Fail Forward #9 | The R20 Million Marketing Mistake: Drip’s Fall Explained! | Malesela & Roche
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In this compelling episode of Fail Forward Friday, Malesela and Roche delve into the dramatic rise and fall of Drip Footwear, a once-celebrated South African sneaker brand. They scrutinize the company's decision to invest R20 million in billboard advertising without a clear strategy to convert that exposure into sales, highlighting the critical need for entrepreneurs to understand the relationship between marketing expenditures and revenue generation.
Roche emphasises the importance of cost management and warns against the dangers of rapid, unchecked growth. He underscores that while managing costs can stabilise a business, true success lies in driving revenue upward. Malesela adds that entrepreneurs should seek mentorship and advisory boards to gain a comprehensive understanding of various business facets, ensuring informed decision-making.
The discussion also touches on personal challenges faced by Drip's founder, Lekau Sehoana, including allegations of financial mismanagement, extravagant spending, and legal issues. These factors, coupled with the tragic assassination of the company's Chief Operations Officer, contributed to the brand's downfall.
Despite the setbacks, the hosts express hope for Sehoana's future endeavours, noting his recent launch of Ubuhle Bendalo Investments, a diversified investment company focusing on sectors like fintech, retail, mining, insurance, and property development.
They encourage him to leverage his experiences to build something even greater, embodying the spirit of "failing forward."
The episode concludes with a call to action for listeners to engage in discussions about business failures and successes, emphasising that failure is not the end but a stepping stone to growth and resilience.
Roche emphasises the importance of cost management and warns against the dangers of rapid, unchecked growth. He underscores that while managing costs can stabilise a business, true success lies in driving revenue upward. Malesela adds that entrepreneurs should seek mentorship and advisory boards to gain a comprehensive understanding of various business facets, ensuring informed decision-making.
The discussion also touches on personal challenges faced by Drip's founder, Lekau Sehoana, including allegations of financial mismanagement, extravagant spending, and legal issues. These factors, coupled with the tragic assassination of the company's Chief Operations Officer, contributed to the brand's downfall.
Despite the setbacks, the hosts express hope for Sehoana's future endeavours, noting his recent launch of Ubuhle Bendalo Investments, a diversified investment company focusing on sectors like fintech, retail, mining, insurance, and property development.
They encourage him to leverage his experiences to build something even greater, embodying the spirit of "failing forward."
The episode concludes with a call to action for listeners to engage in discussions about business failures and successes, emphasising that failure is not the end but a stepping stone to growth and resilience.