Magic Spoon co-founder Gabi Lewis talks cereal brand's expanded retail footprint and marketing strategy
Feb 13, 2024
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Magic Spoon, a DTC cereal brand, discusses expanding to 16,000 retailers, changing ad strategies to include in-store displays, and tackling measurement challenges. They explore social media growth, nostalgic marketing tactics, and navigating the evolving social media landscape. The podcast also touches on online sales challenges, traditional marketing channels in the digital age, and the brand's unique positioning in a competitive market.
Magic Spoon successfully expanded to retail stores like Target and Costco post online launch, diversifying its advertising strategy to measure offline in-store ads alongside direct response ads.
Magic Spoon's influencer strategy evolved to include affiliate programs, flat fee collaborations, and user-generated content, balancing polished and authentic content across social platforms.
Deep dives
Magic Spoon's Shift to Retail Strategy and Attribution Measurement
Magic Spoon, a DTC cereal brand, expanded to retail stores like Target and Costco after its successful online launch. By broadening its retail footprint, they diversified their advertising approach to measure offline in-store ads in addition to direct response ads. The challenge lies in accurately measuring the impact of online activities on offline sales, aiming to understand the halo effect of online efforts translating to tangible retail success.
Influencer Strategy Evolution and Content Generation
Magic Spoon's influencer strategy evolved from initial investments by influencers to include affiliate programs, flat fee collaborations, influencers as investors, and content collaborations for custom product flavors. The importance of user-generated content (UGC) in filling content gaps across various social platforms is evident, utilizing different types of influencers for varied content purposes, while maintaining a balance between polished and authentic content.
Challenges in Online Sales and Prioritization
In the ever-evolving landscape of online sales, Magic Spoon faces multiple challenges across acquisition channels like paid social and podcasts. The key challenge lies in prioritizing which issues to address and deciding where to invest efforts and resources. With challenges differing for each channel, determining which obstacles hold the most potential for impactful solutions becomes a significant strategic hurdle.
Exploration of Traditional Channels and Digital Fatigue
As digital channels face saturation and rising costs, Magic Spoon explores traditional avenues like direct mail and linear TV. The resurgence of interest in traditional marketing channels reflects a shift towards diversification due to digital fatigue and increasing complexities in the online space. Embracing traditional marketing alongside digital strategies highlights a strategic response to evolving market dynamics and growing competition.
Magic Spoon, the cereal company that launched entirely online back in 2019, has since expanded its footprint to more than 16,000 national retailers to meet shoppers where they are, whether that’s online or in-store.
Historically, the cereal company built its millennial and Gen Z following via short-form social media videos, podcasts alongside other direct-to-consumer brands. But as its retail footprint expands, so does its ad strategy, to include things like in-store aisle displays. On this episode of the Digiday Podcast, we caught up with Gabi Lewis, co-founder at Magic Spoon, to talk about the brand’s expanded retail footprint, standing out in a crowded category and of course, the measurement woes plaguing marketers.
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