting new products and experiences to attract customers, but DTC brands need to do the heavy lifting in terms of building awareness and generating demand before they enter retail. Additionally, some DTC brands are exploring the possibility of creating video games or other forms of media to engage their audience and build their IP.
Consumer Preferences, Innovation: Understanding consumer preferences and innovating can lead to a successful CPG brand. Controlling formula development and production protects intellectual property, while collaborating with influencers and creating experiential events build brand loyalty. Stay informed about industry news to stay ahead of trends and potential risks.
Creating a successful CPG (Consumer Packaged Goods) brand involves a deep understanding of consumer preferences and a willingness to innovate. The speaker shared their experience with a sour candy brand, Final Boss Sour, and how they discovered that people have varying tolerance levels for sourness. They also discussed the importance of controlling the formula development and production process to protect intellectual property. Additionally, they highlighted the potential of collaborating with influencers and creating in-person experiential events to build brand loyalty. The speaker also emphasized the importance of staying updated on industry news, as shown by their subscription to The Washington Post, to stay informed about market trends and potential risks, like the recent FTX crypto exchange debacle.
Personalized newsletters, Community building: Personalized newsletters like 'It's for you' from The Washington Post offer tech and business updates, while community platforms like River allow digital communities to come together with a clear purpose, utilizing technology to streamline processes.
The Washington Post's "It's for you" newsletter offers personalized daily updates on tech and business news, with great reporters and the option to listen to articles, making it an excellent resource for staying informed. Another takeaway is the story of Ray Lambert, the CEO and co-founder of River, who turned organic community meetups into a product. Her insight was to create a platform that allows digital communities to come together, with a focus on founders helping founders. The River platform solves problems for brands by allowing them to easily create and duplicate events across multiple locations, saving time and resources. The key to building a successful community, as evidenced by the Washington Post and River, is having a clear purpose and utilizing technology to streamline processes.
Local event management: River is a platform for managing and promoting local events, allowing users to apply, go through approval, and have limited edit access. It includes batch editing for campaigns and a community page for finding nearby events, with potential for monetization.
River is a platform designed to help manage and promote local events for distributed communities. Users can apply to host events and go through a lightweight applicant tracking system for approval. Once approved, hosts have limited edit access to make their events great under the community's brand. The platform also features batch editing for event campaigns and a community page where users can find the nearest event to them. The manual work involved includes vetting hosts and answering questions, but the process becomes faster as communities grow and hosts gain approval. The platform also has the potential for monetization through a sponsorship marketplace, email strategy, and an ad network. River aims to solve the problem of labor-intensive event marketing for brands and help communities build and engage with their local networks.
Event marketplace business model: Creates a one-stop-shop for event planning, generating revenue through sponsorships, ticket sales, and commissions from speaker and designer marketplaces.
The discussed business model revolves around creating a marketplace for events, connecting hosts, sponsors, speakers, and attendees. The platform aims to streamline the event planning process by offering features such as sponsorships, a speaker marketplace, and even a design partner for paid events. The potential revenue streams include a percentage of sponsorship fees, ticket sales, and commissions from the speaker and designer marketplaces. The ultimate goal is to create a one-stop-shop for event planning, making it easier for hosts to find resources and monetize their events while providing valuable opportunities for sponsors, speakers, and attendees. This marketplace approach could potentially generate significant revenue through ticket sales, investments, and commissions, with the potential to unlock millions of dollars in value for both the platform and its users.
Community for top fans: Creating a community for top fans can significantly boost loyalty and engagement, leading to a valuable and engaged audience, much like a lighthouse customer for a business.
Creating a high-level community or membership program for your top fans can significantly boost loyalty and engagement. This was highlighted during a conversation about a successful community created by Jay, which has attracted high-profile members like Tim Ferriss. The community provides a platform for members to connect, engage, and discuss in-depth, leading to a strong sense of community and loyalty. This approach can be particularly effective for brands looking to connect with their most dedicated audience members. The success of such communities can be compared to high-end memberships like Soho House or exclusive groups like Hampton. Landing and retaining these high-profile members can be challenging due to their busy schedules and selectivity, making it an impressive feat for executives like Jay. Overall, investing in a community or membership program for top fans can lead to a valuable and engaged audience, much like a lighthouse customer for a business.