Cake On A Stick

Positioning means as much in DTC as retail, even if it’s not immediately apparent

April Dunford’s “Obviously Awesome” is a book focused on helping software companies figure out their positioning. But there’s an example in it that makes sense to raise with this audience: Cake Pops.

To frame the value of positioning—and the challenges associated with it—Dunford starts by describing what cake pops actually are (“cake on a stick”) and poses the question:

“But is that really what you built? Is ‘cake on a stick’ the best way to position your cool new thing? Right up front, you set the context for what your product is all about Your ‘default’ position was cake. But when we think of what makes a better cake, we think of bigger slices, better ingredients and more frosting. The qualities that make your product special aren’t qualities that you would normally associate with cake at all. Sticks do not belong in cakes.” 

Presenting the alternative—where the default position is a lollipop—she continues:

“Of course it has a stick. Of course it has a ball. Of course it’s a snack and not a dessert…. A cake pop is easy to understand and, for coffee-drinking grown-ups on the go, it’s a big improvement over your run-of-the-mill lollipop intended for kids.”

Perhaps even more than software, positioning is a crucial piece of CPG. Get slotted in one certain merchandising set, and your velocity is OK. Get slotted in a another one, and you’re off to the races.

Why?

In retail, what you’re next to matters significantly. And not just because of store placement, but because of the context it provides to the customer about who you are and what you offer. This is, in fact, as true in brick-and-mortar as it is online.

But DTC gets complicated.

DTC allows for category creation, new narratives, and education that’s not as easily accomplished within the structures of retail. Powerful, yes; but for brands that can potentially live in multiple categories—or are trying to extend a traditional category—this can also be dangerous. 

Because your sales data is absolute—as opposed to relative to your peers within a retail slotting—you may have false impressions about the effectiveness of your positioning. 

We were reminded of this topic this week when Muddy Bites refreshed their brand and released a new website. While we don’t normally include visuals in this newsletter, we thought it was worth highlighting this:

Clear on what they sell?

The incredible thing about this visual is how immediately you understand what the product is. Compare their old site to their new site, and you’ll notice they, too, believe this visual will educate the customer. The “What are Muddy Bites?” section got moved from the top half of the site to the footer—and got cut from 103 words to 23 and the social proof of 2000+ reviews also got bumped down the page.

In other words, the visual earns trust.

In the old positioning, Muddy Bites felt like a snack. But sort of a unique one that traded on the impulses of nostalgia and, let’s be honest, pretty akin to late-night GoPuff orders. But now? Muddy Bites is a snack, with the same nostalgic appeal, but also a new ice cream topping.

For DTC, that makes understanding the product easier. For retail, that makes placement more ubiquitous. For both, it makes sales easier.