Jon Davids on LinkedIn: #marketing #growth #brand | 114 comments (2024)

Converse did it. So did Listerine. And Quaker Oats too.They all hit a wall. Growth tanked.But instead of tweaking the product, they tweaked the customer.And it worked.Here’s how. → Listerine launches in 1879. It's a germ-killer. Perfect for cleaning tools, floors, and bloody wounds. But growth is slow. Then the company hears something funny. There's a dentist using it to clean mouths. And it works great. So Listerine spins up a new tagline: “Fight bad breath!” It's a hit. Now they sell 600M bottles a year.→ Converse starts in 1908. They're making shoes for a new sport called basketball. And they quickly take over the game. Then competition heats up. And Nike kicks them off the court. Converse is fading fast. So they hit the streets. Turning their shoes into a symbol of counterculture cool. It works. Last year they made over $2B. → Quaker Oats begins with one target customer: horses. Apparently they love oats. But Quaker wants to sell more. Ideally to people. So they reposition as a health food. High in fibre and low in fat. Totally fit for humans. And they turn “oatmeal” into a breakfast ritual. Now they sell more of it than anyone.______ Sometimes you need to change what you're selling.And sometimes you just need to find a better customer.#marketing #brand #growthP.S. Enjoy this? Then you’ll love my newsletter. My best stuff direct to your inbox. Subscribe at https://jondavids.com

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If Amazon, Instagram, and Zara had a threesome, SHEIN would be their twisted love child. And with $30B in sales, customers really do love it. SHEIN is the fast fashion brand blowing up your TikTok. I’m talking hyper-fast fashion. These guys make H&M look like a lunchtime lineup at the DMV. Let me tell you about them. 1/ How it started The year is 2008. Chris Xu is an entrepreneur in Nanjing, China. He launches a business marketing wedding dresses online. A few years in he flips to a fast fashion model and changes the name to SHEIN. He’s now selling clothing for everyone at goofy low prices. It’s mobile first with zero physical locations. And he’s ridiculously good at it. The company grows rapidly and by 2017, revenues top $1B. But how is SHEIN pulling this off? 2/ The playbook The company leverages all the tools of modern retail to run an insanely efficient business. For starters, they use search trends and social data to rapidly deploy new products. We’re talking 1000’s of new pieces daily. But they’re not manufacturing all this stuff. SHEIN is promoting it to gauge interest. And they make the merchandise in small batches. If a piece sells out, they make a lot more of it. Plus they do it at blazing speeds using a hefty network of suppliers.After all, they don’t need to worry about getting products onto shelves. They just post thumb-stopping pics and wait for the clicks. And how do people find these products? SHEIN’s pretty good at getting the word out. 3/ Marketing hustle Influencer marketing is at the core. The company DM’s lots of creators across social. And they offer an all-you-can-wear clothing buffet.In return, you just need to show SHEIN some Insta-love. And when you open the SHEIN app, you’ll get a blast of real time marketing. Flash sales, BOGO's, and absurd discounts. Want a pair of earrings? You’ll find them for $2. Too much? Wait a hot minute and you’ll get a random “60% off for the next 60 seconds.” This is next-level impulse buying. And the savings are real. 4/ My takeIf you were writing a movie about a modern retailer, SHEIN would be the main character.They’ve merged algorithms, gamification, and real time culture to create a dopamine-packed shopping bonanza.The space is getting more crowded of course. But SHEIN still takes the brunt of critics. People love to throw shade at the brand while clicking 'Buy Now' on the product.Either way, the business seems to be working.In 2023, SHEIN was the most downloaded shopping app in the world. And with a $66B valuation, it's the poster child of a retail renaissance. #brand #marketing #growthP.S. Enjoy this? Then you’ll love my newsletter. See why 100 people subscribe daily. Join now at https://jondavids.com

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This little coffee shop is worth $118M. And it all started with one tiny cart.It's a wild story. So I spent 3 hours digging into the business.• It's called Blank Street Coffee• Run by co-founders Issam and Vinay• They've grown to 65 locations in 4 citiesBlank Street is hijacking coffee culture with a totally new playbook.And there’s a lot to learn from how they’re doing it.1/ Early daysRewind to 2020. Blank Street opens a coffee cart in Brooklyn. They're serving up cold brews and lattes.It's a prime location. And priced right. Drinks are 25% cheaper than Starbucks.Right away, the lines are growing.Vinay and Issam get into hustle mode. They keep the carts coming. Scattered around Brooklyn and Manhattan.And they’re brewing something big.2/ Think smallFast forward 6 months. Blank Street opens a cafe. It's cramped at just 500 square feet.But it works.It's got earthy tones and a minimal aesthetic. Sleek fixtures and vintage lighting. Local art and chalkboard charm.With just the right amount of Helvetica.But don't be fooled by the Instagram vibes. Behind the pastel green is a brilliant business machine.3/ Smart operationsBlank Street is built lean. The stores are small on purpose. They run cheap. Rent is probably $3,500 a month. Compared to $15K at a typical cafe.Then there's the tech.Locations are stacked with mobile ordering and touchless payments. Plus high-octane espresso machines pumping out 90 cups an hour.All running with just 1-2 employees. And moving fast.Blank Street went from a single store to 50. In one year.They’re frothing lots of lattes. And dripping with dollars.4/ Unit economicsI'm guessing each location has 200 customers a day. Spending $5 an order. Which is $30K per month.Labor, rent, and other costs are likely $22K a month.Leaving $8,000 in fine-filtered profit. That's a healthy 27% margin.And all this caffeinated cash has the attention of investors.5/ Big moneyBlank Street is being handcrafted by the smartest VC's in town.Tiger Global and General Catalyst are at the table. Plus the founders of Warby Parker and Allbirds.The company's raised $118M so far.Those tiny stores are sprawling from Boston to London. With plenty more on the way.6/ My takeBlank Street is using the "indie-fication" strategy. That's what I call this trend. And it's a smart approach in building a customer community.But it needs to be genuine.Blank Street partners with local bakeries and artists. They use eco-friendly materials. And they pay people well.They’re brewing up a new era of coffee culture. One chai latte at a time.#marketing #brand #growthP.S. Enjoy this? Get my best stuff to your inbox. Subscribe now at https://jondavids.com

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FedEx does it. So does L'Oreal. And Domino's too.All these companies have brutal competition.But they still dominate the market. With just a few simple words.Here's how. → FedEx starts shipping stuff in 1971. Within a decade, they hit $100M/year. And then they drop that magic phrase: "When it absolutely, positively has to be there overnight." Growth explodes. Even though lots of shipping companies can move fast, FedEx owns it. Now they move 15M packages a day → L’Oreal is founded in 1909. It grows for decades. But it's still a tier-2 player. Then in 1973, that changes. They drop those four simple words: “Because you’re worth it”. Sales climb fast. Suddenly, L’Oreal isn't just selling makeup. They're selling confidence. And lots of it. About $44B last year.→ Domino's starts selling pizza in 1960. They scale to 200 stores in two decades. And then they blurt out those nine words: “We'll deliver your pizza in 30 minutes or less.” Even though lots of pizza joints can deliver fast, Domino's signs their name to it. Today they deliver more pizza than anyone._____Tell your customer exactly what you’ll do for them. Even if it seems obvious.When you say it, you own it.#marketing #brand #growthP.S. Enjoy this? Then you'll love my newsletter. Get my best stuff straight to your inbox. Subscribe now at http://jondavids.com.

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I just heard about a cab driver who became a billionaire with one simple strategy. He kept solving his own problems.I was curious, so I spent a couple hours digging in.His name is Harry Singh. And he owns a company called Bolla Oil. Here's how he did it.1/ Started from the bottomRewind to the 1980's. Harry comes to America and starts driving a cab to pay the bills.He looks around and realizes something.The guys fixing the cabs are making a lot more than the guys driving them. There's always a line of cars waiting to be repaired.His driver buddies are annoyed by this. But not Harry. He's inspired. And he wants in on the action.So Harry gets his mechanics license and buys a tiny repair shop in Brooklyn.That little shop is about to get pretty big.2/ Smart marketingHarry's making money fixing cars. And he’s got a little gas station too. He grows fast with smart marketing.When people come in to fill up their tank, he offers them a discount on an oil change. It works.Customers are coming back and the business is growing.In that first year, he pulls in $76,000 and buys another repair shop. Then he does it again. And again.Within five years, he's up to 8 locations. And then sh*t hits the fan.3/ Hard timesIt's 2001 and dealerships are grabbing more of the repair business. Harry's sales tank 15%.Desperate for cash, he starts to add convenience stores to each location.After all, he's already got foot traffic. Customers are lingering around waiting for their cars.Suddenly, he's pulling in $50,000/mth selling sandwiches, sprite, and skittles.And Harry’s about to hit the gas.4/ Going bigUp until now, gas sales aren't a big money maker. But that's about to change.In 2004, Harry starts Bolla Corp. It’s a wholesale oil distributor. The dudes who sell gas to gas stations.Now Harry can buy his fuel at rock bottom prices, sell it at his gas stations, and sell the rest to others.He's taking a bite off every slice of the supply chain.And just like that, he's in the tres comma club.5/ My takeHarry's got one of the all-time, greatest business skills. He's a compulsive problem solver.He just can't stop. First he did it with repair shops. Then convenience stores. Then gas stations. Then fuel distribution.Each time his business hits a bottleneck, he smashes the glass and makes a new bottle.He's turning cost centres into cash cows. And problems into profits.#marketing #business #growthP.S. Like this stuff? Then you'll love my newsletter. My best stuff straight to your inbox. Subscribe now at https://jondavids.com

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Nike does it. So does Mastercard. And Red Bull too.All these companies are known for one thing. But actually do something else.Here's how it works.➝ Mastercard is a credit card company that doesn’t do 'credit' or 'cards'. It's a payment network for banks. So they can send money to each other. But they all need one thing to keep the cash flowing: Trust. So they slap a Mastercard logo on a 3x2 piece of plastic. And we all trust it. Swiping that plastic 300M times a day.➝ Red Bull is a drink company that doesn't make drinks. They do marketing. Like that time they sent a guy to space so he could jump back to earth. Covered in that iconic logo. Red Bull realized that branding was a better business than beverages. And they made $11B last year.➝ Nike is a clothing maker that doesn't make clothes. They never have. They figured something out early. Designing the stuff is a good business. But making it is a hassle. So they hire others do that. And it works. As long as they can stamp a swoosh on it.____You can make money selling drinks, clothes, and loans.But you can make a lot more money just owning the brand.#marketing #brand #growthP.S. Enjoy this? Then you'll love my newsletter. My best stuff direct to your inbox. Subscribe now at https://jondavids.com

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I'm gonna teach you a $1M marketing lesson in the next 91 seconds.I learned it on the streets of Rome.I spotted a guy selling a wierd looking lemon juicer. He demo'd it for me right there on the street. Told me all the ways it would make my life better. Then pulled up a bunch of real life testimonials on YouTube.I thought about it for a hot second. Then realized I had to have it. I bought two.What just happened? This guy was creating demand out of nothing.Marketing mastery.____Think about it.12 seconds earlier I didn't know this plastic lemon juicer thing existed. I definitely wasn't looking for it.And now, I had to have it.I see so much marketing pestering prospects to commit their time and energy.Here’s the crummy truth:→ No one wants to book a product demo→ No one cares that you want 5 minutes of their time→ No one is going to miss you when you stop spamming themJust make them want it.Learn from the lemon juicer dude.#marketing #growth #brandP.S. Like this? Then you’ll love my newsletter. My best stuff straight to your inbox. Join now at https://jondavids.com

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This guy sold a chunk of his company for $15M, bought it back for $220M, then sold it again for $2.2B.And he got punched in the face a ton along the way.His name is Daniel Lubetzky. And this is a wild story of success in a hyper-competitive industry.I was curious so I did some digging. Here's what happened.1/ How it startedRewind to 2003. Daniel is working hard on his supply chain business. But something's bugging him.He can't find a healthy and convenient snack that actually tastes good.So he puts his supply chain business on hold and pulls together $100K. He uses the cash to create a tasty bar. Made of fruits and nuts.He calls it KIND.And things are about to get crazy.2/ Ready for launchKIND bars hit the shelves of Whole Foods in 2004.Things are going well. In just 3 years, KIND lands at Walmart. But that fizzles quickly. Stocking the shelves of 1,000 Walmart stores is actually really hard. And KIND isn't ready for the big leagues just yet.Also, the bars are getting lumped beside Butterfinger and Snickers. This is 2007 and Walmart doesn't have a shelf dedicated to "nutritious" snacks.Layer on a global financial crisis and KIND is getting pummelled.3/ Taking a 1-2 punchTo stay afloat, Daniel sells a third of his company for $15M. The cash gives him a lifeline.Then he breaks into Starbucks. Before long, KIND is back in Walmart and Target.Things are looking good, right?Nah, Daniel’s about to get slapped around a bit more.4/ Taking a third punchIn 2015, the Food and Drug Administration sends Daniel a letter. It's bad.They say that he's been mislabelling his bars. According to the FDA, the bars aren't so "healthy" because of the saturated fat.KIND scrambles to change all its labels. But Daniel isn't gonna take this lying down.He slaps back. It works.The decision gets reversed a year later. KIND Bars are healthy once more.5/ KIND winsToday, KIND is tier 1 in the healthy snack aisle. Alongside Clif Bars and Nature Valley.At the most basic level, KIND fused 3 major ingredients in its success:• Great product• Wide distribution• Differentiated brandAll these require a massive amount of work, staying power, and some good fortune. Throw in a relentless leader and a dedicated team.In 2020, KIND was acquired by Mars Inc.He may have been beaten and bruised, but Daniel walked away with $2.2B.#brand #marketing #growth P.S. Like this stuff? Then you'll love my newsletter. Subscribe now at https://jondavids.com

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Rolex does it. So does Lululemon. And Apple too. They all make you want it.By letting you think you can’t have it.Here's how it works.→ Rolex sells 1M watches a year. With an average price tag of $12,000. And that's if you can even get one. Lots of watches have a 1-2 year waiting list. Or more. Want a stainless steel Daytona? That'll be 5-10 years. Rolex chokes supply to juice up demand. And they still managed to sell $9B+ last year.→ Lululemon carries about 3,000 products. But at any given time, you'll only find a few of each on the shelf. That's on purpose. They want you to think there's only a couple of the thing you want. So you'll grab it now. If you don't, you may never see it again. But seriously, they've got more in the back.→ Apple launches a new iPhone every year. But isn't it weird that there's always a shortage of the latest one? Like they're kinda new at this? Nah — Apple knows how it works. They’re the best at it. Anticipate demand, then make less. And that’s how you get lines around the block at 7am.____Customers always want to buy a great product.But they really want to buy a great product that they can’t have.So create some FOMO. And watch your sales climb.#marketing #brand #growthP.S. Like this? Then you'll love my newsletter. My best stuff straight to your inbox. Subscribe at https://jondavids.com

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Amazon did it. So did McDonald's. And American Airlines too.They all had big problems.And flipped them into big money makers.Here’s how. → Amazon does it in 2005. Shoppers are buying less. And getting impatient. No one wants to wait 8 days for a Dyson Supersonic hair dryer. So Amazon rolls out a prepaid shipping plan. It's called Prime. Two-day delivery on a million products. In one move, Amazon turns your rush into their revenue. Now with 200M members.→ American Airlines does it in 1981. Competition is getting nuts. And the airline's bleeding. So they spin up a new program. It's called AAdvantage. You can book a flight, earn points, and get upgrades. It's a game-changer. American Airlines creates a loyalty fortress. And now they fly more passengers than anyone.→ McDonald's does it in 1971. People are coming in for lunch and dinner. But not breakfast. The Big Mac just won't cut it at 7am. So McD's takes a flyer on a morning meal. It's called the Egg McMuffin. And it’s a hit. Today McD’s sells a million McMuffin's a day.____Don't shrink your vision. Expand your creativity.The biggest problems can take your business to a whole new level. #marketing #brand #growthP.S. Enjoy this? Then you'll love my newsletter. Get my best stuff straight to your inbox. Subscribe now at https://jondavids.com

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