Sharm Tank Vol. 27

Author

Nik Sharma
May 24, 2024

Happy Friday,

Just your typical week in DTC…

Jokes aside, this is my favorite part about our industry–the disruption.

Maybe you’re a slick analyst who can transform data like it's your superpower, or maybe a creative who practically lives outside-of-the-box.

Regardless, our passion for solving problems and doing so with creativity is what drew us all to this profession.

What I love most about DTC is the open-mindedness of the community. People are not only incredibly welcoming but also consistently inspire me by sharing their insights to foster collective learning and grow.

And that’s a perfect segway into this week’s main course, a deep dive into the olive oil brand that is raising heads left and right!

Graza is the newest darling of CPG, capturing the hearts of food enthusiasts and social media influencers alike.

This two-year-old company has not only popularized squeeze bottles filled with olive oil but has also revolutionized the way consumers interact with this staple ingredient.

Let’s dive into Graza’s marketing magic and uncover the secrets behind its rapid rise to fame.

Harnessing the Power of Influence

Graza’s marketing strategy hinges on the power of influencer marketing. Instead of pouring funds into traditional PR or expensive ads, Graza chose to partner with influencers who resonate with their target audience.

This approach paid off spectacularly, leading to a sold-out launch in the first week and generating $100K in revenue. Within three months, they surpassed the $500K mark.

Product Seeding Strategy

Graza’s success began with a well-executed product seeding strategy. Here’s how they did it:

  1. Identifying the Right Influencers: Graza targeted food enthusiasts who genuinely appreciate high-quality olive oil. They sought influencers who loved making pizzas, BBQs, and salads.

  2. Engaging Through Direct Messages: Kendall Dickieson, Graza’s Social Media Marketing Manager, reached out to influencers with engaging and light-hearted messages, such as, “How much easier would life be if olive oil came in a squeezy bottle?”

  3. Offering Free Products: Influencers received free bottles of Graza olive oil with no strings attached. If an influencer requested payment, Graza respectfully declined, focusing on sharing their product for free.

  4. Adding a Personal Touch: Each package included a handwritten note, making the gift feel special and personal.

  5. Letting the Product Speak: Graza trusted in the quality of their product, believing that influencers would naturally share it with their audience if they liked it.

This strategy created a buzz around Graza’s olive oil even before the official launch. The organic growth and positive reception from influencers helped build anticipation and demand.

Beer-Can Refills Launch

Graza’s innovative approach to marketing didn’t stop at product seeding. For their largest product launch beyond the squeezable bottles—the beer-can refills—they leveraged their influencer network to create buzz and educate consumers.

On May 9, Graza introduced beer cans of olive oil, designed to refill the signature squeezable bottles sustainably. They sent these new products to about 300 creators, demonstrating how to use a kitchen funnel to refill the bottles from the cans.

This move not only showcased the brand’s commitment to sustainability but also engaged their influencer community in spreading the word.

Andrew Benin, co-founder and CEO of Graza, emphasized the importance of community in their marketing strategy. Despite cutting its marketing spend from 12.5% to 5% of gross revenue due to rising olive oil prices, Graza continued to thrive thanks to its organic growth driven by influencers.

Collaborative Promotions

Graza’s collaboration with other brands and influencers extended beyond individual promotions. They created a twice-a-month series called “Cracking Cans,” featuring Graza alongside other canned products like alcohol and cannabis-infused drinks. These partnerships amplified their reach and showcased creative uses for their olive oil.

For example, Graza partnered with Aura Bora, for a first-of-its-kind Olive Oil Martini. Dubbed Dry Guys, the canned non-alcoholic offering artfully blends Aura Bora’s sparkling water and Graza’s Extra Virgin Picual Olive Oil.

Maintaining Core Brand Identity

One of the challenges Graza faced was ensuring that their new products didn’t overshadow their core squeezable bottles. All their messaging, advertising, and website content were designed to highlight the refills without cannibalizing the existing product line.

 Integrated advertising and promotional efforts featured both products together, reinforcing their connection. On their website and through influencer partnerships, Graza showcased the refilling process, emphasizing sustainability and convenience while keeping the squeezable bottles in the spotlight.

By staying true to their brand values of quality, sustainability, and innovation, Graza maintained a cohesive brand identity and strengthened their market position.

Direct-to-Consumer and Retail Presence

Graza’s sales strategy is split between direct-to-consumer channels and major retailers like Whole Foods, Publix, Target, Harris Teeter, and Walmart. For the launch of the cans, they introduced a subscription-only offering on their website, allowing customers to buy a starter kit for $65, which included two squeezable bottles, two cans, and a funnel.

This subscription model was based on two and a half years of data, showing a strong preference among their customers.

Key Takeaways

Graza’s marketing success offers valuable lessons for other brands:

  1. Leverage Influencer Marketing: Partnering with influencers who genuinely resonate with your product can lead to organic growth and a strong brand presence.

  2. Personalize Your Outreach: Adding personal touches, like handwritten notes, can make influencers feel valued and more likely to promote your product.

  3. Innovate Sustainably: Introducing new products that align with current trends, like sustainability, can attract a broader audience.

  4. Collaborate Creatively: Partnering with other brands and creating engaging content can amplify your reach and appeal to diverse consumer groups.

  5. Maintain Brand Consistency: Ensure that new product launches complement and enhance your existing product line without overshadowing it.

Graza’s journey from a start-up to a beloved olive oil brand is a testament to the power of strategic influencer marketing, personalized outreach, and innovative product development. By staying true to their core values and leveraging the strength of their community, Graza has turned olive oil into a staple in kitchens and social media feeds alike.

Now, let’s get into some shorter, bite-sized stories…

Liquid Death Channels Its Inner Pepsi by Giving Away a Free jet

In 1996, Pepsi famously offered a Harrier fighter jet for 7 million “Pepsi Points” in a controversial and ultimately joking ad campaign.

One determined man exploited a loophole, amassing the points and taking Pepsi to court when they didn’t deliver the jet, a saga recently chronicled in the Netflix documentary, “Pepsi, Where's My Jet?”

Now, Liquid Death is taking it up a notch by offering a real jet, “The Dehydrator,” an Aero L-39C Albatros, in a new retail promotion. Each can of Liquid Death purchased counts as one entry into the contest, with entries closing on Sept. 4. 

The winner will also receive a year’s supply of Liquid Death, six months of hangar space, and a jet pilot’s helmet. Despite the immense complexity, Andy Pearson, VP of Creative at Liquid Death, expects the giveaway to be a huge retail success. “We don’t take no for an answer,” Pearson said.

Roblox Expand Advertising Network to Include Programmatic Video

Roblox’s expanding ad network promises significant revenue growth, transforming the platform into a digital advertising giant like Facebook and Amazon. The recent introduction of video ads enables targeted advertising to its millions of daily users, particularly Gen Z and gamers.

However, Roblox’s young user base presents child safety challenges. The platform has faced criticism for advertising to under-13 users and will attract further scrutiny as it rolls out new ad initiatives. Roblox is addressing these concerns by limiting ads to users 13 and up and implementing strict safety measures.

As Roblox continues to grow its ad offerings, balancing the interests of brands, users, and regulators will be crucial to maintaining trust and driving success.

Purina Uses Eye Tracking as a Replacement for Third-Party Cookies

Amid the decline of third-party cookies, marketers are exploring new ways to measure campaign effectiveness, such as tracking eye movements of cat and dog owners.

Lily’s Kitchen, a premium pet food brand under the Purina umbrella, has incorporated eye-tracking into its ad campaigns to measure audience attention as a proxy for ad effectiveness.

Last year, this approach boosted sales by 20% during a Black Friday test campaign. Although eye-tracking isn’t new, using it as a primary performance measure is innovative.

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