Image: Turkey Hill Iced Tea

​Corporate Challenge: How to choose the next product or service offering.

Ironbound Strategy: Brand growth is a result of creating value for customers, employees, and society. Creating vertical integrations provides access to new customers that can grow your brand to record levels.

Ironbound Action: Pennsylvania based Turkey Hill is known for its iced teas, gas stations, and ice-creams.  Their brand’s rise to fame began when they opened gas stations to sell their branded products.  By vertically integrating into gas stations, demand for Turkey Hill products increased, and their branded products were successfully sold in grocery stores across the country. Turkey Hill now produces over 60 million gallons of iced tea a year. Small brands can quickly grow when their brand extensions create value for customers. There may be an opportunity for a new small brand to exponentially grow by extending their brand into charging stations, just like Turkey Hill did with gas stations.  
 
*The ready to drink tea industry is valued at $45.5B globally, and is expected to grow 22% by 2021.  In the US, 23% of Americans drink tea every day.

Image: Kettle Brand Chips

​​*The potato chip market is a $4.6 Billion marketspace, $500 Million in premium chips.  Last FY Kettle Brands had $163 Million in revenue.  

​Corporate Challenge: Using value-creation to entice customers away from competitors.

Ironbound Strategy:  In large product marketspaces, it may seem difficult to rapidly multiply market-share.  Brands that focus their efforts on creating value for customers, employees, and society, experience phenomenal growth from their value creating efforts.

Ironbound Action: Salem Oregon based Kettle Brand doubled their market share in 5 years, and then tripled it the following 5 years.  Kettle has maintained their old-fashioned all-natural production method, which keeps product costs high and margins much lower compared to their competitors who use chemically manufactured potato chips.  In order to generate growth, Kettle Brands dedicated themselves to creating value for society by reforming the chip making process to enhance the environment.  Kettle uses VW Beetles that run on recycled cooking oil, and offsets their energy with 100% renewable wind power.  Customers are influenced to purchase Kettle Brand chips because of their creative array of chip flavors, and knowing their purchase is positively impacting the environment.  In the next decade, millennials will become the largest purchasing segment in history.  Millennials are drawn to brands that create value for the environment, which is why Kettle Brand has doubled, and then tripled their market share.

Image: The Scale of Lady Justice

​Corporate Challenge: The secret behind powerful brands reducing their lawsuits.

Ironbound Strategy: The best brands in the world create overwhelming value for  customers, employees, and society. Do those great brands face fewer lawsuits? Yes.

Ironbound Action: A University of Pennsylvania study discovered that a company’s prestige affects outcomes in liability lawsuits. Over the last few years this blog has been sharing insights on how creating value for stakeholders increases a brand’s reputation, prestige, and top-line success. The Penn study referred to the added prestige as the “halo effect” that protects the brand in the judicial system. Meanwhile, America’s most hated firms find themselves in never-ending, high-cost, and high-frequency lawsuits.  Creating value for stakeholders creates a halo effect that gives brands a clear advantage in legal pursuits.

Image: Boring Company

​Corporate Challenge: Finding new and creative ways to create value for society, before acquiring your first customer.

Ironbound Strategy: Customers are always attracted to brands that create value for their community. Positioning products to create society value attracts customers who are setting the trends for the next generation.

Ironbound Action: In 2016 Elon Musk created the Boring Company, set to build an underground highway system to increase the efficiency of travel. The byproducts of building tunnels are clay, limestone, and rocks – the ingredients of bricks. The Boring Company declared that the byproducts of boring tunnels will be used to make bricks for low income housing. When creating a new venture or start-up, figuring out how to use externalities to society’s advantage will increase your new venture’s embracement by society, and ensure future success.

Image: Wawa

​Corporate Challenge: Defining a long term vision for a company, and the brand's relationship with its surrounding community.

Ironbound Strategy: Great brands never stop creating value for customers, employees, and society. Contributing to charity is a long-term brand building strategy.

Ironbound Action: Pennsylvania based Wawa has a mission to serve their communities. Wawa ($9.1B in revenue across 750 stores) believes in service to customers with good food and service to neighbors with meaningful philanthropy. Recently, Wawa’s charitable foundation was given an award for 30 years of partnership with the Leukemia and Lymphoma Society. The accolade allowed Wawa to promote their brand, and raise more awareness for LLS. Millennials want to support brands that care about their community. Having a long term relationship with non-profits is a societal signal that a brand cares about their customers and their society.

Image: Tito's Homemade Vodka

​Corporate Challenge:When statistics show a downward trend, how are some brands growing so fast in that same market space?

Ironbound Strategy: The fastest growing brands are ceaselessly creating value for their customers, employees, and society; and having fun in the process.

Ironbound Action: Texas based Tito’s Handmade Vodka was established to give profits back to communities. In order to explain Tito’s exponential growth, Tito said “If you can do nice things for people, it’s amazing what comes back to you”. A recent GlobalData survey found that 54% of millennials are cutting back on alcohol. Millennials are very picky about the alcohol they consume. Netherland based Ketel One has seen its sales of vodka plummet in the US. However, Vodka sales overall are booming in the US, and the #1 brand is Tito’s, especially among millennials. Just last year Tito’s sponsored over 6,000 charity events as a way to create value for society. The brand has grown so large, Tito’s is asking non-profits to reach out to Tito’s for open donations. Creating value for society generates so much sales for some brands, they can’t keep up with their astronomical growth. 

Image: Apple Classroom

Corporate Challenge: Opening up the marketspace by creating new segments of customers.

Ironbound Strategy: When a brand dedicates their energy to creating value for  customers, employees, and society, the brand will grow. As a result, employees will find new segments of customers, often it creates value for society.

Ironbound Action: California based Apple created a new language of code called Swift in 2014. By 2017 they had developed school curriculums to teach the coding language to students, for free. Now Apple has created a coding learning curriculum for deaf and blind students, and will roll out the program nationwide.  Deaf and Blind students are some of the most underserved students in the world. By creating opportunities for underserved communities, brands can build loyalty among new segments of customers, and can secure them as loyal customers for generations.

Image: Just Water

Corporate Challenge: Becoming a market leader by focusing on environmental protection.

Ironbound Strategy: Especially in dense market spaces, creating value for  customers, employees, and society will result in exponential growth and market leadership.

Ironbound Action: New York based Just Water re-invented the water bottle, and expects their carton technology to disrupt and become a dominant leader in the bottled water industry.  Last year, Americans drank over 12 billion gallons of bottled water. Manufacturing plastic to support the $200B global marketplace of bottled water has been environmentally damaging. Just Water decided to sustainably source spring water, package the water in paper boxes (from certified forests), and design caps made from sugarcane. Their year over year growth has been exponential as they are positioned to disrupt their industry. Often the best ideas to quadruple sales year over year, is to disrupt the industry with environmentally friendly alternatives - after all the next generation of customers care the most about the planet.

Image: Box Office Weekend Hits

​Corporate Challenge: Creating a black swan event for your brand.

Ironbound Strategy: The most powerful brands in the world are constantly looking for ways to create value for customers, employees, and society.

Ironbound Action: California based Walt Disney Company was recently made aware that Compton, California has over 31,000 children (under the age of 18), and no movie theaters. A Wrinkle In Time director Ava DuVernay believed her movie would be inspirational to the children of her hometown of Compton. So Disney built a movie theater for the city. According to a 1948 antitrust landmark case by the Supreme Court, movie studios are not allowed to own movie theatres, so the movie theater that Disney created had to be temporary. Powerful brands create ‘black swan’ events that create value for their customers, employees, and society.

Image: SpaceX Falcon 9 Rocket

​Corporate Challenge: How a company can attain high goals quickly.

Ironbound Strategy: Brands that constantly create value for their  customers, employees, and society progress the fastest.

Ironbound Action: California based SpaceX considers itself a “Flat Organization”, where the best ideas mean more than seniority or hierarchy. An intern on their first day of work can have their idea implemented just as easily as a tenured engineer. By constantly promoting the best idea forward, SpaceX has outperformed every expectation for space exploration, at unprecedented speed and efficiency. Hierarchies have been known for ‘analysis paralysis’. The advent of flat organizations are helping brands with exponential growth, as they set new benchmarks that are out of sight for their antiquated competitors.

* A SpaceX rocket launch costs $61 Million, far less than the nearest competitor, Airbus, that charges $77 Million.