Happy Thursday! Make sure to scroll to the end of this newsletter to see the terrifying output (plus an additional wholesome one) from our first installment of Mascot Mayhem.
In this newsletter, you’ll find:
Let’s dive in: 👇
BioSteel, a prominent Canadian sports drink brand (that DTC co-founder Eric is quite literally obsessed with) has taken a fall from grace.
*Candid photo of Eric enjoying ⅓ of his daily BioSteel intake in our morning standup*
They’ve turned a high-flying sports nutrition brand with multi-million dollar sponsorships into a company burning through $15 million a month and filing for creditor protection. Their swift decline epitomizes a colossal failure in business strategy and financial management.
Here’s a synopsis of what led to their unraveling:
1️⃣ High operating expenses relative to revenue. In the first three months of 2023, BioSteel achieved $24M in sales, but faced overwhelming costs of $90M. Further, advertising alone cost them $114M, resulting in significant negative cash flow, signaling unsustainable operations. It was stated in recent days that, “BioSteel details more than $439-million in amounts owed to a range of businesses including manufacturers, distributors and retailers.”
2️⃣ Overcommitment to sponsorship and marketing. BioSteel engaged in expensive sponsorships with major leagues like the NHL, NBA, and NFL, and partnered with renowned athletes. In just one quarter, their NHL-related promotional expenses surged by $12M. This heavy investment became a liability when a payment for the NHL deal was missed.
3️⃣ Ownership by Canopy Growth. After its 2019 acquisition by Canopy Growth, BioSteel was part of a cannabis company's diversification. However, when Canopy Growth ceased its funding, BioSteel's dependency on a parent with a different primary focus left it exposed and financially unstable.
In DTC Co-founder Eric’s defense, the product is actually great, and he’s the most hydrated he’s ever been. The world is definitely ready to move on from corn syrup based Gatorade, but in this case, they got lost in the sauce electrolytes…
For more on BioSteel’s financial mismanagement and regulatory issues and their hunt to secure a new buyer, click here to read on.
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Meta and the paid ad space thrive on promos. 🤑
When shopping online, most people look for the best price and the best offer they can find.
However, for businesses, there’s a fine line between:
For example, if you offer 90% off all the time, you might see stellar conversions but terrible margins. But if you never discount, your margins might be great, but conversions may be low.
So, where is the line, and how do you happily dance on it when scaling a successful brand? 🤔
It's more simple than some might think…
The Pilothouse Meta team broke it down into three buckets — We’ll give you the categories but you’ll have to click to read for the full details. 😉
If you plan accordingly, utilize your historical data, understand seasonality and purchase intent, and are strategic about your offers and positioning, your next sales season could be your best yet.
Tis the season for sensational service!
Join our Black Friday / Cyber Monday webinar and unwrap the secret to delivering unforgettable customer experiences.
Harness the power of data to anticipate needs and resolve issues faster!
Join our special guest from Dr. Dennis Gross Skincare to learn examples so the holiday rush doesn’t steal your cheer!
♾️ Meta announced Meta Verified for businesses at a recent conference in Mumbai. The package is expected to cost $21.99 per month for each Instagram account or Facebook Page.
🎵 TikTok rolls out official labels for AI-generated content. Labels can be applied to any content entirely or significantly generated by AI to showcase creators’ innovations with the technology.
🔎 Google released automatically created assets (ACAs) for all advertisers. These are custom pieces of content, like headlines and descriptions, to enhance your existing creatives.
🪟 Microsoft announced Video and CTV ads for its ad platform. Billions of data points can be leveraged for highly targeted advertising strategies.
📊 Attribution Analytics are a set of new tools coming to TikTok. The first tool called Performance Comparison helps visualize and compare conversions over a set period of time.
Consumers love following their favorite brands on socials, but what are they actually looking for when they tap the “Follow” button on your page? 👀
Chances are, they’re already familiar with who your brand is, what you do, and your core product line offering. So what does the data say you should be posting to keep scrollers engaged?
Here are some key insights from a recent report:
Curious about what your next step should be? 🤔
Focus on showcasing new products in a genuine and engaging manner — blending them seamlessly into organic content and be cautious about overly promotional or values-focused posts.
P.S. A little bit of humor or reverse psychology goes a long way in connecting with your audience. Check out this ad from Ridge Wallet:
Yesterday’s prompt winner was *Mr. Peanut waltzing with the green M&M*
We have to admit, this one is slightly terrifying so as a palate cleanser, here’s *A year 3000 futuristic version of Mickey Mouse in space*.
What mascot inspired image should we make next? 👇
Want to submit your own prompt for Mascot Mayhem? Reply to this email!
If we had to guess, the percentage of people who haven’t done this is much less than the percentage of people who have. 😂
Have you heard our latest podcasts?
Don’t forget to rate the DTC Podcast on Apple (⭐️⭐️⭐️⭐️⭐️)
Got an awesome DTC brand story to tell? Calling all brand-side founders and team leaders! Fancy joining us on the DTC Podcast as a guest? Tap the link to toss in your application.
DTC Newsletter is written by Rebecca Knight and Michael Venditti. Edited by Claire Beveridge and Eric Dyck.
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