When you step into the Shark Tank, you're not just pitching for investment; you're testing just how well you've positioned your brand, and how likely it is to swim - or sink. Besides a good product, the Sharks know that good brand positioning is what separates memorable brands from forgettable ones. Here is what real entrepreneurs can teach us about positioning your brand effectively.
Zipz Wine's chief consultant Andrew McMurray landed the biggest "Shark Tank" deal in six seasons when Kevin O'Leary invested $2.5 million for 10% equity. Initially, O'Leary was biased against McMurray because his company reminded him of Copa Di Vino, another single-serving wine company that famously declined offers on two separate "Shark Tank" appearances. However, McMurray kept his cool and negotiated assertively but reasonably. He showcased Zipz Wine’s unique packaging, which extends the wine's shelf life and makes it more portable. This innovation distinguished Zipz Wine from competitors and convinced O'Leary of its unique market value.
The takeaway: Differentiation is key. Highlight what makes your product unique and be prepared to negotiate confidently. A strong differentiation can transform skepticism into interest.
Johnny Georges, founder of Tree T-PEE, demonstrated the power of a compelling Unique Selling Proposition (USP). His product, a water-conserving device for trees, was backed by a University of Florida study showing it saves 93% on water, fertilizer, electricity, and fuel. Despite the impressive data, the Sharks were initially disappointed by Georges' lack of business acumen and drive to scale.
However, Georges' passionate story about continuing his late father's legacy and helping farmers touched the investors. This emotional connection led guest Shark John Paul DeJoria to invest $150,000 for 20% equity.
The takeaway: A strong USP isn’t just about the numbers. Don’t be scared to show the passion and story behind your product. This can make all the difference, because an emotional connection can be as powerful as financial metrics.
Al "Bubba" Baker, a former NFL star, presented his boneless ribs product with charisma and solid data. He addressed a common problem: ribs are too messy and time-consuming to prepare. His solution? Boneless, pre-cooked ribs. Baker’s experience in the restaurant business added credibility to his pitch, and his engaging personality made the product memorable.
Daymond John saw the potential to take Bubba Q's Boneless Ribs from a local favorite to a national brand and invested $300,000 for 30% equity and licensing rights.
The takeaway: Knowing your audience involves identifying their pain points and offering a relatable solution backed by credible data. Incorporating your personal story to connect with your audience is all well and good, but make sure your product meets their needs and gets them exactly what they want.
Brand positioning is far from fancy jargon and fluff. Good brand positioning is clear, strategic and actionable. Apply these straightforward lessons to your own brand strategy. Stand out, connect with the customer, and understand what makes them tick, then watch your business truly grow. Be unique, be passionate, and know your customer inside out. These principles aren’t just for Shark Tank contestants—they’re essential for any business looking to make a mark.
Ultimately, effective communication revolves around human-to-human connections. Instead of fixating on labels like "Business-to-Business" or "Business-to-Consumer," the focus should be on establishing genuine connections between people. If brand equals experience, consider the desired experiences customers should have. Reflect on the positive moments that bring joy, evoke wonder, or instill trust. Just like the slow emergence of a distant star's light, building a connection with a brand is a gradual, deliberate process. Every fleeting interaction contributes to shaping this connection, emphasizing the significance of each moment along the journey.
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