Five BIG lessons for startups trying to find their ideal retailer

When you’re launching your brand there’s can be a temptation to approach every potential retailer you can think of to start selling your product. This ‘spray and pray’ approach can chew up your time, leave you feeling disheartened and spreading yourself way too thin to gain any real traction.

This doesn’t mean you need to wait til you find the ‘perfect’ retailer, as part of the launch stage of any new brand is finding the channels where your customers are in the mindset, with the need (and money) to buy what you’re selling. Drinks can be purchased literally anywhere, but there is a reason your local service station is full of V Blue, Powerade and Coca-Cola rather than kombucha and freshly squeezed juices… right channel. right product. right offer. right consumer need.

So what does it look like when you find your ideal retailer & ABSOLUTELY double-down on winning where you are?

The story of Tiffany Masterson and Drunk Elephant is pretty mind blowing. From kitchen bench to a US$820m // $1.4bn NZD exit in 6 years in 2018.
No its not the story of some random over-valued tech business with no record of revenue or profit (hashtag#WeWork #Kiki.NYC👀)

Its a literal masterclass in the power of focus and not getting distracted by shiny things in this week's episode of 'How I built this with Guy Raz' https://lnkd.in/g_iFztiq . Tiffany didn’t come from a classical sales background. She’d built her skills selling $100+ bar soap to local school Mom’s and mastering the art of focusing on what your CUSTOMER needs, and telling a story that fills that need.

With a clear vision about where she did (and didn’t) want to be sold in, she tested her products and was relentless in identifying the retailer that she thought could best align with where her target customers shopped, what they were looking for (the bigger need - not the end product) and more importantly the RANGE that would meet the RETAILERS needs to stand out versus competition.

TOP 5 LESSONS FOR START UPS TRYING TO WIN IN RETAIL

1: LOVE THE RETAILER YOU'RE IN 👩‍❤️‍👩

Drunk Elephant managed to launch strongly in Sephora becoming a top selling brand in their first year of sales, and doubled-down on driving sales both online and instore. They didn't get distracted by expanding into lots more retailers, and fragmenting their spend & time.
They made Sephora their sole focus to build the brand, confidence and create pull from consumers who wanted it in 'their' Sephora store in markets around the world. As a beauty focused retailer that relied heavily on the instore experience, skilled staff and having the latest brands, Drunk Elephant was (literally) tailor made to meet their needs. The range was tight (but not too small), it offered something distinctive with the bright bold packaging, new hero ingredients (hello 'marula oil’) and premium priced without being too out of reach for the majority of shoppers.

Where they could have diversified to beauty counters and retailers all over the country - and ruined the exclusivity of ‘only available at Sephora’ - they chose to win through Sephora online to prove the concept and then roll out into stores nationwide as their capacity and brand desirability grew.

>> THOUGHT: How are you driving sales in the retailers that align best with your brand & shopper? Are you working closely with the retailer to understand their needs and ensuring that your product ticks all the boxes to bring in new shoppers and add category value?

2: SPEND IN THE PLACES THAT WORK 🆓

One of their early wins was to create FREE sample packs for all store staff to be the first choice recommendation for customers.
Drunk Elephant over-invested in staff education and trial for years before going hard on advertising. They understood that consumers in beauty stores ask for advice, and are open to recommendations. This will sway them far more than a slick campaign with no proof point.

>> THOUGHT: Do you know where you can have biggest impact with your advertising? If its trial and education, be relentless and focus on this for longer than you think you need to… it will pay dividends in the long term.

3: STAY IN YOUR LANE 🚘
"When brands try to be ‘somebody’ else, the consumer knows because it doesn’t feel authentic.” It would have been easy for an industry novice to copy what was already out there in the market... check out 99% of new brands in this sector and you'll feel a wall of same-same. Drunk Elephant was first with brightly coloured packaging and a stand-out design and has stuck with this from day 1.

Repackaging and ‘refreshing’ the brand can be tempting to keep up with trends in design. While this is fun to work on with designers, it can cause major issues from a manufacturing & supply side (coordinating stock runouts) as well as with the retailer who has to juggle old & new stock on shelf.

Creating distinctive assets - and STICKING with them for the long haul - are the hallmarks of long-term brand success. By choosing standout branding, colours and pack design, and making this the ‘go to’ easy identified instore, they created a strong position.

THOUGHT: What are the distinctive brand assets that you want consumers to know about your brand, product and design?

4: MAINTAIN STRONG LEADERSHIP 👩‍💼
Tiffany literally created the brand from scratch and worked 24/7 to pound the pavements and leverage all her skills & persistence as the face of Drunk Elephant. Despite friends disparaging the logo (an early PR partner quit when she heard what it was), she stuck to her unique take and hustled PR, sales and marketing from the get-go. This passion and focus enabled her to build a brand based on long-term vision rather than short-term commercial results. Tiffany had family involved as shareholders and no doubt had to balance a LOT of dinner time conversations.

>> THOUGHT: Who are the key leaders in your business that ensure you stick to the vision and don’t get distracted by ‘new shiny things’ or following personal agendas?

5: Create FOMO 😱
Massive multinational brands including Estee Lauder and private equity investors were knocking on her door within the first few years of launch based on the traction and clear results. This made the sale process one based on pull not desperation...

>> THOUGHT: How can you create FOMO for your target retailers to be first to market or join the ‘cool kids’ and stock your product. Erewhon in LA is a classic for this approach for niche premium health brands, as they are known as leaders who spot the next big thing.