Accelerate Your Growth
About the author: Mark Little was previously Global eCommerce and Direct To Consumer Director at Unilever.
Entropy has some of the best talent in Omnichannel and Direct to Consumer marketing that will work with you to accelerate growth for your brand.
The rise of direct to consumer (DTC) marketing
A Changing Landscape
The last 5 years have seen a dramatic shift in the retail landscape. The rise of Amazon is well documented, and their ‘walled garden’ of consumer data is the driving force behind their competitive advantage. Enterprises and brand owners are increasingly ‘data disadvantaged’, and the ability to build and foster direct relationships and 1stparty data proves increasingly important.
Larger companies wake up to the opportunity
When Unilever acquired Dollar Shave Club in 2016, they famously commented they did so not because they wanted to get into the shaving category (they could easily do this with their Axe and Dove for Men brands) – but because they wanted to ‘get into data’. Algorithmic driven ecosystems allow brand owners to deliver ‘personalisation at scale’ – and start-ups such as Graze and Hello Fresh are nice examples of what can be achieved with a little imagination.
D2C (sometimes abbreviated to DTC) has become all the rage within the FMCG industry. The starting point is always the consumer tension or pain point – and successful D2C brands have a clear understanding of the role they play in improving their customers’ lives. Despite the hype, D2C is not a magic solution for any brand – and needs careful assessment before taking forwards.
In addition, building D2C businesses requires new ways of thinking and new skillsets that traditional marketeers often don’t have the time to develop. Here at Entropy we are working with our clients to help brand and eComm teams do exactly that. We help build D2C pilots specifically designed to fit within today’s ZBB budget and resource limitations, and help train brand and eComm teams to become experts in D2C. We believe businesses should ‘fail fast, learn fast’ and adhere to Lean Startup approach. To quote author Eric Reiss – “the lesson of the Minimum Viable Product is that any additional work beyond what was required to start learning is waste, no matter how important it might have seemed at the time”. In doing so, we will help build a model and route to market that is right for your brand and business requirements.
We’re here to help, and more than happy to work with you and your stakeholders to help with:
- Consumer problems, tensions and insights
- Understand if D2C is right for your consumers and your brand
- Test out hypothesis with Lean Startup techniques in a live consumer environment
- Financial models and cohort analysis
- Build and run D2C platforms (including product fulfilment)
- D2C product innovation
- Acquisition and retention marketing
Our Founder Alex Tait recently chaired a panel at DTC London on the topic of what DTC brands can learn from larger organisations. You can read a summary of the discussion here.