Summary of "The TikTok Strategy That’s Printing MILLIONS right now"
Summary: “The TikTok Strategy That’s Printing MILLIONS right now”
Company & Product Context
Neurogum is a cognitive-enhancing functional gum brand founded around 2015. It focuses on nootropic ingredients combined with caffeine and L-theanine to provide sustained energy without jitters.
- Utilizes a patented cold compression manufacturing process that preserves ingredient integrity, unlike traditional heat-extruded gum.
- Positioned as a functional, great-tasting alternative to energy drinks and supplements.
- Currently a top 50 health & household product on Amazon, #1 in its category, outselling 5-Hour Energy on Amazon without paid ads.
- Sales channels include direct-to-consumer (DTC), Amazon, TikTok Shop, and extensive retail presence (20,000+ doors including Whole Foods, CVS, and convenience stores).
TikTok Strategy & Creator Marketing Playbook
Key Metrics & Results
- 13% brand awareness across the US attributed to TikTok.
- Fastest growing brand on TikTok in 2024.
- Affiliates generating close to $1 million/month in gross merchandise volume (GMV).
- One creator generated $250,000 in a single day by leveraging TikTok trends.
- TikTok ad return on ad spend (ROAS) peaked at 68x; Amazon ROAS around 52x after shifting spend.
- TikTok drives top-of-funnel awareness, boosting performance across Amazon, retail, and DTC channels.
Framework & Processes
Creator Marketing Playbook
- Build all creator marketing efforts in-house; avoid agencies that conduct mass superficial outreach.
- Post daily on TikTok to understand hooks, content resonance, and platform nuances.
- Maintain a detailed “hook” spreadsheet for A/B testing content ideas.
- Creators undergo a 3-hour onboarding with video and Notion SOPs to deeply understand the product and brand.
- Brand manager quizzes creators and holds quarterly Zoom calls to instill company culture.
- Use a Discord community with tiered creator levels based on performance (GMV goals).
- Incentivize creators with commissions, exclusive events (trips, billboards, prizes), and foster creator-to-creator collaboration.
Content Testing & Iteration
- Continuous A/B testing of hooks and messaging.
- Creators empowered to adapt hooks based on data and personal style.
- Blend of user-generated content (UGC) and high-quality produced content, emphasizing speed and quantity over polish.
Creator Recruitment
- Recruit from existing TikTok affiliate partners and creator networks rather than cold outreach.
- Retainers for top creators to secure consistent content output.
Actionable Recommendations
- Focus relentlessly on inputs: post daily, learn from metrics, and iterate quickly.
- Build a strong culture and community around creators beyond just commissions.
- Use TikTok as a top-of-funnel awareness driver feeding other channels.
- Leverage macro trends but stay authentic and native to your brand.
- Avoid over-reliance on agencies; build internal expertise on platform and creator management.
Marketing Mix & Growth Strategy
Spend Allocation (per $10 digital marketing budget)
- TikTok: Majority (~50-60%), mostly top-of-funnel awareness (80%) with some bottom-of-funnel.
- Google Performance Max: Significant spend capturing demand from TikTok-driven awareness.
- Facebook/Meta: 20-30%, considered a hygiene channel.
- Amazon: Minimal ad spend; organic sales driven by TikTok awareness.
Partnerships & Consumer Insights
- Use consumer data platforms (Meltwater, Epsilon) combining external data with customer base to identify over-indexed consumer segments.
- Targeted partnerships with brands like 100 Thieves (gaming) and chess.com aligned with consumer insights.
- Partnerships create content that funnels traffic back to TikTok for amplification.
- Celebrity/influencer partnerships (e.g., Steve Aoki) align with brand ethos and create cultural relevance.
Growth Playbook
- Find initial credibility lever (e.g., Shark Tank, Joe Rogan mentions).
- Build a flywheel: credibility → creators → sales → more credibility.
- Use data-driven regional targeting for retail expansion.
- Focus on velocity and sell-through, not just store count, especially in retail.
Retail Strategy & Sales
- Year 1: Pure DTC, approximately $700k in revenue.
- Year 2 and beyond: Double growth trajectory; last 3 years saw 3x+ growth.
- Entered natural stores first (Whole Foods, Sprouts), now in 20,000+ doors including CVS and convenience stores.
- Walmart launch (~4,800 stores, $5M purchase order) failed due to poor velocity and chargebacks; pulled back to rethink approach.
- Current focus: regional convenience stores with high velocity potential (e.g., Casey’s 2,400 stores).
- Retail expansion guided by:
- Purchased syndicated data (IRI, Spins) to identify category performance and opportunity.
- Overlaying retail data with internal DTC and TikTok data for market prioritization.
Advice for New Brands
- Build digital footprint first.
- Understand consumers deeply before entering retail.
- Target a few retailers to be great partners with before scaling.
Organizational & Hiring Framework
- Uses “Who: The A Method for Hiring” as an operating system for recruitment.
- Structured hiring process includes:
- Clear scorecards and job descriptions.
- Recruiter pre-screens candidates.
- Candidates complete homework assignments relevant to the role.
- Cross-functional interviews with adjacent team members.
- Final interview with CEO focused on core values and culture fit.
- Emphasis on hiring slow and right to achieve 98% employee retention annually.
- Organizational fluidity prioritized over rigid roles to ensure cross-departmental synergy.
- Leadership meetings focus on 4 key company priorities with all departments aligned.
- Retention and organizational fluidity are top KPIs for business health.
Leadership & Culture
- Founder emphasizes discipline drawn from athletic and artistic backgrounds, linking ultramarathon and martial arts mental toughness to entrepreneurship.
- Encourages employees to pursue personal “misogi” challenges yearly for growth.
- Rejects hustle culture; promotes working smart, focusing on high-impact activities, and building a strong team.
- Values humility and seeking mentorship; stresses importance of asking for help and leveraging networks.
- Advocates for exercise and mental health as critical for founder success.
Product & Branding Insights
- Flavor is king in consumables; first product iteration tasted bad but functioned well.
- Product messaging evolved from broad “energy” to narrow “focus and sustained energy” to better resonate and cross the chasm.
- Packaging redesign with bold colors and clear benefit statements (e.g., “Caffeine gum for sustained energy and elevated focus”) increased retail visibility and sales.
- Unique form factor (gum) and price point are key differentiators in a crowded supplement market.
- SKU rationalization practiced to focus resources on highest velocity products, shutting down slower SKUs to free capacity and cash.
Key Metrics & KPIs Highlighted
- TikTok awareness: 13% of US population.
- TikTok ROAS: up to 68x.
- Amazon ROAS: ~52x after shifting spend.
- Top TikTok creators generating close to $1M GMV/month.
- Retail presence: 20,000+ doors; $95M ACV opportunity in convenience stores.
- Employee retention goal: 98% annually.
- Each employee generates >$1M revenue/year.
- Marketing spend allocation: TikTok (majority), Google (significant), Facebook (~20-30%), Amazon (minimal).
Actionable Recommendations & Frameworks
- Build internal TikTok expertise; post daily, test hooks, and iterate content.
- Develop detailed creator onboarding SOPs and culture-building programs.
- Use tiered creator communities with gamification and rewards.
- Leverage consumer insights data to guide partnerships and retail targeting.
- Focus on velocity and sell-through in retail, not just store count.
- Hire using structured scorecards and homework assignments; involve cross-functional interviewers.
- Prioritize organizational fluidity and alignment to key company priorities.
- Reject hustle culture; focus on discipline, mental health, and team building.
- Invest in bold, clear packaging messaging tailored to consumer needs.
- Rationalize SKUs to focus on highest velocity and profitability.
Presenters / Sources
- Ken Yoshimura, Co-founder & CEO of Neurogum
- Jonathan H, Head of Growth
- Interviewer / Podcast Host (unnamed)
This comprehensive summary captures Neurogum’s business execution, TikTok-driven marketing strategies, retail growth tactics, organizational best practices, and leadership insights shared in the video.
Category
Business
