Good morning,
Crayola just trademarked the smell of its crayons, a 'slightly earthy soap with pungent, leather-like clay undertones.'
While this move seems strange, Crayola's Chief Executive Officer Pete Ruggiero explains, "That Crayola smell, there's a connection between the smell and childhood memories that is very powerful."
And if we've learned anything this year, nostalgia sells.
Keep reading to learn more about how Crayola has maintained its #1 ranking in the art supplies and coloring category.
Here’s what you’ll find in today’s DTC:
🎨 We dive into how 120-year-old crayon brand Crayola has maintained its #1 ranking with these colorful and creative tactics.
🪣 Is your conversion bucket full of holes? Here are three ‘leaks’ to fix before running paid ads.
🤔 And…questions DTC brands should ask themselves before they decide to move into retail.
You’re reading this newsletter along with new subscribers from: MAD Whole Foods, Ambercycle, and Three Ships Beauty. 👋
🎨 Creative Is At The Top Of Most DTC Brands' ‘Need to Get Right’ List
Attention spans are shrinking, making creative your one shot to make an impression.
Will viewers remember your brand? Will they talk about your creative? Will they click and convert?
Take our quick survey to share:
We'll use this info to understand our readers' challenges and offer solutions in upcoming newsletters. 👏
Complete this four-minute survey for a chance to win a $250 Amazon gift card.*
*Limit one entry per person. There is no purchase necessary to enter the sweepstakes for the creative survey. One winner will be randomly chosen to win a $250 Amazon gift card (or equivalent). Entrants must be located in the US, Canada, UK, Ireland, Australia, or New Zealand and enter the email address used to subscribe to DTC Newsletter to be eligible to win. Winner will be notified via email.
🪣 Fix Your Leaky Bucket Before Running Ads!
Despite popular belief, running paid ads isn't always the answer for scaling brands.
Yes, it's a great lever to pull to increase year-over-year growth; however, spending on ads without a solid brand or product foundation is like pouring water into a bucket with holes – nothing retains and nothing scales. 😕
Before investing in ads, consider solidifying the bucket.
Here are the top 3 leaks the Pilothouse team sees in brands that prevent ads from converting.
Leak #1: Product Market Fit
Do you have at least 20%-30% referrals or reviews of your product? For those who used your product, are they coming back or referring it to other people?
If not, you may have to rework your product so it’s a better fit for your target demographic.
Leak #2: Fix Post-Click
Is your website fast to load? Are there a lot of obstacles or barriers for a consumer to purchase your product?
Post-click should be easy and dummy-proof. A mere 5 seconds of extra load time can cost 30% of your conversion rate.
Leak #3: Content Creation
A vast library of content is like wood for a fire – you must feed it to keep it hot constantly.
Paid media, more than ever, is reliant on solid content. The algorithm favors a consistent supply of new and diverse creatives.
Ensure you have the content ready to launch or have a team ready to create new content when going live with ads constantly.
The takeaway?
Make sure to fill all the leaks before launching ads.
Instead of trying to find new eyes on your brand, treat your current customers like your marketing and sales team and get their feedback. Fix your product and product positions, and you'll fix your sales.
Turning on ads becomes easy scaling once your bucket is solid and leak-proof.
🎨 Analyzing Crayola’s Colorful and Creative Tactics
For the number one selling crayon brand in the U.S., the period between July 4th and Labor Day is Crayola’s busiest season.
50% of their annual sales come from this July to September period as teachers and students shop for supplies before the start of the school year. 🖍️
During this peak season, Crayola’s factory in Easton, Pennsylvania, produces 13 million crayons daily.
With nearly 80% market share in the crayon industry and estimated annual sales at $503 million, there’s a lot to be done as they prepare to stock their products in retail shops like Walmart and Target and prepare inventory for their DTC site and Amazon store.
Here’s how Crayola dominated their industry and remains #1 in the coloring and art supplies category. 👇
1️⃣ Strong brand image: During its 120 years as a company, Crayola has created a distinct brand image recognized worldwide. Their packaging is easy to spot and evokes strong childhood memories.
2️⃣ Wide product assortment and innovation: The company produces many unique SKUs to add newness and recently rolled out exciting new products like pastel colored pencils and Crayola Swirl Crayons.
3️⃣ Grow reach with brand partnerships: Crayola’s recent collaboration with S’well turns their iconic packaging into eco-friendly water bottles. Both are staples in the classroom and fit with their Back to School campaigns.
They also partnered with children’s apparel brand Hanna Andersson to create these cool color-in pajamas.
4️⃣ Capitalizes on nostalgic storytelling: Along with recently trademarking that distinctive Crayola scent, the company runs ad campaigns that evoke nostalgic memories.
Their Campaign for Creativity featured an emotional short film called ‘Stay Creative’, which reunites three adults with the artwork they made as kids and how art connects them with others.
The video has garnered almost 3 million views on YouTube and did a great job of reminding parents about their love for the brand and the importance of keeping creativity alive in their day-to-day lives.
The takeaway?
Crayola does a fantastic job of keeping creativity at the heart of its marketing strategy.
Their wide range of products and new releases keeps kids excited, and they do a great job of evoking nostalgia to reach teachers and parents purchasing items before the start of the school year.
🌐 IN THE SOCIAL SPHERE
Ryan McKenzie, co-founder of Tru Earth, dropped some great questions brands should ask themselves before deciding to move into retail. See the full thread here. 👇
⚡ QUICK HITS
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DTC Newsletter is written by Rebecca Knight and Frances Du. Edited by Eric Dyck.
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