100 involved fans
Pepsi’s new positioning will better distinguish itself from industry leader, Coca Cola, by appealing to a younger, bolder, “unapologetic” audience. The usage of black and dark blue reference Pepsi’s zero sugar designs because all Pepsi products will see a reduction in sugar content. Pepsi is a large company that navigates through vastly different strategies than a smaller company would. This is why a company like Sprecher Brewing Company, producer of Green River soda, is not a direct competitor to Pepsi and strategizes differently to stay relevant in their region.
Airbnb, before anyone knew about Airbnb, offered their value to a niche group of travelling, early adopters who connected deeply with what the company was doing. Airbnb focused on 100 of their most loyal customers, because if they could make 100 customers love everything about Airbnb, then they could surely reach 1000 customers. If there are 1000 customers who love you and each one gives you $100 per year, you have a livable gross income of $100,000.
“It was better to have 100 people who loved us vs. 1 million people who liked us. All movements grow this way. There was no way we could get 1 million people on Airbnb, but we could get 100 people to love us.”
– Brian Chesky, Founder & CEO of Airbnb
Seth Godin’s term, Minimum Viable Audience (MVA), refers to the smallest possible audience that can sustain your business when you start with a microniche. To find your MVA, find gaps in your market’s microniches where needs are not met. Define the group, get audience feedback, revise your MVA, and repeat until you define perfect brand-market fit.
Airbnb focused on a microniche of people who were most interested in unique experiences, travel, and new technology. These elite customers provided more than financial support. A start up needs more than just money, so their MVA offered productive feedback, trial and error with new products and services, and they spread the word about this cool, new company.
When we are able to define who our people are, we are better able to offer them what they want. An ad (direct marketing) can make us buy something, but our friend can make us interested. Finding a way into your audiences’ conversations is how startups find growth with good roots.