On Strategy Showcase: Humor is Duluth's Superpower in Building a Billion Dollar Brand

Host: Fergus O’Carroll
Guests: Gareth Weber, SVP Chief Marketing and Brand Officer for Duluth Trading Company; Dan Lytle, Founder and Chief Creative Officer at Planet Propaganda
Release Date: February 22, 2025

Introduction

In this engaging episode of On Strategy Showcase, host Fergus O’Carroll delves into the strategic use of humor in building the billion-dollar brand, Duluth Trading Company. Joining him are Gareth Weber, the Senior Vice President and Chief Marketing and Brand Officer for Duluth Trading Company, and Dan Lytle, the Founder and Chief Creative Officer at Planet Propaganda, the agency behind Duluth's distinctive marketing campaigns.

Background of Duluth Trading Company

Dana Lytle provides a comprehensive history of Duluth Trading Company, highlighting its origins and growth trajectory. The company was founded in 1987 by three carpenters in Duluth, Minnesota, initially named Portable Products. They introduced the Bucket Boss, a versatile tool holder inspired by observing carpenters using five-gallon buckets to carry their tools. This product remains a staple in their lineup today.

In 1983, the company launched the Duluth Trading Company catalog, fostering customer loyalty and significantly contributing to their rapid growth. Within a few years, the company featured on the 500 Fastest Growing Companies list, boasting a remarkable 2000% growth over two consecutive years. Eventually, the founders sold the brand for $14 million, achieving substantial success early on.

“The company's first debut as Duluth Trading Company was through a catalog they created to build customer attachment and loyalty, leading to phenomenal growth and recognition.” [07:52]

Marketing Strategy and Brand Differentiation

Gareth Weber discusses Duluth’s main competitors, identifying Carhartt as the principal rival, complemented by brands like Wrangler and emerging D2C (Direct-to-Consumer) brands. Duluth differentiates itself by infusing humor and storytelling into its marketing, a stark contrast to the more serious tone of its competitors.

Dana Lytle emphasizes the importance of benefit-driven marketing over feature-driven approaches. Duluth's product names, such as Ballroom Jeans (providing ample room) and Long Tail Tees (3 inches longer for better coverage), directly communicate the benefits to the customer.

“We focus on benefit versus feature, ensuring our product names like Ballroom Jeans clearly convey their advantages to the customer.” [23:39]

Campaign Creativity and Humor

The heart of Duluth's marketing success lies in its unique illustrative ad style and humorous storytelling. Dan Lytle sheds light on the creative process, explaining that the distinctive hand-drawn animation style was a result of technological constraints during the initial digital campaigns. This approach not only reduced bandwidth usage but also gave the ads a “back of a napkin” feel, fostering a sense of authenticity and relatability.

“The not overly processed look has a back of a napkin feel, making it relatable and embedding humanity into the brand.” [18:19]

Several ad spots exemplify this strategy:

1. Funk No Underwear ([04:39] – [06:04]):

   • Depicts a toxic moonscape filled with noses experiencing unbearable smells until Duluth underwear brings relief.

2. Plumber's Butt ([04:39] – [06:04]):

   • Features an illustrated plumber showcasing the functionality of Duluth’s Long Tail Tee.

3. Ballroom ([04:39] – [06:04]):

   • Highlights the comfort of Duluth’s jeans, humorously contrasting them with less accommodating alternatives.

“We create these entertaining, funny spots that emphasize our products’ benefits without taking ourselves too seriously.” [06:04]

Competition Landscape

Dan Lytle elaborates on the competitive landscape, noting that while Carhartt has dominated the workwear space since the 1880s, Duluth Trading Company carves out its niche through a regional, humor-infused approach. This strategy appeals to a more discerning market segment willing to invest in durable, well-crafted products.

“Duluth makes seriously great products and tells seriously good stories without the seriousness, which Carhartt and Wrangler can't play there.” [15:43]

Expanding Target Audience: Marketing to Women

Recognizing that 60% of purchases are made by women, Duluth sought to expand its market reach without alienating its core male customer base. Initially experimenting with the same illustrative style for women's campaigns proved unsuccessful, as customers preferred seeing actual figures wearing the apparel.

Dan Lytle explains the strategic shift to live-action campaigns for women, retaining the brand’s irreverent humor while adapting the visual execution to better resonate with female consumers.

“We had to shift our production approach for women’s campaigns to live-action because customers wanted to see the clothes on real people.” [35:14]

This pivot allowed Duluth to maintain its brand voice and humor while effectively reaching a broader audience.

Brand vs. Performance Marketing

A significant part of the discussion revolves around integrating brand storytelling with performance marketing. Fergus O’Carroll challenges the notion that these should be separate initiatives, citing Duluth as a prime example of successfully blending both.

Dana Lytle concurs, advocating for a unified approach where short-term performance goals coexist with long-term brand storytelling. This synergy has proven to be highly effective for Duluth, allowing them to achieve immediate sales targets while building a strong, enduring brand presence.

“I don’t think they have to be separate. For Duluth, it was one and the same, and they were both extremely effective.” [26:50]

Conclusion and Takeaways

The episode concludes with a reflection on the successful strategies that have propelled Duluth Trading Company to its current status. Key takeaways include:

• Authentic Storytelling: Leveraging humor and relatable narratives to connect with the target audience.
• Benefit-Driven Marketing: Focusing on the tangible benefits of products rather than just features.
• Adaptive Creativity: Evolving marketing strategies to cater to diverse audiences while maintaining brand consistency.
• Integrated Marketing Approach: Combining brand storytelling with performance marketing to achieve both immediate and long-term business goals.

“We create work that stands out because we make seriously great products and tell seriously good stories without the seriousness.” [15:43]

Notable Quotes:

• “We focus on benefit versus feature, ensuring our product names like Ballroom Jeans clearly convey their advantages to the customer.” – Dana Lytle [23:39]

• “The not overly processed look has a back of a napkin feel, making it relatable and embedding humanity into the brand.” – Dana Lytle [18:19]

• “We create these entertaining, funny spots that emphasize our products’ benefits without taking ourselves too seriously.” – Fergus O'Carroll [06:04]

• “Duluth makes seriously great products and tells seriously good stories without the seriousness, which Carhartt and Wrangler can't play there.” – Dan Lytle [15:43]

• “We had to shift our production approach for women’s campaigns to live-action because customers wanted to see the clothes on real people.” – Dan Lytle [35:14]

• “I don’t think they have to be separate. For Duluth, it was one and the same, and they were both extremely effective.” – Dana Lytle [26:50]

Final Thoughts

This episode of On Strategy Showcase offers invaluable insights into how Duluth Trading Company harnesses humor and authentic storytelling to distinguish itself in a competitive market. Through strategic creativity and a deep understanding of their customer base, Duluth exemplifies how brands can achieve substantial growth while staying true to their core values.

For more details and to view the discussed ad spots, visit onthestrategyshowcase.com.