DTC POD - #239 - Carter Jensen, General Mills: How The CPG Titan Takes It’s Brands DTC

1️⃣ One Sentence Summary

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General Mills talks DTC strategies, tech usage, and challenges faced.

Interview Breakdown

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In this episode, we delve deep into the world of D to C strategy at General Mills with Carter Jensen, the company's global lead for D to C. We discuss everything from the inspiring inception of their D to C model to the practical aspects of implementing tech stacks. Join us as we uncover: - The inspiring journey of how Carter Jensen positioned D to C as integral within General Mills. - The thought process behind which brands were handpicked for launching D to C programs and why. - How brands like Cheerios are innovating and standing their ground in the face of new D to C competitors. - A glimpse into the operations behind General Mills managing multiple brands in the crowded D to C space. - The importance of balancing D to C with the value of building relationships with retail partners. Get ready for an insightful look into a CPG titan's strategy for staying relevant and competitive in an increasingly direct-to-consumer world.

🔑 7 Key Themes

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1. DTC within established CPG companies. 2. Optimizing DTC channels at General Mills. 3. Building brand fandom through DTC. 4. Competing in digital and traditional retail. 5. Utilizing tech stack for DTC operations. 6. Importance of retail partners in CPG. 7. Experimenting and innovating through brand incubation.

💬 Keywords

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Carter Jensen, General Mills, D to C, food brands, commerce channels, advertising, tech startups, Epic Provisions, average order value, Cheerios, digitally native brands, cereal market, consumer preferences, product innovations, direct-to-consumer (DTC), retail distribution, rewards and promotions, customer experience, consumer packaged goods (CPG) industry, product niche, performance marketing, full-funnel analytics, one-on-one consumer communication, LinkedIn, Ratiofood.com, Keto market, Shopify, Klavio, Yappo, retail partners

🎞️ Clipfinder: Quotes, Hooks, & Timestamps

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Carter Jensen 00:05:58 00:06:03

"D to C Business Strategies: It's almost cannibalistic you're going against your partners. Why would you touch that if we already have distribution?"

Carter Jensen 00:07:28 00:07:53

"Epic's Success Story: The founder story is pretty incredible, and we actually acquired it after it got quite a bit of velocity. But it was a great experience or a great kind of experiment to look at Epic and say, Why that? And actually came down to some pretty basic math, like, if you think Epic provisions you think of beef jerky or other products that are similar, you're thinking more of a higher dollar item, higher average order value, higher margin."

Carter Jensen 00:08:26 00:08:34

"Challenges in E-commerce Logistics: The cheapest I can ship a box of Cheerios across the country, as your listeners know better than I do, is like four or $5 usually. Well, there goes the margin, right?"

Carter Jensen 00:11:58 00:12:23

"Challenges in Direct-to-consumer Business: 'What was fascinating is how hard just like some of the things I think, again, your listeners are going to think are so basic. It's like, how do you stand up A.com? Where do we ship this stuff? How do we take the pallets apart? How do we email people after they order? Right? And what we were up against is we were up against these traditional enterprise tech stacks that weren't used to moving at the speed of D to C brands that weren't used to doing this.'"

Carter Jensen 00:17:52 00:18:10

"D2C Marketing Strategies: So I think some of the brands who are doing it best are bringing D to C in as a channel, right? They're putting it next to all their retail providers and they are not necessarily looking at it exclusively in their marketing strategy but they're building in kind of the tactics that your listeners think about that we haven't even touched, right? Like we start with awareness Media and go from there."

Carter Jensen 00:18:18 00:18:34

"Embracing Digital Marketing Transformation: What does that mean all of a sudden for a brand that's done it one way for the last 30 years and all of a sudden now you're like, hey, actually you can see the whole consumer journey. You can see who it was, you can see it was Bob and you can see that he clicked on this ad and got here and in 28 days he's going to want some more products. So what are you going to do about it?"

Carter Jensen 00:20:27 00:20:37

"Embracing Digital Transformation in Marketing: So a brand is going to launch a digital channel like D to C. You're going to say, okay, we are going to arm them with a fleet of team who's built and sole purpose is only to manage that."

Carter Jensen 00:24:59 00:25:08

"Innovation in Product Development: Yeah, well we're always introducing new flavors and new innovation in terms of our products, right, and doing our best to deliver ultimately what consumers are looking for."

Carter Jensen 00:29:04 00:29:17

"Rewarding Brand Loyalists: To actually reward them with a solid piece of the brand is a really interesting way to pay off a very digital first campaign with a really awesome physical product that shows up in their front door the day after they entered into their information."

Carter Jensen 00:34:44 00:35:03

"D to C Marketing Innovations: But what D to C is doing is it's enabling and forcing the conversation of how to show up in a more digitally first way and how to show up in a more modern way. And regardless of the state of D to C that they might be in, it's exciting for us to see those I would call them, I guess, second order effects. But at the end of the day, it's kind of this new wave and it's a new wave of commerce."

📚 Timestamped overview

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02:55 Excited to have you, share your perspective.

07:20 Epic: high value, low shipping costs.

09:31 Evaluating opportunities, choosing worthwhile products for D-to-C market.

13:34 Tech allows better customer experience, scalable growth.

17:10 D2C as a channel alongside retail.

20:03 Call us for help with scaling operations.

24:59 Constant innovation, new flavors, retail partnerships.

28:35 Rewarding fans with iconic brand merchandise.

29:58 CPG explosion challenges smaller brands to innovate.

34:09 Unlocking capabilities, full funnel analytics, one-on-one communication, new marketing world, D2C enables social commerce.

35:45 LinkedIn: the best way to connect.

❇️ Key topics and bullets

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1. Introduction and Background - Carter Jensen's position at General Mills. - Role and responsibilities of his team. - Background and previous work experience. - Original perspective on the direct-to-consumer (DTC) model in General Mills. 2. Direct-To-Consumer (DTC) Experiences - Initial inspiration behind the DTC model in the company. - First brand launches through DTC and the criteria for choosing these brands. - The significance and role of DTC in new product testing, collecting feedback and supporting retail distribution. 3. Handling Competition and Market Dynamics - The competitive landscape faced by Cheerios and other brands in the cereal market. - The advantages that Cheerios has and the strategies it uses to stay competitive. - The importance of constantly introducing new flavors and variations to meet changing consumer preferences. 4. Innovation and New Product Launches - The role of the company's incubator in identifying new brands and product innovations. - The use of reward programs and promotional activities for engagement and loyalty building. 5. The Intersection of DTC and Traditional Retail Channels - Discussion on the coexistence and complementary nature of DTC with traditional retail. - How DTC models can leverage unique opportunities and capabilities. 6. Practical Challenges and Solutions in DTC Execution - Logistical complexities of certain brands in DTC. - Recent brand launch aimed at the Keto market. - Technical set-up for DTC brands. 7. Tools and Technologies for DTC - Introduction of new tech stack to overcome limitations. - Application of tools like Shopify, Klavio, and Yappo for DTC operations. - Benefits of a comprehensive tech stack for rapid brand launch and customer experience improvement. 8. Handling DTC in the Broader Corporate Landscape - Challenges in executing DTC initiatives in corporate settings. - Diverse strategies for DTC advertising across brands. 9. Supply Chain and Retail Partners - The central role of retail partners such as Walmart, Target, and Kroger in the company's operations. - The comparative volume of DTC to traditional retail and its significance. 10. Final Thoughts and Invitation - Carter's views on the digital-first commerce and marketing wave. - Invitation to the audience to connect on LinkedIn and engage for collaboration and idea sharing.

🎬 Reel script

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In our latest podcast, we had the pleasure of hosting Carter Jensen of General Mills, the world's CPG titan that's taking a unique approach to DTC. Carter outlined how they're transforming established brands to compete with nimble digital startups. He shared insights on creating great customer experiences, using data to make impactful decisions, and even shipping Cheerios across the country! They're embracing DTC not just as a business strategy, but as a creative platform to build brand fandom. And even with traditional retailers as core business partners, DTC is providing an exciting, fresh avenue for the company's growth. Check out the full episode for all the juicy details. Don’t miss it!

✏️ Custom Newsletter

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Subject: DTC Pod's latest episode - Insights from a Genius at General Mills! 🎉 Hey Podcast Family, We are rolling out another enlightening episode of the DTC Pod just for you! With episode #239, we're bringing you valuable insights from our latest guest, Carter Jensen, Global Lead for D to C at General Mills - a powerhouse in the consumer packaged goods (CPG) industry. Here's a sneak peek into the episode: 📣 Introduction: In this episode, Carter unfolds the journey of General Mills' brands taking the DTC (Direct-to-Consumer) route. It's a story about how traditional behemoths can adapt and thrive in the modern e-commerce landscape. ⭐ 5 Key Takeaways: - It isn't cannibalistic for big brands to adopt D to C―it's a coexistence strategy. - Smart selection of products for DTC is crucial considering factors like shipping costs and order value. - Digital competitors inspire traditional companies and push them to optimize their strategies. - Building a technical stack for DTC from scratch can be challenging yet rewarding. - Collecting data through DTC and enhancing customer experience are the roadmaps to success in the modern market. 🧠 Fun Fact of the Episode: Did you know that General Mills' team launches a staggering 30-40 DTC sites each year? They become masters in multitasking by overseeing these projects while leveraging their tech stack to collect data and enhance the customer journey! 🎈Outro: Carter's disruptive thinking and General Mills' adaptability provide a masterclass for D to C marketers in the CPG industry. We also discuss how DTC is a brilliant addition to the marketing mix, not a replacement for the relationships with retail partners. 📣 Call To Action: Get ahead of the DTC game with Carter Jensen's cutting-edge insights. Tune in now and be part of this exciting conversation. Sprinkle your thoughts and feedback on our social pages – we'd love to hear from you! If you dig our content, it would make our day if you could share this episode with your network and ask them to subscribe to our show. Remember, knowledge shared is knowledge doubled! Till then, keep learning and stay tuned for new episodes. Cheers, Blaine Bolus DTC POD

🐦 Business Lesson Tweet Thread

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1/ When you think of cereal, brands like Cheerios probably come to mind, right? It's fascinating to dive deep into how big companies handle disruption in the digital age. Heard an insightful discussion on this on DTC POD with Carter Jensen of General Mills. Let's break it down. 2/ Big CPG companies like General Mills are not immune to competition from nimble, data-driven startups. There’s a new wave of digital-first, DTC brands giving the old guard a run for their money. But here’s the twist: these threats can also become opportunities. 3/ DTC was initially seen as cannibalization. But leveraging data properly and using digital channels can actually extend reach, establish deeper relationships with customers, and enable faster, risk-lowering product testing. 4/ The beauty of DTC is its flexibility. The customer experience can be tailored. Plus, product offerings can be expanded and adjusted rapidly in response to feedback. Now, brands can quickly experiment and find their unique voice and identity. 5/ Going DTC doesn't mean abandoning retail. Wholesale and retail partnerships continue to play a major role for companies like General Mills. It's about finding a way for these distinct channels to complement each other. 6/ Success in DTC does come with its own set of challenges: building a tech stack, mastering digital marketing, and developing adept DTC teams. But the potential rewards? Worth it. 7/ To wrap up: Doing business in the digital age isn't about choosing between DTC and traditional retail. It's about striking a balance between the two. The end goal? Always the same - deliver value to the customer, in the most effective way possible. Should dive into DTC POD’s chat with Carter Jensen for a closer look. Less of a battle, more of a dance. Fascinating.

🎓 Lessons Learned

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1. "Embracing DTC Channels" Exploring how General Mills adopts and reaps the benefits of direct-to-consumer channels despite the challenges. 2. "Product Selection for DTC" Detailing how lighter, high-value items were initially chosen for DTC, increasing efficiency and cost-effectiveness. 3. "Competing with Digital Natives" Discussing the competition from digitally native brands and how General Mills uses its unique advantages to counter them. 4. "Innovation through Favours and Promotions" Understanding how unique promotions and rewards targeted at loyal fans enhance customer experience and fandom. 5. "Understanding the DTC Ecosystem" Delving into the technological aspects of setting up DTC, from building new tech stacks to balancing enterprise limitations. 6. "Harnessing Valuable Consumer Data" Looking at how General Mills collects and leverages customer data to improve targeting and customer experience in DTC. 7. "DTC within the Enterprise" Discussing the challenges of executing DTC initiatives within large corporations and navigating corporate limitations. 8. "Strategizing for DTC Advertising" A conversation on deciding how to use DTC advertising, either as a business unit or just another distribution channel. 9. "Managing Brand Portfolio in DTC" Exploring the operational challenges and strategies in managing multiple brands within the DTC space. 10. "Appreciating Retail Partnerships" Balancing DTC with maintaining strong partnerships with retail giants like Walmart, Target, and Kroger.

💎 Maxims

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1. Embrace new commercial channels: The world of commerce is no longer restricted to physical stores. Opening up to new and emerging platforms like D to C can help businesses reach more consumers and build brand loyalty. 2. Don't fear cannibalization: Sometimes, new strategies might seem like they will cannibalize existing ones, but it's all about finding a balance that leads to overall growth for the company. 3. Innovate to stay competitive: With the rise of digital brands, traditional companies should continually innovate in their product offerings and marketing strategies to stay relevant and maintain market share. 4. Leverage data: Consumer data collected through direct sales can be used to create better marketing strategies, product development, and refined retail distribution methods. 5. Build a fan base: Brands can utilize D to C strategies to connect more deeply with consumers and foster a sense of brand fandom. 6. Adapt and capitalize on new capabilities: With the adoption of D to C, embrace opportunities like performance marketing, full-funnel analytics, and personalized consumer communication. 7. Not every product is fit for DTC: Understand the unique challenges and costs of shipping products DTC, and choose those that are best suited for this channel. 8. Utilize technology: Use appropriate tech platforms to manage D to C operations efficiently, improve customer experience, and gather useful data. 9. Stay connected and collaborative: Regardless of how many brands a company manages, it's essential to keep a central connection to share data and serve consumers better. 10. Tread with care in the corporate world: Executing initiatives in large corporations can pose challenges. Be patient, and navigate with care to succeed. 11. Cherish retail partners: While striving for D to C growth, remember the importance of traditional retail partners - they often account for a significant portion of business. 12. Balance between D to C and traditional channels: Remember, D to C marketing should complement traditional channels, not replace them. 13. Equip your team for DTC: Ensure the marketing team is equipped and educated to handle the new tools and strategies required for successful D to C marketing.

🌟 3 Fun Facts

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1. Carter Jensen and his team at General Mills launch over 35 direct-to-consumer experiences each year around the world – a massive undertaking that requires careful planning and execution. 2. Despite being a traditional retail company, General Mills uses modern e-commerce tech stack, like Shopify for storefronts, Klavio for email and SMS, and Yappo for consumer data and journey mapping. This allows them to match the service of digital-first companies in offering a great consumer experience. 3. General Mills has an incubator for new brands and product innovations that are tested through DTC channels, allowing for consumer feedback and data gathering. This innovative approach nurtures a startup culture within an established company.

📓 Blog Post

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### Title: DTC Strategies in the CPG Sector: A Deep Dive with Carter Jensen from General Mills ### Subtitle: Embracing Disruption and leveraging DTC for Innovation and Growth in a traditional CPG company ### I. Background: Making DTC Work Within Big CPG The latest episode of our DTC POD series had an exciting guest, Carter Jensen - the global lead for Direct-to-consumer (DTC) at General Mills; a powerhouse with some of the world's largest food brands. Carter’s team spearheads the launch of over 35 DTC experiences each year globally, traversing a blaze of innovation within the traditional manufacturer. While most might have viewed DTC as cannibalistic to existing channels, Carter recognized its potential to a traditional industry player. The inspiration came initially from Epic Provisions that already had a successful DTC model that was working wonders. ### II. Launching into a DTC Model General Mills followed a careful strategy picking brands to launch on the DTC platform. Based on factors such as higher average order values and product dimensions, they opted for smaller and lighter goods. For example, considering a box of Cheerios’ shipping costs across the country, they chose specific items like energy bars and supplements for their DTC foray. ### III. DTC: A Pathway to Innovation One of the significant wins for General Mills on the DTC front is product innovation. By iterating new flavors and variations for diverse customer preferences, brands like Cheerios manage to stay ahead in a highly competitive market. This approach has also found success in incubating fresh brands - a low-risk strategy that utilizes the power of DTC. Recently, they launched a bar brand named Ratiofood catering the thriving Keto market. ### IV. Technology and DTC One of the main challenges for a traditional giant like General Mills was retrofitting their legacy systems for the DTC model. To overcome their limitations, Jensen and his team built a tech stack parallel to their enterprise system. Leveraging platforms like Shopify for DTC storefronts, Klavio for email and SMS marketing, and Yappo for consumer journey mapping, they introduced an enhanced consumer experience along with diligent data collections for successful targeting and personalization. ### V. Collaborations and Partnerships Despite the tremendous potential and success with DTC, Jensen stresses the fact that their retail partners are vital. Retail giants like Walmart, Target, and Kroger remain integral to their overall business strategy. Their DTC volume, while growing steadily, continues to play a complementary role to their core retail partnerships. ### VI. The Future of DTC within General Mills As we wrapped up our insightful conversation, it was clear that the blend of tradition and innovation within General Mills creates a vibrant and successful model for other players in the CPG sector. Linking DTC models for each brand centrally offers a gold mine of data for precision targeting, whilst offering consumers an alternate platform with unique and limited edition products. Despite some inherent challenges, Carter Jensen's initiatives prove that DTC in CPG isn’t going away anytime soon but will coexist and complement traditional retail channels. With Carter at the helm of DTC initiatives at General Mills, we look forward to seeing how this CPG Titan continues to evolve its DTC strategy into a significant business lever. As he said himself, they're just getting started. Stay tuned for more disruptors' stories on our next episode of DTC POD!

🎤 Voiceover Script

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"In this episode of DTC POD, we're going in-depth with Carter Jensen of General Mills, discussing how this CPG titan is bringing well-loved brands direct-to-consumer. From leveraging tech and data to transforming customer experience, to navigating the operational challenges of D to C, and the importance of choosing the right brands for D to C channels. We also explore the ways in which a firm as big as General Mills fosters a start-up spirit within its progressive approach to meet market trends and consumer needs. There's a wealth of insight here, so don't miss out!"

🔘 Best Practices Guide

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For established brands looking to pivot to DTC, start by selecting light, high-value products easily shipped. Build a tech stack that focuses on customer interactions and data collection--platforms like Shopify for DTC storefronts, Klavio for communication, and Yappo for data processing are recommended. Regularly launch new brands and learn from them: allow for the capability to launch 30-40 sites a year. Use the data collected to improve customer experience, and do not shy away from promotions to engage customers. Be aware of the competition with digital brands. Even though they've forward-thinking practices, remember the value of mass market shelf space. Lastly, balance your DTC initiatives with maintaining strong relationships with retail partners as they still constitute a significant portion of the business. The goal is to enhance customer experience and build a dedicated fandom, not solely drive volume.

🎆 Social Carousel: Do's/Don'ts

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Slide 1: Cover "10 Pro Tips Every DTC Marketer Needs to Know" Slide 2: Outwitting Giants NO: Competing directly with retail conglomerates. DO: Chase product niches untapped by bigger companies. Slide 3: One-Way Street NO: Overlooking the potential of direct-to-consumer (DTC) channels. DO: Utilize DTC as a complementary addition to traditional retail. Slide 4: Traditional Limitations NO: Remaining bound by traditional enterprise tech. DO: Build a new tech stack to optimize DTC opportunities. Slide 5: High Shipping Costs NO: Overspending on shipment for each product. DO: Tailor DTC strategy to manageable products like bars and supplements. Slide 6: Untapped Tools NO: Ignoring fresh tech tools. DO: Leverage platforms like Shopify, Klavio, and Yappo for better reach and consumer data. Slide 7: Isolated Brands NO: Treating brands individually. DO: Connect brands centrally, leverage shared data, and enhance the customer journey. Slide 8: Solely DTC NO: Depending solely on DTC volume. DO: Value and integrate traditional retail partners like Walmart, Target, and Kroger. Slide 9: Mass Media NO: Sticking to traditional mass media marketing. DO: Adapt DTC marketing tactics for a diverse, engaging, and personalized consumer experience. Slide 10: Defensive Tactics NO: Resisting innovative initiatives due to corporate challenges. DO: Embrace risk-taking, facilitate internal collaboration, and drive DTC change management.

🎠 Social Carousel

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Slide 1: "10 DTC Strategies Every Marketer Needs to Know" Slide 2: "Brand Selection" Choose based on factors like order value and logistic feasibility. Slide 3: "Niche Advantage" Digitally native brands excel in specialized consumer interaction. Slide 4: "Varied Offerings" Introduce flavors and variations for consumer preferences. Slide 5: "Lower Risk Testing" DTC allows product testing, user feedback, lowering market risk. Slide 6: "Fandom Building" Use DTC for unique product drops, building consumer loyalty. Slide 7: "Tech Stack Overhaul" New digital-based tech stack can overcome traditional tech limitations. Slide 8: "Central Connection" Connect all brands for collective data and consumer service boost. Slide 9: "Retail Partnerships" Importance of partners like Walmart, Target, despite DTC growth. Slide 10: "DTC Direction" Some brands see DTC as a business unit, others as a channel. Slide 11: "Ready to Level-Up Your Marketing Strategy? Listen to DTC POD's latest episode with Carter Jensen for more insights."

One Off Tweets

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1. Carter Jensen, Global D to C Leader of General Mills, shared his insights on how the food titan is ready to serve its customers directly. Eye-opening episode coming up! 2. The rising competition from digital brands isn't scaring Cheerios! They're leveraging their mass market shelf space and constantly innovating with new flavors. Stay tuned to learn more! 3. Ever wondered how big manufacturers like General Mills take on D to C in an increasingly digital world? You're about to find out. Don't miss this episode! 4. Epic Provisions' success in D to C served as a starting point for General Mills. Curious where they headed from there? Join the conversation! 5. Initial D to C launches were chosen carefully at General Mills. Lighter and smaller products took the center stage. Carter Jensen tells us more! 6. Getting a box of Cheerios across the country can be pricey. But for certain brands, D to C is crucial. Hear about our strategic dives in direct consumer connections. 7. Is D to C cannibalistic to traditional retail? Carter Jensen shares how it can complement and enhance a consumer's experience. 8. General Mills launched Ratiofood.com specifically for the Keto market. Tune in to know more about their targeted D to C endeavors. 9. Building a new tech stack to go parallel with the enterprise system, General Mills is ready to tackle digital trade on its terms! More on this in our episode. 10. Transitioning to D to C faced operational challenges but General Mills adapted by arming their marketers with new tools and building dedicated teams. Hear all about it!

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