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In this episode of Chew on This, LIVE from SubSummit 2024, Ron, Ash, and Ankit discuss the challenges behind running Obvi and some of their greatest mistakes along the way. They cover a range of topics including their brand identity crisis, supply chain nightmares, marketing struggles, and financial management. They share their journey "from Hell to Heaven", and share their learnings and offer advice to other brand builders.
🎙️ Creative Diversity: The co-founders emphasize the importance of testing various creative styles and messaging, such as static and video ads, to achieve higher ad performance.
📉 Skew Rationalization: They stress the need to be brutally honest with yourself and your product line. Don’t be afraid to eliminate products that are not contributing to your bottom line.
📦 Pre-Order Strategy: Utilizing a ship-by-date model allows you to manage inventory and generate hype around new products. You can sell through your inventory before it arrives.
💰 Negative Cash Conversion Cycle: Use payment terms and credit cards strategically to maximize your cash flow and make sure you are profitable before paying your suppliers.
🤝 Open Communication: The co-founders encourage open and honest communication within your team to navigate tough times. Networking and collaborating with other brand builders is crucial.
0:00 - Intro.
1:18 - Increased struggles in business.
3:02 - Adapting to changes in marketing.
4:04 - Testing and diversifying creatives.
8:04 - Community influencers for brand promotion.
10:05 - Consumer research and A/B testing.
12:00 - Obvi's brand identity crisis.
16:03 - Product quality and consumer feedback.
18:04 - Launching new products and refining marketing strategies.
19:06 - Top-of-funnel strategies for customer acquisition and retention.
27:41 - Utilization of strategies during challenging times.
28:18 - Understanding the daily P&L tracker.
29:01 - Customer acquisition cost and profitability.
31:28 - Weekly monitoring of business performance.
32:09 - Cutting overhead expenses.
33:02 - Generating new customers vs retaining existing ones.
34:08 - Adjusting product pricing for increased sales velocity.
37:02 - Effects of pricing adjustments on revenue and customer acquisition.
39:04 - Adapting marketing strategies based on consumer behavior.
41:00 - Maintaining margins and profitability in retail vs online sales.
46:04 - Seeking collaboration, learning from others, and adapting strategies.
50:20 - Continuous learning and adaptation.
51:48 - Final chews.
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Ron Shah - https://twitter.com/obviceo
Ash Melwani - https://twitter.com/ashvinmelwani
Chew On This - https://twitter.com/chewonthisdtc
