Nuggs vs. Impossible Burger – Nuggs Marketing Teardown [4/7]

Travis Page Season 2

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[00:00:09] Today, we’re going to go over the positioning strategy of a company called NUGGs. If you didn’t catch the last couple episodes, we break down some other aspects of the company including their business model. Go check them out below somewhere. But today, we’re gonna talk about positioning. So first things first. Who buys this? This is a you know, it’s it’s a meat alternative. It’s not a meat chicken nugget. And so we identified a couple of key personas of who they’re really going after in the market and also kind of who makes sense to into the subscription model. [00:00:39][29.7]

[00:00:40] And man, where do we start with this? [00:00:42][2.4]

[00:00:44] It’s pretty clear, especially what their branding, sort of what they’re going after. First, sure. Trendy vegans, vegetarians, woke tech bros, with their tech angle and sort of their tech background. And I think if you look at it from a SKU perspective and from a subscription perspective, rich suburban moms are basically the key to tying all of this together. But how do you how do you even approach Travis? Where do you want to break this down? [00:01:09][25.4]

[00:01:11] I mean, if you look at the commonality between all these people, they have expendable income and they have a lot of it. Besides top right. Well, tech, bro, they have a lot of time to make decisions. So they’re going to, like, evaluate their their different options market. And so you can get their allegiance inside the woke tech bro. You’re going to be able to increase that lifetime value because they’re going to be repurchasing especially rich suburban moms? [00:01:33][22.5]

[00:01:34] Yeah. Yeah. I think rich suburban moms especially make sense to me just for this description on a subscription basis, because for a four pound box of nuggets like no individual or couple needs a four pound box regular basis, it just doesn’t make any sense. [00:01:49][14.5]

[00:01:50] But for a family. Yeah. That actually does make sense. And the person the family is going to buy this. Most likely the rich suburban mom or I guess you’d say rich suburban dad, depending on how the family roles are set up. But yeah, that’s that’s who’s going to introduce that food into the household. And the kids are, of course, going to follow the taste of parents. So to me, that’s they’re probably their core target persona, which also makes sense with their expansion into Whole Foods that they’re working out the retail push. So, you know, that’s basically exactly their target. The top 10 percent is like tech bros and trendy vegans. [00:02:24][33.5]

[00:02:24] Those are the people that switch consumables like the most. So, you know, they’re always those are the people that want to have the newest opinion about the newest thing. So I would imagine that, like, unless you’re making a very, very large purchase, which I’m sure both those people do. The key to like getting that customer lifetime value really high is the rich suburban. [00:02:45][20.8]

[00:02:47] Yeah, there’s one exception to that, I think, which is as they launch new products or even merch or even like non-food products to anyone in the tech bro or the trend chasey category is going to immediately buy that. They’re like, hey, last time I bought this cool thing and I could tell all my friends about it and they thought I was fucking awesome. [00:03:04][17.0]

[00:03:04] And now there’s a new thing from this company I gotta this buy stuff to tell people about it like thats exactly how it’s going to go down at a special points. Yeah. Everybody who buys Soylent and then tells everybody about how they’re like optimizing their diet and have no replacement shake is exactly that. Yeah. [00:03:21][16.4]

[00:03:21] So that’s really, that’s our take in the personas in the market. Want to break it down for a few other angles as well. We pulled up a pretty classic protein matrix on just a refresher on that. You’ve got X-axis from pretty boring kind of brand to a pretty cool brand and then our y axis going from low cost to high cost. So I think pretty key when you’re looking at protein those are usually the main factors as far as what going to influence your purchasing. You can basically apply this to protein powders as well. [00:03:49][28.0]

[00:03:50] And you’ll always have people able to go for the lowest price but want something that looks kind of cool. And they always have people that are just like, I don’t care what it costs. Give giving the best thing. And they’ll have a different opinion on the cool spectrum, depending on who they are, where they fall in that category. So then we’ve got NUGGS squarely in the cool category, but kind of medium on cost. I mean, I think it’s a good position to be in overall. Yes. [00:04:15][24.9]

[00:04:16] It’s interesting because, like, if you look at our personas like who buys this? Each person fits into very specific categories. So like the rich suburban mom will definitely go into the lower high courts and the boring category, whereas the tech bro doesnt care how much it costs. He’s going to go for the impossible burger. It’s super expensive as long as it’s too cool for school kind of to vegan to, but they might fall kind of more and like that’s square in the middle like corn category. But really like nuggs and soylent are almost positioned in the exact same space. I think NUGGS is a little bit more playful and less like technical and like kind of boring like Soylent. Just the nature of their product is like, hey, this is going to probably taste bad. You’re not going to like it, but it’s going to be effective. And it is perfect for the time being in Silicon Valley. That’s kind of what they did, too, is they’re like. OK, we’re going to create soylent versus a powder. Next is like an accessible drink, the next. As like that we’re going to sell it and 7-Eleven and then use SKU product expansion there. But I think the reason they were able to do that is they’re essentially a chemical company, whereas NUGS is like there’s so much more like that production of manufacturing and shipping in that it’s going to be a little bit it’s difficult to get into that low cost category. But we’ll see other products. Might be a game changer. [00:05:30][73.6]

[00:05:31] Yeah. And the way I’m looking at this, by the way, I think this is if you reference the way that we’re looking at the business model, the direction they can move on, this is basically up or down along the y axis. [00:05:41][10.5]

[00:05:41] Like them for sure. They don’t want to become a boring brand like they. That’s their differentiator right now. And it’s super cool. But for them to go low cost is basically optimizing their production, scaling up, improving their logistics. And just like building the infrastructure to get to people, because that’s going to drive down the cost of products and improve their margins. And then moving down into the high cost category. That’s the kind of thing that would improve their average order value, that improves their lifetime value if they can produce at a similar price point to get the product onto into someone’s home, like similar cost of goods. But they can charge more than, yeah. Their their margins going to go up. And so, like, if their margin is kind of on the edge right now and they’re surviving off of their raise capital. Those are the two options. Do they basically have in order to put this in the long road to sustaining viable business? As far as I can see that. [00:06:27][45.8]

[00:06:31] Yeah. [00:06:31][0.0]

[00:06:31] So that said, I mean, give me an eight escolar. [00:06:36][4.6]

[00:06:37] Nate, you’re a little bit more pessimistic down to this. [00:06:39][2.3]

[00:06:39] I brought Dedieu a seven reelect seven because I love this brand so much right now. They’re doing terribly as far as I think they’re in their unit economics. But really, like all they need is a really good operations person and somebody who’s good at negotiation because they have like said, it’s all type of like brand. It’s such a secret weapon because it makes everything so much easier. It means it means acquisition to be cheaper. It means everybody everybody’s going to flock to organic channels a lot more. Well, like just as somebody who is not the target percent whatsoever, I visit their website four or five times. I shared it with people. I plugged in my phone number and conversations with their help person. Everything’s going to be easier just because the brand is so solid and their percentage has a lot of money. If you just convinced that now, which is again, like they’re all there, percent is expendable income for this category specifically. [00:07:28][48.7]

[00:07:29] Yeah. Yeah. And I’m of that age on top of that. I completely agree. And I made on top of that just for the sole reason that the market is growing like crazy. [00:07:35][6.1]

[00:07:35] And they’re focusing on, I think, the right thing with expanding the skews and also going to retail for that basis. I think they’re going to build a solid chunk in the market for themselves off of that revenue. [00:07:47][11.2]

[00:07:47] That up does tear down cold, pluggable real quick. I run a company called Opta Motive. We help other companies, lots of skinny brands, new products and enter into new markets. So if you want to do one of those things, let me know. And then, Travis, you’ve got some flexibles as well. [00:08:02][14.6]

[00:08:03] Yeah, I run a product. I had a product over it said a body where a video production platform specially makes it easy for brands to send out a brief update, click a link, and then they can film anything that the brand requests comes back and Sharpless format over the cloud. I packaged netted it. You should set it out within a day. Well, hot diggity dog, that’s down. [00:08:03][0.0]