How to build a cult-like brand | Laura Modi (Bobbie)

Name: How to build a cult-like brand | Laura Modi (Bobbie)
Uploaded: 2023-04-13T12:00:27.000Z
Duration: 2 h 2 min 6 s

Growth Challenges in Business

Inventory Management Dilemma

Laura Modi's head of growth highlights a critical issue: inventory depletion is outpacing the company's ability to replenish stock, despite rapid customer growth.

The urgency of the situation is emphasized; they have only six days before they can no longer serve existing customers who rely on their product.

A drastic decision is proposed: to turn off the website and halt business growth to manage inventory effectively.

Introduction to Laura Modi

Lenny introduces Laura Modi, former director at Airbnb and founder of Bobby, an organic infant formula company.

The podcast aims to extract valuable insights from Laura’s experiences as a product leader and entrepreneur.

Key Insights from Laura Modi

Building Momentum

Discussion revolves around maintaining momentum within an organization while recognizing that sometimes slowing down can lead to better long-term growth outcomes.

Innovative Ideas from Unconventional Sources

Laura shares her belief that innovative solutions often emerge from individuals without prior experience in a specific problem area.

Leadership During Tough Times

The conversation touches on effective leadership strategies during challenging periods, emphasizing resilience and adaptability.

Sponsorship Messages

Vanta Overview

Vanta helps companies streamline security compliance processes, enabling faster audits and risk mitigation for businesses.

Element Hydration Product

Element offers a sugar-free electrolyte drink mix aimed at preventing common symptoms of electrolyte deficiency, endorsed by various professional athletes and teams.

Reflections on Airbnb Experience

Transformative Time at Airbnb

Both Lenny and Laura reflect on their transformative experiences at Airbnb, highlighting its impact on their careers.

Diverse Responsibilities

Airbnb's Evolution: The Role of Hosts

Transition to European Operations

The speaker recalls being tasked with leading the consolidation of European offices in Dublin, reflecting on the significance of this operational change.

There is a humorous self-reflection about being chosen for the role due to being the only Irish person in the company at that time.

Understanding Airbnb's Product

A pivotal realization occurred that Airbnb's true product was its hosts, not just technology or physical properties.

This led to establishing a central team called Hospitality, focused on equipping and holding hosts accountable for their roles.

Insights on Supply as Product

The discussion highlights lessons learned from viewing supply (hosts) as the product, emphasizing internal culture creation.

A shift towards understanding hosts better was crucial; prioritizing host needs over mere booking optimization drove growth at Airbnb.

Lasting Lessons from Airbnb

Culture is identified as fundamental to success; it influences hiring practices and overall organizational energy.

Storytelling emerged as a powerful tool for motivating teams and fostering excitement around projects, reinforcing a sense of purpose.

Building Strong Company Culture

Maintaining high energy levels within the organization is essential; it was described as "currency" at Airbnb.

Personal connections among team members are vital, especially in remote work settings. Regular personal and professional check-ins help foster these relationships.

Balancing Professionalism and Personal Connections

The speaker reflects on how personal relationships can enhance workplace dynamics but acknowledges challenges when letting people go.

Emphasizes the importance of caring about colleagues while maintaining a balance between personal connections and professionalism.

From Airbnb to Baby Formula: A New Journey

Starting a Powdered Milk Company: A Personal Journey

The Decision to Start a Business

Laura shares her experience of starting a powdered milk company despite being lactose intolerant, highlighting the initial confusion from her father about her decision.

She reflects on the challenges of leaving an established job with benefits for the uncertainty of entrepreneurship, emphasizing that taking risks often involves stepping back before moving forward.

Laura discusses the narrative in her career that big leaps require significant risks, recalling her transition from Google to Airbnb during a crisis period for the latter.

She recounts how others questioned her decision to leave a stable job at Google for a startup like Airbnb, reinforcing the theme of risk-taking in career choices.

Laura emphasizes confidence in her decisions and acknowledges that while some risks may not pay off, careful consideration can lead to successful outcomes.

Key Insights on Risk-Taking

The conversation shifts to identifying patterns in decision-making when taking significant risks; Laura mentions having numerous business ideas but lacking conviction for most.

She stresses the importance of thorough market research and understanding financial implications before committing to new ventures.

Laura clarifies that success is often perceived as luck but requires substantial groundwork and planning behind it.

Introduction to Bobby

Bobby is introduced as an infant formula company aiming to modernize products within an industry dominated by outdated options.

The company emerged amidst a crisis in 2022's infant formula market, which has seen little disruption over decades due to its duopoly structure.

Laura expresses frustration with existing formulas' ingredients and aesthetics, feeling guilty about using them as alternatives when breastfeeding isn't possible.

She articulates societal pressures surrounding formula feeding, noting how parents often feel they have failed if they cannot breastfeed successfully.

Growth and Scale of Bobby

At launch in early 2021, Bobby started with just 100 direct consumers; expectations were modest at around $4-$5 million revenue in the first year.

Despite initial uncertainties regarding growth projections, Bobby exceeded expectations significantly within its first year.

Bobby's Response to the Formula Shortage Crisis

The Impact of a Personal Touch

A friend shared a story about Bobby's exceptional customer service during the formula shortage, where an employee personally delivered formula to her home, fostering brand loyalty.

Navigating Challenges and Opportunities

The speaker reflects on how crises can reveal opportunities, emphasizing gratitude for being in a position that many startups would envy.

The Formula Shortage Revelation

The U.S. faced an infant formula shortage after a major recall from one of the leading companies, highlighting the vulnerability of supply chains.

Rapid Growth Amidst Crisis

Bobby experienced a doubling of its customer base within the first week of the shortage as parents sought reliable sources for infant formula.

Inventory Management Dilemma

Despite growth, there was concern over inventory depletion; it became critical to manage stock levels carefully due to the nature of infant formula being essential.

Strategic Decision-Making Under Pressure

The head of growth warned that they were depleting inventory faster than replenishment could keep up, prompting discussions on halting new customer acquisition.

Crisis Management and Customer Commitment

Prioritizing Existing Customers

A significant decision was made to turn off new subscriptions temporarily to ensure current customers received their needed products without interruption.

Embracing Hibernation Mode

Bobby entered "hibernation mode," focusing solely on serving existing subscribers while maintaining confidence in product availability amidst widespread panic.

Maintaining Reliability During Uncertainty

For six months, Bobby kept its website offline for new customers but successfully served its existing 70,000 subscribers without running out of product.

Cultural Shifts Within the Company

Redefining Growth Strategies

With a team focused on growth now tasked with maintaining stability, they humorously rebranded themselves as the "sloth team" to reflect their new objectives.

Creative Solutions During Adversity

Team members engaged creatively by reaching out to subscribers about cancellations while ensuring product availability remained intact.

Lessons Learned from Crisis Management

Storytelling as a Powerful Tool

The CEO emphasized storytelling's importance in conveying impact internally and externally during challenging times.

Emotional Connections with Customers

Building a Brand: Insights and Strategies

Emotional Connection in Business Growth

The speaker emphasizes the importance of emotional connections with customers, highlighting that while business growth is significant, the stories and voices of 70,000 customers have a profound impact on the company.

Acknowledges the effort put into brand building, noting its success as every mother seems to recognize the brand "Bobby," indicating strong market presence.

Personal Touch and Product Relevance

A personal anecdote about expecting a child leads to discussions about product relevance; there's an emphasis on being prepared for various feeding options.

The conversation shifts back to brand strategy, focusing on understanding when to invest in branding based on product needs.

Understanding Customer Needs

The speaker stresses that brands must connect with their customers' experiences and address their concerns directly.

It’s crucial for brands to identify what keeps their target audience awake at night and ensure they are solving those problems effectively.

Messaging and Creative Strategy

The messaging should resonate with parents’ struggles during early feeding stages; avoiding irrelevant marketing is key.

Brands should not bombard consumers with messages unrelated to their immediate concerns but rather connect through shared experiences.

Navigating Market Perceptions

There’s recognition of societal pressures regarding breastfeeding versus formula feeding; brands need to navigate these perceptions delicately.

The idea that if a brand has to explain itself too much, it may be losing its audience. Instead, focus should be on amplifying voices that align with the product's purpose.

Shifting Brand Strategies

Initially, the brand positioned itself against breastfeeding by stating formula is just as good but has since realized it's more effective to support those who already understand its value.

Emphasizes that no brand should disparage others; instead, they should focus on promoting their own values and benefits without negative comparisons.

Ethical Branding Practices

Advocates for ethical branding practices where companies do not point fingers at competitors or alternative feeding methods but rather celebrate their unique offerings.

Conclusion: Building Trust Through Authenticity

Understanding the Power of Branding in Business

The Importance of Internal Branding

The speaker emphasizes the significance of branding within a company, describing it as a "secret sauce" for operational success.

They reference Airbnb's early customer service initiatives, specifically a program called "air Dives," which analyzed customer service issues and became popular among employees.

The speaker argues that branding workflows and frameworks can enhance motivation and improve memory recall among team members.

Creative Naming Conventions

The discussion shifts to unique naming conventions used within the company, with examples like "Project Shamrock" and "Project Lumberjack."

A specific initiative called "The Secret Shopping Program" is introduced, where the legal team conducts monthly reviews to ensure compliance with quality standards.

Challenges with Regulatory Compliance

A personal anecdote is shared about an encounter with the FDA during product development, highlighting challenges faced when disrupting industry norms.

The speaker recounts how they had to re-label products after regulatory scrutiny, illustrating the complexities startups face in compliance.

Balancing Personal and Professional Life

During this challenging period, the speaker discovered they were pregnant with their third child, reflecting on how personal growth can occur alongside professional struggles.

They discuss finding balance between personal life events and business demands, noting that both aspects can flourish simultaneously.

Support Systems for Founders

The conversation highlights the importance of having a strong support system; introducing Kendra, their executive assistant as an essential part of their success.

How to Find Your Kendra?

The Importance of Connection

The speaker expresses gratitude for feeling celebrated and discusses the significance of finding a personal connection, referred to as "Kendra."

Emphasizes that establishing chemistry through multiple interactions is crucial in forming meaningful relationships.

Balancing Work and Family Life

Acknowledges the hard work required to manage both professional responsibilities and family life, highlighting the importance of transparency.

Discusses the infrastructure built at home, including calendars and additional help like a nanny, which are essential for managing chaos effectively.

Mentions weekly meetings with her husband to coordinate schedules for children’s activities, emphasizing teamwork in parenting.

Embracing Naivety in Business

Lessons from Starting New Ventures

Reflects on how slowing down business operations can provide opportunities to focus on personal life aspects.

Shares insights about starting a direct-to-consumer (D2C) business without prior experience in baby formula production.

The Power of Naivety

Argues that naivety can be an asset in fostering creativity and innovation, allowing one to challenge existing norms.

Describes how entering the industry with limited understanding helped her view challenges differently and apply unique hiring principles.

Hiring Unconventional Talent

Value of Diverse Backgrounds

Highlights the importance of hiring generalists who may lack specific expertise but bring fresh perspectives driven by curiosity.

References Mr. Beast's approach to hiring young talent over traditional Hollywood professionals due to their adaptability and understanding of new content creation methods.

Examples from B2B Success Stories

Notes that many successful B2B founders lacked direct experience in their fields, showcasing diverse paths to success.

Shares an example of a marketing lead with an Emmy Award background who brought storytelling skills rather than conventional marketing knowledge.

Curiosity as a Key Trait

What Makes a Good Hire?

Growth Strategies in D2C Companies

The Importance of Momentum and Action

Emphasizes the need for decision-making speed and maintaining momentum in startups, suggesting that perfectionism can hinder progress.

Highlights the saying "perfect is the enemy of good," advocating for a proactive approach where individuals focus on execution rather than overthinking their roles.

Describes the ideal employee as an "optimistic doer," someone who actively contributes without getting bogged down by excessive strategizing.

Challenges in Direct-to-Consumer (D2C) Growth

Discusses common misconceptions about D2C being dead, arguing that while approaches may need to evolve, the model itself is still viable.

Points out that many D2C businesses fail due to outdated strategies and reliance on paid marketing, which can become unsustainable.

Evolving Marketing Strategies

Advocates for a shift away from solely performance marketing towards more sustainable customer acquisition methods.

Introduces a new framework prioritizing content and community over commerce, suggesting this inversion leads to better engagement and brand loyalty.

Building Thought Leadership through Content

Shares an example of creating a platform called Milk Drunk to fill gaps in consumer education regarding formula feeding, establishing authority in the space.

Notes that effective SEO practices have led to high visibility for their content, driving traffic back to their main brand site.

Balancing Product Quality with Marketing Efforts

Reflects on Airbnb's strategy during COVID when they paused paid growth efforts; highlights how difficult it is to stop relying on paid marketing once established.

Estimates that 60% of Bobby's growth comes from product quality and branding, while 40% relies on word-of-mouth marketing strategies.

Emily's Influence and the Power of Data

The Impact of Emily on Personal Journey

The speaker expresses admiration for Emily, highlighting her as a significant influence during their pregnancy journey.

Emily challenges common myths about breastfeeding, stating there is no definitive study proving its superiority over formula feeding.

The speaker acknowledges the importance of credible voices like Emily in business and branding discussions.

Lessons on Building Momentum in Business

The discussion shifts to creating urgency and momentum within a company, emphasizing that leaders must actively manufacture momentum.

Founders are encouraged to set arbitrary deadlines to maintain progress; this can help prevent stagnation in early stages.

Reflecting on past experiences, the speaker notes how setting milestones fuels motivation and keeps teams engaged.