Great Marketing Won’t Save a Bad Product (Business & Marketing Chat)
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
This podcast features a fireside chat between Gary Vaynerchuk and Allison Ellsworth (founder of Poppi soda) at a Fiserv event in Las Vegas. The conversation explores the fundamental differences between branding and sales, with Gary emphasizing that marketing is harder because it's art and requires trust, while branding builds long-term value compared to direct sales. (02:44) Allison shares her journey from starting Poppi in her kitchen to building a billion-dollar brand and eventual acquisition by Pepsi, highlighting the importance of taking nine months to develop their brand identity after Shark Tank. The discussion covers the rise of what Gary calls the "interest media era" - where content algorithms show us what we're interested in rather than who we follow - and critiques how big brands still operate on outdated 1991 marketing principles.
- Main themes: The podcast focuses on authentic brand building, the shift from social media to interest media, the importance of product-brand alignment, and why scrappy entrepreneurial marketing beats corporate approaches
Speakers
Gary Vaynerchuk
Gary is an entrepreneur and CEO of VaynerMedia, a marketing and branding agency. He built his family's liquor store from $3.8 million to $60 million in revenue without raising capital or even having a credit line, pioneering early digital marketing through wine videos and Google AdWords. He's also the author of "Day Trading Attention" and a prominent voice in social media marketing and entrepreneurship.
Allison Ellsworth
Allison is the founder of Poppi, a prebiotic soda brand that she started in her kitchen and built into a billion-dollar company before selling to PepsiCo. She appeared on Shark Tank, later returned as a guest shark, and has accumulated over 3 billion views on TikTok. Under her leadership, Poppi became known for its vibrant branding and cultural relevance, particularly among young women.
Key Takeaways
Great Marketing Can't Save a Bad Product
Gary emphasizes that one of the biggest mistakes small businesses make is having excellent marketing skills but a poor product. (07:13) He explains that good marketing against a bad product only speeds up everyone discovering that your product is subpar. Allison reinforces this by noting that while Poppi had great branding, it started with having a genuinely good product first. The lesson is clear: invest in product quality before scaling marketing efforts, as no amount of creative campaigns can compensate for fundamental product issues.
Reply to Every Single Comment and DM
Gary reveals his secret weapon from 2007-2011: he personally replied to every single person who tweeted at him for four years straight. (39:59) He's shocked by how many business owners post content, receive seven comments, and reply to none of them. Community building isn't theoretical - it's like working out. You either do it or you don't. Building 20,000 truly engaged customers can create a massive business, as evidenced by Coca-Cola having to change back their formula due to heavy users' complaints.
Use the 80/20 Budget Rule for Cultural Moments
Allison explains Poppi's strategic approach: 80% of their budget goes to planned, structured campaigns tied to retail moments, while 20% remains flexible for cultural opportunities. (13:53) Examples include creating an "Amaya Papaya" flavor when Love Island went viral or partnering with the Lakers despite not being able to sell there. This approach allowed them to take calculated risks and stay culturally relevant, even when VCs and investors felt uncomfortable with the uncertain ROI.
We're in the Interest Media Era, Not Social Media Era
Gary argues we've moved beyond social media into what he calls "interest media" - where algorithms show us content based on our interests rather than who we follow. (25:23) This shift means content creators and brands have more control over reaching specific audiences organically. The implication is that quality, interest-driven content can find its audience regardless of follower count, making it possible for anyone to break through with the right approach.
Don't Let Ego Block Your Growth
Allison's final advice centers on humility as a secret weapon. (41:19) She emphasizes not letting ego prevent you from accepting help, hiring better people, or stepping back from roles you're not best suited for. Gary echoes this by noting that humility balances perfectly with confidence. The most successful entrepreneurs know their superpowers and build teams around their weaknesses rather than trying to do everything themselves.
Statistics & Facts
- Gary built his father's liquor store from $3.8 million to $60 million in revenue without raising any capital or having a credit line, operating on just 10% gross profit margins. (09:05) This demonstrates the power of bootstrapped growth through innovative marketing.
- 95% of marketing campaigns are expensive failures, according to Gary's experience in Madison Avenue. (03:17) He notes he's being "kind" with this statistic, suggesting the actual failure rate may be even higher.
- Allison's viral TikTok video has garnered 250 million views, with her face appearing in 3 billion total views across the platform. (13:24) This massive organic reach played a crucial role in building Poppi's brand awareness and community.
