An Instagram post from one of our clients.
The path to success is rarely linear or the same as for others.
Pabst Blue Ribbon’s (or PBR) rise and fall is a story of a market finding a product — unfortunately, it 170 years for it to happen. PBR has been around for 170 years but only in 2008 enjoyed a 6 year boom in popularity (outside of a brief moment in the 1970s). If hipsters were around 170 years ago, it wouldn’t have taken one hundred seventy years for PBR to find popularity.
It is better to find an under-served market and create a product/service for them than wait for a market to find your product/service.
Hipsters are known for following the latest trends and fashions, while eschewing things regarded as being within the cultural mainstream. Hence the term, “I was into __________ before it was cool.”
So why did hipsters like PBR? To put it simply, it was “retro chic”, anti-mainstream, and with many people still trying to recover from an economic recession, Pabst Blue Ribbon’s low price point was an attractive option. This brings us to a tool in marketing used to find customer groups — psychographic segmentation.
What is Psychographic Segmentation for Business?
Psychographic segmentation is used in market research as a way to divide consumers into sub-groups based on shared psychological characteristics, including subconscious or conscious beliefs, motivations, and priorities to explain and predict consumer behavior. Any dimension can be used to segment a group of consumers such as style, variety, availability, price, etc.
Hipsters avoided things that were popular and some of them were not price sensitive so they were willing to consider a range of beers that occupied a certain psychographic zone.
As PBR’s popularity grew, it was departing from the zone of consideration – the region of price and popularity where hipsters were willing purchase from. Also, as hipsterism became more mainstream, the association of PBR with hipsters caused a self-fueling downward cycle.
How to Use Psychographic Segmentation for Business?
Since you don’t have over one hundred fifty years for your product or service to be found by a market, it is better to find an under-served market and create a product/service for them than wait for a market to find your product/service. You can read about more businesses that found a need and filled that need.
Your Startup Guru used psychographic analysis to differentiate our client’s brand from that of their competitors yet stay true to their envisioned identity:
How to Do Market Research for Business?
There are many sources at your disposal to gain a deeper insight into who your customers are and segments within that market.
So What Should Pabst Blue Ribbon Do?
Given that hipsterism is on the way out, a brand extension with Pabst [pick your color] Ribbon which is guerilla marketed to a new niche market segment such as Yuccies: Young Urban Creatives (that are a slice of Gen Y) with product placement on their YouTube channels is a viability…or wait another +100 years.
Contact us today to get started on market research that will help pinpoint your target market.
Money is extraordinarily tight for most people right now so starting a business is a pipe dream that has been put on hold indefinitely. However, you can make the choice and do the many things you can do with little or no money to continue to make incremental progress.
One of the most important yet least expensive things you can do is gain knowledge. Research into who your customers are, who your competitors are, what it costs to launch, who can supply raw materials for your product, etc. is relatively inexpensive with a simple online search but a critical. Research is an important task because it also tells you if your idea is feasible. A feasibility study is done to consider the various aspects of a business to see if it is a viable undertaking. Very briefly, feasibility studies are curtailed business plan-like documents where you outline your product/service, the business model, your competitors and your customers, expected revenues/expenses/startup costs. A well done feasibility study can save hundreds of hours and thousands of dollars in sunk costs.
Your Startup Guru offers price matching, discounted fees, and revenue sharing options to work with tight budgets. Contact us to get started on your feasibility study.
Make the right choice — do not go back to sleep and just dream.
NPR’s How I Built This is a fantastic podcast that brings the stories behind some of the world’s best-known companies. How I Built This interviews innovators, entrepreneurs and idealists about the movements they built.
In this episode, they interview John Foley, one of the co-founders of Peloton; the fitness and media company that you’ve probably seen commercials for.
In the interview, they greatly undervalued John Foley’s network and experience but nonetheless, this episode touched on several relevant topics my clients often face. I picked this episode because it was a little more in-depth and enlightening than other episodes in that Foley he talks about:
There are also great questions asked by interviewer that touches on market trends such as arcades no longer thriving due to user experience-to-price dynamics (i.e. video game consoles vs arcades due to quality of experience), penetration/awareness strategy which led to their distribution model given that malls are making an industry correction, and lastly the trademark question: “How much of this was because of your intelligence and hard work, and how much of this was just luck?”
The entire podcast can be heard here
Sans Bar is a one-of-a-kind sober bar in Austin, TX. Their mission is to provide a safe, sober environment for adults to celebrate life while promoting personal and social wellness.
Your Startup Guru created financial projections for founder, Chris Marshall. With the help of this important document, entrepreneurs can see how much they need to make and save in order to meet their financial needs; in addition to many many other uses. You can read more about the importance of a financial plan.
Excess inventory, cost management, and other issues are a reality for most businesses. When uncontrolled, a business can face inadequate cash reserves and even bankruptcy.
To mitigate these issues, proper industry and market research coupled with financial planning for contingencies is crucial for any business. Whether you’re in the ideation phase or are already up and running, knowing how much to allocate to the various activities a business engages in is difficult so contact me and let’s create a strategy that works for your business.
It’s summer and festival season is here. Events are big business with over 87 million people attending trade shows, conventions, & conferences; while 32 million people attend music festival. Some annual industry and market stats:
Events are targeted. So attendees are in your market, many in your target market. Renting a booth, depending on the event, can be fairly inexpensive. This is an economical means of raising awareness for your product/service for the following reasons:
Some of what you may need depending on the event:
Read more about festivals and marketing.
Contact me and let’s see what strategy works best for your business.