With an average viewership of over 3.6 million per season, “Shark Tank” is unquestionably one of the most suspenseful and fascinating reality series produced in the United States as well as anywhere else in the world.
The experience of seeing aspiring business owners present their business plans to a panel of investors for the chance to secure million-dollar transactions is surely interesting, and each episode is notably different from the others in its own special way.
In today’s lesson, we are going to analyze Shark Tank from a social media marketing and marketing point of view. What are the most essential lessons that every company can learn from this and apply to their own plans, and how can they do so?
Who Is The Shark Tank?
“Shark Tank” is a popular television show that airs on ABC in the United States.
The show has been on the air since 2009 and has become a popular platform for entrepreneurs to showcase their ideas and potentially secure funding for their ventures. Each episode features a variety of pitches from entrepreneurs looking for investment, and the sharks use their expertise and business acumen to evaluate the potential of each business and determine whether or not to make an investment.
The show is known for its entertaining and informative format, as well as the tough negotiations and deals that take place between the entrepreneurs and the sharks.
Shark Tank and Social Media Marketing
Social media marketing can be a powerful tool for entrepreneurs who are looking to promote their businesses and reach new customers. In fact, many of the entrepreneurs who appear on “Shark Tank” have used social media to build buzz and attract attention to their products or services.
There are several ways in which entrepreneurs on “Shark Tank” have used social media to their advantage:
- Building a strong online presence: Entrepreneurs can use social media platforms like Facebook, Instagram, and Twitter to build a strong online presence and connect with potential customers. By regularly posting updates, engaging with followers, and running social media ads, entrepreneurs can build a loyal following and generate interest in their businesses.
- Crowdfunding campaigns: Many entrepreneurs on “Shark Tank” have used crowdfunding platforms like Kickstarter and Indiegogo to raise money for their businesses.
- Influencer marketing: Entrepreneurs on “Shark Tank” have also used influencer marketing to promote their products and services. By partnering with popular social media influencers who have large followings, entrepreneurs can reach a larger audience and generate more interest in their businesses.
- Customer service: Social media can also be a useful tool for entrepreneurs to connect with their customers and provide them with good customer service. By responding to customer inquiries and complaints on social media, entrepreneurs can build trust and loyalty with their customers.
Overall, social media can be a valuable asset for entrepreneurs looking to promote their businesses and reach new customers. By leveraging the power of social media, entrepreneurs can build a strong online presence, raise money, and connect with their customers in a meaningful way.
Tips for Success from the Shark Tank
Instead of selling products, you should sell solutions.
People want to make a purchase that will satisfy a requirement or problem that they already have. It doesn’t matter if you’re trying to sell your products to potential buyers, investors, or even your own friends and family; you shouldn’t brag about how wonderful the product is or how brilliant you are for having come up with the idea.
Instead, you should concentrate on the issue that it intends to address and the ways in which it can improve people’s lives. When SparkCharge appeared on “Shark Tank,” their goal was to secure a deal worth one million dollars, and they did just this.
The creators of the company began their presentation by discussing a genuine issue that people who drive electric cars face in everyday life: what should they do if the battery in their vehicle dies? The majority of the time, there is no charging station in the area, or the owner must wait a significant amount of time before they are able to use the car.
What is the answer? A portable battery charger that is simple for individuals to use while on the move. In the end, Mark Cuban and Lori Greiner were able to make a deal with the company, and in the process, they imparted some important knowledge to everyone else.
As long as you can back up the value you’re asking for, you can charge anything you want.
Have you ever stood in front of a $300 Gucci T-shirt and thought to yourself how absurd the price is for what is essentially a T-shirt? However, they still manage to sell hundreds of them at even higher costs by arguing that the value is justified by the fact that the brand is exclusive.
During a presentation at Shark Tank, the startup Larq did an excellent job of proving the validity of their hypothesis. They wanted an astounding half a million dollars in exchange for one percent ownership of their company in exchange for their breakthrough self-cleaning and self-purifying water bottles. The cost of a single bottle comes in at ninety-five dollars.
It brought to Daymond John’s attention the fact that he already possessed one, at which point he screamed, “I spent $95 for this?”
The main idea here is that consumers are willing to pay a significant amount of money for a product or service as long as the provider can demonstrate that the money is well spent. Apple’s products are far more expensive than those made by other companies; nonetheless, this does not deter a significant number of consumers from purchasing Apple goods.
Even if they are aware that they can get a product with the same functionality for a cheaper price, they still find value in Apple’s electronic products because of the one-of-a-kind environment that Apple creates, as well as the gorgeous design of Apple’s products.
Therefore, you are free to choose any price you choose for your product so long as you can adequately defend the value it brings to customers.
Adapt yourself and ride the wave of trends with panache.
The next firm on our list is Numilk, which is a business that has opted to teach us an important lesson about adjusting to new trends in an effective and tasteful manner. During Season 12, the entrepreneurs offered an incredible new product to the panel of “Shark Tank” investors: a machine that makes it quick and simple to produce any and all of your preferred plant-based milk.
Even at the beginning of the presentation, they said things like “Sharks, milk today symbolizes something very distinct than what the milkman used to carry to our houses.” Numilk made the decision to focus on a sector of the industry that is still developing: consumers who do not consume dairy products.
According to Morning Consult, almost one-third of adults in the United States consume non-dairy milk on at least a weekly basis.
The society we live in is quite dynamic, and new fashions appear and disappear in what seems like the blink of an eye. Some will, of course, remain in this area. The important thing for businesses to remember, however, is that they need to remain constantly aware of what is going on in their environment and have the ability to make adjustments as quickly as possible in order to avoid falling behind in the competition.
One approach to monitoring external influences that can have an effect on your company is to use a model called PESTEC.
A flawed business model cannot be saved by effective marketing.
You have certainly heard the expression “You can’t outrun a bad diet,” and while this is true, it can also be applicable to other aspects of our lives as well.
For example, you can’t escape a terrible diet if you have a poor diet. If you don’t have a solid product or a business model, it won’t matter how much exposure you have in the business world or how effective your marketing approach is. Both of those things are meaningless without the other.
It might be successful at first, but sooner or later, it will turn around and bite you in the behind. Toygaroo, a startup that came onto Shark Tank claiming to be the “Netflix of toys” and proposing a subscription-based toy service, did not succeed because of this factor. Toygaroo failed because of this factor.
People (and the sharks) thought the company’s proposal was great. Mark Cuban and Kevin O’Leary, both of the television show “Shark Tank,” each put $100,000 into the venture in exchange for a 35% ownership stake in the company.
However, the organization was unable to satisfy the demand, either in terms of the amount of time available or the number of human resources available. In point of fact, there were just three people working on packing the orders into boxes and sending them out. In the end, they were unable to scale quickly enough to fulfil the demand of their customers, which along with poor organisation and time management led to the company filing for bankruptcy.
A fantastic idea for a business may be doomed to failure if it is not accompanied with a growth strategy that is both specific and attainable.
Be cautious when determining who your audience is and how to target them.
Finding the correct demographic for your product is one of the most difficult challenges that many companies face, but it is also one of the most essential tasks to take before your product is even manufactured. After you have successfully identified the issue, the next stage is to devise a strategy for effectively resolving it.
When Cougar Limited appeared on “Shark Tank,” they wanted to sell their Cougar Energy Drink for $150,000 in exchange for a 30% equity stake in the company. The so-called “cougars” were their primary audience focus; this is a slang term for women in their 40s or older who date much younger men, generally with an age gap of 10 years or more.
On the one hand, their target demographic was incredibly niche, which meant that they were putting themselves in a position to fail in terms of scaling to a potentially larger market size. Another problem that the sharks had with the product and the brand was that they had a condescending attitude toward the people who bought their products.
After all, the majority of women in their 40s who are interested in dating someone younger do not consider themselves to be “cougars,” and they are not likely to buy an energy drink simply because the brand refers to them in this manner. In addition to this, they do not fall into the primary target audience for energy drinks either.
Young individuals between the ages of 18 and 34 are the largest demographic of consumers of energy drinks, according to a study that was recently published on the website of the National Library of Medicine.
In conclusion, the fifth and last lesson that we have learned from Shark Tank Marketing is that if you do not correctly identify and reach your target audience, you run the risk of having your company fail.
The ability to think creatively can put you ahead of the competition.
The next company on our list of marketing lessons from Shark Tank is Vengo Labs. This company appeared on the show seeking $2 million in exchange for 12.5% of the company’s ownership. What is their offering? Vending machines that are both compact and high-tech, but with an added twist: the screens can be converted into digital DOOH screens so that more advertising may be displayed on them, thereby generating additional cash.
The corporation did not stop at merely producing a product that is truly wonderful on its own; rather, they managed to take advantage of it in a variety of various ways in order to make the most of their revenue potential.
In addition to their function as vending machines, Vengo machines enable marketers to distribute interactive content, collect data that can be put to use in marketing, measure conversions, and offer products precisely where customers have a demand for them. Awesome, right?
In the end, the company decided to go through with Kevin O’Leary and Lori Greiner’s proposal, which called for a repayment of $2 million at 3% interest over a period of 36 months.
Have a distinctive selling proposition.
Next on our list of critical lessons that we can all learn from Shark Tank Marketing is the significance of having a unique selling proposition, or determining what distinguishes your product from that of your competitors.
When Keidy and Gene appeared on the show “Shark Tank,” they were seeking an investment of $150,000 in exchange for a 10% interest in their company, XTorch. Everyone on the panel was blown away by the product, but they all had the same question: What makes XTorch so unique compared to standard torches that can be purchased at any hardware or home improvement store?
To put it another way, why should anyone purchase an XTorch, which has a suggested retail price of $49.95, rather than a standard torch, which retails for $19.99?
Every company really needs to have their own distinctive selling point or USP. How are you going to persuade other people to buy your product if you don’t know or can’t explain how it is different from the products offered by your competitors?
The following statement, which serves as XTorch’s unique selling proposition and is spot on from a marketing standpoint: “The only rechargeable, solar-powered flashlight-lantern-phone charger you can count on.” They left the show without striking a deal with any of the sharks, but they undoubtedly enlightened us on something very important.
And it brings my contribution for today to a close! I really hope you enjoyed reading my post on some of the most important principles that can be learned by watching Shark Tank Marketing, and I really hope to see you in the next one!