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Diving overview:
- Smokeless fire pit developer Solo Stove is once again stirring up controversy in the marketing arena, but perhaps not for the reasons the company expected.
- The product, owned by Solo Brands, first made headlines in November after naming Snoop Dogg its official “smoker.” The campaign follows a cryptic post by the cannabis-friendly rapper teasing that he’s “quitting smoking,” though not smoking, leading to speculation that his pledge was a marketing stunt.
- The bait-and-switch strategy initially appeared to be successful as Solo Stove generated earned media and increased social engagement. But the role of expensive celebrity ambassadors hasn’t boosted sales as much as expected, showing marketers are missing out on their core customer base of outdoor enthusiasts.
Dive Insight:
Solo Stove ended 2023 with a campaign that ticked many of the boxes for marketing success. The Snoop Dogg-led initiative piqued consumer interest with cryptic social media posts, sparking a lot of chatter and speculation online. Eventually, it was revealed that the rapper’s vow to “quit smoking” was actually a reference to his penchant for outdoor fire pits, rather than his famous love of marijuana, sparking even more media attention. I felt that this could pave the way for increased sales during the holiday season. Developed in conjunction with the Martin Agency, the campaign is also Solo Stove’s first national marketing effort, raising the stakes even further.
A few weeks into 2024, it’s clear that the creative strategy has failed. Solo Brands, which sells other outdoor lifestyle products including Ol Kayak, Isle and Icy Breeze, will be “mutually separated” from the company by former CEO John Melis, according to a financial report. I agreed to the new year. Christopher Metz, Vista Outdoor’s most recent CEO, was appointed President, CEO and Director of Solo Brands on January 15th.
In a press release detailing the company’s latest 2023 financials, Solo Brands said full-year revenue was expected to reach $490 million, compared to previous guidance of $520 million to $540 million. He said he expects it to be in the range of $500,000 to $500 million. Executives didn’t mince words about how the partnership with Snoop Dogg would affect business results.
“Although our unique marketing campaigns have increased brand awareness of Solo Stoves to a new and expanded consumer base, we have not achieved the sales growth we had planned, and combined with increased marketing investments, our EBITDA It had a negative impact on the economy,” he said. CFO Andrea Talbox said in a statement. “We have a significant opportunity to increase awareness and believe these new campaigns will expand our reach and benefit our brand in the long term.”
The reversal of fortunes led to a lot of analysis of the state of creativity in marketing and securing the right ambassadors for the product. Solo Brands, which went public in 2021 and has been focusing on direct-to-consumer sales, expanded its wholesale business to many retailers in the first half of 2023 and seemed to be doing well, but due to marketing mistakes. This only hurt the profits of some retailers. those profits.
In the end, the company may have just missed its core customer base as it chases new buyers around celebrities with strong brand profiles but no clear connection to the outdoors. As for why Snoop Dogg’s campaign hasn’t resonated, it might be helpful to rethink how Solo Brands has positioned its marketing in the past.
“We believe we have successfully marketed our brand and products by associating them with outdoor activities that can be experienced with family and friends,” the company said in its 2022 annual report.
“To sustain long-term growth, we need to market our products not only to consumers who identify with or aspire to these activities, but also to individuals who value our products’ differentiated features, high quality, and specialized design. “We need to continue to successfully promote our products, but we can also promote new products that we have no experience with and attract more customers to our existing products,” the report continues. “If we are not successful in marketing or selling our products to existing customers or expanding our customer base, we may experience a decline in sales or be unable to grow our business.”
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