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A
When we were exploring retail at Dr. Squatch, we wanted two big asks from retailers. First was a brand block, make it easy for people to find you on the shelf. And the second piece that we were after was off shelf, a display off aisle, something that's visually disruptive. And so we made this like outdoor shower thing with a tree and 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.
B
Martin, welcome to the D2C podcast. We've been trying to get this together for a little while. You reached out on LinkedIn telling me a little bit about your background with Dr. Squatch and I think this would be a great opportunity, this podcast to dive into the right way to think about retail expansion. The right way it plays with D2C. Welcome to the podcast, man. How you doing?
A
Doing great, Eric. Excited to jam with you. Really grateful to be here. Yeah, a lot of the respect for what you've built out. Just the name for yourself within D2C. So humbled to be part of the mix and you know, excited to share my thoughts and all of everything from retail to D2C to you know, whatever pontifications I have on, on whatever rants I go off on. So grateful for the time.
B
Well, let's start with your hero's journey that brough brought you to Dr. Squatch and a little bit about that.
A
Let's go back to the beginning. So I think where a lot of people have success in consumer is just staying at it for a really long time. And so I have my start in consumer better part of a decade now coming up on 10 years. But it was right out of school for me so I actually started my career at PepsiCo Frito Lay. So I was ran a sales territory, was responsible for leading a team of 14 on just store level execution. And that experience was awesome, really foundational, really learned a ton about how to bring to life a brand, in this case Frito Lay and all the different chip permutations how to execute that in a retail store. That has carried through to my experience throughout my career and I'm really grateful for it. But you know, I think I found that big cpg, big co experience was just not really my cup of tea. I was craving to build something I wanted to move up and you know, I didn't like how things were just Purely tenure based. And so that led me on the journey that actually brought me here to LA where I'm based today. Worked for a couple brands, one called Halo Top, which was an interesting little journey. Helped them scale their US grocery distribution. I worked for this brand called genexa which was a really early stage at the time. Really helping them seed their initial distribution into mostly natural grocery. So real brand building expertise, you know, got the experience from yeah that brand building side all the way up to the rapid hyper growth kind of scaling side which was awesome. But that led me to Squatch, you know. And Squatch I think is in many ways really been a catalyst for me in this consumer ecosystem. Really a way to have just able to learn so much and now be in a position to start sharing some of those lessons and approaches. And everyone always asks, oh, how'd you find Squatch? What'd you do? What was different? And I don't have a cool story unfortunately. I just found it on LinkedIn like how we found each other. Eric. So all in on the LinkedIn. Yeah, all in on the LinkedIn hype train to everybody. If you don't post on LinkedIn, start posting guys, it's, it's, it's valuable but you know, just didn't even slide into any dms. Didn't do anything crazy but just applied. Talked with the founder, Jack. I remember this vividly. I hop on a call and he was like I got 15 minutes, like let's go. So I gotta get my elevator pitch in 15 minutes. And I guess I stood out and so I get some, some hustle and I did some, some you know, I put together like an unprompted strategy of hey, here's how I would kind of attack things. And so you know, how big were.
B
They at this point?
A
They were very small sub 20 million in top line. And I think I was employee number 13. So very, very early stage at Squatch. I'm assuming most of the listener, your listeners are going to know who Dr. Squatch is at this point. But you know, when I joined the only thing that Squatch really had going for it and I thought this was really cool. I was like wow, these random YouTube videos got like 20 million views. That's crazy. That was my kind of initial like gut feel for popping on board. And you know that same YouTube video today is really what fueled a lot of the paid media efficiency, a lot of the growth on D2C to this multi hundred million dollar business, that behemoth that Dr. Squatch is today. So again immensely, immensely Grateful for the experience, for the time there, learned so much. So my closest friends came out of squ. Nothing but good things to say about that experience and the team that's still there building in the trenches and scaling them to where they're at.
B
What's your biggest lesson as to why Dr. Squatch has succeeded? Maybe where other big D2C behemoths that scaled as fast as they did maybe haven't been able to maintain it or haven't been able to maintain expectations. I know last I see Dr. Squatch was over a hundred million in the early 2000s there like 2020 2021. So I imagine they've kind of continued to scale. But what do you see as what's your main reason for why you think Dr. Squatch works so well?
A
There's almost two parts to that Eric of why Squatch works so well. I think they worked. There's two phases of the business if you will. There was the DDC LED scaling phase of the business. All dtc, all optimization essentially through optimization of the paid media channels. I'm going to speak too much to that because that's, that's just again not, not, not where I've, I know enough to be dangerous there but I'm, there's definitely some experts that you have here on this. A lot more can kind of jam on what went well there. But I think that was the first part is they built this absolute behemoth of a D2C business and where I think the second phase of their growth, the second window of why they are now so successful really breaks down to omnichannel. And I think Dr. Squatch from the very beginning, from when I joined was really, really focused on how do we launch in retail and how do we launch in the most effective, impactful way. And when you look at their business and again I don't know exact numbers here but so this is just a finger to the wind estimate. But based on their distribution and their breadth and just how deep their partnership is with Walmart and every other major kind of class of trade, I would imagine the split is almost a 5050 mix between DTC and retail today. And so that's truly why I, the brand has had so much staying power is they scaled DTC to this pretty much the highest you could possibly get that channel. I think they were at like yeah, several hundred millions of dollars in pure DTC revenue before entering retail. And then when they entered retail, just relentless. Which you know I can talk a lot about when they entered the retail just Relentlessly and strategically expanded distribution and really, really focused on building a sustainable omnichannel business across the board because they're in all channels. You know, when you look at like Dr. Squatch's business, they're on D2C obviously they're in retail super heavily. They're very big on Amazon. They were big on Amazon through this DTC growth era. They're still on TikTok shop. They're on like everything. Anywhere you can sell the brand, they're doing it. And that's truly where I think a brand has to be today is an omnichannel brand.
B
I want to dive into your specific retail experience at Dr. Squatch, but just talk a little bit about how you see the interplay between D2C and retail for brands at scale.
A
Yeah, so that's an important distinction. I want to make sure that this is emphasized for D2C brands at scale. That's critical for scale is a subjective term. But let's, let's say like when you're really, really at scale, let's say like 50 million plus the value of retail. The reason you start like looking at retail is retail becomes a customer acquisition channel. It's almost, it's almost a free one. It's like a, it's not free, but it's revenue generating. So retail serves as this, this bellwether, if you will. This way for people who've been experiencing your brand on D2C ads through the paid media that you've been sending that most direct to consumer brands just absolutely pummel consumers with. And where retail comes in this interplay is again, somebody who's maybe seen, let's use Dr. Squash as an example, seen a Dr. Squash ad for 10 times but has never acted on the purchase cycle. They see it on a Walmart end cap. That purchase cycle, it's already made. It's just like, let me pick it up, let me maybe give it a sniff and boom, into the cart. It's, it's done.
B
So especially if it's a category redefiner, like I guess this isn't really a category creator because you know, this kind of product has existed forever. But it, it is a big category disruptor in that this isn't your father's Dove bar or your mom's Dove bar or whatever. Right. Like it stands out.
A
It definitely does. And that's another important point, Eric, is the concept of category disruption, let's say, because I was actually talking with a friend of mine, he spent 22 years at PG. He had the assessment that oh, bar soap is a form factor. It's just dead. No one wants it, no one will use it. It's not going to work. We can't figure it out. So therefore P and G can't figure it out. We can't figure out. And it's really funny that it took this new form factor in this case using again Dr. Squatch as the example, a natural soap marketed towards men. Those three combinations is what led to category disruption. Fundamentally it's a great product. I think that's the table stakes for any consumer brand. You gotta have a great product, you've gotta have something that stands out, a form factor that's unique and you have that you have some virality, you have really good execution. You kind of mix all, all those ingredients together and yeah, then you have several hundred million dollar just omnichannel business that is very interesting to see where they'll go from there.
B
So walk us back to your role at Dr. Squatch and your biggest wins or the strategy that you employed when it came to rapidly scaling up retail for a brand already at scale on D2C.
A
To be honest Eric, it took years, like years and years of work, of work in the background work really trying to figure out what's most critical from an execution perspective. What is most important to be able to launch the brand in an impactful way. And for us that was, that came in a few different ways. So when we were exploring retail at Dr. Squatch a couple things kind of stuck out is we wanted two big asks from retailers, if you will. First was a brand block. We wanted a big. A lot of advisors kind of told us this, you need a space, make it easy for people to find you on the shelf. People aren't going to know. They need to know it's there, make it easy, make it simple. So we were asking for 3ft, 4ft of space in the Walmart Target, you know talking to all the big dogs on hey we want 3ft of 4ft of space. And most people laughed at us. You know that's you're crazy. Like no like or Target said no and we'll launch you on dot com. And so we were like no dot com isn't aligned to our strategy. We really need that first piece. And the second piece that we were after was off shelf. So how do you get a display off aisle essentially so how. And something that's visually disruptive and that was a whole just beast in itself. We never created a retail display. We never had like we had no idea what to put on it or what the display should be. And I remember so vividly sitting in these conversations with our leadership and we were like what do we put on this display? And one of our advisors was like oh like what is most recognizable about your brand is actually not the brand Dr. Squatch, it's your spokesperson James Schrader. So it's like put his face on the display. And so that was our first display that we launched with. It was this funny little mock up of the design guidelines was an outdoor shower with James. And so we made this like outdoor shower thing with a tree and it was like I can probably find a photo of it somewhere. But this, this funny display, pretty like light on, on the assortment. And we popped that thing into, into Walmart a few months after launch and it just went absolute gangbusters. Like I don't remember the Velocity but it like 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. And that proved this thesis that off shelf drives for a viral brand is going to drive impulse, is going to drive volume. And then once you get that impulse, you get that volume, you drive that traffic back to this brand block that you have on shelf. And so again when we were going through all evaluation of these retail partners, it took years, years and years that the only person who was really willing to play ball and bought into that strategy and that vision was Walmart. And they bought in in this kind of weird spot within the store called the naturals aisle. And so we were like, oh we should be in bar soap. But the problem with like being in bar soap or being in hair care or being in deodorant is we couldn't get that brand block. We'd be all over the place. Naturals was the only place within Walmart that they let us like oh yeah, we'll give you a shelf, sure, whatever. And so we did this, we designed this like merchandising unit that it sat on like this whole crazy operational thing to get the brand executed. And that was, you know, that's how we started. You know that was the initial launch. We did some other like pilot stuff, shipper tests and things like that I can speak to. But this is the big launch was Walmart and it was through a lot of really deliberate, really intentional, really thoughtful work about the brand, about where our consumer shops, about how it needs to be merchandise. And again it was just an amazing culmination of getting a pull from all these different experiences. I'd had to that point to get to leave to have such an impact on that initial launch into retail.
B
And you took some risks it sounds like when it comes to especially that end cap design, for instance. I've never seen an end cap design that was kind of like that. And so I imagine that pattern disrupt really helped feed the story of the brand, which is a brand disrupt. And so it kind of all led into. All led into it. You said that it was light on variations or light on like the actual products that were featured in the end cap, which we just did a mastermind with Glamnetic Kevin Gould founder and he want. And his talk was actually mostly about showing up how he set up his end caps in retail. A bunch of stuff he showed us about what he's planning and what he's going to do. So we can't share it actually his talk, but it was just really the amount of thought that went into how to display the number of variations he had or whatever. So it's interesting that yours you didn't even. You didn't worry as much about that. Can you speak? You just kind of kept it focused on your hero product.
A
Yeah, it was like core assortment, I think. Let me see if I can find a photo. I'm pretty sure it was bar soap only. So we just did bar soap because it's kind of funky. With a Walmart end cap, like you can only really have one price point. They don't like multiple price points. And so I believe it was bar soap only. Here I literally have the photo. Oh yep, here it is. Yeah, bar soap. Oh no. I had hair care too. Excuse me. So two shelves of hair care and then four shelves of soap and so one soap cent per shelf and that thing sold out like immediately. And so in the future iterations of end caps that I wasn't super involved in designing but saw them, the whole end cap is maximized. It's all about unit density and maximization. The first one was very much about just like maximizing sell through and to your point, getting that pattern disruption that, that interruption and the. I think it really, really stood out for us having never built a retail. It won some award, like some packaging award. They got like a bronze or silver, I don't know, maybe gold, like pack like end cap design award and all the other like awardees were like, you know, Coca Cola and P and G and stuff. So punched well above our weight I think. And yeah, how that that display actually came together. But yeah, to your point, the assortment was just kind of like we just launched with the full assortment that we have on shelf at the time, which was bar soap and hair care. So that it worked. It was a really, really cool experience.
B
So once, you know, Walmart took this chance with you, did this sort of installation that the others wouldn't, you proved out the velocity that you were able to achieve with that. What was your next play to leverage that into relationships with the other big retailers?
A
Yeah. And so I'll give a lot of credit to the existing Squatch team for their sequencing of distribution beyond Walmart. I think most of my scope was really, really focused on executing and pioneering that Walmart distribution, that initial launch strategy. So the team had started to scale up at that point and we had a lot more folks coming on board to have specialists by each channel. But I can speak broadly to how the kind of the brands are thinking about and sequencing distribution from here. But it really just became a game of like, okay, how big can we, how much can we replicate this existing strategy across all these other retailers? How can we take this existing momentum, pioneer this across every other major class of trade? And so Kroger was an early partner of ours. Kroger launches in a very different way. Again, we didn't have this big, impactful brand block, but Kroger was a very early partner. I'll shout out Tom Finnegan, who leads the grocery business over at Squatch, and he was a great instrumental partner in scaling that business and getting it to where it is today. But the way Kroger is merchandise is they have all these different categories. So deodorant's on the deodorant aisle, hair care's on the hair care aisle, or soap is on the soap aisle. And so you had the brand living across all these different categories. But Kroger was very supportive and willing to play ball on some of those features. The displays they were able to get off shelf at a pretty regular occurrence. I've seen on this is where I keep track of all my Dr. Squatch retail execution now that I'm no longer with the brand. But on Reddit, which is hilarious. On the Dr. Squatch Reddit, people take pictures of all the retail displays that you see throughout the market. And it's insane how much soap people will buy. Like, I've seen photos of like, you know, people will absolutely clear out, in particular, some of the seasonal scents that Squash has been doing. Those to my understanding, has just been a major, major driver for getting off shelf placement for this category. I think that's a real. That was a real hill for us to climb was how do you get off shelf for this category that has pretty stable, kind of like pretty predictable unit velocities and seasonality. And so the way Squash cracked that code is like, oh, we'll launch a Halloween soap, we'll launch a Christmas soap, we'll launch a Valentine soap, we'll launch every major season and event and like, you know, then all their partnerships and stuff that they've spun up. So it allows the brand to activate on this regular cohesive calendar mix. And I'm again not taking any credit for this. This is very much the what the team has been able to, to build. But I think it's truly best in class future case study brand for how to scale omnichannel. And so it's been really, really cool to see the evolution of their business from Walmart year one doing many tens of millions of dollars to this absolute to retail now being one of the largest revenue channels of the entire doctor Squash business. So it's just remarkable to, it's, it's really cool that I know you've talked to some other ex Squatch folks. I think you had Dijon on and so you know, he saw the whole, the other side of the, of how the sausage is made. And so it's, it's, it really is a team. It's a lot of respect for guys like that who really kind of optimize things on the, on the growth and the performance side to let me be able to have such a Runway to grow into retail. So I'm really.
B
First of all, I can't believe you didn't say how the Squash is squashed. No squash, no, that doesn't really work. Sorry. But you mentioned demand generation and now you brought Dejan on the, on the ad side into it. So I'm just curious, like during that Walmart rollout, you obviously have a product that people are picking up off shelf, which is like the first most important thing that they'll actually pick it up when compared to other products. Maybe you've got your end cap game. Sounds super strong. Capturing a lot of attention there. How else did you think about demand generation within the retail environment during that Walmart launch?
A
Yeah, so I want to be clear on this guys. Like there is no real playbook for demand generation when you're launching at something of that scale. There was no playbook. So it was very much an iterative kind of figuring it out process. I remember talking to Mike Woolsey, a guy on the, was running a lot of the paid media at the time he was like Martin, we're running these, these like awareness ads. We've never done that before and we're just driving awareness. And the call to action is instead of like you know, click here to buy your Squatch now available at Walmart. And so you're doing these awareness campaigns. So I think it's just like the outcome for marketers shifts and the aware. The game when we entered retail shifted away from this game of how do we get as many clicks and conversions and the whole performance ecosystem that I'm not an expert in, but that side of the business, the DGC side of the business to an awareness game. How do we get as many people aware of the fact that Dr. Squatch is in Walmart on the naturals aisle. And that I think was where Squatch had a really strong competitive advantage of already having the at scale D2C infrastructure. And so running an awareness campaign is way cheaper than running a like a conventional just like you know, conversion focused DTC like you know, buy here, click here to save 20% and buy now or whatever the call to action is. The call to action of just pumping this into many eyeballs as you possibly can is fundamentally different. I think that's, that's where retail differs a lot and where I see a lot of new age brands starting to do this extremely well is in this almost UGC style content of like you know, a big influencer or somebody in a store in a Walmart and driving traffic and awareness to the specific aisle that they're on on store. And so I think we didn't really do that to an extreme degree early on because again there was no playbook for it. But I think a lot of the brands have maybe learned the lessons of squash and are figuring out a lot more tactics to be able to drive to your point, demand generation at shelf because that's fundamentally where the sausage, the squash is, whatever is made.
B
Good try, good try. I appreciate that.
A
I appreciate that is made again through driving those, that converting that captive audience to traffic in stores. That's the hard part.
B
The other thing you mentioned, I think early on was the YouTube video that has 20 million or now maybe hundreds of millions of views for Dr. Squatch. And I feel like it's the narrative, right? And it's funny when you talk the narrative I think was the co founder, maybe he's in the shower or in an outside outdoor shower or whatever. But then you've got your end cap that features this as the hero, right? And it's sort of like it's funnel congruent and that power of like the narrative. And it's like you need those stories about your brand and it's so cool that you found a way to build them into your end cap, for instance. And so you get the same benefit from anyone who will have seen that video to what your end cap looks like, to what your branding looks like. There's like a real through line there that probably helped with momentum. Would you agree?
A
Yeah, I would say it's this, like, it's hard to answer that specifically. I think there was absolutely like this continuity of traction of engagement with the brand that really kind of helped drive again, the brand had virality and that drove engagement at shelf. And I think that's a pretty easy correlation to say. There's a lot of like complexity and nuance, I feel like with brand building overall today. So again, it's hard to kind of tease out what was noise, what was just, you know, the right place, right time, all this. But I think there's absolutely some, some, some truth to the fact of like, you know, if you have a brand with viral, you have a brand with, I think, virality. But more hard numbers is a metric that I think all brands really need to be tracking, particularly as they enter retail is awareness. What's your household awareness? Are households aware of your brand? Can they recall your brand? And that I think is kind of a key KPI for a lot of marketers also should be for sales, but in what the, let's say, the health and scalability potential of a brand. So I think that's, that's just absolutely, absolutely critical and want to, want to make that call out.
B
I just did a podcast with this brand strategist actually on Instagram named Eugene Healy. Huge brand strategy. You should look him up. He's really, really interesting, but he was just referencing a study by Tracksuit, which is a company that purports to be able to really understand your brand impact in market. They did it. Tracksuit and TikTok did this study basically where they showed that aware how important awareness was and how much better everything works when say 4 out of 10 people know you versus 1 out of 10 people. Like how exponentially that grows when you, when you are able to saturate your target audience with the right story. So I think. And this study also showed that clicks were not really a predictor of like brand success necessarily. They were kind of more vanity metrics. It really came down to that awareness. And when you have that awareness, all channels perform better in a way. Right. So I feel like Dr. Squatch did how you sort of articulated Dr. Squatch's really deep D2C strategy leading into retail. Super amazing. So what I'm curious about is with. Because now you're no longer with Dr. Squatch, but you're consulting with other brands who are looking to replicate this. You were kind of at a unicorn where you were basically standing on the shoulders of giants a little bit when it came to the awareness that had been built with the D2C platform. What are customers like when they come into you now to your consulting business now? How do you advise them when they maybe don't have as big of a D2C presence as squatch did?
A
Yeah, I think it's a great point and a great distinction. I'll give a quick shout to what I help brands specialize in. But I think my niche, my bread and butter really where I like helping brands focus in on is brands who are in this rapid growth, hyper growth kind of scale up phase. That's the phase I love the most. And so that's kind of who I self select for and help try to kind of advise for. But I talk to brands from everyone who's just starting like hey, I have an idea and what do I do all the way up to, you know, $90 million direct to consumer brands looking to launch nationwide and target. And so you know, that's. I run the gamut as far as the types of brands I speak with on a weekly basis at this point. And my advice is really like it's brand specific so I can't really answer that directly. Eric of like what's the, how does it differ? But your retail strategy is fundamentally built around the brand. Your retail strategy is fundamentally built around where your consumers shop. And I think that's the real value of direct to consumer is you can intimately understand your customer and put the product exactly where it is that they want to find the product. And that's the big value. That's where I think a lot of retailers are really seeing the value of D2C is like, oh God, wow, these guys have some great data on their consumers. We don't have that data. And I think the real value that really any D2C brand is able to bring to any retailer is it's a net new customer. If you're an at scale D2C brand and you can figure out how to activate your customer and drive them to retail, you're going to have a successful time. And so that's kind of the crux of what I'm helping brands do is like how do you put yourself in the right doors, right place, right time, all of this and how you think through that and that's been you know, just an absolute blast. Just getting to apply a lot of the lessons and mistakes made at Dr. Squatch to helping brands, the next wave, the next generation of brands launch and scale in retail. So you know, nothing but gratitude for such a journey, such a path. But I think that's you know my, my niche is you're a scaling at scale like just big old brand that's still on DTC and wants to figure out retail, you know, slide into those LinkedIn DMs.
B
I'm happy to chat, we'll throw your LinkedIn on there. But what, what does that process look like, that initial part of determining where. I guess probably a lot of brand owners have a very strong idea where they see their customers wanting to interact with their product. But in a lot of cases what brand owners think and what the actual customer thinks aren't always the same. So what is your process like for determining which the right doors to knock on the retail game?
A
This can be like, doesn't have to be highly scientific. We did it really scientific at Dr. Squatch but you can do this in a pretty scrappy and quick way. But doing something like putting together an email survey like hey do you want to help? Like it has to be a good, I'm not the best with survey design but you can do something like that. There's experts who can kind of help you get like let's say the consumer insights. Mine your consumer insights for statistically significant results that inform your retail strategy discussion. Again the time I did this was at Squatch is we were looking at our consumers compared to the general population of consumers and where our consumers over indexed in terms of where they shopped. For us key learning was oh over indexes towards mass channels. So Walmart target pretty clear opportunity. The brand is a mass brand and that informed our strategy. I think brands don't have to do that same level of sophistication. You could do something as simple as like an Instagram poll you know of like how hey like where would you like to see us shopped? And then you can just kind of like do that and you do that maybe in multiple different channels. You could do that via email, via Instagram like this Again I'm just kind of spitballing here but a lot of brands I talk with have a pretty clear idea of where their consumer or where their ideal retailer partner actually is because you can do all the strategy work until you're blue in the face, but at the end of the day, you got to just go talk to a retailer. And that's really where I think provide a lot of value is I can get. I help facilitate the conversations with my network of broker partners. I built out over the years of getting these brands in front of the right retail partners that they want to have the discussions with and then just having the discussion because again, you got to shoot your shot. You don't know if, like, oh, I want to be on Target, Ulta and Sephora. Have you talked with them or do you have any of the wherewithal to be able to get in front of those buyers? And 99% of the time that I talk to somebody, the answer is no. So I don't know. And that's, I think the real challenge for a lot of consumer brands today is like, you know, they're so strong on DTC or they have this big ecosystem and they just don't know where to start. And so, you know, I try to be a, you know, just share as much as I can and any intro calls I have with as many brands that I speak with and just, you know, make introductions. If I can't help them directly, connect them with someone who can. And that's really kind of the take I. Where I've been able to carve out a good niche for myself. Eric is just being a value, being of service, being, you know, just doing so to pay it forward and help other brands. That's. That's. That's what I love.
B
Very cool, man. Well, super interesting. Thanks for sharing. We don't talk a lot about this level of retail expansion on the podcast, so I think there's probably a lot here for people. If you want to get in touch with Martin, we'll throw his LinkedIn link on the podcast right up here. But thanks for coming on the podcast today, man. This is a lot of fun.
A
Always a pleasure to jam with you. Thanks for the time. And let's, you know, let's have a V2 in some future point. So until then, I am doing infinite.
B
Podcasts, so we always have room for more.
A
Love it. Well, thanks for the time, Eric. Appreciate you.
B
Thanks so much for listening to today's episode. If you're not a subscriber to our newsletter, you can do that right now at Direct to Consumer all one word co. I'm Eric Dick and this has been the D2C podcast. We'll see you next time.
Release Date: December 9, 2024
Host: DTC Newsletter and Podcast
Guest: Martin Forde, Former Executive at Dr. Squatch
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.
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.
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.
When discussing why Dr. Squatch succeeded where others may have faltered, Martin identifies a two-phased growth strategy:
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.
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.
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.
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].
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.
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.
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.
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.
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.
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.