Squatty potty marketing

W18005

SQUATTY POTTY: ASSESSING DIGITAL MARKETING CAMPAIGN DATA

John Dinsmore wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality.

This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com.

Copyright © 2018, Ivey Business School Foundation Version: 2018-01-31

In October 2015, Squatty Potty’s chief executive officer Bobby Edwards launched the first viral video campaign in the company’s history. In terms of cost, it represented the largest single marketing promotion ever for the company’s home remedy for constipation—a foot stool that made going to the bathroom more ergonomic. Further raising the stakes of his decision, Edwards’s three business partners—his mother, his father, and Lori Greiner, a retail magnate and star of the television show Shark Tank—had reservations and objections about the campaign. The partners worried that an irreverent viral video could be expensive, ineffective, and even offensive to the target markets.

For the good of the business, the strength of the partnership, and the efficacy of future marketing efforts, it was critical that Edwards be able to provide credible proof of the campaign’s efficacy. In addition, his ability to critically assess the strengths, weaknesses, and outcomes of the campaign would provide precious insight to shape future promotion campaigns, both online and offline.

THE MARKET

It had been estimated that in the United States, constipation affected 19 per cent of all adults1 and 29 per cent of all children.2 And the risks posed from long-term, chronic constipation were severe, requiring significant medical interventions such as surgery. In 2011, over-the-counter remedies for constipation generated $1.3 billion3 in the United States alone.4 Although this was a significant figure, it did not include un-diagnosed or un-treated cases, prescription drugs for constipation, medical devices related to constipation, doctor visits, hospitalizations, surgeries, or treated conditions related to constipation such as hemorrhoids, incontinence, and fissures.

1 Karen Pallarito, “Constipation May Lead to Other Problems,” US News & World Report, June 28, 2009, accessed September 4, 2017, http://health.usnews.com/health-news/family-health/brain-and-behavior/articles/2009/06/28/constipation-may-lead- to-other-problems. 2 Shaman Rajindrajith, Niranga Manjuri Devanarayana, Bonaventure Jayasiri Crispus Perera, and Marc Alexander Benninga, “Childhood Constipation as an Emerging Public Health Problem, World Journal of Gastroenterology 22, 30 (August 14, 2016), doi:10.3748/wjg.v22.i30.6864. 3 All currency amounts are in U.S. dollars unless otherwise specified. 4 “Laxatives OTC Revenue in the United States from 2011 to 2016 (in Million U.S. Dollars)”, Statista, accessed September 4, 2017, www.statista.com/statistics/506583/otc-revenue-of-laxatives-in-the-us.

For the exclusive use of D. Merians Penaloza, 2018.

This document is authorized for use only by Diane Merians Penaloza in 2018.

www.statista.com/statistics/506583/otc-revenue-of-laxatives-in-the-us
http://health.usnews.com/health-news/family-health/brain-and-behavior/articles/2009/06/28/constipation-may-lead
http:www.iveycases.com
mailto:cases@ivey.ca
Page 2 9B18A002

There was an enormous market for medicine or, in the case of Squatty Potty, medical equipment to address constipation. In fact, the device was not just relegated to people with gastrointestinal issues. It had a clear application as a preventative measure for health-conscious households. And while constipation affected all walks of life, the purchase of these solutions was typically driven by women—specifically mothers—who accounted for 70–80 per cent of all household purchases. The average age of a first-time mother in the United States was 26.5

The Edwards family saw an untapped potential in this market. The barrier to much of this market was overcoming the social stigma related to discussing colorectal health. Constipation and bowel movements were highly intimate topics that most people had difficulty discussing or admitting to, even with their doctors. “We were talking about a subject that nobody wanted to talk about. I’m still embarrassed to talk about it,” admitted Edwards’s mother, Judy.6

However, the culture was evolving, as Edwards explained: “When you had cultural icons like Oprah Winfrey and Dr. Oz talking about poop, it meant something. The personal embarrassment of the topic was being overtaken by recognition of constipation as a significant health issue.” There was an opportunity for Squatty Potty—if it could artfully create a good fit for its market, product, and promotion. Doing so required not only identifying the right markets and marketing channels, but also the right messaging.