The Hero Product Trap: When One Product Carries the Company’s Weight

Every entrepreneur dreams of a breakout product. That one success that propels their company to new heights. For the Dollar Shave Club, it was their $1 shaving sticks and for Apple, it was the iPhone.

But what happens when that single product becomes the sole focus, carrying the entire weight of the company’s revenue and brand identity? This post covers everything you need to know about having a hero product and how it can become a nightmare using Toms shoes as a case study.

What is a Hero Product?

A hero product is the launch pad for a brand because it is the star player within a brand’s offering. It is usually the product most people associate a business with since it builds the brand’s identity while creating opportunities for other products. For example, when you think of Hermes, you think about the Birkin bag. That is because it’s the brand’s hero product.

Your hero product could be unique, address a specific need or just a result of social media buzz. Whatever it is, the hero products are often best sellers that drive significant revenue and attract new customers.

Why is Having a Hero Product Important?

The benefits of having a hero product are enormous, especially as a new business. Some of them include;

1. Brand recognition: With a successful hero product, you get people talking about your brand. By simply promoting that product, you’re indirectly promoting your brand as well. It’s also a great way to establish your business in a market especially if you’re a new product or new entrant.
2. Loyal customers: Once customers like your hero product, they are more likely to become loyal to your brand. Over time, they are the ones who will purchase the other products you’ll offer.

The Allure of a Hero Product: A Case Study of TOMS the One-Shoe Wonder

If you loved trendy shoes between 2005–2010, you’re definitely familiar with the TOMS shoe. Being a hero product for the Toms brand, the shoe was trendy with a unique stylish design, affordable to a large customer base and offered a charitable feeling each time you purchased it.

This is because, for every pair you purchased, the brand donated another pair to a child in need. The unique approach resonated with consumers, immediately making the Toms brand a global phenomenon.

However, relying solely on the hero product presented challenges:

• Limited Market: TOMS’ core market primarily consisted of young, socially conscious consumers. This made it harder to break into another demographic.
• Product Saturation: The simple shoe design faced increasing competition, leading to market saturation. Every other shoe company had the same design so it wasn’t exactly unique anymore.
• Profitability Concerns: The “One for One” model, while impactful, came at a cost. TOMS struggled to generate sufficient profit margins to invest in other products.

By the late 2010s, TOMS faced significant financial difficulties. Their over-dependence on the hero product left them vulnerable to market fluctuations and competition.

So, while they did expand their product range by introducing new footwear styles, a glasses line, more clothing and changing the giving model, the company had taken too much of a hit by then. Today, when you think of the TOMS brand, you really only get a nostalgic feeling.

Lessons Learned on Hero Products from the TOMS Case Study

The hero product trap is a potential pitfall for any company. While TOMS has gotten new investors and is still working to rebrand, their experience offers valuable insights some of which include;

1. Diversify as soon as you can

As a business, you shouldn’t solely rely on a single product for long-term success, especially in eCommerce. Your customers can outgrow your products or find a better alternative. You need to constantly develop new products and explore new markets.

This lesson also applies to SAAS brands. Work on adding new features, adding new integrations and building products. It will constantly bring you up to date with consumer interests.

2. Build a sustainable business model

The buy one, donate one model was a great market entry target, but it wasn’t a sustainable model in the long run. Always focus on ensuring you have sufficient profit margins to support innovation and long-term business growth.

You also need to develop a brand identity that goes beyond your hero product. If your value proposition is in being socially conscious, find a way to make it profitable. TOMS shifted their focus to donating a percentage from each sale. However, they implemented this too late when they were already facing profitability concerns.

3. Invest in a Patent

Other brands will want to hop on your brand identity to generate sales. When you have a patent, it will reduce the number of imitations your product gets. Being able to distinguish your brand will create some sort of exclusivity that will prevent a case of over-saturation like the TOMS shoe.

4. A direct-to-consumer model will always trump the wholesale model

One key thing this post forgot to mention is how TOMS focused on a wholesale model. So they only shipped their products to popular retailers which made the profitability issue harder because retailers won’t exactly care about marketing your products unless they are trendy.

If the brand had adopted a direct-to-consumer approach first, it would have had a loyal base to study and capitalize on. So, try to always have a touchpoint with your customers before expanding to retailers.