The Modern Retail Podcast

Rachel Drori started a company because she was hungry. But once the seeds of Daily Harvest were planted in her head, she dove in, and started trying to build a brand. Now, with a cushion of VC funding, Drori is looking towards the next evolution of her company. According to Drori, some of the funding will be used to build out the brand's content strategy and help them share their story. On this week's episode of Making Marketing, Shareen Pathak sits down with Drori, the brand's founder and CEO, to discuss how she built her business, why she worked with investors before taking funding and how she's pushing back against rising customer acquisition costs.

In the past few years, Foot Locker has been making headlines for its aggressive push to modernize, and according to the company's CMO, Jed Berger, that innovation has pushed their marketing department to start thinking about their customers in a new way. From investing in a handful of consumer startups, to rethinking their retail spaces, to launching their own incubator, the company has been working towards what it will be the next evolution of the retail industry. For Berger, this forward-thinking push means that how the company is marketing itself has to evolve as well. Now, Berger is getting involved in the products from the design stage to ensure that the consumer draw is built-in, and sees himself as more of a business partner, than a marketer. On this week's episode of Making Marketing, Shareen Pathak sits down with Berger to discuss the changing role of marketing at Foot Locker, why the company chose to incubate and invest in new brands and the shift of the overall marketing industry.

Electric toothbrush DTC brand Quip wants to grow up, and it is doing so by going beyond DTC. As is common with many direct-to-consumer brands looking to scale, Quip participated in a pop-up, took to the New York City subways, and recently began selling its products in Target stores (although refills can only be bought directly from their website). Now, following the acquisition of dental insurance brand Afora, Quip is looking to expand its offering into services. Quipcare, which will be rolling out this summer in New York City, has two options that will let customers partake in either a pay-as-you-go model which offers services at a discount or a $25-a-month model that resembles traditional dental insurance. When asked about how the company plans to balance two very different businesses -- products and healthcare -- Shane Pittson, Quip's vp of growth, said it's all part of the same ecosystem. Customers can pick-and-choose which parts they would like to subscribe to, or they can subscribe to the full Quip "universe." On this week's episode of Making Marketing, Shareen Pathak sits down with Pittson to discuss how Quip learned from its DTC peers in its early days, why its move into Target is part of an accessibility-focused mission and how it's working to control the brand experience in places where it doesn't have total control.

When sustainable bedding brand Buffy, launched in late 2017, it looked like the archetypical direct-to-consumer company: online presence, purpose-driven marketing and no middlemen. However, that didn't last very long. In one of their earliest rejections of the direct-to-consumer tropes, Buffy did not take any VC capital. Instead, the founders opted for a few angel investments, and bootstrapped the rest of its funding strategy. According to Paul Shaked, Buffy's co-founder and vp of growth, growing has been at the core of Buffy's mission since day one, so shortly after launch they moved into selling third-party on Amazon, and then into physical retail. Now that the company has reached a point of scale it is happy with, it is starting to explore non-Instagram and more non-digital forms of marketing as a way to continue growing. In this week's episode of Making Marketing, Shaked sits down with Shareen Pathak to discuss the many tropes of a DTC brand, Buffy's approach to marketing and why it's investing in its own editorial platform.

When David Wolfe co-founded premium mattress brand, Leesa in 2014, he already had almost two decades of experience in the DTC world. Throughout that time, he says, he's learned to keep an eye firmly planted on technology. In the years since its launch, Leesa has expanded beyond DTC -- it now sells in West Elm, on Amazon and on its own site. Now, Wolfe is focused on finding new, more efficient ways to market the company, going beyond what he calls "traditional" digital marketing channels. On this week's episode of Making Marketing, Shareen Pathak sits down with Wolfe to discuss how a brand purpose can be built authentically, why he's a big believer in video advertising and how he defines the word "omnichannel."

Vuori clothing, an athleisure brand launched in 2015, is a rarity: The company, which does do most of its business direct-to-consumer, has a healthy wholesale operation, a few physical stores of its own and has raised only a small angel funding round to date. The company's founder, Joe Kudla, joined Digiday on the Making Marketing podcast to talk about why it was important for his business to not go down the VC-funding route when it launched.

Burrow is a digital-born luxury furniture company, that, like most DTC brands, put most of its marketing eggs in the Facebook basket. But it soon realized that it can't simply rely on social media to drive sales. Burrow's head of intelligence, Alex Kubo joins us on this episode.

As the traditional lines of luxury blur, luxury marketers are competing for attention and consumer spend across categories. Lee Applbaum, CMO of the high-end spirits brands Patron Tequila and Grey Goose Vodka, part of Bacardi Global Brands Limited, is making a play for more of the luxury customer’s wallet. Applbaum discussed how platform partnerships can help the brand reach customers differently, how he thinks of marketing channels and more.

In the past year, the agency world has been rife with news of consolidation. Most executives have explained this as part of a longer-term plan to create less siloed organizational structures and pitching more efficient, integrated solutions to clients. Peter Sherman, executive vice president of Omnicom Group, doesn’t buy it. Sherman discusses the best path to consolidation, how consumer centricity has changed over the years and more.

Brand purpose has become the go-to phrase for chief marketing officers. Stephanie Buscemi, CMO at Salesforce, claims brand purpose is imperative for every brand and it’s even expected by the employees.

Shopify has emerged anew in the direct-to-consumer era. The 15-year-old e-commerce platform that powered the small business segment is worth $25 billion. Now, it's setting its sights on the larger brands. Hana Abaza, director of marketing at Shopify Plus, the division in Shopify that works with larger merchants, says the pitch is about distinguishing between control and ownership. Abaza discusses evolving as a platform to retain bigger brands as they grow, why the DTC companies are here to stay and more.

The direct-to-consumer era is changing consumer behavior and expectations across categories, be it retail or insurance. Liberty Mutual has felt this shift, and in its new products as well as marketing is attempting to change in line with those expectations. Emily Fink, CMO at Liberty Mutual, joins us on this episode.

The direct-to-consumer playbook at this point is well known: Launch online with one product, expand to physical stores, and stretch into new products and even categories. For Brooklinen, the online-born bedding brand, it's no different. The company, which made about $48 million in revenue last year and says it's on track to be a $100 million company, just experimented with a pop-up store in SoHo last year. It has also expanded to bath wear, with more to come soon. Founder and CEO Rich Fulop said it comes with taking a broader view of the category. He talks about the best marketing channels, building a creative team in-house and more.

In the last year, Athleta, the women's workout wear brand owned by Gap Inc., has taken its creative in-house for its content creation efforts. Athleta CMO Sheila Shekar Pollak discusses the marketing mix for the brand that is on its way to becoming a $1 billion business, the importance of in-store events, omnichannel marketing and more.

There is no lack of success stories in the direct-to-consumer markets. But there are also questions being asked of how long the industry can sustain itself. With a plethora of new brands launched every day, built on VC money with tall growth targets, it's fair to ask if a shakeout is coming. Kevin Lavelle, founder and CEO of Mizzen and Main, a brand that sells men’s performance wear dress shirts, thinks a carnage is it's on the cards. Lavelle talks about building a brand, advertising on platforms versus TV and what’s in the future of the DTC space.

A few months ago, Verizon launched Visible, a new brand that sits within the multi-billion dollar company. Launched invite-only, Visible is a digital-only phone carrier with no stores and e-commerce only service. And the telco brand is taking cues from direct-to-consumer brands. Minjae Ormes, CMO at Visible, discusses Visible’s strategy, the cues the company’s taken from Glossier and its own direct to consumer playbook.

As DTC brands grow up, they begin to look a lot like traditional brands. The challenge then, is differentiation. The solution: better data management. MM. LaFleur, the “bento box” pioneer of women’s workwear is one of those brands that uses data to differentiate itself. LaFleur discusses fighting the downward price push in the e-commerce space, how the bento box came about, diversifying customer acquisition channels and more.

Consultancies are turning into agencies as agencies grapple for a seat at the table. Alicia Hatch, CMO of Deloitte Digital, the $1 billion ad agency that sits within Deloitte, has insight into why consultancies are built for the modern CMO. On this week's episode of Making Marketing, Hatch discussed the pressures on today’s CMO, why Deloitte believes in having skin in the game, and why in-house doesn’t scare her.

Born online direct-to-consumer brands are increasingly turning to traditional physical retail models to find new places for growth. Mike Grillo, CEO at Gravity Products, thinks DTC is just a launch model and not a sustainable business model for the longer term. Grillo discussed the impending DTC shakeout, why it’s important not to depend on Facebook and why TV remains important.

Thirty Madison, the parent company behind men’s hair loss treatment Keeps and migraine treatment company Cove, which just raised a little over $15 million in funding, is using the wellness and health momentum in the DTC industry as it looks to disrupt a giant, $17 billion industry. Steven Gutentag, co-founder of Thirty Madison discussed how the launch and growth model works at the company.

At a time when brands everywhere are turning to digital marketing to connect with customers, American Express is taking a much more human approach. For Rutledge, her motto has always been, 'Customer first,' so it felt natural to try and find a way to incorporate them into their marketing strategy. From customer referral programs to taxi top ads that change based on your neighborhood, she believes that showing your customer that you really understand and want to take care of them is the best way to turn them into authentic brand ambassadors. On this week's episode of Making Marketing, Rutledge joins Digiday's Shareen Pathak to discuss turning your customers into your best marketers, why complicated messaging doesn't work and how fighting fraud strengthens C2B relationships.

For Shiv Singh, most of the industry's current problems come down to trust. That's the focus of the former PepsiCo and Visa marketing executive's new book, co-written with psychologist Rohini Luthra. The book, called "Savvy: Navigating Fake Companies, Fake Leaders and Fake News in the Post-Trust Era," is a deep dive into the business of marketing with a decidedly psychological bent. It focuses on disinformation campaigns in the Facebook era, the rise of fake news and what happens when people lose faith in institutions around them. On this week's episode of Making Marketing, Shareen Pathak sits down with Singh to discuss why brands today lack trust, the difference between brand purpose and brand equity and why he still likes Facebook.

One year old men's healthcare DTC brand is attempting to disrupt healthcare. The company, which is centered around removing the friction from treating common health issues such as erectile disfunction and hair loss, uses a combination of affordable product lines and education in an attempt to get men talking more freely about their health. They're also trying to branch out beyond men: Hims has also launched a female-focused counterpart, appropriately titled Hers, hopes to solve this issue of access to birth control and time spent waiting in line at the pharmacy. The products, paired with the opportunity to have 24-hour access to physicians, have helped Hims to raise about $100 million in funding, and, if the rumors are true, of a new round of funding may just raise the valuation to a whopping $1 billion. On this week's episode of Making Marketing, Shareen Pathak sits down with Hims founder and CEO, Andrew Dudum, to discuss using humor as a marketing strategy for touchy topics, the impending DTC bubble burst and making the move into female wellness.

Orange Theory, a fitness company founded in 2010, is now making $1 billion in revenue and is on track to open 2,500 studios by 2024. The brand is riding the wellness wave, which means more than just fitness. Kevin Keith, chief brand officer at Orange Theory, is focused on creating a strong brand message and differentiating. Keith revealed why being a lifestyle brand is not the goal, how wellness has permeated culture and whether a robot is going to take Kevin’s job.

Ro, a healthcare direct-to-consumer company that began with a product to treat erectile dysfunction, has a different set of marketing challenges to worry about compared to other DTC brands. Regulation in marketing pharmaceutical products differs from state to state. And because health remains a sensitive topic, establishing legitimacy remains a priority with prospective customers. Rob Schutz, CRO and co-founder at Ro, discussed using platforms for acquisition, TV advertising and more on this episode.

Late last year, Gap Inc. launched Hill City, an activewear line that is its version of Athleta, but for men. It's also the retail giant's new opportunity to keep growing in activewear. Eric Toda, head of marketing at Hill City, says the advantages of launching Hill City are to be seen for Gap but in the meantime, there’s a lot Hill City is learning from the retailer.

Born online, so-called DTC brands are growing up. Retailers that were once solely e-commerce are now turning to a more traditional playbook for growth. Rolling our physical retail stores is the first step in the way. Parachute, a digitally-born bed and bath brand, is on its way to launch 20 stores by 2020 and already has six stores in the U.S. On this episode, we chat with Parachute CMO Luke Droulez.

The road to in-house certainly isn’t smooth. As the industry gets more and more excited about brands building their internal agencies, a bit of a rude awakening came in December last year when Intel announced it would be shuttering its internal agency, Agency Inside. Teresa Herd, who led Agency Inside and is now the vp and global creative director at Intel, talks about building an in-house agency, how external agencies fit in and more on this week's episode of Making Marketing.

B-to-B marketing is not a bubble. The rise of influencers and direct-to-consumer businesses have presented marketers with new challenges with whom to market to and which tools and channels to use. Inside SAP, chief marketing officer Alicia Tillman is focused on extending the brand’s relevance from decision-maker to the everyday user.

Consolidation is the name of the game and one of the big players in the M&A space are consultancies. Karmarama CEO Ben Bilboul discusses the merits of being acquired by Accenture, why he is wary of holding companies and more.

On this episode of the Making Marketing by Digiday, we recap the big themes that emerged for marketers this year, from agency consolidation to marketing evolving as a driver of business.

For GoPro, it never considered itself as solely a camera maker. Rather, it was a media brand, according to founder Nick Woodman. He discusses reshaping the brand over the years, how GoPro’s media team operates differently and more.

Big mergers resulting in new entities like Wunderman Thompson and VMLY&R have set the tone for 2019: It’s going to be the year of consolidation. Anne Bologna, chief strategy officer at Hearst-owned agency iCrossing, says there is too much continued pressure on agencies — a talent war with the duopoly and continuing competition has made agencies lose their confidence, and forget their craft. Bologna discusses why consolidation is necessary, how agencies are trying to be everything for clients and more on this episode.

The big shift in this year has been in the marketers’ demands from an agency. It’s not just about the advertising anymore. Agencies are increasingly being called on to solve business problems -- and it's showing. Mike Sheldon, Chairman and CEO of Deutsch North America has witnessed exactly that in pitch meetings. Sheldon discusses learning new skills, the allure of consultancies and in-house agencies and more consolidation in 2019 on this episode.

Blockchain and AI are IBM's big bets to take the company back on the top as a leader in innovation and technology. Michelle Peluso, chief marketing officer at IBM, discusses how the technologies will change the craft of marketing.

There's a lot of talk around "nimbleness" inside big companies. But the legacy internal red tape stands in the way of operations and the lessons of traditional marketing behavior are difficult to unlearn. That's been the responsibility of Pete Blackshaw, Nestlé’s Global Head of Digital Innovation Service & Service Models, who has spent the last few years working on changing up the company's internal makeup so it can move faster. Blackshaw discusses the ease and difficulty of being a direct-to-consumer brand, his upcoming new job at Cintrifuse and more.

Instagram has long been touted as a haven for direct-to-consumer brands. The case has been the same for Rothy’s, a women’s shoe brand that recently surged in popularity after actress and royal family member Meghan Markle, wore the label on the day of her pregnancy announcement. But as the DTC market gets more and more saturated and that starts to reflect on Instagram, there's also potentially a tipping point where it ceases to make sense as a medium. Cooper discusses opening retail stores, finding new growth paths, investing in TV and more.

Cannabis has succeeded in going from being stigmatized by society to now capturing the imagination of retailers, investors and consumers. MedMen, a publicly traded company out of California, is at the forefront of the developing cannabis industry. Standing in the way of its retail strategy are big hurdles like hyperlocal compliance issues, inconsistent regulations that differ state by state and the stigmatization associated with cannabis itself. David Dancer, the newly appointed CMO at MedMen, talks about hyperlocal marketing, working with influencers and figuring out cannabis marketing.

The agency world is shrinking. Alex Leikikh, global CEO at MullenLowe Group, thinks there is an oversupply of agencies in the U.S. market. He believes that as more clients start to go in-house, there will be more mergers and more agencies will go out of business. MullenLowe Group is also a result of a merger that happened over three years ago. In our latest episode, Leikikh discusses management lessons he learned, the importance of bundling creative and media talent together and more.

Citi has doubled down on music as it tries to become a more emotional part of its customers' lives, Citi’s Global Consumer CMO Jennifer Breithaupt said in the latest episode of Making Marketing. Breithaupt discusses how experiential made Citi’s marketing more effective, doing market-mix modeling and more.

Independent agencies are having a moment in the competitive advertising agency landscape, but it's not all rosy. On this episode of Making Marketing, Neil Heymann, Droga5's new chief creative officer, discussed how tough it is to be an indie creative agency these days, with client demands that keep changing in a market where it feels like nobody cares about creativity anymore.

Last week, Midwest digital shop VML was merged with old-school legacy agency Y&R, one of the first moves under WPP's new CEO, Mark Read. It's part of a larger plan to create a slimmer, less siloed holding company that's better suited to face the challenges of the industry. The global CEO of now named VMLY&R, Jon Cook, says a consolidation in the industry was long overdue -- and this is just the beginning.

When it comes to lifestyle brands, Equinox makes a pretty good case for itself. What started out as a luxury gym has evolved into a hospitality brand, talent agency, digital magazine, and more. Leading the lifestyle charge is CMO Vimla Black Gupta, who believes that her role is all about understanding her customer as a whole. On this week's episode of Making Marketing, Black Gupta sat down to talk with us about the Equinox lifestyle, the art of mastering your own data, and how they expanded into a talent agency and hospitality brand.

In 1977, Robert Greenberg, also known as Bob, and his brother, Richard, decided to combine both their creative powers and initials to create R/GA. Since its creation over 40 years ago, R/GA has evolved many times, and that, according to Bob, played a major part in keeping it successful. On this episode of Making Marketing, Bob sat down to talk with us about the origins of R/GA, its near-constant evolution, and why people are so scared of change in the industry.

In the Spring of 2017, Verizon brought on Andrew McKechnie to run its new, in-house creative agency after a long career at Apple and a handful of other agencies. In this episode, McKechnie talks about why creatives actually do want to work with brands, the in-house difference, and why staying true to the brand is especially important when working with outside agencies.

Jonnie Cahill, the new CMO for Heineken USA, is charged with marketing one of the world's largest beer brands in one of the largest beer markets. In this episode, Cahill discusses Heineken's global focus, the specific challenges of the U.S. beer market, and the importance of knowing your customer.

Since joining Publicis Groupe as global chief creative earlier this year, Nick Law, a longtime agency veteran, has been on a mission to help reinvent the agency holding company. On this episode, Law discusses how the internet has changed the way that ad agencies operate, how Publicis plans to stay relevant and why he steers clear of "big ideas."

Susan Schiekofer, Chief Digital Investment Officer at Group M, runs digital investments at the world's largest media agency where her focus is purely on the brands. On this episode Schiekofer discusses the ins and outs of the pitch process, helping the clients to understand that good brand safety costs money,finding success on social media and the importance of keeping content away from fraud and fake news.

Adapt or die. It’s something most business say they practice but rarely do. An exception is Tracy Wong, the founder of Wongdoody, a 25-year-old creative agency whose acquisition by Indian IT and consulting giant Infosys was announced in April. On this episode, he discusses changing models, being irrelevant, democratic cultures and more. This episode of Making Marketing was originally published on June 7, 2018

Eric Hippeau, managing partner at Lerer Hippeau Ventures, has invested in many entrepreneurial projects over the years. When looking for his next investment, one of the first things Hippeau considers is the passion and life experience of its founders. He joins us for a conversation on the Making Marketing podcast by Digiday.