SpiritedBrilliant703

"Hey, do you know how we can sell all these razors?"

Michael Dubin one day got a text from a friend who had a warehouse in South Korea with a surplus of 25,000 razor blades.

This text would spark a series of events that would ultimately lead to the birth of a billion-dollar company.

At the time, the razor market was ruled by giants like Gilette and Schick, who held a massive 80% market share. Michael knew that the business of selling razors needed to be different.

It wasn't just about selling razors; it was about creating a brand that represented a whole lifestyle for men. And since they couldn't compete with the big players in terms of advertising budgets, they decided to make a bold move and stand out on YouTube.

So the idea of a funny ad that intentionally looked unprofessional with engaging content was the strategy. With $4,500, Michael, the CEO, played himself in the ad and shot the entire video in just one day.

The results? 25 million views!

25,000 razor blades sold in just 72 hours.

What's even crazier is that the ad was so successful that people were eager to give their credit card details, even though the company couldn't deliver the products at that point.

The big boys have been outplayed in an incredibly smart way by a new player in town: The Dollar Shave Club!

This initial ad became a revenue-generating powerhouse, raking in millions of dollars for the budding company through recurring subscriptions.

At a mere $1 for the razor and an additional $2 for shipping, customers enjoyed the convenience of having their blades delivered to their doorsteps for just $3.

Moreover, Dollar Shave Club fostered unwavering one-on-one relationships with an active, youthful, and expanding customer base, creating unparalleled brand loyalty.

In contrast, industry giants like Gilette and Unilever grappled with intricate supply chains and distribution channels, rendering them unable to compete with Dollar Shave Club.

They secured nearly $10 million in funding shortly after the ad's release, leading to remarkable growth: a $10 million valuation in the first year, and a $150 million valuation in the third year.

How did they do it?

Well, they paid incredible attention to their customers.

They listened to them, understood their problems, and made a product people genuinely loved. They even conducted surveys to keep improving.

Here's a fun fact: Did you know that 30% of all men's razor blades are bought by women? Dollar Shave Club did! They tapped into this market too.

As they gained more and more market share, they started scaring the big, established companies. These giants had to react, and they ended up paying a massive amount of money to buy Dollar Shave Club.

All of this happened in just five years, and the most astonishing part is that Dollar Shave Club was never profitable during this time. The goal all along as indicated above was to gain market share

It's a story that might sound unbelievable when you tell it to someone. But it's a lesson in the power of attention, engaging marketing, and how a group of people having fun can shake up entire industries and capture market share at an incredible pace. This is a powerful example of how effective marketing can change the game!

Their humorous ads were shared, discussed, and became a viral sensation, firmly establishing them as a major industry disruptor. Their impact was so profound that even in 2023, we're still talking about it.

Key Takeaways

1. Disruption Opportunity: Even in established markets dominated by industry giants, there are opportunities for disruption. Identifying gaps, inefficiencies, or customer pain points can be a stepping stone for innovation.

2. Customer-Centricity: Prioritizing customers and their needs is essential. Dollar Shave Club's success stemmed from understanding its target audience and continually improving its product to meet their preferences.

3. Creative Marketing: Engaging, entertaining, and unconventional marketing strategies can captivate audiences and set a brand apart. Being memorable and shareable can lead to viral success.

4. Speed and Agility: The ability to pivot quickly and adapt to changing market dynamics is a competitive advantage, especially for startups facing established competitors.

5. Acquisition as a Growth Strategy: Building a brand with a significant market share can be more valuable than immediate profitability, attracting investment or acquisition opportunities.

6. Gender-Inclusive Marketing: Recognizing and serving diverse customer segments can expand a brand's reach and market share.

7. Enduring Impact: Effective marketing campaigns can leave a lasting legacy, continuing to generate buzz and discussions long after their initial release.

8. The Power of Attention: The story underscores the significance of capturing and maintaining the attention of your target audience in an age of information overload.

9. Legacy and Brand Building: Successful brands are built on more than just products; they represent a lifestyle, identity, or values that resonate with customers.

10. Inspiration for Entrepreneurs: The Dollar Shave Club story serves as an inspirational case study for aspiring entrepreneurs, highlighting the potential for innovative thinking and perseverance in business.

Thousand of people filled the seats at TechCrunch. This is the big stage at the Moscone Conference Center in San Francisco. Will Smith and the movie director Ang Lee are there to discuss the upcoming movie, Gemini Man.

At one moment, Will Smith said he wanted to invest in Startups. So the host invites 4 startup founders on stage to pitch.

With a once of a lifetime opportunity and 40 seconds to pitch, the first founder becomes nervous and fumbles. The second founder pitch became so complex that it went over 40 seconds.

The third founder steps onto the stage, takes a breath, and with a polished rhythmic pitch, the crowd erupts.

Cheers roared as Will Smith's open mouth face said it all. The fourth founder pitches. But at that moment everybody knew who was clearly the winner.

The founder who was able to obtain Will Smith as an investor was Kofi Frimpong. Founder of a startup called Socionado.Kofi loved the idea of pitching and the idea of storytelling. It became his skillset.

To him, a pitch was the notion of who could tell the best story.

With this approach, he has won hundreds of thousands of dollars in startup pitch contests.

Blueprint of a successful pitch

He wasn’t supposed to pitch at TechCrunch Disrupt 2019. But two hours before Will Smith arrived, he received an email.

Will Smith wants to hear pitches. No winners or losers and you’ll have 40 seconds.

Surprised, Kofi immediately took a seat from 11 a.m. to 2 p.m. working on a pitch.

He went straight into his routine trying to structure his pitch.

He begins by finding ways to capture the audience. Usually starting with a Did you know (fact) in the first sentence.

Next, he unpacks the problem,

presents the solution (his company),

and reveals the exciting opportunity (the size of the industry).

When he prepares a pitch, he doesn’t memorize it. Instead, he allows himself to freestyle a little so that it comes across as more organic rather than robotic.

During backstage, TechCrunch had assigned a coach to Kofi to help with the pitch. Recommending a number of changes. But he didn’t change a thing.

A lesson from his worst pitch. Making last-minute changes to a pitch is a disaster. It ruins the story.

Preparation is key so always have a pitch prepared and be ready to tell it.

As Kofi was pitching to Will Smith, it was important to become calm. Despite a famous movie star sitting there and behind him were tens of thousands of people watching.

In his mind, Will Smith is just a human and the crowd isn’t there.

Key Takeaways:

Always be prepared: Success happens when an opportunity meets preparation. The better prepared you are, the better the pitch will be.

Storytelling: The best pitches are stories, not formulas.

Become calm and confident: Pitching can be overwhelming especially when the stakes are high. But it’s important to find your rhythm and remove the distractions.

So remember anytime you are pitching to an angel or VC, tell the best story!

I also found a link to the whole pitch you can find it here

Temu is another e-commerce platform that launched in September of 2022. Think of it like Alibaba or Aliexpress. But with a different business model. Lower prices but faster shipping.

Temu has gone all out on marketing. Spending upwards of $100 million on advertising. For instance $14 million on a 30-second Super Bowl ad. With these marketing campaigns. They have grown exponentially.

Becoming the 6th most visited e-commerce website. With over 226.3 millions visits and downloaded by 50 million people!

Temu revenue is estimated to be close to $6 billion.

But the big question, is it profitable?

In other words,

Is The Temu Business Model Sustainable?

Temu sells goods directly from the factory mainly in China to the end consumer. Which drives costs down significantly. But the differentiator is the short delivery times. Unlike Aliexpress and Alibaba they transport products from China to the US using airplanes instead of cargo ships.

This enables Temu to boast shipping times of about 1 week in contrast to Alibaba's 1-2 months delivery time.

It costs the company about $10 per order and with an average order size of about $25. After paying for marketing, production, and shipping the burn rate sets in. Temu is definitely losing money.

All these perks are incredible for the end consumers, however, they come at a cost. According to Wired, Temu is burning cash at an annualized rate of about $500 million - $ 1 billion a year to run its operations.

Temu's current business model is unsustainable. If so,

What's The Game Plan?

By spending so much money in the short term they can attract enough loyal customers that will continue using their e-commerce platforms even after they raise their prices.

Will this strategy work? In my opinion no; if the whole concept is based around only offering unbranded products and cheap prices. The moment prices are raised I don't think customers will stay around.

Amazon had this same approach. But remember, Amazon only became profitable by implementing other services such as Prime membership or AWS services.

Therefore the only way I see this strategy working is by Temu pivoting to other services.

Either way time will tell if Temu is on to something or this would be a big flop

Van Leeuwen, a humble ice cream brand that began its journey in 2008 with nothing more than a single ice cream cart. Fast forward to today, and Van Leeuwen boasts 50 locations across the United States, with its products stocked in major retailers like Walmart and Whole Foods

The intriguing part? Its growth all came from simple concepts.

Here's how they did it:

1. Packaging That Whispers "Pick Me!"

In the world of consumer goods, the battle is often won or lost on the store shelf. This crucial moment, known as the "First Moment of Truth" (FMOT), is when a customer decides which product to choose. Van Leeuwen understood the power of this moment and invested in packaging that was nothing short of mesmerizing. Gone were the flashy designs and loud labels. In their place, Van Leeuwen opted for clean, pastel colors and generous negative space, conveying purity and quality. In a sea of ice cream containers with cluttered designs, Van Leeuwen's packaging stood out. The result? A remarkable 50% increase in retail sales, proving that sometimes, the best marketing is a silent one.

2. The Power of Collaboration

In today's marketing landscape, collaborations are the stars of the show. They offer a swift route to press coverage and an immediate surge in demand. Van Leeuwen's collaboration strategy is centered around its artisanal ingredients. Whether partnering with renowned chefs or household names like Kraft, they create one-of-a-kind flavors that captivate taste buds and headlines alike. Their collaborations extend beyond the gourmet world. In 2021, Van Leeuwen teamed up with Kraft macaroni and cheese for a limited edition flavor that sold out in less than an hour. This summer, they joined forces with Uber to offer an exclusive ice cream flavor to Uber One customers only. Each collaboration not only elevates the brand but also generates the coveted earned media.

3. Local Engagement: Where the Magic Happens

As Van Leeuwen expanded into new markets, they knew that building a local presence was paramount. They turned to the power of community engagement through PR, events, and influencer partnerships. When entering the Houston market, they collaborated with local Chef Hugo Ortega on a special flavor, creating a buzz that echoed throughout the city. Launch deals and tantalizing prizes further fueled excitement and encouraged trial.

Key Takeaways

What can your business learn from Van Leeuwen's success?

Expand Your Definition of Marketing:

Marketing is a vast landscape with strategies that go beyond traditional ads. Explore creative avenues that align with your brand and budget.

Packaging as a Silent Salesman:

Your product's packaging is your unsung hero. Invest in design that not only captivates but also conveys your brand's essence.

Collaborate with Impact:

Seek partnerships that resonate and provide unique experiences or products.

The Power of Local:

Building a local presence is crucial, especially when expanding. Engage with the local community to establish a loyal customer base.

Know Your Audience:

Successful marketing begins with a deep understanding of your customers' preferences and behavior. Tailor your strategies accordingly.

The Power of a Cookie

Hilton's Doubletree hotels give every guest a warm chocolate chip cookie when they check in. Each day, they hand out a whopping 75,000 cookies to their guests. What's interesting is that 34% of these guests go on to tell their friends about this sweet gesture.

As a result, there are 25,000 stories being told about Doubletree hotels every day because of these cookies. And the best part is that it only costs Doubletree 20 cents to make one cookie.

The strategy of giving away a cookie has led to

1. Memorable Customer Experience

Providing a small, unexpected treat like a warm cookie can have a big impact on the overall experience for guests. It shows that the hotel cares about making guests feel welcome and comfortable.

2. Word of Mouth and Marketing

Word-of-mouth marketing is a powerful tool. When guests tell their friends about the cookie, it acts as free, positive advertising for the hotel along with a positive brand image. This can lead to more people considering Doubletree for their stays.

3. Low Cost, High Impact

The cost of making a cookie is relatively low (only 20 cents per cookie). This practice demonstrates that creating memorable experiences for customers doesn't always have to be expensive. Sometimes, small gestures can go a long way.

4. Repeat Business

Guests who have a positive experience at a Doubletree hotel, often linked to the cookie, may be more likely to choose Doubletree for their future stays. This can lead to customer loyalty and repeat business.

5. Competitive Advantage

Practices like this can set Doubletree apart from competitors in the hospitality industry. It highlights the importance of finding unique ways to differentiate your business in a crowded market.

6. Customer Satisfaction

Small gestures that make guests happy can contribute to high customer satisfaction scores and positive online reviews, which can attract more guests in the long run.

This is how a cookie turned a hotel chain into a $38,000,000,000 billion-dollar empire.