Marketing Deep Dive: Ninja SLUSHi

Over the last 3 months the Ninja SLUSHi from Shark Ninja has become a runaway hit with people stalking local and online retailers waiting for them to come back in stock. It's popularity stuck out to me, especially given the economic conditions we're in and the product's $300 MSRP so I spent some time trying to understand what was going on because there are lessons for anyone looking to launch a B2B or B2C product.

TL:DR

• Despite concerns about the economy, consumer spending is up
• This leans into the "affordable luxury" trend
• The product launching over the Summer lends itself to increased awareness
• Allows people to get restaurant style beverages without having to leave home
• Recipe customizations + rave reviews + referrals = $$$$

Setting the Stage

The first step of our deep dive begins with taking a few steps back to understand the backdrop of the product release. The US economy has been surrounded by questions of possible recessions and the impact of inflation. Recent reports, however, indicate that the economy is showing signs of life.

The Bureau of Labor Statistics reported an increase in employment of 254,000 jobs in September 2024, higher than the expectation of only 147,000 jobs. (source )

Inflation was up 2.4% in September 2024, which is the lowest rate of inflation since February 2021 with prices for energy coming down significantly. (source )

September retail sales rose 0.4% last month after an unrevised 0.1% gain in August. (source )

Interest rates are slowly coming down and projected to continue declining into 2025, which is another good sign. At a very high level, we see that people (at least some people) are feeling good about the economy and expressing their optimism with their wallet. This begs the question - "what are they buying?"

Lipstick Effect Meets Affordable Luxury

Going one level deeper from how people are feeling about the economy and is to understand how they're dealing with it. Higher prices have left many without any of the savings they built up during the lockdowns and restrictions of 2019 - 2021. One way people deal with these circumstance is what's labeled the Lipstick Effect where people splurge on select individual items as a way of treating themselves in spite of the uncertainty they're surrounded with.

As you may imagine from the name, the effect was initially seen with purchase of cosmetic products but it could be anything from a handbag to a small appliance.

Social media is filled of pictures and videos with people traveling to all corners of the world enjoying life and if you're unable to do the same you want something you can afford that brings you joy and feels like a good value. This sense of value can come from the product being discounted, having a low retail price, or having an extended time of use. Afterall, paying $100 for something you might only use for a few months is different than something you might use for several years.

This brings us to the affordable luxury trend, which is typically found in fashion where people purchase high end items for more reasonable prices. This could be the result of upscaling a find from a thrift store, buying a previously owned product, or purchasing from a growing number of retailers that are referred to as diffusion lines . Consider retailers like Zara or H&M who take popular looks, but provide them for much less. Another example would be Quince who promotes comparable products on their website so you can see that you're getting a good deal.

The Customer Insight

With prices increasing almost everywhere, going out can be prohibitively expensive. When people want restaurant-quality food without going to a restaurant there are plenty of platforms that can meet their needs with Uber Eats, GrubHub, and DoorDash connecting people with whatever cuisine they want. Shark Ninja saw the same thing with the CEO, Mark Barrocas, saying the following during their Q2 2024 earning call:

The Ninja SLUSHi launched on July 11, 2024 which alone shows an understanding of the opportunity. Summer is in fully swing and kids are out of school. It's possible that someone could go to 7-Eleven for a Slurpie, Wendy's for a frosty, or to restaurant for a frozen margarita or milkshake, but depending on how many children you have and how much free time you have making all those trips may not be possible. Now a single product can create frozen treats for everyone in the family at a price point that many can rationalize considering many restaurants charge between $10 - $20 for a frozen margarita.

There are lots of machines out there that make frozen margaritas or slushies, but there are lot of complaints about reliability, the consistency of the drinks they make, and other quality issues. With the SLUSHi retailing for $299, you can spend less but for people looking for a better experience a Ninja product has the ability to stand out given all the other product they make and are known for across the consumer appliance space.

How the Ninja SLUSHi Broke Through

Launching a product doesn't guarantee that people will like it or that it will become a viral sensation. Being launched by a multi-billion corporate is a big help, but it takes a lot of different things happening at the same time.

Retail Partnerships

Ninja products are everywhere. It doesn't matter if you're walking around a Walmart, Target, or a Crate & Barrel you're going to find their products. You'll also find them on Amazon or QVC. This is going to create a level of awareness that other brands aren't able to match due to not having the same retail distribution. While there are lots of people who will search and sort by ascending price but when everything else is under $100 and you see something for $300 there are going to be people who'll wonder if it's worth the extra money and some will buy it to find out.

Influencers & Reviews

When a product wants to stand out, 3rd party reviews and recommendation can go a long way. According to The State of Online Reviews Among U.S. Shoppers report, online reviews are the most compelling source used to make a purchase decision.

Here's a list of the different media outlets who've reviewed the Ninja SLUSHi since it came out:

- Mashable - https://mashable.com/article/meet-ninja-frozen-drink-machine-slushi

- TechRadar - https://www.techradar.com/reviews/ninja-slushi

- CNN - https://www.cnn.com/cnn-underscored/reviews/ninja-slushi

- New York Times - https://www.nytimes.com/wirecutter/reviews/ninja-slushi-review/

- New York Magazine - https://nymag.com/strategist/article/ninja-slushi-review.html

This kind of exposure amounts to millions of dollars worth of exposure. If you look on YouTube, Instagram, and TikTok you'll see something similar. When it feels like you're surrounded by a product it's easy to go from uninterested to curious.

Advocacy

In addition to the reviews, you'll find people showing you everything you can do with your Ninja SLUSHi. The internet is full of articles and videos of people sharing their favorite recipes including low sugar recipes which is a big concern for people with diabetes. It can be difficult to identify your advocates, let alone enable them to have an impact but Ninja hasn't run into that issue.

The Result?

With all of these insights and activations, what does Ninja have to show for it? A hit product. They've create a product that's operated in its own category with more searches than other similar popular products.

The product has "sold out" several times and is of several recent product launches from Ninja that have helped the customer see an increase in their stock price of over 100%.