DTC Podcast Episode 463: Lessons from Dr. Squatch’s Walmart Launch with Martin Forde

Release Date: December 9, 2024
Host: DTC Newsletter and Podcast
Guest: Martin Forde, Former Executive at Dr. Squatch

1. Introduction to the Episode

In Episode 463 of the DTC Podcast, hosted by the DTC Newsletter and Podcast team, listeners are treated to an insightful conversation with Martin Forde, a key figure behind Dr. Squatch’s successful retail expansion. The episode delves into the strategies that propelled Dr. Squatch from a burgeoning direct-to-consumer (DTC) brand to a formidable omnichannel powerhouse, particularly focusing on their groundbreaking launch at Walmart.

2. Martin Forde’s Career Journey

Martin Forde begins by sharing his decade-long experience in the consumer goods sector, highlighting his foundational years at PepsiCo Frito Lay. “[...] I was responsible for leading a team of 14 on store-level execution… that experience was awesome, really foundational” [01:35]. His tenure at Halo Top and Genexa further honed his skills in scaling US grocery distribution and seeding initial distributions into natural grocery stores, respectively. Martin credits these roles with equipping him with comprehensive brand-building expertise, paving the way for his pivotal role at Dr. Squatch.

3. Joining Dr. Squatch and Initial Strategies

Martin recounts his journey to Dr. Squatch, emphasizing the role of LinkedIn in connecting with the brand. “[...] I just found it on LinkedIn… didn’t do anything crazy but just applied” [01:35]. As employee number 13, Martin was instrumental in shaping the early growth of Dr. Squatch, leveraging viral YouTube content that garnered 20 million views. This virality played a critical role in enhancing paid media efficiency, accelerating the brand's transition to a multi-hundred million dollar business.

4. Key Success Factors for Dr. Squatch: D2C Scaling and Omnichannel Expansion

When discussing why Dr. Squatch succeeded where others may have faltered, Martin identifies a two-phased growth strategy:

1. DTC Scaling Phase: "They built this absolute behemoth of a D2C business" [05:53]. Dr. Squatch optimized its paid media channels to maximize direct sales, laying a robust foundation for future expansion.

2. Omnichannel Expansion Phase: "They were very focused on how do we launch in retail and how do we launch in the most effective, impactful way" [05:53]. Transitioning to retail, Dr. Squatch maintained a balance between D2C and retail channels, achieving an estimated 50/50 revenue split.

This dual approach ensured sustained growth and market presence, allowing Dr. Squatch to leverage both direct sales and retail partnerships effectively.

5. In-depth Look at Retail Strategy: Brand Block and Off-Shelf Display

Martin elaborates on the innovative retail strategies employed at Dr. Squatch, particularly during their Walmart launch:

• Brand Block: “[...] make it easy for people to find you on the shelf” [00:00]. Dr. Squatch requested a significant shelf space (3ft-4ft) to ensure high visibility. Although initially met with skepticism from retailers like Target, Walmart eventually agreed, providing a pivotal platform for the brand’s retail presence.

• Off-Shelf Display: “[...] something that's visually disruptive… we made this like outdoor shower thing with a tree” [00:00]. This unique display, featuring their spokesperson James Schrader, was strategically placed in Walmart’s naturals aisle. The display’s immediate success was evident as it "sold out like immediately," validating the effectiveness of visually disruptive merchandising [16:41].

Martin emphasizes the importance of focusing on core products during initial retail deployments, ensuring maximum sell-through and brand recognition.

6. Results and Scaling Retail Distribution

The strategic launch at Walmart proved to be a game-changer. “[...] We popped that thing into Walmart a few months after launch and it just went absolutely gangbusters” [00:00]. This success facilitated Dr. Squatch’s expansion to other major retailers like Kroger, where different merchandising approaches were employed to suit the store’s unique layout and customer base.

Seasonal product launches, such as Halloween and Christmas soaps, became key tactics for maintaining retail momentum and driving consumer traffic across various channels. Martin credits the cohesive team effort and strategic sequencing for scaling Dr. Squatch’s retail distribution beyond Walmart, establishing it as one of the largest revenue channels for the brand [18:28].

7. Demand Generation in Retail Launch

Transitioning from D2C to retail necessitated a shift in demand generation strategies. “[...] we're running these like awareness ads… the call to action is instead of click here to buy, you know, let them know it's available at Walmart” [22:07]. The focus moved from direct conversions to building brand awareness, leveraging paid media to inform consumers of Dr. Squatch’s retail presence.

Martin highlights the cost-effectiveness of awareness campaigns in retail contexts compared to conventional DTC performance ads. Additionally, user-generated content and influencer partnerships emerged as valuable tools for driving in-store traffic and enhancing brand visibility at retail locations.

8. Role of Brand Narrative and Continuity

Maintaining a consistent brand narrative across DTC and retail channels was crucial. Martin explains, “[...] if you have a brand with viral, you have a brand with virality” [25:23]. The alignment between Dr. Squatch’s viral YouTube content and its retail displays created a seamless brand experience, reinforcing consumer recognition and driving engagement both online and in-store.

9. Martin’s Consulting Post Dr. Squatch: Advising DTC Brands

After his tenure at Dr. Squatch, Martin transitioned to consulting, focusing on helping other DTC brands navigate retail expansion. “[...] how do you put yourself in the right doors, right place, right time” [31:38]. His approach involves:

• Consumer Insights: Utilizing surveys and social media polls to understand where consumers prefer to shop.

• Retailer Relationships: Leveraging his network of broker partners to facilitate introductions and conversations with key retail buyers.

• Customized Strategies: Tailoring retail strategies based on each brand’s unique data and consumer behavior, ensuring that products are placed where target customers are most likely to engage.

Martin emphasizes the importance of brand-specific strategies and the pivotal role of DTC data in informing successful retail placements.

10. Conclusion and Final Thoughts

The episode wraps up with Martin reflecting on his rewarding journey with Dr. Squatch and his passion for aiding other brands in achieving similar or greater success. “[...] just getting to apply a lot of the lessons and mistakes made at Dr. Squatch to helping brands” [28:51]. Host Eric Dick acknowledges the depth of discussion on retail expansion, underscoring the episode’s value for DTC brands aspiring to scale omnichannel.

Martin leaves listeners with an encouraging message: “Just go talk to a retailer. And that's really where I think provide a lot of value” [31:38]. The episode concludes with an invitation for listeners to connect with Martin via LinkedIn for further insights and collaboration opportunities.

Key Takeaways

• Strategic Retail Placement: Ensuring high visibility through significant shelf space (brand block) and innovative displays (off-shelf) can drive substantial in-store sales.

• Omnichannel Growth: Balancing DTC scaling with strategic retail partnerships creates a resilient and expansive market presence.

• Demand Generation Shift: Transitioning from performance-focused DTC ads to brand awareness campaigns is essential when entering retail environments.

• Consistent Brand Narrative: Maintaining a cohesive brand story across all channels enhances recognition and consumer loyalty.

• Consulting Insights: Leveraging DTC data and established retail networks is crucial for other brands aiming to replicate similar retail success.

Notable Quotes

• Martin Forde: “We popped that thing into Walmart a few months after launch and it just went absolutely gangbusters. Like I don't remember the Velocity but I remember talking with my broker partner at the time. He's like, Martin, I've never seen Velocity figures like this in this category. This is insane.” [00:00]

• Martin Forde: “They built this absolute behemoth of a D2C business… the second phase of their growth… omnichannel… it's truly why the brand has had so much staying power.” [05:53]

• Martin Forde: “It's a great product, you’ve got to have something that stands out, a form factor that’s unique and you have that you have some virality, you have really good execution.” [10:09]

• Martin Forde: “Demand generation at shelf because that's fundamentally where the sausage, the squash is, whatever is made.” [25:07]

• Martin Forde: “How do you put yourself in the right doors, right place, right time… That's the real value of direct to consumer.” [31:38]

This comprehensive summary encapsulates the strategic insights and experiences shared by Martin Forde regarding Dr. Squatch’s successful foray into retail, offering valuable lessons for DTC brands aiming to scale through omnichannel approaches.