American Marketing: How to Make $100 Million on Smiley Kitchen Sponges (3 photos)
American Aaron Krause has achieved incredible success in the seemingly well-established niche of the kitchen sponge market. He transformed ordinary sponges into cheerful smiley faces. These smiling sponges are extremely popular in the US, despite costing twice as much as their faceless competitors. Scrub Daddy sponges are a success thanks to clever marketing and creative functionality. 
What does a 42-year-old man have in common with kitchen sponges? Like any car owner, Aaron Krause occasionally needed to clean his car. One day, when faced with heavy dirt, he damaged the car's surface with a sponge that was too harsh. The car owner frustratedly noted that the American market lacked multi-purpose cleaning sponges that could handle all tasks. Thus, the idea for the universal Scrub Daddy sponge was born.
Aaron Krause opened his business in 2012. He developed a sponge that tackles any type of dirt without damaging the surface. Most importantly, Scrub Daddy sponges require little effort to remove even the most stubborn dirt. The friendly smiley faces don't absorb unpleasant odors. The porous material doesn't accumulate dirt residue, making it unsuitable for bacteria growth. 
The unusual shape of the sponges isn't a whim or a whim. As it turns out, the round sponge is comfortable to hold and doesn't slip while washing dishes. By inserting your fingers through the "eyes," you can easily reach the bottom of a tall pitcher. The round, ribbed edge effectively cleans the inside of faceted walls, which is difficult to achieve with a traditional sponge. Even the smiling "mouth" isn't just for decoration. It easily cleans spoons, frying spatulas, and the like.
The initial sales of Scrub Daddy were rather modest. A chain of small grocery stores turned out to be not the best way to promote a new product. Aaron Krause decided to appear on the popular startup TV show Shark Tank and caused quite a stir. Investor skepticism vanished as soon as the entrepreneur began demonstrating the practical application of the foam smiley faces.
How the Scrub Daddy sponge works
An American man signed a deal with an investor who specializes in teleshopping. Under the terms of the deal, Aaron Crouse transferred a 20% stake in the company to the investor, for which he received $200,000. To date, the smiley sponge has been chosen by 50 million customers, despite its price being $14 compared to $5 for a regular sponge. 
In 2016, Aaron Crouse was named EY Entrepreneur of the Year.
According to the startup TV show Shark Tank, Scrub Daddy sales have exceeded $100 million. What made Aaron Cruz's company the most successful startup in the history of the TV show? The investor considers the 20% stake he acquired a very profitable investment. The contract with Aaron Cruz earned him $75 million in just three years. The company, which produces smiley lips, employs fifty people.
