Podcast Summary: On Strategy Showcase – Episode: On the Spot - Tesla & Poppi

Podcast Information:

• Title: On Strategy Showcase
• Host: Fergus O’Carroll
• Description: Where marketers tell the stories behind the strategies that led to amazing campaigns.
• Episode: On the Spot - Tesla & Poppi. Planners talk about brands they've never worked on.
• Release Date: June 12, 2025

Introduction

In the June 12, 2025 episode of On Strategy Showcase, host Fergus O’Carroll introduces a fresh format focusing on brands the panelists have never worked on. Joining the usual panel of marketing misfits—Vanessa Chen from System 1 and Matthew Herbert from Tracksuit—are new guests Matt Maynard, a genius marketer, and Ali Chastain, Group Strategy Director at the Martin Agency. Together, they delve into the narratives of two prominent brands: Poppi and Tesla, exploring their market strategies, growth trajectories, and the dynamics of brand management in the context of founder influence.

Segment 1: Poppi – The Functional Soda Phenomenon

Background and Growth

The discussion begins with Poppi, a functional prebiotic soda brand founded by Allison Ellsworth and her husband Stephen in 2016. Officially launching in 2020 after rebranding from Mother Beverage, Poppi gained significant attention after appearing on Shark Tank in 2018. Despite the prebiotic soda market in the U.S. being valued at $820 million in retail sales, Forbes reportedly cites Poppi's revenue at over $500 million in 2024—a figure that raises questions about its accuracy given the market size.

Fergus O’Carroll ([00:49]):

"This month we are talking about two brands with a theme of David vs. Goliath. Poppi, which has hit its stride in the functional soda market..."

Matt Maynard ([04:03]):

"Their strategy is really just a great example of what we know about how brands grow. They are easily thought of and really easy to find and buy."

Market Strategy and Acquisition

Poppi's aggressive marketing strategies, including significant social media presence and high-profile placements like two Super Bowl ads, have set it apart from competitors like Olipop. In March 2025, Pepsi acquired Poppi for a reported $1.95 billion, marking a remarkable growth story in the functional beverage space.

Fergus O’Carroll ([00:32]):

"Ali Chastain is group strategy director at the Martin Agency... And we now face off against two additional brilliant minds."

Ali Chastain ([05:40]):

"Poppy's mission here is to unseat big Soda... They have gotten in some trouble around their health claims with a class action lawsuit."

Brand Personality and Influence

Poppi distinguishes itself by maintaining a strong but not overly prominent brand personality. Unlike some brands that center around their founders, Poppi's leadership, particularly Allison Ellsworth, remains behind the scenes. This approach allows the brand to stand independently in the marketplace.

Matt Maynard ([11:29]):

"She isn't the face of the brand. The brand in many ways lives on its own."

Vanessa Chen ([07:29]):

"It's really using what we call fluent innovation... They leaned hard into soda and the flavors that we know..."

Advertising and Market Penetration

Poppi's advertising campaigns, especially during the Super Bowl, exemplify a "social first, Gen Z first" approach. Initial campaigns were flashy and social media-centric, though they faced challenges in creating deep emotional connections with a broader audience. However, recent efforts show improvement in brand recognition and storytelling.

Matthew Herbert ([08:14]):

"Poppy is launching into taking that market share in the general soda... Their distribution and promotion are key differentiators."

Vanessa Chen ([13:00]):

"Throughout all of humanity's existence... this will be the last moment you ever think of soda as..."

Matthew Herbert ([16:18]):

"There's significant shifts in awareness, consideration, preference, and usage, and it's outpacing the category compared to Olipop."

Segment 2: Tesla – Navigating Brand Turbulence Amid Founder Controversies

Background and Founder Influence

Transitioning to Tesla, the panel discusses how Elon Musk's personal behaviors and political involvements have deeply impacted the brand. Tesla, a brand built around innovation in electric vehicles (EVs), has traditionally relied on Musk's visionary persona to drive its image. However, his polarizing actions have posed significant challenges for Tesla's brand identity.

Fergus O’Carroll ([25:10]):

"This is about the behavior of a founder-led brand and what responsibilities he has to the brand... when your mascot goes rogue."

Matt Maynard ([29:23]):

"Tesla's early growth was from being first and from spectacle... They didn't build lasting memory structures beyond Elon."

Brand Challenges and Market Position

Despite Tesla's high brand awareness (84%) in the U.S., its consideration rate has plummeted to 20%, trailing the category average of 34%. The decline is more pronounced in Europe, where sales have dropped by 49%. The panel highlights the difficulty Tesla faces in differentiating itself as EVs become a standard feature across the automotive industry.

Matthew Herbert ([31:29]):

"Tesla's awareness is 84%, but consideration is only 20%, trailing the category average of 34%."

Ali Chastain ([34:41]):

"Tesla needs to compete on design or UX or maybe even like a software ecosystem... an opportunity to diversify that narrative away from EV."

Advertising and Future Strategies

Unlike Poppi, Tesla has historically avoided traditional advertising, relying instead on Musk's presence and the scarcity of their products to generate buzz. However, as the EV market matures, Tesla's lack of distinct advertising has hindered its ability to maintain a broad and positive brand memory beyond its founder.

Matt Maynard ([30:47]):

"If they had invested in broad, consistent advertising, they could have reinforced other associations like innovation or safety."

Vanessa Chen ([38:29]):

"The auto category is suffering from a sea of sameness... creating distinctiveness and emotional connections is key."

Comparative Analysis: Poppi vs. Tesla

Brand Leadership and Ownership

Poppi's leadership model, with a behind-the-scenes C-suite, contrasts sharply with Tesla's founder-centric approach. This difference underscores the importance of brand independence from individual personalities to maintain consistent brand equity.

Fergus O’Carroll ([44:33]):

"Matt was going in a similar direction... brands have to be bigger than the people who built them."

Ali Chastain ([45:21]):

"Brands need to have an authentic and ownable story that can diversify away from the founder."

Marketing Strategies and Consumer Perception

Both brands employ social-first strategies but diverge in execution and market impact. Poppi's targeted and broad-reaching advertising has facilitated its rapid growth and acquisition, while Tesla's minimal advertising coupled with founder-driven publicity has led to volatility in consumer perception.

Vanessa Chen ([43:04]):

"Both brands took a social first approach... pick a strategic idea and insight, create some storytelling and stick with it."

Matt Maynard ([43:39]):

"You need broad reach, strong memory structures, and physical availability. Founders cannot be the sole focus."

Lessons Learned

The panelists agree that foundational brand principles remain vital. Poppi exemplifies how agile, authentic branding aligned with strategic distribution can disrupt markets. Conversely, Tesla illustrates the risks of over-reliance on a founder's persona without developing a resilient, independent brand narrative.

Matthew Herbert ([45:23]):

"Brand building principles from the last 40 years still ring true in 2025."

Matt Maynard ([44:33]):

"Brands have to be bigger than the people who built them... avoid inheriting all the volatility of the founder."

Conclusion: Key Takeaways

• Brand Independence: Maintaining a brand identity separate from its founders or key figures is crucial for long-term stability and growth.

• Consistent Storytelling: Developing and sticking to a strategic narrative enhances brand recognition and emotional connection with consumers.

• Adaptive Marketing Strategies: Leveraging broad-reaching yet targeted advertising can propel a brand from niche to mainstream, as demonstrated by Poppi.

• Management of Founder Influence: Tesla's challenges highlight the importance of corporate governance and managing founder influence to protect and sustain brand reputation.

Fergus O’Carroll ([45:24]):

"Boards need to realize their responsibility in a brand... better corporate governance could help manage founder influence."

Ali Chastain ([45:21]):

"Ensure authentic storytelling and diversify the brand narrative away from the founder."

Final Remarks: Fergus wraps up the episode by acknowledging the insightful discussions and emphasizing the enduring relevance of foundational branding principles. The panelists commend each other’s perspectives and reiterate the importance of strategic brand management in navigating market dynamics and founder influence.

Fergus O’Carroll ([46:15]):

"Great to have everybody back to talk about brands they've never worked on. Thanks everybody and we will see you all on the next episode."

Panelists:

• Ali Chastain: Group Strategy Director, Martin Agency
• Matt Maynard: Head of Brand, Asana, San Francisco
• Matthew Herbert: Co-Founder and Co-CEO, Tracksuit, New York City/London
• Vanessa Chen: SVP Marketing, System 1

This summary encapsulates the key discussions and insights from the episode, providing a comprehensive overview for those who haven't listened to the full podcast.