Podcast Summary: "How to Compete in a Hyper Competitive Market with Jan Verlinden"

Let's Talk Branding Episode released on May 19, 2024, features an insightful conversation between host Stef Hamerlinck and Jan Verlinden, the founder of the premium soda brand Richie. This episode delves deep into Jan's entrepreneurial journey, the strategic branding decisions behind Richie, and navigating the challenges of competing in a saturated market. Below is a comprehensive summary capturing all key discussions, insights, and conclusions from the episode.

1. Introduction to Jan Verlinden and Richie

The episode kicks off with Stef introducing Jan Verlinden, highlighting his motivation to relaunch Richie, his favorite childhood soft drink. Jan shares the nostalgic roots of Richie, tracing it back to his great grandfather's brewery, and his 25 years of marketing experience that fueled the brand's potential.

Jan Verlinden [00:36]: "Well, I'm Jan Verlinden, and seven and a half years ago, I decided to bring back my favorite soft drink from when I was a child."

2. Jan’s Entrepreneurial Journey

Jan narrates his transition from working in large FMCG companies to establishing his own brand. Frustrated by the bureaucratic constraints and the inability to see his ideas through in big organizations, Jan decided to embark on his entrepreneurial path.

Jan Verlinden [01:42]: "I was fed up with that. And listen, I cannot do this until I'm 67, working for these companies and then always having to ask permission. So I said, no, I don't want to do that anymore."

3. Building a Distinctive Brand in a Competitive Market

Jan emphasizes the importance of launching Richie as a premium product from day one. He believes that in a crowded market dominated by giants, standing out requires impeccable product quality and exceptional branding.

Jan Verlinden [08:07]: "I don't think you can launch and say, you know what, here's my product. It doesn't taste really great yet, but in six months it will be perfect. No way. It's not going to work."

4. Importance of Packaging and Branding

A significant portion of the discussion revolves around the critical role of packaging in brand differentiation. Jan details his meticulous process in designing Richie’s bottle, believing that first impressions through packaging can foster a positive consumer response even before tasting the product.

Jan Verlinden [10:46]: "The bottle is a crucial part of even having the slightest chance in this market. It either has to be from day one completely as perfect as possible."

5. Go-to-Market Strategy

Jan outlines his strategic approach to entering the market, focusing initially on the Horeca (Hotels, Restaurants, Cafés) sector. This channel allows Richie to gain initial exposure and trial without heavy upfront costs associated with mass retail distribution.

Jan Verlinden [14:28]: "The strategy actually is in Horeca, you try in retail, you buy. It's a very slow strategy because you have to spend quite a lot of time visiting all those Horeca, trying to convince them that they should sell your product."

6. Navigating Marketing Laws and Brand Differentiation

The conversation shifts to marketing theories, particularly Byron Sharp's laws like double jeopardy. Jan discusses the challenges these laws present to small brands but emphasizes focusing on niche opportunities left by larger competitors.

Jan Verlinden [17:58]: "It's a reality whether we like it or not, because people buy what they know. Small brands stay small because they're small. Big brands stay big because they're big."

7. Impact of Marketing Efforts on Sales and Awareness

Jan shares his experiences with various marketing campaigns, including mass media advertising and product placements. While acknowledging the difficulty in directly measuring their impact, he notes an overall positive trend in sales growth as a result of these efforts.

Jan Verlinden [27:41]: "Sales keeps growing, so I guess the total mix of everything I do must be working a bit, otherwise sales would not be growing."

8. Brand Strategy and Consistency

Jan highlights the importance of maintaining a consistent brand strategy. Drawing from his extensive background in brand management, he ensures that every touchpoint reflects Richie’s core values and aesthetic, thereby reinforcing brand identity.

Jan Verlinden [29:50]: "What we put out there as touch points for the consumer... I'm very strict on what we put out there."

9. Challenges of Marketing in Business

The discussion delves into the common struggles marketers face in gaining executive buy-in. Jan attributes these challenges to a lack of understanding of marketing's value among executives and emphasizes the need for marketers to demonstrate both creativity and business acumen.

Jan Verlinden [36:50]: "There's not that many executives who understand marketing... marketing has to create value for your company."

10. Future Ambitions and Vision for Richie

Wrapping up the conversation, Jan shares his realistic ambitions for Richie. While not aiming to dethrone giants like Coca Cola, his primary goal is to achieve sustainable growth and enjoy the entrepreneurial journey.

Jan Verlinden [41:24]: "In an ideal world, I would love to get to 1% market share, but if I only end up at 0.5%, I'm not going to be unhappy."

Key Takeaways

• Strategic Branding: Launching with a strong, distinctive brand and premium packaging is essential in a crowded market.

• Niche Focus: Small brands can thrive by targeting underserved niches and leveraging unique brand stories.

• Consistent Messaging: Maintaining consistency across all brand touchpoints reinforces brand identity and aids in consumer recognition.

• Balanced Marketing Approaches: Combining traditional mass media with modern digital strategies can effectively build brand awareness without exorbitant budgets.

• Realistic Goals: Setting achievable growth targets ensures sustainable development and personal fulfillment in entrepreneurial endeavors.

Notable Quotes

• Jan Verlinden [01:42]: "I cannot do this until I'm 67, working for these companies and then always having to ask permission."

• Jan Verlinden [08:07]: "If you're launching a premium product, it has to be from the first moment as perfect as possible."

• Jan Verlinden [17:58]: "People buy what they know. Small brands stay small because they're small. Big brands stay big because they're big."

• Jan Verlinden [36:50]: "Marketing has to create value for your company."

Conclusion

Jan Verlinden’s journey with Richie exemplifies the power of strategic branding, persistence, and leveraging niche markets to compete against industry giants. His insights offer valuable lessons for entrepreneurs and marketers aiming to build strong, recognizable brands in hyper-competitive environments.

For more detailed discussions on brand strategy and building, visit letstalkbranding.substack.com.