New companies gain momentum and expand and try new ideas. Some of them work and some of them don’t. The companies that survive return to their branding strengths and the growth continues. Such is the case with Shark Tank winner Daisy Cakes.
Shark Tank is a reality show featuring entrepreneurs pitching their idea to a panel of investors. Daisy Cakes made a pitch in 2011 and won the attention of Barbara Corcoran. Since that time, Daisy Cakes, based in South Carolina, expanded and added production in Tennessee and a few other states.
Daisy Cakes' claim to fame is the use of family recipes and wholesome, simple ingredients in their four-layer cakes. They also include southern hospitality and ship from their kitchen to yours. Oh, and they promote a “Made in America” theme with all of their supplies.
Daisy Cakes was selling 1,000 cakes over the course of two years before Shark Tank. After the appearance on Shark Tank, Daisy Cakes was selling 10,000 cakes a week. In order to meet this demand, Kim Nelson, the owner of Daisy Cakes, contracted with bakers in several states. The cakes were not of the same high quality and she lost customers. She learned the most valuable lesson of her brand: stick to your strengths. She realized her strength in Daisy Cakes is not to bake them on a large scale but to bake them individually with hand-sifted, made-from-scratch ingredients. She brought production back home to South Carolina.
It is important to build scalability into your brand, but be sure you do it while keeping the strength of the brand.