Crayola’s Creative Legacy: Building Impact Beyond the Box

Podcast: BRAVE COMMERCE
Hosts: Rachel Tippograph (Founder & CEO of MikMak) and Sarah Hofstetter (President of Profitero)
Guest: Victoria [Last Name Not Provided], Former Executive at Crayola Leading Marketing
Release Date: December 17, 2024

Introduction

In this episode of Brave Commerce, Rachel Tippograph and Sarah Hofstetter delve into Crayola's strategic evolution in the eCommerce landscape. They are joined by Victoria, a seasoned marketing executive who previously led Crayola's commerce initiatives. The discussion centers on Crayola’s shift from a Direct-to-Consumer (D2C) model to focusing on mass retail, the company's enduring commitment to creativity, and its strategies for maintaining a significant brand presence globally.

Crayola’s Company Culture and Legacy

Victoria begins by highlighting the unique culture at Crayola, which is deeply rooted in the company's 120-year history. She emphasizes the foundational belief in the importance of creativity for individual and societal development.

Victoria (05:24): "The founders really believed in this idea that creativity really mattered and that it was important not only to each individual child, but also to our society as a collective whole."

This enduring sense of purpose permeates Crayola’s operations, guiding decision-making, investment strategies, and employee engagement. Victoria credits this cultural commitment as the key to achieving significant impact with a relatively small workforce.

Shift from Direct-to-Consumer (D2C) to Mass Retail

Rachel and Sarah discuss the broader industry trend where D2C models, once hailed as the future of commerce, are being reevaluated. Victoria explains Crayola's strategic pivot away from D2C, detailing the challenges faced and the rationale behind the decision.

Sarah Hofstetter (03:28): "Payback's a bitch, man. ... your cost per acquisition is often through the roof."

Victoria elaborates on the inefficiencies of the D2C model for Crayola, citing high customer acquisition costs and the complexities of maintaining a direct fulfillment infrastructure.

Victoria (12:55): "The supply chain and the cost structure necessary to really fulfill, to manage and to operate the D2C business is not insignificant."

Instead of continuing with D2C, Crayola chose to leverage its strong presence in mass retail and online marketplaces. This shift allowed the company to allocate resources more effectively, resulting in increased website traffic and better consumer engagement without the burden of managing direct sales.

Victoria (15:56): "Our overall traffic is actually up despite that loss [of D2C sales]. So where consumers are still coming. And in fact, it made our website easier to navigate and easier to get to the things that we're actually looking for."

Crayola Campaign for Creativity

A significant part of the conversation revolves around Crayola’s latest initiative—the Campaign for Creativity. This campaign aims to reposition Crayola not just as a product brand but as a champion of childhood creativity and development.

Victoria (11:11): "We're looking to elevate the conversation with parents around the importance of childhood creativity, the role it plays in their kids' development, and the impact it makes on their life in terms of helping them develop the kind of skills that they could use regardless of a path that they choose to pursue."

The campaign seeks to deepen the emotional connection with parents by emphasizing how Crayola products contribute to essential life skills in children. This strategic narrative shift helps differentiate Crayola in competitive markets by focusing on the intrinsic value the brand provides beyond mere product features.

Navigating International Markets and Brand Positioning

Victoria discusses Crayola's position in international markets, particularly in Europe, where it often competes with numerous local brands. In some categories, Crayola may not be the market leader as it is in the United States.

Victoria (10:11): "In Europe, there's a significant number of other brands in some of the core categories like pencils or markers. Crayola might be a number three or number four brand in those markets."

To address this, Crayola employs tailored marketing strategies that consider both consumer preferences and retailer dynamics unique to each region. The focus is on changing consumer behavior by highlighting the brand's commitment to creativity and leveraging local retail partnerships to enhance visibility and accessibility.

Outcomes of Strategic Shifts

Reflecting on the move away from D2C, Victoria shares positive outcomes, such as increased website traffic and better engagement metrics. These results validate the strategic decision, demonstrating that prioritizing mass retail partnerships over direct sales can lead to sustainable growth.

Victoria (15:56): "Our traffic is up, the engagement with our content is up, the metrics in terms of where to buy conversion are really good."

The company now enjoys a broader product catalog online, showcasing more offerings without the constraints of maintaining exclusive online inventory. This flexibility has enhanced the overall consumer experience, making it easier for customers to explore and purchase Crayola products through their preferred retail channels.

The Bravest Things: Personal Insights from Victoria

In a lighter yet insightful segment, Victoria shares personal stories about what she considers the bravest things she has ever done. She cites her experience immigrating as a teenager and navigating the challenges of parenting while holding an executive position.

Victoria (17:21): "Going through immigration with my parents as a teenager ... having kids ... incredibly rewarding and incredibly exciting ... not for the faint of heart."

Sarah Hofstetter adds her perspective on parenting as an act of bravery:

Sarah Hofstetter (18:03): "There's this very fine line between bravery, surprise, crazy, and I think that's what parenting's all about. All the above."

Conclusion

The episode concludes with Victoria expressing confidence in Crayola’s future, emphasizing the brand’s ability to remain relevant and impactful over the next century by staying true to its creative mission and adapting strategically to market dynamics.

Victoria (18:54): "If we could do that well and we could continue to do that well, this brand can continue to thrive for another 120 years."

Rachel thanks Victoria for her insights, and the hosts encourage listeners to explore more episodes highlighting brands at the intersection of consumer needs and innovative commerce strategies.

Key Takeaways

• Cultural Commitment: Crayola’s long-standing emphasis on creativity drives its strategic decisions and operational excellence.
• Strategic Pivot: Moving away from D2C to focus on mass retail has enhanced Crayola’s efficiency and market presence.
• Campaign for Creativity: Elevating the brand’s narrative to focus on childhood development strengthens emotional connections with consumers.
• Global Strategy: Tailored approaches in international markets help Crayola navigate competitive landscapes and alter consumer behavior.
• Future Outlook: Continued focus on meaningful growth avenues and brand touchpoints positions Crayola for sustained success.

Notable Quotes

• Victoria (05:24): "Creativity really mattered and that it was important not only to each individual child, but also to our society as a collective whole."
• Sarah Hofstetter (03:28): "Payback's a bitch, man."
• Victoria (12:55): "The supply chain and the cost structure necessary to really fulfill, to manage and to operate the D2C business is not insignificant."
• Victoria (11:11): "We're looking to elevate the conversation with parents around the importance of childhood creativity..."
• Sarah Hofstetter (18:03): "There's this very fine line between bravery, surprise, crazy, and I think that's what parenting's all about. All the above."

For more insights into how brands navigate the complex eCommerce landscape, tune into other episodes of Brave Commerce.